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Interim Statement 2002/2003

01 Financial highlights 

02 Chairman’s statement 

06 Consolidated profit and loss account 

08 Statement of total recognised gains and losses 

09 Consolidated balance sheet 

10 Consolidated cash flow statement 

11 Notes to the interim financial statements 

17 Independent review report by the auditors 

18 Additional information 

19 Shareholder information

Financial highlights 

● Group turnover increased by 17% to £2.60 billion (2001/02 £2.22 billion) 

● Group like for like sales up 5% 

● Underlying profit before tax excluding goodwill amortisation increased by 11% to 

£97.1 million (2001/02 £87.8 million) 

● Profit before tax increased by 8% to £94.8 million (2001/02 £87.4 million) 

● Adjusted diluted earnings per share were 3.7 pence (2001/02 3.4 pence) 

● Interim dividend of 1.510 pence per share (2001/02 1.375 pence), an increase of 10% 

● Following the half-year end the Group completed the acquisition of UniEuro, one of 

Italy’s leading electrical retailers, acquiring a further 71.4% for e366 million 

(£233 million) 

● The Group issued a £300 million 6.125% 10-year bond in mid-November to fund the 

acquisition of UniEuro and pay down bank debt 

● Retail sales for 8 weeks ended 4 January 2003 up 21%; 1% like for like 

Dixons Group plc 1

Chairman’s statement 

Results and Dividends 

Group turnover for the 28 weeks ended 9 November 2002 increased by 17% to £2.60 billion 

(2001/02 £2.22 billion) reflecting strong growth across all businesses. Like for like sales were 

5% higher. 

Underlying profit before tax (before goodwill amortisation) for the first half grew by 11% to 

£97.1 million (2001/02 £87.8 million). Profit growth in the Group’s established businesses 

was partially offset by the cost of increased investment in new businesses. 

Included in underlying profit before tax is £6.3 million of UK property profits (2001/02 £6.0 million). 

Overall profit before tax grew by 8% from £87.4 million to £94.8 million. 

Adjusted diluted earnings per share were 3.7 pence (2001/02 3.4 pence), an increase of 9%. 

The directors have declared an interim dividend of 1.510 pence per share (2001/02 1.375 pence), 

an increase of 10%, payable on 3 March 2003 to shareholders registered on 31 January 2003. 

Divisional Performance 

UK Retail 

The UK Retail division made an operating profit before goodwill amortisation of £77.9 million 

(£72.9 million), an increase of 7%. Total sales in the period increased by 13% to £2,153 million 

(£1,911 million), with like for like sales 5% ahead. 

Gross margins decreased by 0.9 percentage points, largely as a result of lower margins on mobile 

phones, lower credit commission income and changes in product mix. Despite a background of 

continuing cost inflation the division further improved its cost to sales ratios by 0.7 percentage 

points. This was mainly achieved through tight control of payroll. 

The division’s product markets for which value-based data is available, grew by 1% overall. The 

brown goods market grew by 5%. Growth at the beginning of the period was particularly strong, 

helped by the positive impact of the World Cup. Sales of new technology products were strong, 

particularly widescreen TVs, home cinema systems, DVDs and digital photography. However, sales of 

older technology products were weaker and the audio market declined. The games console market 

also declined in value terms, reflecting lower average selling prices. 

The white goods market grew by 4%. Growth in cooking, dishwashers, tumble dryers and small 

domestic appliances was particularly strong. The PC hardware market fell by 3%, a significant 

improvement on the previous year when the market fell by 17% over the corresponding period. The 

mobile phone market also improved. Unit sales were flat compared with last year’s sharp decline as a 

result of strong sales of prepay phones. 

The UK Retail division continued to gain market share across all four major product groups, especially 

in computers and mobile phones. 

Dixons sales, at £393 million (£377 million), were up 4%. Like for like sales increased by 1%. Strong 

sales in large screen TVs, DVDs, PCs and digital imaging products were partially offset by weaker 

performances in communications and audio products. Changes were made to the space allocation 

and layout of Dixons stores to emphasise bigger-ticket product categories. 

In August Dixons launched a pilot of a new large format store, Dixons xL, in Cardiff. With 26,000 

square feet of selling space, 6,000 products and over 100 specialist staff, the store took a record 

£1 million over the opening weekend. Two further xL stores are planned for 2003. 

2 Dixons Group plc

Currys sales were £806 million (£751 million), an increase of 7% in total, 4% on a like for like basis. 

