Dixons Retail Share Discussion Threads

[undervaluedassets] 20/5/2014 09:01

The fit just seems so logical to me.

More phones in Currys/pc world stores.

More small must have gadgets (wireless speakers etc) in CPW stores.

Compelling

[undervaluedassets] 20/5/2014 06:58

last time this company had profits of over 150 million the share traded north of £1.

Well from statement set to be 150-160 million.

The DXNS/CPW company would seem to me to be a credible entrant to the FTSE 100

A combined CPW/DXNS profit of circa 300 million would put us at around place number 70 by profitability in the FTSE 100 index.

[mikepompeyfan] 19/5/2014 13:49

RNS says Standard Life Investments have been adding and now hold over 9%.

Nice to see someone has faith in the merger.

[tim 3] 19/5/2014 09:14

yeah another "disaster" over sea's bites the dust, thank goodness.

[portside1] 19/5/2014 08:27

all looking good for holders at last we are going to get our rewards in a great deal.

[undervaluedassets] 19/5/2014 08:15

more cutting of dead wood and concentration on what works by SEb James

[mikepompeyfan] 19/5/2014 07:48

Looking at y/e April 15 forecasts l'm seeing about £145m for cpw and £180m for dxns ptp. Total £325m. That's before merger benefits.

[hippo] 19/5/2014 07:17

All looks good to me, combined group profits exceeding 200m, 80m of savings feeding to the bottom line and the last of the loss making enterprises sold.

Plus FT100, plus divi's.

No wonder the II are telling people to sell lol...............

[skinny] 19/5/2014 07:04

Dixons Retail plc ("Dixons Retail"), one of Europe's leading specialist multi-channel electrical retailer and services companies, today announces that it has entered into an agreement to sell the ElectroWorld operations in Central Europe to NAY a.s., a leading electrical specialist retailer in the region.

Electroworld operates 26 specialist electrical retail stores across Czech Republic and Slovakia.

Following completion, which is expected to take place during the summer, and which remains subject to certain normal conditions including competition authority clearance, Dixons Retail expects to receive a small deferred cash consideration spread over three years.

For the year to April 2014, the assets being disposed of generated losses before tax of £5.6 million on turnover of £129 million from 26 stores (including 2 franchise stores).

Commenting on the disposal, Sebastian James, Dixons Retail Group Chief Executive, said:
"I am very pleased that we have been able to secure a strong future for Electroworld who will be able to flourish as a part of the NAY Group in Central Europe. Following this transaction Dixons will be a market leader in every market in which it operates, delivering on one of our key strategic objectives."

Commenting on the deal, Mr.Peter Zálešák and Mr Ján Tomáš, co-founders of NAY, said:
"We are pleased to announce the closure of this deal with ElectroWorld. It is a big step towards achieving our goal of reaching EUR 300m of sales in Central Europe and we strongly believe it allows the development of our market leading position in Slovakia. Furthermore it achieves our longer-term development to enter the Czech market and we are delighted to do that in conjunction with such a good partner as Electroworld."

[undervaluedassets] 19/5/2014 06:45

It was the "it is better to travel than arrive" brigade that sold last week.

They bought the rumour and sold the fact of the merger.

One other thing - No-one on this board (or elsewhere) spoke about the profits estimate that the company touted in the trading statement. It was all about the merger which upstaged everything.

DXNS signalled that they are expecting profits north of £150 million.

(Well last time the company had profits of more than 150 million the share price was more than £1)

[tim 3] 18/5/2014 22:15

With you there Cumnor.

AO is imo one of the most overvalued stocks in this sector I have seen for a long time.

Just what makes them stand apart from Amazon or for that matter most other online etailers?

And what supports their valuation?

Most people shopping online don't look much beyond price in my experience.

Would not be the least bit surprised if their shares halved or more if things get ugly.

