Dixons hit by £224m loss as FD jumps ship
DIXONS reported a £224m loss yesterday due to tough trading, as its finance chief jumped ship.
The electricals retailer said its turnaround plan, which includes £50m savings a year, was on track but that the economic downturn was lasting longer than expected.
It also revealed that finance director Nicholas Cadbury would be leaving the firm after 18 years to join electrical components maker Premier Farnell.
Dixons reported one-off costs of £300.9m, including a £251.6m investment write-off relating to impairments at its European businesses.
A £53m writedown in Greece was among the payments, while it was also hit by costs associated with winding up its Spanish business.
The loss in the year to 30 April compares with a profit of £112.7m last year. Underlying pre-tax profits came in at £85.3m, in line with forecasts.
Chief executive John Browett said: “It’s not death and destruction … but the economy is taking longer than expected to pick up.”
However, he added that the reduction of the budget deficit was helping to pave the way for an upturn.
On suggestions that Dixons was an acquisition target for US giant Best Buy he said: “I can understand why they might be interested,” but added that he doubted an offer would materialise.
Dixons shares dropped 3.2 per cent to 16.01p yesterday.