Performance in the first half year continued to be driven by a combination of the success of Currys 

Marketplace concept, a clear communication of Currys brand values through the Currys. . .no worries 

marketing campaign and further improvements in store efficiency. Six new Currys stores were 

opened or resited including three large Marketplace stores. Since the half-year end, we have opened 

or resited three stores and we expect to open or resite a further four stores in the second half. 

PC World sales grew by 17% to £683 million (£581 million) with like for like sales ahead by 6%. 

Despite a challenging trading environment, PC World’s performance was strong throughout the period, 

making significant gains in market share. Store design and product range initiatives, such as Component 

Centres, have now been successfully rolled out to all stores. We opened or resited nine new PC World 

superstores in the first half, taking the total to 118. Since the half-year end, we have opened four stores 

and we expect to open a further three stores in the second half of this financial year. 

PC World Business achieved good sales growth, with total sales ahead by 16% to £94 million 

(£81 million). The PC World Business customer acquisition model, offering small business customers 

the opportunity to purchase products or services through a store, from a catalogue, over the telephone 

or via the web, is proving very resilient despite a challenging business to business market. The 

Government Catalogue for IT (GCAT) delivered strong sales growth and PC World Business has 

significantly increased its share of the GCAT contract since it was awarded. 

At the start of the period, the Group acquired Genesis Communications, a business to business 

mobile phone service provider. Since acquisition, the business has performed strongly and has grown 

its customer base by over 12%. The integration process for Genesis is proceeding well, and Genesis is 

already enabling the Group to strengthen its communications offering to business customers through 

PC World Business, and via both PC World and The Link stores. 

Sales in The Link were £186 million (£161 million), an increase of 15% in total and 11% on a like for 

like basis, behind strong market share gains. During the period, The Link launched Vodafone in all stores, 

further strengthening its position as a market-leading communications specialist. Five new stores were 

opened in the period, taking the total to 290. Since the period end, two stores have been opened and 

we expect a further two stores to be opened during the second half. 

Extended warranties 

The Competition Commission is currently investigating the UK market for extended warranties on 

electrical goods. We are, of course, co-operating fully with this investigation, including helping the 

Competition Commission to understand the breadth of competition in this market. Over time the 

mix of our extended warranty sales has gradually declined, from around 9% of sales in 1997/98 to 

around 7.5% of sales today. We believe that the degree of product innovation in this sector and the 

increasing competition from new entrants demonstrate that this market is both competitive and 

operating effectively. 

International Retail 

The International Retail division achieved an operating profit before goodwill amortisation of 

£5.3 million (£7.4 million) on sales which were 36% ahead at £416 million (£305 million). Profit 

growth in the established businesses was offset by higher planned start-up losses in new markets. 

Sales in Elkjøp, the Group’s pan-Nordic business, were £352 million (£271 million) in the first half, an 

increase of 30%. Like for like sales were 8% higher. Elkjøp’s overall markets were unchanged during 


the period, but strong performances were achieved by all of Elkjøp’s businesses. Seven new stores 

were opened during the first half. The Group has secured overall market leadership in Norway and 

Sweden and is now the market leader in the out of town sector in both Denmark and Finland. With a 

robust business model and a strong store opening programme, Elkjøp is ideally placed to generate 

further sales and profit growth. 

The Group continued to expand its operations in Central Europe under the Electro World brand. It 

successfully entered the Czech market, opening two stores on the outskirts of Prague and shortly 

after the half year added a second store in Budapest. Initial sales and margin performance from these 

markets have exceeded expectations. Further new stores are planned for both countries. 

In Spain, sales at PC City were £19 million (£10 million). Four new stores were opened during the 

period, bringing the total number to ten. In France, sales were £8 million (£1 million). A further PC 

City store was opened at the end of the first half. Since then, two more stores have opened bringing 

the total to five, with a further opening planned towards the end of this financial year. In Italy, our 

first PC City superstore was opened in September. Since then, a second store has been opened, with 

more new stores planned. 

Sales in Ireland grew by 5% to £25.5 million (£24.4 million). Like for like sales were 3% lower. This 

was mainly due to a slowdown in the economy in Ireland. One Currys and one PC World superstore 

were opened in Limerick shortly after the half-year end. 

UniEuro 

On 12 November 2002, the Group completed the acquisition of a further 71.4% of UniEuro, the 

fastest growing and most profitable electrical retailer in Italy, for _366 million (£233 million), 

bringing its holding to 95.7%. The balance of 4.3% remains in the hands of management and is 

subject to the Group’s option to acquire the shares in July 2004. This acquisition provides a strong 

base in one of Europe’s largest markets. 

