Dixons Carphone 2015/16 Preliminary Results

Dixons Carphone plc

 

Continued strong momentum with Headline profit before tax up over 17%*

 

Highlights: 12 months to 30 April 2016*

 

•  Group like-for-like revenue⁽⁴⁾ up 5% (UK & Ireland up 6% and Nordics up 4%)

•  Strong profit performance:

-  Headline PBT⁽¹⁾ of £447 million (2014/15: £381 million), up over 17%

-  Headline basic EPS^{(1) (2)} 29.3p (2014/15: 25.5p)

-  Total statutory profit of £161 million (2014/15: £97 million) after Non-Headline⁽¹⁾ charges of £176 million (2014/15: £188 million) which include a loss from discontinued operations of £18 million (2014/15: £114 million)

•  Free cash flows⁽⁹⁾ of £202 million (2014/15: £89 million) and net debt broadly flat year-on-year at £267 million 

•  Final dividend of 6.50p (2014/15: 6.00p) proposed, taking total dividends for the year to 9.75p (2014/15: 8.50p), up 15% year-on-year

•  Sprint joint venture in the US expected to contribute $40m-$50m of annual EBIT to the Group by 2019/20

•  honeyBee platform: second major client signed

 

Headline results*(1)		Headline revenue(1)				Headline profit / (loss)(1)
	Note	2015/16 £million	2014/15 £million	Local currency(3) % change	Like-for-like(4) % change	2015/16 £million	2014/15 £million
UK & Ireland	(5)	6,404	6,314	2%	6%	365	305
Nordics	(6)	2,632	2,709	6%	4%	79	86
Southern Europe	(7)	550	606	(5)%	4%	17	15
Connected World Services	(8)	152	121	26%	N/A	7	7
Group		9,738	9,750	3%	5%	468	413
Net finance costs						(21)	(32)
Profit before tax						447	381
Tax						(110)	(88)
Profit after tax						337	293

 

*     See notes on page 3 for an explanation of the basis of preparation and defined terms. Unless otherwise stated, the financial results for 2014/15 in these Highlights and in the Performance Review refer to pro forma Headline information for continuing businesses.

 

Seb James, Group Chief Executive, said:

"I am very pleased to be announcing another year of significant earnings growth, with profits before tax up more than 17%. In this momentous year we have largely completed our merger activities, driven customer satisfaction and market share to all time highs in virtually all of our markets, made our shops more interactive and exciting while becoming ever more competitive with pure-play retailers, launched a new joint venture in the US, launched a new UK mobile network, and embarked on an ambitious property plan in the UK and Ireland. We also had our biggest ever trading day on Black Friday last year.

We are far from done, though. We have very ambitious plans this year which include making every one of the former Dixons stores one of the new 3-in-1 shops, introducing a lively and interactive new e-Commerce platform to Carphone Warehouse, opening Europe's most modern distribution centre in Sweden, introducing same-day delivery, rolling out c.150 new stores in the US with Sprint, delivering our honeyBee platform to major global clients, launching our new home services division with a mandate to become a true emergency service for customers across the UK, and continuing to drive market share, price competitiveness and customer satisfaction everywhere. It is likely to be busy.

I am truly grateful to all of my colleagues - right across the world - for their hard work and dedication. I am also very proud to be able to say that I work alongside such a creative and dedicated group of men and women.

Finally, the nation has spoken and there has been a vote to exit the EU in due course. As you can imagine, we have been giving some thought to this. Our view is that, as the strongest player in our market and despite the volatility that is the inevitable consequence of such change, we expect to find opportunities for additional growth and further consolidate our position as the leader in the UK market."

 

 

Investor and analyst webcast

There will be a conference call with presentation for investors and analysts at 9:00 am today. The presentation slides will be available via webcast (listen only) on our corporate website, www.dixonscarphone.com

Dial-in details: UK/International +44(0) 20 3059 8125: Passcode: Dixons Carphone

Next announcement

The Group will publish its Q1 trading statement on 8 September 2016.

