LONDON, June 25, 2010 /PRNewswire/ -- DSG international plc, one of Europe's largest specialist electrical retailers, today announces preliminary audited results for the 52 weeks ended 1 May 2010:

Financial Highlights

- Total Underlying Group sales(1) (2) up 4% to GBP8,531.6 million (2008/09 GBP8,180.2 million). - Total Group sales, including those from closed businesses, up 3% to GBP8,532.5 million (2008/09 GBP8,317.8 million). - Group like for like sales(3) up 2% in the full year and up 6% in the second half. - Underlying Group gross margins flat across the full year. - Underlying EBIT(4) up 60% at GBP133.2 million (2008/09 GBP83.0 million). - Significant profit improvements across the Group, including UK Ireland up 21% and Nordics up 28%. - Underlying pre-tax profit(2) up 61% at GBP90.5 million (2008/09 GBP56.1 million). - Underlying diluted earnings per share(2) up 50% at 1.5 pence (2008/09(5) 1.0 pence). Basic earnings per share for continuing operations of 1.7 pence (2008/09 loss per share of (10.2) pence). - Total profit before tax after net non-underlying items was GBP112.7 million (2008/09 loss GBP(123.6) million). - Free Cash Flow(6) of GBP28.1 million before restructuring and impairment charges (2008/09 outflow of GBP(340.0) million). - As at 1 May 2010 the Group had net debt of GBP(220.6) million (2008/09 GBP(477.5) million). - New GBP360 million revolving credit facility signed with syndicate of banks, providing the Group with flexibility.

John Browett, Chief Executive, commented:

Focus on our customers drives everything we do and I am delighted with the excellent progress we have made over the past twelve months as we continue to transform the Group, despite the recessionary environment across Europe. We have made significant improvements throughout the business, transforming the shopping experience for customers with better choice, value and service both in stores and online. We are now two years into the Renewal and Transformation plan and are encouraged by the improved profitability and competitiveness it continues to deliver.

Operational Highlights

- Group name of Dixons Retail plc to be ratified by shareholders at the AGM. - Renewal Transformation plan improving the offer for customers. - Store transformation programme on track: - Over 200 stores reformatted across the Group by the year end; - Additional 80 reformatted stores to be opened by Peak in the UK, including 21 Megastores; - Two thirds of store portfolio by sales will be transformed in the UK by October 2010; - Nordic store reformatting continues, with 16 Megastores now open; - Portfolio review completed with over 160 stores exited over the last 2 years. - Reformatted stores continue to perform strongly: - Average gross profit uplifts of 20% versus the rest of the chains; - Average gross profit uplifts of 50% achieved in the Megastores and 2-in-1s; - Second year trading for reformatted stores remains strong. - Significant improvements to services for customers:- - Further compelling services for customers launched including free delivery slots, next day timed delivery slots and 'follow-me-home' services from Megastores; - Better availability of stock in store with stock turn up 12% year on year; - Satisfaction measures rising, due to focus on service, connectivity, delivery, installation and repair. - Good progress with online operations:- - Pure internet sales of GBP1.4 billion, representing 16% of total Group sales; - Successful roll-out of 'e-merchant' operating platform to UK internet sites. - International plans making progress:- - Turnaround plans in Italy ahead of schedule with positive like for like sales and margin improvements; - Greece and Spain weathering economic challenges well and gaining market share. - GBP200 million 4 year cost saving programme on track, delivering GBP50 million reduction in the year. - UK defined benefit pension scheme closed to future accruals thereby reducing risk for the Group. - On track for medium term target of a 3%-4% EBIT return on sales.

Outlook

The economic backdrop across Europe has remained challenging throughout the year. The Group expects these conditions to continue in the coming year in many of its markets where consumer spending is likely to come under pressure from fiscal tightening. The Group is well prepared for this environment and continues to focus on improving the offer for customers while managing costs, margins, stock turn and cash flow. Consequently, given the Renewal and Transformation plan, Group profitability will continue to improve.

About Currys:

Currys is the UK's biggest electrical retailer with a network of over 500 stores nation-wide, including out of town stores, high street Currys.digital stores and a Currys Megastore in the Midlands. It also stocks a wide range of fridge freezers (http://www.currys.co.uk/), laptop bags (http://www.pcworld.co.uk/gbuk/laptops-netbooks/laptops-703-c.html) and desktop pcs ( http://www.dixons.co.uk/gbuk/computers/desktop-pc-monitor-packages-122-c... .)

UNDERLYING SALES AND PROFIT ANALYSIS

Underlying sales Underlying profit /(loss) 52 weeks 52 weeks Like 52 weeks ended ended for 52 weeks ended like(2) ended 1 1 May 2010 2 May 2009 May 2010 2 May 2009 % GBPmillion GBPmillion change GBPmillion GBPmillion UK Ireland 2,650.6 2,657.8 (1)% 32.0 17.7 Electricals UK Computing 1,362.9 1,570.8 (9)% 39.1 41.0 UK Ireland 4,013.5 4,228.6 (3)% 71.1 58.7 Nordics 2,093.7 1,625.2 13% 97.4 76.1 Other 1,503.2 1,519.0 flat (8.3) (23.7) International e-commerce 921.2 807.4 11% 11.3 15.0 Central Costs - - (19.5) (25.0) Total Group 8,531.6 8,180.2 2% 152.0 101.1 Retail Property losses (18.8) (18.1) EBIT 133.2 83.0 Underlying net finance costs (42.7) (26.9) Group underlying profit before tax 90.5 56.1

NOTES

(1) UK Ireland Electricals comprises Currys, CurrysDigital and Dixons Travel in the UK as well as the operations in Ireland.

(2) UK Computing comprises PC World, DSGi Business and The TechGuys. Like for like sales are for PC World only.

(3) Nordics comprises the Elkj0p group (Elkj0p, El Giganten, Gigantti and Lefdal).

(4) Other International comprises Greece (Kotsovolos and Electro World), Cyprus (Kotsovolos), Italy (UniEuro, PC City Italy and Dixons Travel Italy), Spain (PC City Spain), Turkey (Electro World), Czech Republic (Electro World) and Slovakia (Electro World).

(5) e-commerce division comprises PIXmania and Dixons.co.uk.

BUSINESS PERFORMANCE

Underlying Group sales (excluding discontinued operations and closed businesses) were up 4% to GBP8,531.6 million (2008/09 GBP8,180.2 million) and up 2% on a like for like basis. Underlying Group sales were up 2% at constant exchange rates. Total Group sales (including closed businesses) were up 3% to GBP8,532.5 million (2008/09 GBP8,317.8 million). Group gross margins were flat across the year.

Group underlying EBIT (underlying profit before interest and tax) increased by 60% to GBP133.2 million (2008/09 GBP83.0 million). Group underlying profit before tax was up 61% at GBP90.5 million (2008/09 GBP56.1 million). Total profit before tax, after adding back non-underlying items of GBP22.2 million, was GBP112.7 million (2008/09 loss before tax of GBP(123.6) million).