Integration of UniEuro into the Group is proceeding smoothly. Besides ongoing exchanges of best 

practice, UniEuro has already accelerated the successful launch of PC City in Italy. A number of other 

synergies are already being exploited or are under evaluation. 

Against the background of a difficult market, UniEuro increased its sales by 69% in total, and 4% on a 

like for like basis. UniEuro’s store base increased by 13 to 90 during the period, including seven stores 

added when UniEuro acquired Safra, an electrical retailer based in Southern Italy, in August 2002. 

European Property 

Operating profit in the European Property division grew to £6.5 million on sales £24 million higher at 

£31 million. This reflects a more even split of property sales in the current year. Major sales were 

made in Luxembourg and France. The management of Codic have recently increased their 

shareholding from 4% to 10%. 

Financial position 

The Group’s financial position is strong. The end of the first-half marks a seasonal peak for working 

capital. Net borrowings were £216 million (excluding funds held under trust to fund future extended 

warranty claims) compared with £298 million in the previous year. This improvement reflects the 

strong net funds position at the start of the year, resulting from the sale of Wanadoo shares in the 

second half of 2001/02. 


The Group issued a £300 million 6.125% 10-year bond in mid-November 2002 to fund the 

acquisition of UniEuro and to refinance some core debt. The offering was well received by investors 

and was over-subscribed. 

Net interest receivable was £5.4 million compared with £4.6 million in the previous year. The 

improvement reflected the benefits of the Group’s cash generation together with a strong opening 

cash position. 

The taxation charge is based on the estimated full year taxation rate of 23.4% on underlying profits 

(2001/02 full year rate of 21.9%). This rate reflects the inclusion of UniEuro on a fully consolidated 

basis for the second half, which increases the Group’s underlying tax charge. 

The Chancellor announced in his pre-budget report that changes will be made to Controlled Foreign 

Company legislation. This will bring certain profits from the sale of extended warranties within the 

scope of UK taxation and is proposed to take effect for accounting periods starting on or after 

27 November 2002. On the basis of the draft legislation, we estimate that this will increase the 

Group’s tax charge by around £20 million a year, commencing in 2003/04. 

Christmas trading 

Group retail sales for the eight weeks ended 4 January 2003 increased by 21% in total, with like for 

like sales up 1%. Total sales growth includes a first time contribution from the whole of the 

consolidation of UniEuro in Italy. Excluding this contribution, total sales grew by 12%. 

Sales grew by 6% in the UK and were flat on a like for like basis. The International division had a strong 

Christmas. Total sales grew 104% (42% excluding UniEuro) and by 5% on a like for like basis. 

The pattern of trading in the UK was significantly different before and after Christmas. In November, 

the latest period for which audited market share data is available, our market share was still growing. 

Sales in December were below expectations, however, principally accounted for by weaker sales of 

games consoles, audio products and extended warranties. The January Sale has started well, with 

strong sales of computers, widescreen televisions and DVD players. 

Gross margins in the UK have been below last year’s level. The rate of decline was moderately 

greater than in the first half reflecting changes in product mix, including lower sales of extended 

warranties, lower mobile phone margins and lower credit commission income. 

Outlook 

With an increasingly uncertain economic outlook and consequent risk to consumer confidence, we 

are cautious about the near term outlook for our markets. We expect, therefore, that the results for 

this financial year will be below current market expectations. Given this uncertainty, we intend to 

focus on our existing UK and international businesses for the immediate future. We remain confident 

in our strategy and growth prospects for the medium and long term. 

Sir John Collins 

Chairman 

8 January 2003 


Consolidated profit and loss account 

28 weeks ended 9 November 2002 

Goodwill 

amortisation 

Note Underlying and exceptional 

results items Total 

£million £million £million 

Turnover 2 2,599.7 - 2,599.7 

Group operating profit 89.7 (2.3) 87.4 

Share of profit of associated undertaking 2.0 - 2.0 

Total operating profit 2 91.7 (2.3) 89.4 

Exceptional items 3 - - - 

Profit on ordinary activities before interest 91.7 (2.3) 89.4 

Net interest 4 5.4 - 5.4 

Amounts written off investments 3 - - - 

Profit on ordinary activities before taxation 97.1 (2.3) 94.8 

Taxation on profit on ordinary activities 5 (22.7) - (22.7) 

Profit on ordinary activities after taxation 74.4 (2.3) 72.1 

Equity minority interests (1.6) - (1.6) 

Profit for the period 72.8 (2.3) 70.5 

Equity dividends 6 (29.2) - (29.2) 