For further information

Kate Ferry	IR, PR & Corporate Affairs Director	+44 (0)7748 933 206
Mark Reynolds	Head of Investor Relations	+44 (0)7979 696 498
Hannah Collyer	Head of Media Relations	+44 (0)7834 256 775
Nick Cosgrove, Helen Smith	Brunswick Group	+44 (0)207 404 5959
Information on Dixons Carphone plc is available at www.dixonscarphone.com Follow us on Twitter: @dixonscarphone and @DCSebJ
About Dixons Carphone Dixons Carphone plc is Europe's leading specialist electrical and telecommunications retailer and services company, employing over 42,000 people in eleven countries. Focused on helping customers navigate the connected world, Dixons Carphone offers a comprehensive range of electrical and mobile products, connectivity and expert after-sales services from the Geek Squad and Knowhow. Dixons Carphone's primary brands include Carphone Warehouse and CurrysPCWorld in the UK & Ireland, Elkjøp, Elkjøp Phonehouse, Elgiganten, Elgiganten Phone House, Gigantti and Lefdal in the Nordic countries, Kotsovolos in Greece, Dixons Travel in a number of UK & Ireland airports and Phone House in Spain. Our key service brands include Knowhow in the UK, Ireland and the Nordics, and Geek Squad in the UK, Ireland and Spain. Business-to-business (B2B) services are provided through Connected World Services, PC World Business and Carphone Warehouse Business. Connected World Services aims to leverage the Group's existing expertise, operating processes and technology to provide a range of services to businesses. Dixons Carphone was voted 'Retailer of the Year' at the Retail Week Awards 2016.

Certain statements made in this announcement are forward-looking. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future events or results referred to in these forward-looking statements. Unless otherwise required by applicable laws, regulations or accounting standards, we do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. Information contained on the Dixons Carphone plc website or the Twitter feed does not form part of this announcement and should not be relied on as such.

 

 

* Basis of preparation - pro forma information

On 6 August 2014 an all share merger of Carphone Warehouse and Dixons Retail plc took place. The prior period information refers, unless otherwise stated, to pro forma Headline⁽¹⁾ information for continuing businesses, reflecting the results of both Carphone Warehouse and Dixons Retail throughout the comparative periods as if the  Merger had occurred at the start of the comparative period.

 

Following the Merger the Group changed its year end to be the Saturday closest to 30 April. The 2014/15 financial year as disclosed in the 2014/15 annual report and accounts therefore comprised the 13 months to 2 May 2015 for the Carphone Warehouse business. The pro forma prior period results of the Carphone Warehouse business have been restated to exclude the results of the five weeks trading to 3 May 2014 to enable a better year-on-year comparison.

 

A reconciliation from statutory to pro forma financial information is provided on pages 29 to 30.

 

Notes

(1)  Headline results exclude amortisation of acquisition intangibles, Merger integration and transaction costs, property rationalisation costs, acquisition related costs and other one off, non-recurring items, net interest on defined benefit pension schemes and discontinued operations (comprising Virgin Mobile France and Phone House operations in Germany, Netherlands and Portugal). Such excluded items are described as 'Non-Headline'. For further details see notes 3 and 9 to the financial information.

(2)  Pro forma EPS for the period ended 2 May 2015 has been calculated assuming the number of shares existing at 2 May 2015, adjusted for the number of shares held by the Group ESOT, were in existence for the entire financial period.

(3)  Change in local currency revenue reflects total revenues on a constant currency and period basis.

(4)  Like-for-like revenue is calculated based on Headline store and internet revenue using constant exchange rates. New stores are included where they have been open for a full financial year both at the beginning and end of the financial period. Revenue from franchise stores are excluded and closed stores are excluded for any period of closure during either period. Customer support agreement, insurance and wholesale revenues along with revenue from Connected World Services and other non-retail businesses are excluded from like-for-like calculations. Revenue from Carphone Warehouse SWAS are included in like-for-like. Like-for-like revenue reflects the 12 months to 30 April 2016 compared to the 12 months to 2 May 2015.

(5)  UK & Ireland comprises operations in the UK and Ireland and the Dixons Travel business.

(6)  Nordics comprises operations in Norway, Sweden, Finland, Denmark, and Iceland.

(7)  Southern Europe comprises operations in Spain and Greece.

(8)  Connected World Services comprises the Group's B2B operation which leverages the specialist skills, operating processes and technology of the Group to provide managed services to third parties looking to develop their own connected world solutions.

(9)  Free Cash Flow comprises cash generated from / (utilised by) continuing operations before special pension contributions, less net finance expense, less income tax paid and net capital expenditure.

