Interim Results 2005/06 Media Presentation 18 January 2006 John Clare Group Chief Executive Trading Update

Interim Results 2005/06 Media Presentation 18 January 2006 John Clare Group Chief Executive Trading Update

Interim Results 2005/06 Media Presentation 18 January 2006 John Clare Group Chief Executive Trading update • Total sales +5% • LfL sales +2% • Peak dominated by new technology products Units Value Flat Panel Televisions +111% +90% MP3 players incl iPods +141% +127% Satellite Navigation +291% +167% Laptops +78% +40% 8 weeks to 7 January 2006 vs 8 weeks to 8 January 2005 Product information relates to retail sales 3 Trading update Sales Total Like for like Total Group +5% +2% Electricals +7% +4% Computing +10% +3% Communications (27%) (28%) UK retail +3% +1% International retail +11% +4% 8 weeks to 7 January 2006 vs 8 weeks to 8 January 2005 4 Kotsovolos • Total sales down 1% • LfL down 5% • 2 new mega stores opened in Athens • Strong performance across the year 8 weeks to 7 January 2006 vs 8 weeks to 8 January 2005 5 The Link • Total sales down 27% • LfL down 28% • Unit connections growing • Up 1% over peak • New advertising engaging customers • LfL excludes: Volume bonuses, promotional revenues, commissions & other recurring revenue 8 weeks to 7 January 2006 vs 8 weeks to 8 January 2005 6 Interim Results Sales £million 05/06 04/05 YOY UK Electricals 1,292 1,319 (2%) International Electricals 1,026 834 +23% Total Electricals 2,318 2,153 8% UK Computing 842 854 (1%) International Computing 123 94 +31% Total Computing 965 947 +2% Total Communications 224 283 (21%) Total Retail 3,507 3,383 4% Gross margins Flat year on year 28 weeks to 12 November 2005 vs. 28 weeks to 13 November 2004 Excludes discontinuing operations 7 Profit before tax £million 05/06 04/05 YOY Reported PBT 106.1 133.5 (21%) Deduct: Net mark to market gains (8.8) - Profit on sale of investments (2.9) (12.2) Add: Amortisation of acquired intangibles 0.9 0.5 One time IS outsourcing costs 2.2 - Underlying Profit Before Tax 97.5 121.8 (20%) Adjusted diluted EPS 3.8p 4.4p (14%) 28 weeks to 12 November 2005 vs. 28 weeks to 13 November 2004 * Underlying results, for definition see appendix 8 Cost reduction • On target to save £30 million in 05/06 • Further £20 million identified in 06/07 • Includes Distribution and IT changes 9 Acquisitions • Equanet • UK B2B operator - PC World Business • Consideration of £13m in August 2005 • Markantalo • No.2 Electrical retailer in Finland • Consideration c. £33m January 2006 • Clear no.1 position for DSGi in Finland • Both deals earnings enhancing in first full year 10 Share buyback & dividends Share buyback • 118.4 million shares purchased for £184.8m • 6.1% of shares in issue since commencement of buyback • Interim dividend 1.92p +5% 11 Group priorities Capital Cost Discipline Management Margin Retail Protection Innovation 12 Customer support agreements • Enhanced support agreements successfully launched • Monthly pay as you go option • Positive early experience • European roll-out • PC City, Elkjøp, UniEuro, Kotsovolos, Electro World 13 Extended product offering • Innovation on ranges • Lighting, Essentials, Digital and PC products • New internet music department • Greater availability of stock in store 14 Extended product offering • Digital living innovation • Interactive demonstrations • Improved merchandising • New products • Flat panel televisions in PC World and PC City 15 Store innovation - Press F1 16 In-store initiatives • In-store initiative giving store colleagues • Greater involvement • Increased responsibility • Store based, not individual commission structure • Improves: • Customer satisfaction measurements • Average selling prices • Attachments • Colleague motivation 17 Online business • 47% growth in Group online sales over peak • Improvements to online merchandising • Instant online credit approval • Relaunch of Partmaster.co.uk • Collect@store doubling online sales at PC World 18 Summary • Strong performance of digital gift items over Peak • Cautious on prospects for markets over the balance of the year • Well placed for further progress 19 Interim Results 2005/06 Media Presentation 18 January 2006.

View Full Text

Details

  • File Type
    pdf
  • Upload Time
    -
  • Content Languages
    English
  • Upload User
    Anonymous/Not logged-in
  • File Pages
    20 Page
  • File Size
    -

Download

Channel Download Status
Express Download Enable

Copyright

We respect the copyrights and intellectual property rights of all users. All uploaded documents are either original works of the uploader or authorized works of the rightful owners.

  • Not to be reproduced or distributed without explicit permission.
  • Not used for commercial purposes outside of approved use cases.
  • Not used to infringe on the rights of the original creators.
  • If you believe any content infringes your copyright, please contact us immediately.

Support

For help with questions, suggestions, or problems, please contact us