Retained profit for the period 9 43.6 (2.3) 41.3 

Earnings per share (pence) 7 

Adjusted diluted (before goodwill 

amortisation and exceptional items) 3.7p 

Basic 3.6p 

Diluted 3.6p 

The above results for current and prior periods all derive from continuing operations 


28 weeks ended 10 November 2001 52 weeks ended 27 April 2002 

Goodwill 

Goodwill 

amortisation 

amortisation 

Underlying and exceptional Underlying and exceptional 

results items Total results items Total 

£million £million £million £million £million £million 

2,223.1 - 2,223.1 4,888.2 - 4,888.2 

83.2 (0.4) 82.8 281.7 (0.7) 281.0 

- - - 3.8 - 3.8 

83.2 (0.4) 82.8 285.5 (0.7) 284.8 

- - - - 15.1 15.1 

83.2 (0.4) 82.8 285.5 14.4 299.9 

4.6 - 4.6 12.4 - 12.4 

- - - - (30.0) (30.0) 

87.8 (0.4) 87.4 297.9 (15.6) 282.3 

(19.1) - (19.1) (65.1) - (65.1) 

68.7 (0.4) 68.3 232.8 (15.6) 217.2 

(2.0) - (2.0) (6.0) - (6.0) 

66.7 (0.4) 66.3 226.8 (15.6) 211.2 

(26.5) - (26.5) (117.3) - (117.3) 

40.2 (0.4) 39.8 109.5 (15.6) 93.9 

3.4p 11.6p 

3.4p 11.0p 

3.4p 10.8p 


Statement of total recognised gains and losses 

28 weeks 28 weeks 52 weeks 

ended ended ended 

9 November 10 November 27 April 

2002 2001 2002 


Profit for the period 70.5 66.3 211.2 

Exchange translation adjustments 29.2 (10.5) 18.2 

Total gains and losses recognised in the period 99.7 55.8 229.4 


Consolidated balance sheet 

Note 9 November 10 November 27 April 

2002 2001 2002 


Fixed assets 

Intangible assets 550.0 461.6 484.2 

Tangible assets 609.6 592.4 607.0 

Investments 495.6 596.1 479.0 

1,655.2 1,650.1 1,570.2 

Current assets 

Stocks 8 890.3 817.4 650.0 

Debtors - amounts falling due within one year 406.0 352.7 337.6 

- amounts falling due after more than one year 66.8 59.1 85.2 

Short term investments 701.7 774.7 813.9 

Cash at bank and in hand 87.0 50.2 38.6 

2,151.8 2,054.1 1,925.3 

Creditors – amounts falling due within one year 

Borrowings (316.0) (304.5) (193.8) 

Other creditors (1,140.1) (1,055.3) (1,061.3) 

(1,456.1) (1,359.8) (1,255.1) 

Net current assets 695.7 694.3 670.2 

Total assets less current liabilities 2,350.9 2,344.4 2,240.4 

Creditors – amounts falling due after more than one year 

Borrowings (337.2) (481.4) (303.0) 

Other creditors (244.4) (266.8) (239.8) 

(581.6) (748.2) (542.8) 

Provisions for liabilities and charges (79.7) (80.7) (80.9) 

1,689.6 1,515.5 1,616.7 

Capital and reserves 

Called up share capital 48.7 48.4 48.6 

Share premium account 137.5 109.9 135.5 

Capital reserve 290.0 395.5 290.0 

Merger reserve (386.1) (386.1) (386.1) 

Capital redemption reserve 425.5 425.5 425.5 

Profit and loss account 1,137.3 891.4 1,067.6 

Equity shareholders’ funds 9 1,652.9 1,484.6 1,581.1 

Equity minority interests 36.7 30.9 35.6 

1,689.6 1,515.5 1,616.7 


Consolidated cash flow statement 




2002 2001 2002 

Note £million £million £million 

Net cash (outflow)/inflow from operating activities 10 (3.7) 31.1 340.3 

Returns on investments and servicing of finance 

Interest received 21.9 21.0 47.0 

Interest paid (12.9) (12.3) (36.0) 

9.0 8.7 11.0 

Taxation paid (28.5) (7.6) (45.2) 

Capital expenditure and financial investment 

Purchase of tangible fixed assets (92.9) (104.1) (188.5) 

Sale of tangible fixed assets 23.9 2.8 23.7 

(Purchase)/sale of fixed asset investments (0.8) 0.8 178.4 

(69.8) (100.5) 13.6 

Acquisitions and disposals 

Cash consideration for acquisitions (3.6) (16.8) (16.8) 

