Dixons' Irish profit hits €2m

Dixons group outlets in the Republic made a profit of €2.1 million on sales of €128 million during the year to May 2004.

The profit compares with a loss of €0.9 million in the previous year. Like-for-like sales, stripping out new outlets, were 8 per cent up on the previous year, according to the company.

"We feel the market was flat during the year so that probably represents an increase in market share," said Mr Declan Ronayne, marketing director with Dixons in the Republic.

The group has 15 outlets in the Republic, trading under the names Dixons, Currys and PC World. It opened one new outlet during the year and plans to open two more in the coming year. It employs 475 people in the Republic.

The group overall reported a full-year pre-tax profit before exceptional items and goodwill of €499 million (£331 million sterling), an increase of 11 per cent on the previous year. It is to return €300 million to investors by buying back shares.

The cash return follows the sale of Dixons' stake in internet firm Wanadoo and property business Codic, which left it with €514 million net cash.

Turnover for the year ended May 1st grew 13 per cent to €9.7 billion, including like-for-like growth of 2 per cent in the UK and 4 per cent elsewhere. Shareholders were also rewarded with a 10 per cent rise in the dividend to 7.3p a share.

The company said its new financial year had started in line with its expectations, with LCD and plasma TV sales boosted by the Euro 2004 soccer competition in Portugal.

In the past few days, analysts have highlighted Dixons' appeal as a potential takeover target, picking out its strong cash generation.

Dixons owns about 1,400 shops across Europe. It is expanding its PC chain and expects to create 2,000 jobs this year, 1,000 of which will be in the UK.