The latest financial results announced by Dixons Retail plc have revealed that whilst pre-tax losses reached £25.3 million in the first half of the financial year to mid-October, they were actually better than analysts had predicted. The losses were, unfortunately, significantly higher than a year ago, where the figure came in at £6.9 million.
|Dixons see losses deepen, but customer satisfaction rise|
However, despite the huge losses there has been some good news for the British consumer electronics retailer who owns brick-and-mortar shops Currys and PC World, as well as the Dixons ecommerce website. This includes the fact that it has managed to reduce its net debt significantly from £215.1 million to £143.2 million. The retail group is on a three-year £150 million cost-cutting programme, and as part of this it is already on track to reduce expenses by £60 million for the current year.
Dixons also reported that it has managed to increase its market share, even though the financial climate is still very uncertain, which deters consumers from splashing out on big-ticket items such as HDTV displays. The company managed to halve a downturn in like-for-like sales to 5 percent for the second quarter, compared to 10 percent in the first.
On top of this, the retail group has seen an increase in customer satisfaction levels, which adds to the good news against the backdrop of the massive pre-tax losses. The electrical store chain recently carried out a survey, and the results showed that 71 percent of customers said that they would recommend Dixons Retail to friends. This represents a sharp rise from the figure a year ago, which stood at just 43 percent.
Dixons Retail’s chief executive John Browett said that the company is focused on delivering “world-class value, choice and service” for customers, and that this places it in a good position for the second part of its financial year, despite the fragile economic climate.