Cash acquired with subsidiary 2.9 - - 

Partial sale of subsidiaries - - 0.9 

Acquisition of associated undertaking - - (66.7) 

(0.7) (16.8) (82.6) 

Equity dividends paid (89.9) (81.7) (108.1) 

Net cash (outflow)/inflow before management of liquid (183.6) (166.8) 129.0 

resources and financing 

Management of liquid resources 

Decrease/(increase) in short term investments 112.9 18.2 (20.9) 

Financing 

Issue of ordinary share capital 1.3 9.1 22.7 

Increase/(decrease) in debt due within one year 70.3 76.8 (0.5) 

(Decrease)/increase in debt due after more than one year (0.4) 17.4 (154.6) 

71.2 103.3 (132.4) 

Increase/(decrease) in cash in the period 0.5 (45.3) (24.3) 

Reconciliation of net cash flow to movement in net funds 10 

Increase/(decrease) in cash in the period 0.5 (45.3) (24.3) 

Cash (inflow)/outflow from (decrease)/increase in short term investments (112.9) (18.2) 20.9 

Cash (inflow)/outflow from (increase)/decrease in debt (69.9) (94.2) 155.1 

(Decrease)/increase in net funds resulting from cash flows (182.3) (157.7) 151.7 

Debt issued for acquisition (30.7) - - 

Translation adjustments (7.2) (2.8) 4.5 

Movement in net funds in the period (220.2) (160.5) 156.2 

Opening net funds 355.7 199.5 199.5 

Closing net funds 135.5 39.0 355.7 


Notes to the interim financial statements 

1 Basis of preparation 

The figures for the 52 week period ended 27 April 2002 do not constitute the Company’s statutory accounts for 

that period but have been extracted from those accounts which have been filed with the Registrar of Companies. 

The auditors have reported on those accounts, their reports were unqualified and did not contain statements 

under Section 237(2) or (3) of the Companies Act 1985. 

The interim financial statements for the 28 week period ended 9 November 2002 were approved by the directors 

on 8 January 2003. They have been prepared in accordance with relevant accounting standards and on the basis of 

the accounting policies set out in the Group’s Annual Report and Accounts 2001/02. They are unaudited and do 

not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985, but have been 

reviewed by the auditors. 

2 Segmental analysis 

(a) Turnover and operating profit 

28 weeks ended 28 weeks ended 52 weeks ended 

9 November 2002 10 November 2001 27 April 2002 

Operating Operating Operating 

Turnover profit Turnover profit Turnover profit 

£million £million £million £million £million £million 

Continuing operations: 

UK Retail 2,152.6 77.9 1,910.7 72.9 4,121.8 253.6 

International Retail 416.0 5.3 305.4 7.4 688.4 12.1 

European Property 31.1 6.5 7.0 2.9 78.0 16.0 

2,599.7 89.7 2,223.1 83.2 4,888.2 281.7 

Associated undertakings - 2.0 - - - 3.8 

Underlying results 2,599.7 91.7 2,223.1 83.2 4,888.2 285.5 

Goodwill amortisation - (2.3) - (0.4) - (0.7) 

2,599.7 89.4 2,223.1 82.8 4,888.2 284.8 

UK Retail underlying operating profit is stated after recognising net property profits of 6.3 million (28 weeks 

ended 10 November 2001 £6.0 million, 52 weeks ended 27 April 2002 £9.5 million). 


2002 2001 2002 

(b) Net assets £million £million £million 

UK Retail 327.8 265.3 201.7 

International Retail: 

Base (excluding associated undertakings and intangible assets) 218.9 204.8 177.9 

Associated undertakings (including attributable goodwill) 73.7 - 69.9 

European Property 43.9 41.0 31.5 

Intangible assets 550.0 461.6 484.2 

Net operating assets 1,214.3 972.7 965.2 

Net non-operating assets 339.8 503.8 295.8 

Net funds 135.5 39.0 355.7 

Net assets 1,689.6 1,515.5 1,616.7 


Notes to the interim financial statements continued 

2 Segmental analysis (continued) 

The International Retail division operates in the Nordic region, Spain, France, Ireland, Hungary, the Czech Republic, 

Italy and Greece. The European Property division operates mainly in Belgium, Luxembourg, France and Germany. 

There were no material exports from the locations in which the Group operates. 

Associated undertakings comprise UniEuro S.p.A. (“UniEuro”), which operates in Italy. 