UK IRELAND

Total sales in the UK Ireland were down 5% to GBP4,013.5 million (2008/09 GBP4,228.6 million) and like for like sales were down 3% across the year. Like for like sales in the second half were up 3% as the Renewal and Transformation plan began to deliver benefits. Underlying operating profit for the full year was up 21% at GBP71.1 million (2008/09 GBP58.7 million).

The economic environment in the UK Ireland remained challenging across the year. During the first half the Group was focused on cash margins while much of the Renewal and Transformation and store reformatting was taking place. The business then experienced a strong Christmas Peak as the benefits of the plan started to improve the business performance and deliver market share gains in all major categories.

UK Ireland Electricals includes Currys, CurrysDigital and Dixons Travel in the UK and Currys and PC World in Ireland. Total sales were flat year on year at GBP2,650.6 million (2008/09 GBP2,657.8 million) with like for like sales down 1%, across the year, but up 6% in the second half. Underlying operating profit improved by 81% to GBP32.0 million (2008/09 GBP17.7 million).

UK Computing includes PC World, DSGi Business and TechGuys. Total sales were down 13% at GBP1,362.9 million (2008/09 GBP1,570.8 million) with like for like sales down 9%. The decline in sales was predominantly driven by lower sales in the DSGi Business operations as small businesses reduced capital expenditure during the credit crunch. Despite the weak sales environment, underlying operating profit was relatively stable at GBP39.1 million (2008/09 GBP41.0 million).

UK Ireland has historically been reported separately as UK Ireland Electricals and UK Computing. A key objective of the Renewal and Transformation plan is to remove complexity, simplify processes, make operations easier for colleagues and reduce costs in the Group. As a result the back office functions supporting the PC World, Currys, CurrysDigital and Dixons Travel operations have been brought together with the combined commercial, merchandising and buying teams supporting all brands. The logistics infrastructure has also been consolidated with the main warehouse in Newark providing one fulfilment centre for stores and customers. In addition, with an increasing number of combined 2-in-1 Currys and PC World stores, the Electricals and Computing operations in the UK Ireland will no longer report figures separately and will consequently be reported as one operation going forward.

The main focus of the Renewal and Transformation plan has, to date, primarily benefitted the UK Ireland operations. The stores are benefitting from improved ranges and selling service. All colleagues have now undergone FIVES training, our bespoke training programme focusing on understanding and meeting a customer's needs as well as improving product knowledge. Stock management processes have been improved significantly, improving availability and ranges while controlling costs and working capital utilised in the business.

During the year significant improvements have been made to the services infrastructure. This enables Currys and PC World to offer customers flexible options to suit their needs even better, from the market leading next day delivery in 3 hour timed slots to free delivery. Delivery times continue to improve with 'right first time' achieving 97% with 'right second time' even higher. Utilising our logistics infrastructure we are able to offer free recycling without materially impacting costs or carbon emissions.

The repair and support operations have been restructured improving processes and reducing costs. A new state of the art repair facility for TVs and laptops has been opened in Newark. These changes have enabled the Group to considerably improve repair times, for example, halving the average repair time for televisions to 6 days, with further improvements under way. The contact centre was successfully brought back in house enabling us to improve the quality of service and support offered to our customers.

Dixons Travel continues to perform well. The new format stores are being rolled out to existing locations bringing improved ranges, play tables and store layouts to the airport stores. Dixons Travel initiated its overseas expansion opening stores in Rome airport. Since the year end Dixons Travel has opened a store in Dublin airport. Further international locations are expected to be added over time.

The TechGuys continues to be a valued differentiator providing service and expertise to customers. The TechGuys service desk is now operational in PC World and combined 2-in-1 stores and has been incorporated in the Currys Megastores. In August the TechGuys launched a range of over 60 enhanced services for customers as well as introducing Club and Premier Club options for the Whateverhappens customer support agreements. Under the Premier Club, support agreement customers experience enhanced levels of service such as faster response times and the loan of a product if theirs has to be taken away for repair.

In Ireland, the economic environment has been particularly tough. The business there took early actions to manage costs resulting in an improving performance in the second half with sales and profits up year on year.

DSGi Business experienced an extremely challenging trading environment as smaller businesses reduced capital expenditure during the credit crunch. The new management team is focused on managing costs and cash. The B2B operations are well placed to benefit when small businesses restart investment as the economic environment improves.

As at 18 June 2010 the Group had transformed 164 stores in total in the UK, of which 12 were Megastores and 20 were combined 2-in-1 Currys and PC World Superstores. The transformed stores continue to deliver gross profit uplifts of 20%, with uplifts of 50% in the Megastores and combined 2-in-1 Currys and PC World stores. Management estimate that the transformed stores benefitted the like for like sales in the UK by approximately 3% across the year. While there are a limited number of reformatted stores over a year old, performance in the second year remains strong.

Having traded the new format stores through the important Peak period the Group has determined the appropriate portfolio and transformation programme going forward, and announced its intention to reduce the number of stores in the UK to approximately 500 (excluding stores under the Dixons Travel brand) over time. The Megastore and 2-in-1 combined stores are proving to be particularly popular with customers. 70 locations for the Megastore format have been identified with 60 being developed using existing stores in the portfolio and the remainder resulting from the relocation of existing stores. In addition the Group expects to have approximately 330 out of town superstores, predominantly of the combined 2-in-1 Currys and PC World format which can be similarly created from within the existing portfolio. With limited overlap between the PC World and Currys customer demographic the combined 2-in-1 stores provide access to the PC World brand in existing Currys markets. The Group also expects to continue to operate up to 100 High Street locations.

In the UK Ireland the Group expects to refurbish approximately 100 stores during the 2010/11 financial year, with the majority to be completed before Christmas 2010, as follows:-

- 21 new Megastores, taking the total in the UK to 33 Megastores; - 44 combined 2-in-1 Currys and PC World stores; - 12 Currys and PC World standalone superstores; and - 3 CurrysDigital High Street stores.

The Group has also been implementing those parts of the store transformation programme to existing stores across the portfolio that improve the shopping trip for customers but require little or no additional expenditure. As a result these stores have already benefitted from the improved ranges, colleague training, and enhanced after sales help and support.

NORDICS

In the Nordic region, Elkj0p delivered a very strong performance with sales increasing by 22% in local currency and 29% in sterling to GBP2,093.7 million (2008/09 GBP1,625.2 million). Like for like sales were up 16% in the second half and up 13% across the year. Underlying operating profits increased by 28% to GBP97.4 million (2008/09 GBP76.1 million). Nordic region results are stated excluding the businesses of PC City in Sweden and Markantalo in Finland closed at the beginning of the financial year.

