Final Results
Key highlights
· Significant progress made against our three strategic priorities
· Further improvements to the offer for customers and financial strength of the business for shareholders.
· Group underlying total sales and like for like sales up 4% in the full year(1),(2), (3).
- Like for like sales in the final quarter up 13% in the UK & Ireland and up 14% in Northern Europe reflecting strong share gains.
· Underlying pre-tax profit up 15% to £94.5 million (2011/12 profit of £82.1 million) (1).
- Good progress in UK & Ireland and Northern Europe with profits up 39% and 6% respectively.
- Robust performance in Southern Europe in difficult markets.
- Offset by poor performance in PIXmania.
· PIXmania restructured to reduce losses and enable process of putting the business on a firmer strategic footing.
· Customer satisfaction measures continue to show strong advocacy in the UK.
· Group costs reduced by £45 million as part of the two year £90 million cost reduction initiative.
· Very strong cash generation with the Group ending the year with net cash of £42.1 million versus net debt of £104.0 million at the start of the year.
Financial highlights
· Total underlying Group sales up 4% at £8.21 billion (2011/12 £7.91 billion).
· Total Group sales, including those from businesses exited/to be exited were £8.44 billion (2011/12 £8.19 billion)(2).
· Group gross margins down 0.7% in the full year driven largely by product mix.
· Restructuring and impairment charges of £168.8 million, relating mainly to PIXmania and the main non-store UK B2B operations following the disposal of Equanet.
· Total loss before tax of £115.3 million (2011/12 loss of £118.8 million), after non-underlying items of £209.8 million, which predominantly comprise the restructuring and impairment charges(1).
· Underlying diluted earnings per share 1.5 pence (2011/12 earnings of 1.4 pence) (1). Basic loss per share 4.4 pence (2011/12 loss per share of 4.3 pence).