 

 

 

Performance review

 

Group

Group Headline revenue was up 3% on a local currency basis but broadly flat in Sterling terms at £9,738 million (2014/15: £9,750 million). Like-for-like revenue growth was 5% reflecting strong growth in our UK & Ireland, Nordic and Greek businesses. The difference between the total revenue growth on a local currency basis and like-for-like is predominantly due to a reduction in stores in the UK during the year and a decision to reduce low-margin wholesale activity. The Group has continued to grow market share, despite operating in a highly competitive market place.

Headline EBIT was up 13% to £468 million (2014/15: £413 million) driven by the strong operating performance in the UK & Ireland and the delivery of synergy benefits related to the Merger. Headline profit before tax was £447 million (2014/15: £381 million) reflecting 17% growth from the improved EBIT and a lower interest charge year-on-year following the redemption of the bonds previously held by Dixons Retail in August 2014.

Integration of the two businesses is now largely complete with a single head office in each of the countries where Carphone and Dixons overlapped, one logistics and repair centre in the UK and 276 Carphone Warehouse SWAS now open.

UK & Ireland

Revenue in the UK & Ireland increased by 1% to £6,404 million (2014/15: £6,314 million). Like-for-like revenue for the year was up 6% reflecting mobile phone market share gains along with good growth in electricals. The difference between the total revenue growth and like-for-like predominantly reflects a reduction in stores. This revenue growth combined with cost and synergy savings has resulted in Headline EBIT increasing 20% to £365 million. The business has continued to gain market share helping to drive sales and EBIT. Our purchase of Simplifydigital - the UK's largest and fastest growing multi-channel switching platform - leaves the business well-positioned to benefit from growth in the multi-play market.

The electricals business has delivered a very solid result with growth in the sale of white goods offsetting weaker demand in computing. Television sales performed well, especially given the World Cup last year.

The mobile business performed extremely well during the year. Postpay volumes and market share have grown year-on-year, with the business benefiting from additional SWAS stores, the performance of our iD mobile operations, and market share gains following the closure of Phones 4U in the prior year.

In January 2016 we launched a programme to rollout our 3-in-1 store concept so as to create the store estate of the future. This will involve merging the remaining PC World and Currys stores and inserting a Carphone Warehouse in stores that have not yet got one. This programme will reduce our store estate by 134 but will significantly improve the store experience for our customers and colleagues, and we expect the impact on sales to be neutral or better. Given that the programme will be implemented during 2016/17, we expect that the benefit to 2016/17 earnings will be modest, but thereafter this activity will contribute approximately £30m of incremental EBITDA.

At the start of the year the Group launched iD, a new mobile network focused on providing users with increased contract flexibility, greater access to free data roaming and competitively priced 4G tariffs. The performance of iD in the UK has been very positive and the business now has an active customer base of over 335,000 subscribers.

Nordics

The Nordic business has performed well in a challenging economic environment, delivering 6% growth on a local currency basis. However revenue in Sterling was down 3% to £2,632 million (2014/15: £2,709 million) predominantly due to the devaluation of the Norwegian Krone relative to Sterling.

Like-for-like revenue was up 4% despite the challenging commercial environment and some aggressive competitive pricing. The growth in like-for-like revenue was driven by white goods, mobile and laptops, offsetting weakness in PCs and tablets. We have continued to focus on ensuring competitive pricing against pure players, albeit with some margin impact.

In local currency, our Nordic business delivered record earnings but, due to the adverse movement in foreign exchange, both from translation of local currency results into Sterling, as well as margin pressure due to increased buying costs, Nordic Headline EBIT was £79 million (2014/15: £86 million).

The Merger has continued to benefit the Nordics with the launch of Elkjøp Phonehouse stores in Norway, and the integration of Phone House Sweden into ElGiganten. The extension of the Jönköping warehouse to create Europe's most advanced small products distribution centre is also progressing well.

In November 2015 Infocare Workshop, a services and repair business, was acquired in order to further the Group's services strategy. This business has now been successfully integrated into the wider Nordics business.  The 'Epoq' kitchen business also continues to deliver very encouraging results with strong revenue growth, driving market share and appliance sales.

 

 

Southern Europe

Southern Europe had strong underlying results with like-for-like revenue up 4%, largely driven by the business in Greece which continues to perform extremely well in the face of a challenging environment. The Greek business benefited from strong growth in white goods and tablets, which more than offset some weakness in TV and laptops following the end of a government laptop promotion in the prior year. Whilst postpay volumes were down in Spain we continue to pivot the model in-line with the market to offer multi-play, sim-only and handset only, whilst successfully retaining our market share.

