Electricals giant DSG international has reported an increase in underlying pre-tax profit of 61% to £90.5m in its preliminary audited results statement for the 52 weeks to May 1.
Total group sales were up 3% to £8,532m, with group like-for-likes rising 2% in the full year and 6% in the second half. Internet sales totalled £1.4bn, accounting for 16% of total group sales.
Total sales in the UK and Ireland were down 5% to £4,014m, and like-for-likes fell by 3% across the year. However, like-for-likes in the second half of the year rose 3% as
the company's 'renewal and transformation' plan began to deliver benefits, with underlying operating profit for the full year up 21% at £71m.
The economic environment in the UK and Ireland "remained challenging across the year", said the report. However, the company saw a strong Christmas peak after its extensive store reformatting improved business performance and delivered market share gains in all categories.
The company's electricals division, which includes Currys, CurrysDigital and Dixons Travel in the UK, saw like-for-likes rise 6% in the second half of the year. Its computing business, which includes PC World and DSGi Business, saw like-for-likes fall 9%, mainly due to a decline in sales to small businesses during the credit crunch.
As of June 18, the group has transformed 164 UK stores, of which 12 were Megastores and 20 were combined 2-in-1 Currys and PC World superstores. The transformed stores continue to deliver gross profit uplifts of 20%, with uplifts of 50% in the Megastores and combined Currys and PC World stores. DSG plans to refurbish a further 100 stores during the 2010/11 financial year.
The group also intends to change its name to Dixons Retail plc, as it says the Dixons name "resonates strongly with suppliers, the market and colleagues in a way that DSG international has not been able to without a significant investment in the brand."
Chief executive John Browett said: "I am delighted with the excellent progress we have made over the past 12 months as we continue to transform the group, despite the recessionary environment across Europe." He added: "We are now two years into the renewal and transformation plan and are encouraged by the improved profitability and competitiveness it continues to deliver."
The company's results came in about 3% ahead of expectations at Credit Suisse, with adjusted profit before tax (ex property) of £109m against its estimate of £106m.
Rival Kesa Electricals, which owns Comet in the UK,
posted a rise in adjusted profit before tax of 18% to £81.9m yesterday.