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Currys owner Dixons reports loss after Pixmania charge | Currys owner Dixons reports loss after Pixmania charge |
(35 minutes later) | |
Dixons Retail, the owner of Currys and PC World, has reported a half-year loss after taking a big hit on the value of its online gadget subsidiary Pixmania. | Dixons Retail, the owner of Currys and PC World, has reported a half-year loss after taking a big hit on the value of its online gadget subsidiary Pixmania. |
Pre-tax losses for the 24 weeks to 13 October were £79.5m, compared with a £2.4m profit a year earlier. | |
The company said the loss was largely due to a £45.2m writedown in the value of Pixmania. | |
However, Dixons said it was set to benefit from the demise of rival electronics retailer Comet. | |
Comet went into administration in early November. On Tuesday, administrators Deloitte announced plans to close a further 125 stores from next month if a buyer could not be found, which would leave just 70 Comet stores from the original total 236. | |
Dixons said the "fire sale" of Comet's assets and stock could cause "some disruption", but that Currys and PC World would eventually "benefit from the consolidation". | |
Debts cut | |
Group chief executive Sebastian James said the company had made "good early progress", despite Pixmania's "poor performance". | Group chief executive Sebastian James said the company had made "good early progress", despite Pixmania's "poor performance". |
Total group sales rose 4% to £3.29bn. In addition, its business in UK and Ireland returned to profitability for the first time in five years, the company said. | |
Group net debt had fallen to £9.9m, down from £143.2m a year earlier. | |
The group said it was continuing with its multichannel strategy, enabling customers to research and order goods online via PCs, tablets and smartphones. | |
While 92% of sales were still completed in-store, 80% "involve the internet in some form", the company said. |