Elkj0p performed very strongly in all of its markets and product categories. It has performed particularly strongly in Sweden and Denmark despite the more challenging economic environments experienced in these markets across the year. With excellent in store service and customer engagement, the Nordic business is the preferred operating model for the Group and practices are being increasingly shared across all of the Group's divisions. Management continue to simplify the business, taking out costs and reducing complexity. The efficient central operating structure, customer focused business model and strong market positions have enabled Elkj0p to gain market share from other competitors.

Elkj0p has now opened 16 Megastores which have performed particularly well. It has also started a programme to refurbish existing superstores using the same principles employed in the UK businesses.

Elkj0p's multi-channel offering continued to grow in all markets doubling its sales through the internet during the year. Its Reserve and Collect service continues to be well received by customers.

OTHER INTERNATIONAL

This division comprises operations in Italy, Greece, Spain, the Czech Republic, Slovakia and Turkey. Total sales were down 5% at constant exchange rates and by 1% in sterling to GBP1,503.2 million (2008/09 GBP1,519.0 million). A better performance in the second half with like for like sales up 4% resulted in a flat like for like performance across the year. Underlying operating losses were reduced significantly to GBP(8.3) million (2008/09 loss of GBP(23.7) million).

Italy

This comprises UniEuro, PC City implants in UniEuro stores and Dixons Travel Italy operating in the airport in Rome. The turnaround plan in Italy continues to make good progress. Management actions have resulted in an improving trend in sales with positive like for like sales, particularly in the second half of the year despite a continued challenging economic environment. Gross margins improved further year on year. Stock control has also been improved, with stock turn up 10%, while availability has increased by approximately 20%. UniEuro has experienced good growth in vision, computing, communications, built-in appliances and accessories.

At the beginning of the year UniEuro successfully completed its store rationalisation plan ahead of schedule, closing 51 underperforming stores and now operates from 97, largely out of town, stores. It has added 35 PC City implants into the portfolio, all of which are performing well. During the year UniEuro opened its first Megastore in Muratella in Rome. This is a 40,000 sq ft store refurbished along the same principles as those in the UK and Nordics and has experienced strong gross profit uplift. Management have also developed a new format for their smaller stores and have completed the first 3 refits which were successfully launched in May 2010 with strong gross profit uplifts. The range improvements and cost efficiencies identified as part of the turnaround plan continue to make good progress.

The economic outlook in Italy remains challenging, but the turnaround plan puts UniEuro in a strong competitive position. The improving performance gives management further confidence in the prospects for UniEuro.

Greece

Kotsovolos is the market leading specialist electrical retailer in Greece. The difficult economic environment currently being experienced in Greece is well documented. The business has seen total sales impacted, particularly against tough comparables in the prior year. However, management have continued to focus on the customer, maintained margins, reduced costs and improved cash flow by increasing stock turn. They have also continued to invest in the store renewal programme to limit the effects of the weakening environment on bottom line performance.

During the period, Kotsovolos refurbished 9 stores into the Renewal and Transformation plan format, which are showing encouraging uplifts and excellent feedback from customers. The focus has also been on building new channels of business and in one year Kotsovolos has become a significant player online, increased the franchise network to 30 stores and commenced operations of business to business sales, all of which have helped to offset the negative trends in the market.

The operations in Greece are in a strong position with a market leading offer and a strong focus on delivering for customers. As such it will benefit when the economy recovers. These strengths will enable Kotsovolos to capitalise on the tough environment for competitors and to grow market share.

Spain

While the consumer environment has been very tough in Spain over the last 2 years, PC City remains the leading computer specialist in the market. Costs have been reduced while continuing to focus on the customer offer. 11 stores have been closed and PC City now operates from 32 stores. Using some of the principles of the UK transformation plan, management introduced a light refit plan which adds incremental sales while keeping the cash payback period to a minimum. These actions have started to deliver improved gross margins, enabling the business to deliver significantly reduced losses year on year. They have also enabled PC City to maintain its overall market share with 11 fewer stores while positioning the business better for when the Spanish economy recovers. Encouragingly the business delivered positive like for like sales during the second half, despite the continued weak consumer environment. This performance gives management further confidence in the prospects for the business.

Czech Republic and Slovakia

On 19 May 2009 and 1 September 2009 the Group sold the operations of Electro World in Hungary and Poland, respectively, in each case for a consideration of EUR1. Following these disposals the central operations in Prague and logistics infrastructure in Brno have been refocused on its core operations of the Czech Republic and Slovakia, significantly reducing costs and complexity.

Operations in the Czech Republic have performed well in their markets, despite the weak consumer environment. During the year Electro World reformatted its first store in Prague, utilising the Renewal and Transformation plan format which has reported encouraging results with a great response from customers. The Group now operates 16 stores and a multi-channel internet operation in the Czech Republic and 3 stores in Slovakia which are trading in line with expectations. Management recently announced plans to open 3 new stores in time for the Christmas peak.

Turkey

The Group now operates 12 stores in Turkey under the Electro World brand with its local joint venture partner. These new stores are based on the Group's new large space format, providing a greater product range and exciting retail environment for customers. The business continues to deliver good sales growth as customers recognise the benefits of large store formats in delivering value, choice and service. With a solid store base now established, it was announced in April 2010 the intention to roll out a franchise operation in Turkey. The first franchise store opened very successfully in Sakarya and further franchise stores will be opened over the next two years.

E-COMMERCE DIVISION

This comprises PIXmania and Dixons.co.uk. Total sales were up 14% at GBP921.2 million (2008/09 GBP807.4 million). Underlying operating profit was GBP11.3 million (2008/09 GBP15.0 million).

PIXmania continues to trade strongly across all its markets. It has experienced very strong sales growth in its core European markets (France, Italy and Spain) driven by increased customer acquisition through increased online and offline communication. PIXmania has made good progress in all key categories, including growth outside its traditional consumer electronics categories. In addition it has been investing in growth outside of its main markets especially emerging markets (e.g. Central and Eastern Europe).

PIXmania's newest channel, its reseller marketplace platform, PIXplace, has grown its sales three-fold since launch with expansion in new countries, the introduction of new categories as well as an increase in new merchants transacting through this platform.

The market-leading e-merchant platform was rolled out into the Group's UK internet operations (dixons.co.uk, currys.co.uk, pcworld.co.uk) in February 2010 and has improved navigation, product display and information as well as the ability to show attachments to customers.

With 276 million unique visitors during the year, PIXmania websites reached the 4th rank of the most visited consumer electronics e-tailers in the world according to Alexa.com.

Dixons.co.uk has been operating as a pure play internet operation for over 3 years. Following strong growth during this period, a number of changes have been made to the operating model to make the business even more relevant for customers. While Dixons.co.uk performed well over the important Christmas Peak, these changes impacted sales performance during the rest of the year.

OPERATIONAL IMPROVEMENTS

The Group is focused on re-engineering and simplifying the operational processes within the Group in order to reduce costs for the Company, improve the service provided to customers, and assist colleagues in operating the business effectively.