Net non-operating assets predominantly comprise the Group's investment in Wanadoo S.A. and dividends payable. 

Net funds include amounts held under trust to fund extended warranty and service contract liabilities. Net 

borrowings, which exclude these amounts, totalled £215.7 million (10 November 2001 net borrowings of £298.0 

million, 27 April 2002 net free funds of £55.7 million). 

3 Goodwill amortisation and exceptional items 




2002 2001 2002 


Operating items: 

Goodwill amortisation 2.3 0.4 0.7 

2.3 0.4 0.7 

Non-operating items: 

Profit on sale of investment (i) - - 15.1 

- - 15.1 

Amounts written off investments (ii) - - (30.0) 

- - (30.0) 

(i) Profit on sale of investment: 52 weeks ended 27 April 2002 relates to the sale of 51.3 million shares in 

Wanadoo S.A. for consideration of £178.4 million. 

(ii) Amounts written off investments: 52 weeks ended 27 April 2002 relates to the Group's investment in 

P. Kotsovolos S.A. 

4 Net interest 




2002 2001 2002 


Interest receivable and similar income 20.6 27.2 46.5 

Interest payable: 

Bank loans and overdrafts (9.2) (13.7) (18.7) 

Other loans (6.4) (9.2) (15.8) 

(15.6) (22.9) (34.5) 

Interest capitalised 0.4 0.3 0.4 

5.4 4.6 12.4 


5 Taxation on profit on ordinary activities 




2002 2001 2002 


Current taxation: 

UK corporation tax at 30% 19.7 16.4 54.7 

Overseas taxation - the Company and its subsidiaries 3.3 2.8 9.3 

- associated undertakings 0.6 - 1.3 

Adjustment in respect of earlier periods: 

Corporation tax (1.0) - (0.1) 

Overseas taxation 0.2 0.1 0.5 

22.8 19.3 65.7 

Deferred taxation: 

Current period (0.1) 0.2 0.8 

Adjustment in respect of earlier periods - (0.4) (1.4) 

(0.1) (0.2) (0.6) 

Taxation on profit on ordinary activities 22.7 19.1 65.1 

The taxation charge on profit on ordinary activities before goodwill amortisation and exceptional items is based 

on the estimated rate of taxation of 23.4 per cent for the 53 weeks ending 3 May 2003. The effective rate of 

taxation for the 52 weeks ended 27 April 2002 was 21.9 per cent. 



6 Dividends 




per 2002 per 2001 per 2002 

share £million share £million share £million 

Per ordinary share 

Interim 1.510p 29.2 1.375p 26.5 1.375p 26.5 

Proposed final - - - - 4.675p 90.8 

Ordinary dividends paid and proposed 1.510p 29.2 1.375p 26.5 6.050p 117.3 

7 Earnings per share 




2002 2001 2002 


Basic earnings 70.5 66.3 211.2 

Diluted earnings 70.5 66.3 211.2 

Goodwill amortisation 2.3 0.4 0.7 

Exceptional items, net of taxation - - 14.9 

Adjusted diluted earnings 72.8 66.7 226.8 

million million million 

Basic weighted average number of shares 1,939.9 1,923.0 1,925.9 

Employee share option and ownership schemes 10.2 20.9 20.9 

Diluted weighted average number of shares 1,950.1 1,943.9 1,946.8 

pence pence pence 

Basic earnings per share 3.6 3.4 11.0 

Diluted earnings per share 3.6 3.4 10.8 

Goodwill amortisation 0.1 - - 

Exceptional items, net of taxation - - 0.8 

Adjusted diluted earnings per share 3.7 3.4 11.6 

Adjusted earnings per share, which exclude goodwill amortisation and exceptional items, are shown in order to 

disclose the impact of these items on underlying earnings. 


8 Stocks 


2002 2001 2002 


Finished goods and goods for resale 825.8 767.3 615.7 

Properties held for development or resale 64.5 50.1 34.3 

890.3 817.4 650.0 

Properties held for development or resale include interest of 3.0 2.7 2.7 

9 Reconciliation of movements in equity shareholders’ funds 


2002 2001 2002 


Opening equity shareholders' funds 1,581.1 1,446.3 1,446.3 

Profit for the period 70.5 66.3 211.2 

Dividends (29.2) (26.5) (117.3) 

41.3 39.8 93.9 

Other recognised gains and losses relating to the period 29.2 (10.5) 18.2 

Ordinary shares issued: 

