The boss of Currys and PC World owner Dixons Retail today declared the retailer was moving from “survivor to winner” as a boom in tablet sales sent UK profits flying.
Dixons, led by chief executive Sebastian James, endured a bitterly tough recession as cash-strapped households reined in spending on expensive appliances.
However, pre-tax profits of £94.5 million in the year to April were 15% ahead of last year and shattered City expectations.
In the UK & Ireland, where the firm sold enough tablet computers to make a tower 260 times higher than London’s Shard skyscraper last year, the results were even more impressive as profits jumped 39%.
Dixons was forced to cut prices to tempt shoppers, denting margins, but was helped by the demise of Comet as its market share rose from 19% to 21%.
Tesco’s shift away from consumer electronics is also easing the competitive landscape.
Bottom-line losses, after taking into account the restructuring of its struggling Pixmania internet business and some UK sell-offs, were still ugly at £114.3 million.
But he flagged up sales growth of 4% and added: “We have returned to growth for the group as a whole, and also to a net cash position, marking an important milestone in our transition from survivor to winner.”
The company’s shares increased by 1%, or 0.45p, to 42.8p in a falling market.
Panmure Gordon’s Philip Dorgan said Dixons had posted “stonking results”.