There remains significant opportunity for productivity improvements within the Group and management are targeting these improvements to deliver some GBP200 million in cost savings over a four year period. In the first year of this programme the Group has delivered GBP50 million of cost savings through efficiency initiatives in head office administration and in-store processes. Process improvement initiatives have already contributed to reductions in levels of stock held by the Group as well as improving stock turn by approximately 12% during the year.

The Group continues to implement the step change programme that makes the business even better for customers, easier for colleagues and cheaper to operate.

Management remains confident that it can achieve a 3% - 4% EBIT return on sales, through the Renewal and Transformation plan, over the medium term.

GROUP NAME

Subject to shareholder approval, the Group's registered name will be amended to Dixons Retail plc in order to harness the strength of the Dixons name and to reflect the resurgence of the company. The Dixons name resonates strongly with suppliers, the market, and colleagues in a way that DSG international has not been able to without significant investment in the brand.

FINANCIAL POSITION

The Group's financial priorities in 2009/10 included improving profitability and strengthening the balance sheet. To this end:

- Underlying EBIT increased by 60% to GBP133.2 million (2008/09 GBP83.0 million); - Underlying profit before tax increased by 61% to GBP90.5 million (2008/09 GBP56.1 million); - Underlying diluted earnings per share increased by 50% to 1.5 pence (2008/09 1.0 pence, after adjusting for the rights issue); - Loss making businesses in Hungary and Poland were disposed of successfully; - Net proceeds of GBP291.3 million were received following the Equity Placing and Rights Issue; - Significant headroom was maintained on the revolving credit facility throughout the year and a new revolving credit facility of GBP360 million was signed in May 2010; - The UK defined benefit scheme was closed to future accruals reducing the deficit by GBP33.4 million; - Positive free cash flow, before restructuring items, of GBP28.1 million was generated; - The Group's working capital position was improved, through a reduction in debtors, and stock turn improved by 12%.

FREE CASH FLOW

Free cash flow before restructuring items was GBP28.1 million (2008/09 outflow GBP(340.0) million) and total free cash outflow was GBP(17.6) million (2008/09 GBP(404.2) million).

52 weeks ended 52 weeks ended 1 May 2010 2 May 2009 GBPmillion GBPmillion Underlying profit before tax 90.5 56.1 Closed businesses loss before tax (0.2) (14.1) Depreciation and amortisation 128.6 134.7 Working capital 39.7 (285.4) Taxation (31.9) (35.7) Capital expenditure (165.3) (140.7) Sale of freehold property (i) 0.7 10.8 Other cash items (34.0) (65.7) Free Cash Flow before restructuring items 28.1 (340.0) Net restructuring and impairment costs (45.7) (64.2) (i) Free Cash Flow (17.6) (404.2)

(i) Sale of freehold property excludes GBP9.0 million of sale proceeds relating to the sale of the Group's former warehouse in Stevenage (2008/09 GBP18.0 million). These sale proceeds are shown within net restructuring and impairment costs.

Free Cash Flow before restructuring showed a significant improvement over the prior year, driven by improved profitability, improved working capital management and reduced hedge losses, partly offset by increased capital expenditure relating to the Renewal and Transformation plan.

The improved working capital movement was primarily due to improved stock management including GBP43.9 million reduction in stock aged over 6 months, and improved control of debtors. This was partly offset by the continued unwinding of the historically higher proportion of term versus pay-as-you-go Customer Support Agreement deferred income. The prior year was, as previously announced, impacted by the unwinding of deferrals of supplier payments made at the end of the 2007/08 financial year which have not recurred.

Capital expenditure was GBP165.3 million (2008/09 GBP140.7 million), up GBP24.6 million reflecting the increased investment associated with the Renewal and Transformation plan, particularly in the UK. There were no significant disposals during the year, with cash generated from the sale of property of GBP0.7 million (2008/09 GBP10.8 million).

As previously disclosed, the Group has in place certain historical hedging agreements. The principal outstanding agreements relate primarily to foreign exchange and interest hedges. The majority of these were put in place at the time the Group issued its Bonds in 2002, and in relation to overseas investments. A number of these hedges matured during the financial year and resulted in a cash outflow of GBP62.2 million (2008/09 GBP83.3 million). The remaining hedges at year end rates would imply a net cash outflow of approximately GBP50 million, primarily payable in 2012.

Other cash items of GBP(34.0) million (2008/09 GBP(65.7) million) improved by GBP31.7 million mainly due to increased add back of non cash costs included in profit, such as pension interest and fee amortisation, and the reduced hedge outflows mentioned above.

Net restructuring and impairment reflects the cash outflows relating to the strategic reorganisation activities and business impairment, predominantly provided for in 2008/09. These mainly comprise lease and other property related payments and employee severance costs, less the final tranche of disposal proceeds from the sale of a former warehouse in the UK.

FUNDING

Net funds/debt

At 1 May 2010 the Group had net debt of GBP(220.6) million, compared with net debt of GBP(477.5) million at the end of the previous year. The Group's net debt includes restricted funds of GBP78.9 million (2008/09 GBP67.6 million) which predominantly comprise funds held under trust for potential Customer Support Agreement liabilities.

52 weeks ended 52 weeks ended 1 May 2010 2 May 2009 GBPmillion GBPmillion Opening net (debt) / funds (477.5) 50.1 Free Cash Flow (17.6) (404.2) Dividend - (60.3) Equity Placing and Rights issue 291.3 - Acquisitions and disposals (7.0) (27.6) Discontinued operations (8.6) (21.6) Special pension contribution (12.0) (12.0) Other items 10.8 (1.9) Other movements in net funds / (debt) 274.5 (123.4) Closing net debt (220.6) (477.5)

Movements in net debt include net proceeds of GBP291.3 million received from the Equity Placing and Rights issue in the first half of the financial year, GBP7.0 million acquisition costs primarily representing an associated undertaking in Norway being acquired following the exercise of a put option, and GBP8.6 million representing the net cash utilisation of the discontinued operations in Hungary and Poland. The GBP12.0 million special pension contribution was made in accordance with the agreement with the trustee of the UK defined benefit pension scheme to reduce the pension deficit. Other items include the impact on net debt of the accounting revaluation of the 2012 Bonds, and of net funds held in foreign currencies, as well as capital contributions made by the joint venture partner in Turkey.

On 12 May 2010 the Group signed a new revolving credit facility agreement (the New Facility) for GBP360 million. The New Facility will come into effect by 15 August 2010 at which time it will replace the Group's existing GBP400 million Facility. The terms and covenants attaching to the New Facility are substantially the same as that for the GBP400 million Facility except that the guarantee structure comprises UK and Irish companies only, thereby aligning it more closely to the Group's 2012 Bond.

At the earliest, the New Facility will mature on 15 August 2012 and would be extended to 15 August 2013 in the event that the Group raises additional finance of a minimum of GBP100 million by November 2011. It is the Group's intention that the proceeds from any such financing would principally be used to refinance the Group's 2012 Bond.

