Electricals group Dixons is moving into a new strategic phase and has posted full-year profits at the top end of expectations.
Following progress made on Dixons’ original renewal and transformation plan, the retailer has set out three further strategic priorities to improve the business and shareholder returns.
The retailer, owner of the Currys and PC World chains, said it intends to drive a sustainable business model suited to the multichannel environment, be a leader in the markets in which it operates and align the business to leverage scale and expertise.
In order to drive a sustainable business model Dixons will work closely with suppliers to maximise the benefits it can offer over rivals, focus on “complete solutions” for customers in a complex technological world, make more enhancements to service and cut costs.
While the retailer has performed strongly in the UK, Ireland and Northern Europe it said that its Southern European operation and Pixmania online business must be “set on paths that will make them strategically strong and profitable”.
The retailer also sees “many opportunities to share knowledge, expertise and best practice” across the group.
Dixons posted underlying pre-tax profit of £70.8m in the year to April 28, on turnover flat at £8.19bn. At the core UK and Ireland business underlying profits rose 15% to £78.8m.
The total group loss before tax was £118.8m versus £224.1m the previous year, reflecting “non-underlying items” such as goodwill write-offs.
Group like-for-likes fell 3% over the year but rose 5% in the final quarter. UK like-for-likes in the last quarter rose 8%.
Dixons chief executive Sebastian James said: “I am pleased that by focusing our efforts on delighting customers, we have outperformed our competitors and ended the year with positive momentum delivering results at the top end of expectations.
“Against a tough economic backdrop, we have continued to deliver on a clear plan to transform the business and today we are setting out our three strategic priorities to further improve our market position and build a business that is stronger, more profitable and sustainable.”
He added: “The new financial year has got off to a good start with the trends seen in the final quarter of last year broadly continuing. However, we continue to plan cautiously and manage costs aggressively. Our business is well-positioned for the year ahead.”