Dixons scores early World Cup winner

By NICK GOODWAY FOR MAILONLINE
Updated: 03:17 EST, 10 May 2006

MASSIVE demand for the latest flatscreen televisions ahead of the World Cup next month and booming sales of digital goods including iPods and other MP3 players has spurred a second-half recovery by Dixons owner DSG International.

Profits for the year just ended will be between £312m and £318m, ahead of City expectations. Like-for-like sales in the electrical goods division, which also includes Currys, rose by 9% in the 24 weeks to 29 April against 3% in the whole financial year that ended on that date.

Chief executive John Clare said: 'I was particularly pleased with the trading performance in the second half when good progress was made across most of our operations.'

But he cautioned that while he expects continued strong sales of digital products in the run-up to the World Cup, 'we remain cautious about the speed of any long-term recovery, and much will depend upon wider economic factors in relation to tax, pensions, employment and interest rates'.

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Other strong sellers during the second half were laptop computers and satellite navigation equipment. Even struggling mobile phones chain The Link did slightly better although its like-for-like sales for the whole year were down by a quarter. PC World recorded no change in sales in the second half but a 3% decline for the whole year.

DSG announced this month that the Dixons name is to disappear from the High Street. It plans to convert all its shops to the Currys fascia and keep the Dixons brand only for its internet service. The change is expected to cost a one-off £7m but should produce savings of £3m a year.