This new agreement gives the Group the appropriate level of committed financing for its working capital needs. It also provides the Group with the flexibility of either a longer term on the New Facility or to enter into a new or revised revolving credit facility at a later date.

UNDERLYING NET FINANCE COSTS

Underlying net finance costs were GBP(42.7) million (2008/09 (GBP26.9) million). The movement year on year was driven by the following key areas:

- Increased borrowing costs subsequent to the refinancing of the Group's revolving credit facility; - Higher net pension interest set at the beginning of the financial year largely as a result of a higher discount rate applied to liabilities, which is a non-cash item; - Partly offset by interest earned on overpayments of tax in prior periods.

ADJUSTMENTS TO UNDERLYING RESULTS

Underlying profit before tax is reported before net non-underlying credits of GBP22.2 million. A further explanation of these items is shown below:

52 weeks 52 weeks ended ended 1 May 2010 2 May 2009 GBPmillion GBPmillion Profit / (loss) before tax 112.7 (123.6) Add back non underlying items: Trading results from Closed businesses 0.2 14.1 Other non-underlying items: Amortisation of acquired intangibles 4.6 4.9 Net restructuring charges: Strategic reorganisation 5.6 59.1 Business impairments - 96.1 Change in pension benefits (33.4) - Other items - Buncefield release - (1.9) Financing items: Net fair value remeasurements 0.8 7.4 Other non-underlying items - total (22.4) 165.6 Total net non-underlying charges to add (22.2) 179.7 back Underlying profit before tax 90.5 56.1

- In May the Group closed the standalone stores of PC City in Sweden and Markantalo in Finland. Trading results comprises the pre-tax losses from these operations. - Amortisation of acquired intangibles of GBP4.6 million predominantly comprises brand names with the year on year change being affected by currency movements. - Strategic re-organisation costs of GBP5.6 million relate to the UK business transformation and primarily comprises accelerated Depreciation charges associated with the reformat of the UK Ireland store portfolio and onerous lease obligations following re-organisation of the service infrastructure. - The change in pension benefits of GBP33.4 million arises from the curtailment of the defined benefit section of the UK pension scheme whereby this section was closed to future accrual on 30 April 2010. The amount represents the effect of active members' future salary increases, included in the valuation assumptions of the deficit, now being capped at inflation as they are now being treated as deferred members of the scheme. - The financing charge of GBP0.8 million relates to net fair value remeasurement losses on revaluation of financial instruments as required by IAS 32 and 39 and can be volatile, dependant on market conditions existing at the balance sheet date.

PROPERTY LOSSES

Property losses increased to GBP18.8 million (2008/09 GBP18.1 million loss), primarily due to provisions made relating to closure or refit of stores as part of the Renewal and Transformation plan.

DIVIDENDS

The Board believes that DSGi's existing financial resources should be used to invest in the Renewal and Transformation plan, which is showing encouraging signs of delivering changes in DSGi's performance.

The Revolving Credit Facility and Letter of Credit Facilities, prohibit payments of dividends to Shareholders in respect of the 2009/10 Financial Year. The same agreements however do allow the Company, subject to certain conditions, to pay a dividend in respect of the 2010/11 Financial Year and beyond.

Subject to an assessment of whether certain conditions have been met, and the progress of the Renewal and Transformation plan, the Board aims to resume dividend payments when appropriate, consistent with a sustained recovery in DSGi's operational and financial performance.

TAX

The Group's tax rate on underlying profit before tax was 45% (2008/09: 61%). The decrease in the tax rate reflects a reduced proportion of loss making businesses where tax benefits are not fully recognised.

PENSIONS

At 1 May 2010, the IAS 19 accounting deficit of the defined benefit section of the UK pension scheme amounted to GBP263.5 million (2 May 2009 GBP148.8 million). The assumptions used for determining the accounting valuation use a consistent basis to that adopted in prior periods. Although the assets of the scheme have recovered considerably year on year, the overall deficit has still increased substantially due to a significant increase in the liabilities. This is due to an increase in the assumption for long term inflation (which affects final salary on retirement) coupled with a significant decrease in the discount rate applied to the liabilities which reflects yields on corporate bonds.

Over recent years, the Group has implemented a number of changes to pension arrangements in order to address the deficit over the longer term. Since 1 September 2002, the defined benefit section of the UK pension scheme has been closed to new entrants and on 30 April 2010 was closed to future accrual with automatic entry into the defined contribution section being offered to those active members of the defined benefit section. The effect of this change is to remove the future volatility associated with adding further accrual for active employees as well as a more immediate benefit of GBP33.4 million to the valuation of the liabilities which has been treated as a non-underlying item as described further above.

The actuarial deficit of GBP61.0 million (measured as at 5 April 2007) is being addressed by special cash contributions of GBP12 million per annum which are payable in two equal tranches of GBP6 million by June and December each year until December 2012. A further actuarial valuation as at 5 April 2010 is currently underway, however, its results will not be known until early in the 2011/12 financial year.

Maylands Avenue John Browett Hemel Hempstead Chief Executive Hertfordshire HP2 7TG 24 June 2010 Report and Accounts publication date 15 July 2010 Annual General Meeting 8 September 2010

Copies of the Report and Accounts will be available from the Company Secretary at the above address and on the Group's website at http://www.dsgiplc.com

52 weeks ended 1 May 2010 Non-underlying* Under- Closed ** lying* businesses Other Total Note GBPmillion GBPmillion GBPmillion GBPmillion Continuing operations Revenue 2 8,531.60 0.9 - 8,532.50 Profit / (loss) from operations before associates 131.6 -0.2 23.2 154.6 Share of post-tax results of associates 1.6 - - 1.6 Operating profit / (loss) 2 133.2 -0.2 23.2 156.2 Finance income 58.2 - 1.1 59.3 Finance costs -100.9 - -1.9 -102.8 Net finance costs 4 -42.7 - -0.8 -43.5 Profit / (loss) before tax 90.5 -0.2 22.4 112.7 Income tax (expense) / credit 5 -40.7 0.1 -6.1 -46.7 Profit / (loss) after tax - continuing operations 49.8 -0.1 16.3 66 Loss after tax - discontinued operations - - -8.7 -8.7 Profit / (loss) for the period 49.8 -0.1 7.6 57.3 Attributable to: Equity shareholders of the parent company 52.3 -0.1 7.6 59.8 Minority interests -2.5 - - -2.5 49.8 -0.1 7.6 57.3 Earnings / (loss) per share (pence) 6 Basic - total 1.7p Diluted - total 1.7p Basic - continuing 2.0p operations Diluted - continuing 1.9p operations Underlying earnings per share (pence) 6 Basic - continuing 1.5p operations Diluted - continuing 1.5p operations