Revenue on a local currency basis was down 5%, though up in Greece despite the Greek business reducing volumes in the low margin wholesale business. The Spanish business continued to shift its store mix to franchise and away from owned stores, with owned stores down 52 to 249 but with an increase in franchise stores from 198 to 249.  Southern Europe has reported a year-on-year 9% decline in Headline revenue to £550m (14/15: £606m) reflecting the factors above and a weaker Euro for much of the financial year.

Southern Europe Headline EBIT was £17 million (2014/15: £15 million), up 13%.

Connected World Services

Connected World Services (CWS) has continued to grow, delivering revenue of £152 million up from £121 million in the prior year. We are announcing new developments in three of the distinct business areas within CWS - connected retailing, technology platform and support & services.

In connected retailing, following the success of the trial stores we have agreed to rollout up to 500 stores with Sprint in the US, including c.150 in the year ahead. Separately we continue to expand on our consultancy agreement with Sprint and deliver significant benefits to both parties, including operating 27 of Sprint's own stores in Miami and Dallas. The joint venture continues to go from strength to strength and we expect it to contribute $40m-$50m to the Group's annual EBIT by 2019/20.

Within our technology platform business, we have reached agreement with Sprint to rollout honeyBee across the entire Sprint estate in the US.

In support and services, we aim to be the UK's largest third party provider of mobile phone insurance. We have agreed a new third party mobile insurance contract in the UK with EE, we have extended an existing contract with RBS and we have entered into a significant new distribution agreement with TalkTalk to support the sales and distribution of mobile, TV and broadband connectivity.

We remain very excited about CWS's prospects and continue to invest in building the team and infrastructure to support the growth potential of this business. CWS's result for the year of £7 million (2014/15: £7 million) is after a £4 million share of losses from the joint venture arising on the Sprint venture and is a result that we consider satisfactory and in line with expectations.

Net finance costs

Headline net finance costs were £21 million (2014/15: £32 million). The reduction in financing costs was primarily due to the redemption of the bonds previously held by Dixons Retail on 21 August 2014 and the Group's new revolving credit facility incurring a lower rate of interest.

Tax

The Headline effective tax rate for the full year is 25% (2014/15: 23%). The rate is higher than the UK statutory rate of 20% due mainly to higher statutory rates in the Nordics, certain non-deductible items mainly in the UK and a reduction in the value of UK related deferred tax assets due to the forthcoming reductions in the UK statutory tax rates.

Cash and movement on net funds

The prior period information provided below is on a pro forma basis and aggregates the net funds / (debt) and cash flows of the Group and Dixons Retail, as though Dixons Retail had been 100% owned by the Group throughout the prior period, to enable a complete understanding of cash flows.

 

Free cash flow - pro forma basis

	2015/16 £million	2014/15 £million
Headline EBIT	468	413
Depreciation and amortisation	137	137
Working capital	(76)	(159)
Capital expenditure	(221)	(182)
Taxation	(56)	(62)
Interest	(31)	(46)
Other items	24	4
Free cash flow before restructuring items - continuing operations	245	105
Restructuring costs	(43)	(16)
Free Cash Flow	202	89

 

Free Cash Flow before restructuring was an inflow of £245 million (2014/15: £105 million), an increase of 133%. The Group experienced a working capital outflow of £76 million (2014/15: £159 million), being an improvement on the previous year which included a non-recurring unwind of certain supplier funding arrangements.

Capital expenditure in the period was £221 million (2014/15: £182 million), lower than anticipated reflecting tight management of capex spend. The year-on-year increase reflected spend on Carphone Warehouse SWAS, investment in IT platforms and continued development in both our retail and Connected World Services businesses. We continue to keep tight management of our capex spend as well as other integration activities.

The reduction in interest reflects the prior year including interest paid on the bonds previously held by Dixons Retail until August 2014 and the Group's new revolving credit facility incurring a lower rate of interest.

Restructuring costs in both the current year and prior year relate to Merger integration costs and primarily reflect employee severance and incentive costs, property costs associated with the integration process and professional fees.

