Dixons in 'best shape' as it gains market share from collapsed Comet

The electricals retailer, which owns Currys and PC World, expects group full-year underlying profit before tax to be at the top end of market expectations of £75m to £85m.

In the year to April 30, like-for-like multichannel sales at Dixons surged 7% and total sales jumped 6%. Across the year Dixons worked on improving its stores, prices and customer service.

Dixons chief executive Sebastian James said: “This strong year puts Dixons in the best position it has been in for many years. I believe that we have a clear business model that allows us to flourish in an internet world.  I am very pleased to see us gaining share in nearly all of our multichannel businesses across Europe.”

The “strong” results are despite a difficult year in the electricals market and follow Comet’s collapse in November last year.

In its fourth quarter Dixons’ multichannel like-for-like sales increased 11% across its businesses in the UK and Ireland, where like-for-like sales rose 13% as the retailer gained market share.

Northern Europe like-for-likes increased 14% and market share also grew, but Southern Europe recorded a 5% fall in like-for-likes because of an “extremely difficult market”.

Dixons said it achieved a year-end net cash position – cash-on-hand – for the first time in a “number of years”.

James said: “It has been a busy time, with the start of a profound restructuring of parts of the portfolio, major changes in the competitive landscape, significant cost savings achieved and with the continued drive to transform our stores. But there is still lots to do – we are continuing with more customer initiatives across our brands, online and in all of our services operations to make Dixons an even better place to shop.

“Above all we are enjoying the feeling of a little wind in our sails and we want to make sure that, in spite of continued economic uncertainty, this carries on into next year and beyond.”

Dixons said trading at its Pixmania business continues to be “very challenging” as it tries to turn it around.