Share option and ownership schemes 1.3 9.0 22.7 

Net additions to equity shareholders’ funds 71.8 38.3 134.8 

Closing equity shareholders’ funds 1,652.9 1,484.6 1,581.1 



10 Notes to the cash flow statement 

(a) Reconciliation of operating profit to net cash (outflow)/inflow from operating activities 




2002 2001 2002 


Operating profit 89.4 82.8 284.8 

Depreciation 60.5 53.0 104.0 

Amortisation of goodwill and own shares 2.4 0.7 1.0 

Share of profit of associated undertaking (2.0) - (3.8) 

Profit on disposal of fixed assets (6.3) (6.0) (9.5) 

Net utilisation of provisions (1.1) (5.9) (5.4) 

Increase in stocks (230.8) (235.3) (59.5) 

Increase in debtors (20.5) (18.2) (31.8) 

Increase in creditors 104.7 160.0 60.5 

(b) Analysis of net funds 

(3.7) 31.1 340.3 

Acquisition 

27 April (excluding cash Exchange 9 November 

2002 Cash flow and overdrafts) movements 2002 

£million £million £million £million £million 

Cash at bank and in hand 38.6 47.5 - 0.9 87.0 

Overdraft (4.3) (47.0) - - (51.3) 

34.3 0.5 - 0.9 35.7 

Short term investments 813.9 (112.9) - 0.7 701.7 

Debt due within one year (189.5) (70.3) - (4.9) (264.7) 

Debt due after more than one year (303.0) 0.4 (30.7) (3.9) (337.2) 

321.4 (182.8) (30.7) (8.1) 99.8 

355.7 (182.3) (30.7) (7.2) 135.5 

11 Post balance sheet events 

On 11 November 2002 Dixons acquired a further 71.4 per cent of the issued share capital of UniEuro for 

e365.7 million (£233.0 million) in cash. Payment of e2.5 million of UniEuro management's share of the 

consideration is deferred to July 2004. The balance of 4.3 per cent of UniEuro, owned by management, remains 

subject to the Group’s option to acquire it for up to e29.8 million in July 2004. 

On 15 November 2002, the Group issued a £300 million 6.125 per cent Guaranteed Bond repayable on or before 

15 November 2012. The net proceeds of the issue of the bonds have predominantly been used to purchase the 

71.4 per cent of UniEuro referred to above. 


Independent review report by the auditors 

To Dixons Group plc 

Introduction 

We have been instructed by the Company to review the financial information for the 28 weeks ended 

9November 2002 which comprises the consolidated profit and loss account, the statement of total recognised 

gains and losses, the consolidated balance sheet, the consolidated cashflow statement and related notes 1 to 11. 

We have read the other information contained in the interim report and considered whether it contains any 

apparent misstatements or material inconsistencies with the financial information. 

Directors’ responsibilities 

The interim report, including the financial information contained therein, is the responsibility of, and has been 

approved by the directors. The directors are responsible for preparing the interim report in accordance with the 

Listing Rules of the Financial Services Authority which require that the accounting policies and presentation 

applied to the interim figures should be consistent with those applied in preparing the preceding annual accounts 

except where any changes, and the reason for them, are disclosed. 

Review work performed 

We conducted our review in accordance with guidance contained in Bulletin 1999/4 issued by the Auditing 

Practices Board for use in the United Kingdom. A review consists principally of making enquiries of group 

management and applying analytical procedures to the financial information and underlying financial data and 

based thereon, assessing whether the accounting policies and presentation have been consistently applied unless 

otherwise disclosed. A review excludes audit procedures such as tests of controls and verification of assets, 

liabilities and transactions. It is substantially less in scope than an audit performed in accordance with United 

Kingdom auditing standards and therefore provides a lower level of assurance than an audit. Accordingly, we do 

not express an audit opinion on the financial information. 

Review conclusion 

On the basis of our review we are not aware of any material modifications that should be made to the financial 

information as presented for the 28 weeks ended 9 November 2002. 

Deloitte & Touche 

Chartered Accountants 

London 



Additional information 

Retail sales analysis 

28 weeks 28 weeks 

ended 

ended 

9 November 10 November Like for like 

2002 2001 Change change 

£million £million % % 

UK Retail 

Dixons 392.8 376.6 4% 1% 

Currys 806.1 750.5 7% 4% 

PC World 682.6 581.1 17% 6% 

The Link 186.0 161.3 15% 11% 

Other 85.1 41.2 107% n/a 


Nordic Region 351.9 270.8 30% 8% 

Ireland 25.5 24.4 5% –3% 

PC City Spain 19.1 9.6 99% –1% 

PC City France 7.8 0.6 n/a n/a 

Central Europe 11.7 - n/a n/a 

Total Retail 2,568.6 2,216.1 16% 5% 

Retail store data Store numbers Sales area 

Change since 

Change since 9 November 27 April 

9 November 27 April 2002 2002 

2002 2002 000 sq.ft. 000 sq.ft. 