CONTINUED

52 weeks ended 2 May 2009 Non-underlying* Under-lying* Closed ** GBPmillion businesses Other Total GBPmillion GBPmillion GBPmillion Continuing operations Revenue 8,180.20 137.6 - 8,317.80 Profit / (loss) from operations before associates 79.4 -12.2 -158.2 -91 Share of post-tax results of associates 3.6 - - 3.6 Operating profit / 83 -12.2 -158.2 -87.4 (loss) Finance income 69.6 - 32.2 101.8 Finance costs -96.5 -1.9 -39.6 -138 Net finance costs -26.9 -1.9 -7.4 -36.2 Profit / (loss) before tax 56.1 -14.1 -165.6 -123.6 Income tax (expense) / credit -34.3 2.7 -25.2 -56.8 Profit / (loss) after tax - continuing operations 21.8 -11.4 -190.8 -180.4 Loss after tax - discontinued operations - - -38.9 -38.9 Profit / (loss) for 21.8 -11.4 -229.7 -219.3 the period Attributable to: Equity shareholders of the parent company 21.7 -11.4 -229.7 -219.4 Minority interests 0.1 - - 0.1 21.8 -11.4 -229.7 -219.3 Earnings / (loss) per share (pence) Basic - total (10.2)p Diluted - total (10.2)p Basic - continuing (8.4)p operations Diluted - continuing (8.4)p operations Underlying earnings per share (pence) Basic - continuing 1.0p operations Diluted - continuing 1.0p operations

* 'Underlying' profit and earnings per share measures exclude the trading results of closed businesses, amortisation of acquired intangibles, net restructuring and business impairment charges and other one off, non-recurring items, profit on sale of investments, fair value remeasurements of financial instruments and, where applicable, discontinued operations. Such excluded items are described as 'Non-underlying'. Further information on these items is shown in notes 1, 3, 5 and 6.

** Closed businesses comprise Markantalo and PC City Sweden whereby these store based businesses were closed on 10 May 2009 and 20 May 2009, respectively. These operations do not meet the definition of discontinued operations as stipulated by IFRS 5 and accordingly the disclosures made above differ from those for discontinued operations.

52 weeks 52 weeks ended ended 1 May 2010 2 May 2009 GBPmillion GBPmillion Profit / (loss) for the period 57.3 (219.3) Actuarial (losses) / gains on - UK (156.0) (114.3) defined benefit pension schemes - Nordics 1.5 (2.1) Cash flow hedges Fair value remeasurement (losses) / gains (18.4) 42.6 Losses / (gains) transferred to carrying 15.1 (27.4) amount of inventories Gains transferred to income statement (3.8) (13.4) Net investment hedges Fair value remeasurement gains / (losses) 2.7 (74.3) Investments Fair value remeasurement gains / (losses) 0.8 (0.9) Tax on items taken directly to equity 44.2 53.2 Currency translation movements 45.3 122.5 Net expense recognised directly in equity (68.6) (14.1) Total comprehensive expense for the (11.3) (233.4) period Attributable to: Equity shareholders of the parent company (8.9) (236.9) Minority interests (2.4) 3.5 (11.3) (233.4)

1 May 2010 2 May 2009 GBPmillion GBPmillion Non-current assets Goodwill 1,116.5 1,069.1 Intangible assets 130.7 148.4 Property, plant equipment 541.0 489.6 Investments in associates 26.4 29.8 Trade and other receivables 58.0 68.5 Deferred tax assets 169.4 150.3 2,042.0 1,955.7 Current assets Inventories 972.6 971.9 Trade and other receivables 395.1 508.2 Income tax receivable 1.9 8.3 Short term investments 8.5 9.0 Cash and cash equivalents 295.7 192.6 1,673.8 1,690.0 Assets held for sale - 13.2 Total assets 3,715.8 3,658.9 Current liabilities Bank overdrafts (4.9) (4.8) Borrowings (98.5) (250.1) Obligations under finance leases (2.4) (2.8) Trade and other payables (1,605.9) (1,664.5) Income tax payable (47.0) (58.0) Provisions (22.3) (72.1) (1,781.0) (2,052.3) Net current liabilities (107.2) (362.3) Non-current liabilities Borrowings (321.4) (322.5) Obligations under finance leases (97.6) (98.9) Retirement benefit obligations (266.8) (153.0) Other payables (325.7) (369.8) Deferred tax liabilities (18.7) (22.7) Provisions (29.5) (40.4) (1,059.7) (1,007.3) Liabilities directly associated with - (14.4) assets classified as held for sale Total liabilities (2,840.7) (3,074.0) Net assets 875.1 584.9 Capital and reserves 90 Called up share capital 90.2 44.3 Share premium account 169.4 169.4 Other reserves (537.5) (534.9) Retained earnings 1,124.4 880.1 Equity attributable to equity 846.5 558.9 holders of the parent company Equity minority interests 28.6 26.0 Total equity 875.1 584.9

The financial statements were approved by the directors on 24 June 2010 and signed on their behalf by:

John Browett Nicholas Cadbury Chief Executive Group Finance Director

52 weeks 52 weeks ended ended 1 May 2010 2 May 2009 GBPmillion GBPmillion Note Operating activities - continuing operations Cash generated from / (utilised by) * 7 270.3 (143.8) operations Special contributions to defined benefit (12.0) (12.0) pension scheme Income tax paid * (31.9) (35.7) Net cash flows from operating activities 226.4 (191.5) Investing activities - continuing operations Purchase of property, plant equipment and * (165.3) (140.7) other intangibles Purchase of subsidiaries (7.0) (27.6) Interest received * 25.5 20.9 Decrease in short term investments 1.3 73.3 Disposals of property, plant equipment * 9.7 28.8 and other intangibles Dividend received from associate 4.0 4.9 Proceeds from sale of discontinued - - operations Net cash flows from investing activities (131.8) (40.4) Financing activities - continuing operations Issue of ordinary share capital 291.3 - Additions to finance leases - 2.4 Capital element of finance lease payments (1.7) (1.7) Interest element of finance lease payments * (7.1) (6.9) (Decrease) / increase in borrowings due (151.6) 249.9 within one year Increase / (decrease) in borrowings due - (0.1) after more than one year Interest paid * (118.8) (126.8) Investment from minority shareholder 5.0 5.7 Equity dividend paid - (60.3) Net cash flows from financing activities 17.1 62.2 Decrease in cash and cash equivalents (i) Continuing operations 111.7 (169.7) Discontinued operations (8.6) (21.6) 103.1 (191.3) Cash and cash equivalents at beginning of (i) 7 187.8 363.7 period Currency translation differences (0.1) 15.4 Cash and cash equivalents at end of period (i) 7 290.8 187.8 Free Cash Flow (ii) (17.6) (404.2)

(i) For the purposes of this cash flow statement, cash and cash equivalents comprise those items disclosed as cash and cash equivalents on the face of the balance sheet, less overdrafts, which are classified within current liabilities on the face of the balance sheet. A reconciliation to the balance sheet amounts is shown in note 7.

(ii) Free Cash Flow comprises those items marked * and comprises cash generated from / (utilised by) continuing operations before special pension contributions, less net finance expense, less income tax paid and net capital expenditure. The directors consider that 'Free Cash Flow' provides additional useful information to shareholders in respect of cash generation and is consistent with how business performance is measured internally.

