Dixons expects profits to be at top end of City forecasts

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Electrical goods retailer Dixons today said its annual profits should be at the top end of market expectations as it continues to benefit from the demise of rival Comet.

The PC World owner said like-for-like sales in the UK and Ireland rose 7 per cent in the year to 30 April, helping to offset declines in southern Europe and at its Pixmania online business.

Performance during the final three months of its financial year was described as “very pleasing”, with sales in the UK and Ireland up 13 per cent.

Overall, the retailer said its underlying pre-tax profits for the year are expected to come in towards the upper end of City forecasts of between £75 million and £85m,

Chief executive Sebastian James said that strong cash generation helped the firm end the year with a net cash position “for the first time in a number of year”, but he acknowledged there was much still do to in terms of Dixons’ performance in southern Europe and turning Pixmania around.

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