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Published on July 2nd, 2021 | by The GC Team

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Dixons claims “strong performance” year ended 1 May 2021

In what the company described as a “challenging year,” Dixons has reported a “strong performance” in Group results for the year ended 1 May 2021.

Group like-for-like sales of electricals were up 14%, despite stores in the UK, Ireland, Norway, Denmark and Greece being shut for substantial periods.

Group total revenue was up 2% as growth was offset by the impact of high street store closures in Mobile.

Group adjusted profit before tax was £156 million, compared to £116 million in 2019/20, and Group statutory profit before tax recovered from a £140 million loss in 2019/20 to achieve a positive £33 million.

Electricals online sales grew 103% to £4.7bn, and the Group reported “significant acceleration in omnichannel transformation.” £73 million of furlough cash paid to UK & Ireland colleagues was repaid to the respective Governments, and strong cash flow generation drove a return to net cash on the balance sheet. The Group is restarting dividends, and a full year dividend of 3.0p is proposed.

In the UK &Ireland, electricals revenue was up 8% (+14% on a like-for-like basis), while Mobile revenue fell 55%, producing an adjusted EBIT loss of £117 million as sales in the division declined “due to UK standalone Carphone Warehouse store closures announced in March 2020, exacerbated by unexpected enforced 3-in-1 store closures.”

Group chief executive Alex Baldock said in a statement: “I’m so proud of my colleagues. They’ve navigated the challenges of the pandemic with skill and energy, helped many millions of people enjoy vital technology, kept our transformation on track, and performed strongly. Our big investments in colleague wellbeing, skills and reward have meant more engaged colleagues, and in turn more satisfied customers. This bodes well for our sustainable success.

“Technology has become even more central to people’s lives. As the market leader, with the winning omnichannel business model, we can make the most of that. The past year has seen us do so, growing a big online business and adding it to our in-store strengths. We’re now financially stronger too, allowing us to pay back over £200 million to governments and to recommence our dividend.

“But we’re most excited about what lies ahead. New technology platforms will add more fuel to our growth and to innovation that customers love and no-one else can get close to, whether getting them their amazing technology ever-faster, or helping them 24/7 with live video shopping.

“This year, we move to one brand in the UK (as we have in each international market), and Currys can become evermore the first choice for all things tech, electrical and mobile, products and services alike. The start of the financial year has seen continued strong trading in all our markets and I’m more confident than ever in our prospects.”

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