Share Share Other Retained reserves earnings capital premium GBPmillion GBPmillion GBPmillion GBPmillion At 4 May 2008 44.3 169.4 (502.9) 1,115.9 Loss for the period - - - (219.3) Other comprehensive income - - (52.8) 35.2 and expense recognised directly in equity Total comprehensive income - - (52.8) (184.1) and expense for the period Equity dividends paid - - - (60.7) Minority - increase in - - - - interests capital Transfers - - (6.7) 6.7 Put option exercised - - 27.5 - Share-based payments - - - 2.1 Tax on share-based payments - - - 0.2 At 2 May 2009 44.3 169.4 (534.9) 880.1 Profit for the period - - - 57.3 Other comprehensive income - - (2.6) (63.6) and expense recognised directly in equity Total comprehensive income - - (2.6) (6.3) and expense for the period Minority - increase in - - - - interests capital Placing and Rights Issue 45.9 - 245.4 - Transfer - - (245.4) 245.4 Share-based payments - - - 4.9 Tax on share-based payments - - - 0.3 At 1 May 2010 90.2 169.4 (537.5) 1,124.4

CONTINUED

Sub total Minority Total interests equity GBPmillion GBPmillion GBPmillion At 4 May 2008 826.7 26.8 853.5 Loss for the period (219.3) - (219.3) Other comprehensive income and (17.6) 3.5 (14.1) expense recognised directly in equity Total comprehensive income and (236.9) 3.5 (233.4) expense for the period Equity dividends paid (60.7) - (60.7) Minority interests Transfers - - - Put option exercised 27.5 (10.0) 17.5 Share-based payments 2.1 - 2.1 Tax on share-based payments 0.2 - 0.2 At 2 May 2009 558.9 26.0 584.9 Profit for the period 57.3 - 57.3 Other comprehensive income and (66.2) (2.4) (68.6) expense recognised directly in equity Total comprehensive income and (8.9) (2.4) (11.3) expense for the period Minority interests Placing and Rights Issue 291.3 - 291.3 Transfer - - - Share-based payments 4.9 - 4.9 Tax on share-based payments 0.3 - 0.3 At 1 May 2010 846.5 28.6 875.1

Minority interests comprise shareholdings in Pixmania S.A.S., (PIXmania), ElectroWorld Ic ve Dis Ticaret AS (ElectroWorld Turkey) and DSGi South-East Europe A.E.V.E. (Kotsovolos).

1 Basis of preparation The financial information, which comprises the consolidated income statement, consolidated statement of comprehensive income and expense, consolidated balance sheet, consolidated cash flow statement, consolidated statement of changes in equity and extracts from the notes to the accounts for 1 May 2010 and 2 May 2009, has been prepared in accordance with the accounting policies set out in the full financial statements. The financial information set out in this announcement does not constitute statutory accounts within the meaning of Sections 434 to 436 of the Companies Act 2006 and is an abridged version of the Group's financial statements for the 52 weeks ended 1 May 2010 which were approved by the directors on 24 June 2010. Statutory accounts for the 52 weeks ended 2 May 2009 have been delivered to the Registrar of Companies, the auditors have reported on those accounts, their report was unqualified and did not contain statements under Section 498(2) or (3) of the Companies Act 2006. Statutory accounts for the period ended 1 May 2010 will be delivered following the Company's annual general meeting. The auditors have reported on those accounts, their reports were unqualified and did not contain statements under Section 498 of the Companies Act 2006. The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU, IFRS issued by the International Accounting Standards Board and those parts of the Companies Act 2006 applicable to those companies reporting under IFRS. The consolidated financial statements incorporate the financial statements of the Company and its subsidiary undertakings for the 52 weeks ended 1 May 2010. Comparative figures are for the 52 weeks ended 2 May 2009. The directors consider that the 'underlying' performance measures, together with the associated Income Statement presentation, provide additional useful information for shareholders on underlying performance of the business, and are consistent with how business performance is measured internally. Such measures exclude the trading results of closed businesses, impact of amortisation of acquired intangibles, net restructuring and business impairment charges and other one off, non-recurring items, profit on sale of investments, fair value remeasurements of financial instruments and, where applicable, discontinued operations. These measures may not be directly comparable with 'adjusted' profit measures used by other companies. 2 Segmental analysis

The Group's operating segments have been determined based on the information reported to the Board. This information is predominantly based on geographical areas which are either managed separately or have similar trading characteristics such that they can be aggregated together into one segment and in the case of e-commerce, as a business area with geographical territories aggregated. Accounting policies for each operating segment are the same as those for the Group as described in note 1. The Group evaluates each operating segment based on underlying operating profits which excludes those items described in note 1.

All segments are involved in the multi-channel sale of high technology consumer electronics, personal computers, domestic appliances, photographic equipment, communication products and related financial and after-sales services. The principal categories of customer are retail, business to business and on-line.

During the period the Group disposed of its operations in Hungary and Poland, both of which have been classified as discontinued operations and were previously shown in the Other International division.

The Group's reportable segments have been identified as follows:

- UK Ireland comprises UK Ireland Electricals (which consists of Currys, CurrysDigital, Dixons Travel and the Irish business) and UK Computing (which consists of PC World, DSGi Business and The TechGuys) both of which are engaged predominantly in retail sales, associated peripherals and services and related financial and after sales services with the latter also engaging in business to business sales of computer hardware and software. - Nordics comprises the Elkj0p Group which operates in Norway, Sweden, Finland, Denmark, Iceland, Greenland and the Faroe Islands. The Nordics division engages predominantly in retail sales. - Other International comprises operations in Central and Southern Europe. Central Europe comprises ElectroWorld operating in the Czech Republic and Slovakia whilst Southern Europe operates in Italy, Greece, Spain, Cyprus and Turkey. The Other International division engages predominantly in retail sales. - e-commerce comprising PIXmania and Dixons.co.uk, is engaged in on-line retail sales and operates in all of the countries in which the other divisions operate and across Europe.

Closed businesses comprise Markantalo and PC City Sweden whereby these store operations were closed on 10 May 2009 and 20 May 2009, respectively. Owing to their closure rather than disposal, these operations do not meet the definition of discontinued operations as stipulated by IFRS 5.

2 Segmental analysis continued

(a) Income statement

2009/10 External Intersegmental Underlying Total revenue revenue Revenue profit profit GBPmillion GBPmillion GBPmillion GBPmillion GBPmillion UK Ireland 4,013.5 101.7 4,115.2 71.1 93.7 Nordics 2,094.6 1.7 2,096.3 95.8 95.6 Other 1,503.2 1.5 1,504.7 (8.3) (9.0) International e-commerce 921.2 3.8 925.0 11.3 7.9 Eliminations - (108.7) (108.7) - - 8,532.5 - 8,532.5 169.9 188.2 Share of post-tax result of associates 1.6 1.6 Operating profit before central costs and 171.5 189.8 property losses Central costs (19.5) (14.8) Property losses (18.8) (18.8) Operating profit 133.2 156.2 Finance income 58.2 59.3 Finance costs (100.9) (102.8) Profit before tax for the period 90.5 112.7

External revenue for the Nordics includes GBP0.9 million relating to closed businesses.