UK Retail 

Dixons 330 (1) 875 22 

Currys - Superstores 290 (1) 3,868 77 

- High Street 92 (1) 155 (3) 

PC World 119 8 1,975 134 

The Link 290 5 273 5 


Nordic Region* 154 6 1,940 138 

Ireland 12 - 126 - 

PC City Spain 10 4 141 63 

PC City France 3 1 56 22 

Central Europe 3 2 121 78 

Total Retail 1,303 23 9,530 536 

* Includes franchise stores 


Shareholder information 

Registered office 

Maylands Avenue 

Hemel Hempstead 

Hertfordshire HP2 7TG 

Registered No. 3847921 

Registrars and transfer office 

Capita IRG plc 

Balfour House 

390/398 High Road 

Ilford 

Essex IG1 1NQ 

Tel: 0870 162 3100 

Shareholder enquiries 

Shareholders can access shareholding details over the Internet. The web address for our Registrars’ site is 

www.capita-irg.com. As well as checking name, address and shareholding details in the Shareholder Help section, 

change of address, dividend mandate and stock transfer forms can be downloaded. This is a secure site. So that 

the system can validate enquiries an Investor Code is required. This is a numerical account number shown on 

share certificates and dividend tax counterfoils. 

Joint brokers 

Cazenove 

Schroder Salomon Smith Barney 

Capital gains tax 

For the purpose of computing capital gains tax, the market value of the Company’s ordinary shares on 31 March 

1982 was 1.35 pence (adjusted for rights and capitalisation issues and the corporate restructuring effected on 7 

March 2000). 

Share dealing service 

Cazenove operates a postal share dealing service for private investors who wish to buy or sell the Company’s 

shares. Details are available from Cazenove. Tel: 020 7606 1768. 

Internet 

The Annual Report and other Group information are available through the Internet at: www.dixons-group-plc.co.uk 

Dividend reinvestment plan 

Details of the Company's Dividend Reinvestment Plan are available from the Registrars. To receive the interim 

dividend in the form of shares, mandate forms from new participants should be received by the Registrars by 

14 February 2003. 

Dividend mandate 

Shareholders who wish dividends to be paid directly into a bank or building society account should contact the 

Registrars for a dividend mandate form. This method of payment reduces the risk of delay or loss of dividend 

cheques in the post and ensures that your account is credited on the dividend payment date. To receive dividends 

in this way, mandate forms should be received by the Registrars by 31 January 2003. 

Individual Savings Account 

A corporate ISA is available for investors wishing to take advantage of preferential tax treatment in relation to 

their shareholdings. Details are available from Stock Trade. Tel: 0131 240 0448 and ask for the Dixons Group 

helpline. 


Shareholder information continued 

ADR depositary 

The Company’s shares are available in the form of American Depositary Receipts (ADRs). The Company’s 

depositary is Bank of New York. Tel: 00 1 212 495 1784 (from the United States of America 888-269-2377 

toll-free). 

CREST 

The Company’s shares are traded on CREST. CREST is a voluntary system which enables shareholders to hold and 

transfer their shareholdings electronically rather than by paper. 

Unsolicited mail 

The Company is obliged to make its share register available to members of the public and organisations on 

payment of a prescribed fee. This may result in shareholders receiving unsolicited mail. If you wish to limit the 

receipt of unsolicited mail you should write to: 

The Mailing Preference Service 

FREEPOST 22 

London W1E 7ER 

ShareGift 

The Orr Mackintosh Foundation operates a charity share donation scheme for shareholders with small parcels of 

shares whose value makes it uneconomic to sell them. Details of the scheme are available on the ShareGift 

internet site, www.sharegift.org. 

Financial calendar 

Interim dividend record date 


Payment of Interim dividend 

3 March 2003 

2002/03 preliminary annual results announcement 

25 June 2003 

2002/03 annual report and accounts publication 

August 2003 

Annual General Meeting 

10 September 2003 

Payment of 2002/03 final dividend 

October 2003 


Printed by Fraser Hamilton Associates Limited

Dixons Group plc 

Maylands Avenue 

Hemel Hempstead 

Herts HP2 7TG 

Telephone 0870 850 3333 

www.dixons-group-plc.co.uk

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