Funding - pro forma basis

	2015/16 £million	2014/15 £million
Free Cash Flow - pro forma basis	202	89
Dividends	(106)	(52)
Merger transaction costs	-	(90)
Acquisitions and disposals including discontinued operations	(82)	2
Pension contributions	(35)	(28)
Other items	14	-
Movement in net funds / (debt) - pro forma basis	(7)	(79)
Opening net funds / (debt) - pro forma basis(1)	(260)	(181)
Closing net (debt)	(267)	(260)

 

(1)  Opening net debt in the current period reflects the consolidated net debt of the Group at 2 May 2015 including net funds recognised within assets held for sale of £53 million. Opening net debt in the comparative reflects net debt for Carphone Warehouse at 29 March 2014 and for Dixons Retail at 30 April 2014.

 

At 30 April 2016 the Group had net debt of £267 million, broadly flat year-on-year to net debt of £260 million in the comparative period. Free cash flow was an inflow of £202 million (2014/15: £89 million) for the reasons described above.

Merger transaction costs in the previous year reflected professional and banking fees, the cash cost of share option exercises as a result of the Merger and the cost of redeeming the bonds previously held by Dixons Retail. Net cash outflows from acquisitions and disposals in the current year were £82 million primarily comprising the final deferred payment for the CPW Europe Acquisition, the acquisitions of Simplifydigital and Infocare, and discontinued operations.

The increase in pension contributions reflects the agreed contribution profile following the 2013 triennial valuation.

On 8 October 2015 the Group signed a new multi-currency revolving credit facility for £800 million, which matures in October 2020 and replaced the multi-currency term and revolving credit facility which was previously in place.

  

 

 

Statutory results

The explanation of the Group's results presented above is on a pro forma Headline basis for the comparative period. Group results as reported in the financial information are prepared on a statutory basis, with the comparative period consolidating the results of Dixons Retail from 6 August 2014. These results are summarised below:

Income statement - continuing operations 

	2015/16 £million	2014/15      £million
Revenue	9,738	8,255
EBIT	304	324
Net finance costs	(41)	(37)
Profit before tax	263	287
Tax	(84)	(76)
Profit after tax	179	211
Basic EPS	15.6p	22.0p
Diluted EPS	15.1p	21.2p

 

 

Revenue increased 18% to £9,738 million reflecting the inclusion of a full 12 months earnings from Dixons Retail in the current year (prior period results from 6 August 2014 to 2 May 2015) offset by the additional month trading for the Carphone Warehouse businesses in the prior period.

Profit before tax reduced from £287 million to £263 million in the current period, largely due to non-Headline costs incurred in the current year in relation to the Merger and property rationalisation costs, which are explained later in this report.

Net finance costs have increased due to the inclusion of a full 12 months of Dixons Retail, resulting in higher finance lease and pension related interest.

The tax charge increased from £76 million to £84 million reflecting certain non-deductible non-Headline items in the current year

Basic EPS has reduced from 22.0p to 15.6p for the period due to the lower profit after tax and the increase in the number of shares of the Group as part of the Merger.

Non-Headline items

Statutory profit before tax of £263 million (2014/15: £287 million) includes Non-Headline charges of £184 million (2014/15: £89 million). These charges are analysed below and are reported on a statutory basis with the Dixons Retail business only consolidated from completion of the Merger on 6 August 2014.

	2015/16 £million	2014/15 £million
Merger related costs	(52)	(41)
Amortisation of acquisition intangibles	(40)	(35)
Property rationalisation costs	(70)	-
Acquisition related costs	(6)	-
Net pension interest	(16)	(13)
	(184)	(89)

 

Costs incurred in relation to the Merger relate to integration costs primarily being professional fees, employee severance and property costs associated with the integration process (2014/15: £32 million). In addition, during 2014/15 transaction costs of £9 million were incurred, predominantly reflecting banking and professional fees. Merger related costs also include the write-off of
£4 million deferred facility fees which were incurred as a result of the Merger and the financing required to facilitate the Merger at short notice.

The charge for the amortisation of acquisition intangibles was £40 million (2014/15: £35 million) with the current period including a full 12 months of amortisation of intangible assets recognised as a result of the Merger (2014/15 period from 6 August 2014 to 2 May 2015). The prior period charge also includes amortisation for 13 months for those intangibles recognised as a result of the CPW Europe Acquisition whilst the current period reflects a 12 month period.

As explained on page 4 the Group has initiated a reorganisation of its property portfolio to put it into its long-term state. The costs associated with this programme relate to committed property exit costs, asset write downs and operational costs associated with the 3-in-1 store concept roll out across the UK and Ireland.

Acquisition related costs in the period relate to professional fees incurred in the current year as a result of the acquisition of Simplifydigital in the UK and Infocare in the Nordics and the revaluation of deferred consideration payable to the former shareholders of the Epoq kitchen business in the Nordics following a reassessment of the likely final payment to be made on the back of recent trading performance.

