18th Oct 2007 07:02
DSG International PLC18 October 2007 PR 138/07 7.00am, Thursday 18 October 2007 DSG INTERNATIONAL PLC INTERIM TRADING STATEMENT DSG international plc is today updating the market on trading for the 24 weeksended 13 October 2007. 24 Weeks ended 13 October 2007Sales Total growth Like for like growth ELECTRICALS UK & Ireland +5% +6% Nordic +8% +4% Southern Europe +6% (3)% Italy +2% (8)% Greece +13% +7% Central Europe +16% n/a Total Electricals Division +7% +4% COMPUTING UK +2% +2% International +16% n/a Total Computing Division +4% +1% E-COMMERCE Division (Dixons.co.uk & FotoVista) n/a +26% Total Group +9% +5% Group like for like gross margin down 0.6%, in line with trends experienced inthe first quarter, largely driven by slower VISTA related hardware sales and achanging sales mix in Computing. Sir John Collins, Group Chairman, commented: "With total Group sales up 9% and like for like sales up 5% in the first half, Iam pleased with the performances of the UK Electricals businesses as well as inour operations in the Nordics, Greece and our expanding Central Europeanoperations. Across the UK and Europe sales continue to be driven by flat panel,high definition televisions, laptop computers, digital SLR cameras, gamesconsoles and accessories. In the UK and Nordics the strong start to the year continued through the firsthalf. PC World delivered good sales performance against a tough prior year comparativein the back to school period. The reduction in laptop stocks that arose out ofdisappointing sales of VISTA related products and a changing sales mix havereduced gross margins by around 2% in the computing division, impacting Groupprofits by around £20 million in the first half. Stocks are now at normallevels and we expect to recover some of the lost margin through the second half. Our performance in Italy remains disappointing with a weak consumer backdropcontinuing to affect sales growth. We continue to reposition the UniEuro brandand improve our proposition to the customer supported by the restructuredoperational base. We are investing in the store portfolio and initial salesfrom the new and refurbished stores are encouraging. As shown in the numbers we are reporting today our largest markets, particularlythe UK, have been resilient. There is much debate about the uncertain outlookin some of our markets for the consumer environment in 2008. Whilst profits inthe first half will be down year on year, the next 3 months include theimportant Christmas peak season, a period in which over half our annual profitsare generated. We are well prepared for this period and are cautiouslyoptimistic that our product pipeline and market leading propositions will exciteour customers. It already seems certain that products like high definitiontelevisions, i-Pods, MP3 players, laptops, digital cameras, games consoles andsatellite navigation equipment will be popular with our customers throughoutEurope over Christmas." The Group will announce interim results for the 24 weeks to 13 October 2007 on28 November 2007. - Ends - For further information David Lloyd-Seed, Director of Investor Relations, DSGi, 01727 205065Mark Webb, Corporate Media Relations Manager, DSGi, 01727 205019Jonathon Brill, Financial Dynamics, 020 7269 7170 Information on DSG international plc is available at http://www.dsgiplc.com NOTES: (1) The change in total sales for the Divisions and the Group are in Sterling and exclude discontinued operations. All other figures are in local currency. (2) Like for like sales are calculated based on stores that have been open for a full financial year both at the commencement and end of the financial period. Customer support agreement sales are excluded from all UK like for like calculations to remove the distorting effect of the introduction of pay as you go customer support agreements. Chains that are subject to closure have sales excluded as of the announcement date. (3) UK Electricals comprises Currys, Currys.digital and Dixons Tax Free. (4) UK Computing comprises PC World, DSGi Business and The TechGuys. Like for like sales are for PC World only. (5) The numbers of International Computing and Central Europe stores trading are insufficient for a meaningful like for like comparison to be made. (6) E-commerce division comprises Dixons.co.uk and FotoVista. Total sales growth is not meaningful due to the acquisition of FotoVista in the prior year. (7) Like for like gross margins are calculated for the Group excluding the e-commerce division. (8) Certain statements made in this announcement are forward looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future events or results referred to in these forward looking statements. Unless otherwise required by applicable laws, regulations or accounting standards, we do not undertake any obligation to update or revise any forward looking statements, whether as a result of new information, future developments or otherwise. (9) As announced on 11 October 2007, underlying Group profit before tax in the comparative period was £70.3 million. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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