[cumnor] 18/5/2014 21:17

Dxns will survive, Amazon will but AO....can't see it's niche. Either DXNs or Amazon could with a bit of sustained competitive pricing of targeted goods AO relies on test the latter's resilience and business model to the point of capitulation. Could turn into a disaster for this new floats' investors in no time. AIMO

[mikepompeyfan] 18/5/2014 20:18

It's nice to see what a TV picture is like in real life before you buy it though isn't it. John Roberts does a good job of talking his own book but l suspect his arrogance is upsetting people. The way he demanded suppliers tell him how much they charge his competitors being an example. Not to mention their share price performance since flotation ;-)

[ravin146] 18/5/2014 20:01

Hope Dixons not necessarily listens to this but proves him wrong and contines to be the leader...John Roberts, CEO and founder of ao.com, comments: "Having studied how TVs are retailed online we found a market that was tired, static and really not meeting the needs of the consumer. We believe current online offers are overcomplicated, too jargon heavy and populated with ranges that are hard to distinguish.

[portside1] 18/5/2014 09:47

the new company will have 1.2b shares and M/C of 3.8b on the open of the new company . so looking for the new shares to hit over 400p

[pal44] 18/5/2014 09:09

People go into shops to view goods the check online to see if they can buy it cheaper. Why not offer to price match online deals and save retail jobs. GLA..

[cumnor] 18/5/2014 08:20

As a shareholder I would like to see the company company play online rivals at their own game. There will be too many unprofitable stores in the UK-CWP, Dixons side by side in the high street and out of town PC worlds selling much of the same stuff, incl white goods.

Amazon and other onliners undercut high street retailers by paying little or no tax-corporation because they are off shore based and income because they employ no retail staff-and therefore can keep prices below retailers who employ many tens of thousands, as opposed to a few thousand web, call centre and distribution staff.

Retailers will continue to struggle no matter how they cut costs-so can Amazon from a lower cost base.

I would like to see the new company close half the stores-except the highly profitable ones-develop further a ure online business to take on AO, Amazon etc and start to play hard ball with manufactures, using their scale to demand better 'showroom' incentives, payments to display goods in costly retail outlets which consumers frequently use before buying elsewhere.

If government does not want to see hundreds of thousands of young retail staff on the 'dole', with a huge drop in tax revenue to boot, then it needs to do more than talk. An online 'sales tax' could bring in more revenue, preserve high street jobs which will go and will be immediate and easy to implement. There is little electoral risk-high street rices will remain unchanged but the amazons of the world will pay more tax or make less profits.

This 'internet of things' and connectivity of household goods to mobile is nice and a bonus but it will not save the company-Amazon can do it just as easily. The issue here is margins, costs and taxes eat into them. Dxns/CWp have the scale to demand more off manufactures (or refuse to dislay their goods) and tackle Amazon to make an even bigger online impact in the UK if they are allowed a level playing field.

As a shareholder it is not my job to subsidise UK jobs and pay others taxes while online outfits cream the profits from me and UK taxpayers.

Seb and Charles, get your acts together and start acting like (Amazon) grown ups.

imo

imo

[ravin146] 17/5/2014 18:08

This merger is 'ahead of the curve', ahead of some of the market analysts analysis (majority of brokers still rate this a buy with targets near 60p/though not yet on the whole entity), as the market of internet connected products is relatively young and unknown. Competition from the internet itself will play its part. Though as a joint effort, this combined group will grow, thought the merger will take time to take effect and integrate fully. Long term holders will benefit with dividends and this being a ftse 100 company, short term traders won't have the patience and walk like we saw this week. Gd luck all.

[portside1] 17/5/2014 16:28

the new share share price WILL OPEN UPAT 345P

[portside1] 17/5/2014 16:26

0.155 new share for ever 1 held in dxns that's 2325 for ever 15000 held

[portside1] 17/5/2014 16:09

how many shares after the deal is done will DXNS holders get for ever 10000 they hold

[smicker] 17/5/2014 14:01

They will have div cover at 3 times. Anyone any idea of that as a % in terms of new shareprice assuming no change in earnings?

[septimus quaid] 17/5/2014 09:04

I originally bought into Dixons for a future dividend restoration story. Growth in the presently saturated electronics market will always be limited.

Carphone paid an interim dividend of 2pps on 31/03/14 (and 5p in 2013).

I assume therefore that the merger will bring forward Dixons "recovery" in terms of dividend restoration (this can only be ignored by the market for so long).

Dividend maintemence is all about cost/overhead control, good supplier relationships, retaining market share and low risk management strategies.