Net pension interest was £16 million reflecting the charge incurred in relation to the Dixons Retail UK pension scheme. The current period charge reflects a full 12 months whilst the prior period charge related to that incurred from the date of Merger to the 2 May 2015 period end.

Discontinued operations

As reported at 2 May 2015, Virgin Mobile France and the Group's retail operations in Germany, the Netherlands and Portugal were treated as discontinued operations following the decision to exit these businesses. The assets and liabilities associated with Germany, the Netherlands and Portugal were recognised as held for sale at 2 May 2015. The sale of operations in Germany was completed on 5 May 2015, the Netherlands on 30 June 2015 and Portugal on 31 August 2015. Virgin Mobile France was sold on 4 December 2014 in the previous financial year.

A loss of £18 million (2014/15: £114 million) has been recognised during the year in relation to the disposal of these operations.

 

Balance Sheet

 

	2015/16 £million	2014/15 £million
Goodwill	3,054	2,989
Other fixed assets	906	852
Working capital	(361)	(387)
Net debt	(267)	(313)
Tax, pension, other	(472)	(378)
	2,860	2,763

 

The movement in goodwill is due to the acquisition of Simplifydigital and Infocare, and the retranslation of currency denominated balances largely in the Nordics. Fixed assets have increased with the higher capital expenditure during the year exceeding amortisation and depreciation. Working capital has stayed flat, whilst net debt has decreased with positive cash flows during the year as described below. Other net liabilities (tax, pension & other) have increased following the disposal of assets held for sale (primarily in relation to Phone House Germany).

 

Cash flow statement

	2015/16 £million	2014/15      £million
EBIT	304	324
Depreciation and amortisation	177	149
Working capital	(14)	(377)
Other operating cash flows	(73)	(53)
Cash flows from operating activities	394	43
Acquisitions	(59)	322
Capital expenditure	(221)	(166)
Other investing cash flows	24	20
Cash flows from investing activities	(256)	176
Dividends paid	(106)	(52)
Other financing cash flows	(11)	(290)
Cash flows from financing activities	(117)	(342)
Cash flows from continuing operations	21	(123)
Cash flows from discontinued operations	32	3
	53	(120)

 

 

The statutory EBIT for the Group has reduced for the reasons explained above. Depreciation and amortisation have increased with the prior period only including nine months of Dixons Retail. Working capital has stayed relatively flat year-on-year whilst the outflow in the prior period was due to timing issues associated with the change of year end and the day on which month end fell, as well as a permanent unwind of certain extended supplier payment terms.

Acquisition cash inflows in the comparative period reflects cash acquired through the Dixons Retail Merger whilst cash outflows in the current year comprise the final CPW Europe Acquisition deferred payment and the acquisitions of Simplifydigital and Infocare. The increase in capital expenditure reflects both a full twelve months of Dixons Retail and an increase in underlying spend.

The reduction in financing outflows is due to the prior period including the pay down of loans and borrowings of Dixons Retail soon after the Merger whilst borrowings have remained relatively flat year-on-year in the current period. Cash inflows from discontinued operations largely relates to consideration on the disposal of TPH Germany.

Comprehensive income / changes in equity

Total equity of the Group has increased from £2,763 million to £2,860 million primarily reflecting the total statutory profit of £161 million, the gain on retranslation of overseas operations of £66 million and the payment of dividends of £106 million.

Other matters

Pensions

The IAS 19 accounting deficit of the defined benefit section of the UK pension scheme of Dixons Retail amounted to £472 million at 30 April 2016 compared to £486 million at 2 May 2015. Contributions during the period under the terms of the deficit reduction plan amounted to £35 million (2014/15: £28 million). The deficit has decreased largely as a result of the contributions made to the scheme during the year.

Dividends

The Board declared an interim dividend of 3.25p per share, up from 2.5p per share last year. The interim dividend was paid on 22 January 2016.

We are proposing a final dividend of 6.50p per share, taking the total dividend for the year to 9.75p per share, a 15% increase on the previous year (2014/15: 8.50p). The final dividend is subject to shareholder approval at the Company's forthcoming Annual General Meeting. The ex-dividend date is 25 August 2016, with a record date of 26 August 2016 and an intended final dividend payment date of 23 September 2016.

 

Consolidated Income Statement