UK electronics retailer Dixons Group delivered lower half year profits and flat underlying sales at Christmas. The results were hit by start-up losses in Europe and weaker mobile phone sales.
Pre-tax profits for the six months ended November 10 slipped to £87.4 million sterling from £90.8 million a year ago, excluding exceptional items.
Turnover increased by 2.3% to £2.22 billion and the interim dividend was raised 10% to 1.375 pence per share from 1.25 pence.
Although sales of entertainment products and kitchen appliances had been strong at Dixons, weaker personal computer and mobile phone sales, which account for around 40% of turnover, offset those gains.
The group has a total of 12 stores in Ireland - six Dixons stores, two PC World stores and four Currys stores. The company said that sales here grew by 21% to £24 million sterling, with like for like sales ahead by 5%. A new store was opened in Dublin during the year, with another to open in Limerick later this year.
In its results statement, the company said that during the eight weeks ended January 5, retail sales were up by 4%, although like-for-like sales were 0.6% lower.
Sales of games, large screen televisions, DVDs and electrical appliances were strong while sales at PC World improved. Mobile phone shop The Link and Dixons performed less well compared with very strong growth last year.
Dixons said it was confident of a satisfactory outcome for the year, depending on economic conditions.