Reconciliation of underlying profit to total profit

Under- Net Amortisa-tion restruc-turing lying Closed of acquired intangibles charges profit businesses GBPmillion GBPmillion GBPmillion GBPmillion UK Ireland 71.1 - (0.5) (5.6) Nordics 95.8 (0.2) - - Other International (8.3) - (0.7) - e-commerce 11.3 - (3.4) - 169.9 (0.2) (4.6) (5.6) Share of post-tax 1.6 - - - result of associates Operating profit 171.5 (0.2) (4.6) (5.6) before central costs and property losses Central costs (19.5) - - - Property losses (18.8) - - - Operating profit 133.2 (0.2) (4.6) (5.6) Finance income 58.2 - - - Finance costs (100.9) - - - Profit before tax 90.5 (0.2) (4.6) (5.6) for the period

CONTINUED

2009/10 Net fair value Change in remeasure Total pension benefits -ments profit GBPmillion GBPmillion GBPmillion UK Ireland 28.7 - 93.7 Nordics - - 95.6 Other International - - (9.0) e-commerce - - 7.9 28.7 - 188.2 Share of post-tax - - 1.6 result of associates Operating profit 28.7 - 189.8 before central costs and property losses Central costs 4.7 - (14.8) Property losses - - (18.8) Operating profit 33.4 - 156.2 Finance income - 1.1 59.3 Finance costs - (1.9) (102.8) Profit before tax 33.4 (0.8) 112.7 for the period

Share of post-tax result of associates relates to the Nordics.

2 Segmental analysis continued

(a) Income statement

2008/09 External Intersegmental Underlying Total revenue revenue Revenue profit / profit / (loss) (loss) GBPmillion GBPmillion GBPmillion GBPmillion GBPmillion UK Ireland 4,228.6 84.2 4,312.8 58.7 (17.0) Nordics 1,762.8 1.1 1,763.9 72.5 14.2 Other 1,519.0 2.3 1,521.3 (23.7) (42.6) International e-commerce 807.4 0.4 807.8 15.0 11.7 Eliminations - (88.0) (88.0) - - 8,317.8 - 8,317.8 122.5 (33.7) Share of post-tax result of associates 3.6 3.6 Operating profit / (loss) before central costs 126.1 (30.1) and property losses Central costs (25.0) (39.2) Property losses (18.1) (18.1) Operating profit / (loss) 83.0 (87.4) Finance income 69.6 101.8 Finance costs (96.5) (138.0) Profit / (loss) before tax for the period 56.1 (123.6)

External revenue for the Nordics includes GBP137.6 million relating to closed businesses.

Reconciliation of underlying profit / (loss) to total profit / (loss)

Under- lying Net profit / Closed Amortisa-tion restruc-turing of acquired (loss) businesses intangibles charges GBPmillion GBPmillion GBPmillion GBPmillion UK Ireland 58.7 - (0.4) (43.0) Nordics 72.5 (12.2) (0.5) - Other International (23.7) - (0.7) - e-commerce 15.0 - (3.3) - 122.5 (12.2) (4.9) (43.0) Share of post-tax 3.6 - - - result of associates Operating profit / 126.1 (12.2) (4.9) (43.0) (loss) before central costs and property losses Central costs (25.0) - - (14.2) Property losses (18.1) - - - Operating profit / 83.0 (12.2) (4.9) (57.2) (loss) Finance income 69.6 - - - Finance costs (96.5) (1.9) - - Profit / (loss) 56.1 (14.1) (4.9) (57.2) before tax for the period

CONTINUED

2008/09 Net fair Business value Total impairment remeasure profit / charges -ments (loss) GBPmillion GBPmillion GBPmillion UK Ireland (32.3) - (17.0) Nordics (45.6) - 14.2 Other International (18.2) - (42.6) e-commerce - - 11.7 (96.1) - (33.7) Share of post-tax - - 3.6 result of associates Operating profit / (96.1) - (30.1) (loss) before central costs and property losses Central costs - - (39.2) Property losses - - (18.1) Operating profit / (96.1) - (87.4) (loss) Finance income - 32.2 101.8 Finance costs - (39.6) (138.0) Profit / (loss) (96.1) (7.4) (123.6) before tax for the period

Share of post-tax result of associates relates to the Nordics.

3 Non-underlying items

2009/10 Closed businesses Other Total GBPmillion GBPmillion GBPmillion Included in operating profit / (loss): Closed businesses (i) (0.2) - (0.2) Amortisation of acquired - (4.6) (4.6) intangibles Net restructuring charges (ii) - (5.6) (5.6) Business impairment (iii) - - - charges Change in pension benefits (iv) - 33.4 33.4 Other items (v) - - - (0.2) 23.2 23.0 Included in net finance costs: Closed businesses - - - Net fair value - (0.8) (0.8) remeasurements of financial instruments (vi) - (0.8) (0.8) Total impact on profit / (loss) (0.2) 22.4 22.2 before tax Included in income tax expense: Closed businesses 0.1 - 0.1 HMRC settlement (vii) - - - Other non-underlying items - (6.1) (6.1) 0.1 (6.1) (6.0) Total impact on profit / (loss) after (0.1) 16.3 16.2 tax

CONTINUED

2008/09 Closed businesses Other Total GBPmillion GBPmillion GBPmillion Included in operating profit / (loss): Closed businesses (12.2) - (12.2) Amortisation of - (4.9) (4.9) acquired intangibles Net restructuring - (59.1) (59.1) charges Business impairment - (96.1) (96.1) charges Change in pension - - - benefits Other items - 1.9 1.9 (12.2) (158.2) (170.4) Included in net finance costs: Closed businesses (1.9) - (1.9) Net fair value - (7.4) (7.4) remeasurements of financial instruments (1.9) (7.4) (9.3) Total impact on profit / (14.1) (165.6) (179.7) (loss) before tax Included in income tax expense: Closed businesses 2.7 - 2.7 HMRC settlement - (52.7) (52.7) Other non-underlying - 27.5 27.5 items 2.7 (25.2) (22.5) Total (11.4) (190.8) (202.2) impact on profit / (loss) after tax

(i) Closed businesses: Comprises the operating activities of Markantalo and PC City Sweden which were closed on 10 May 2009 and 20 May 2009, respectively. (ii) Net restructuring charges - strategic reorganisation Property Asset Other Total charges impairments charges GBPmillion GBPmillion GBPmillion GBPmillion 2009/10 (2.3) (3.3) - (5.6) 2008/09 (3.9) (13.6) (41.6) (59.1)

Net restructuring charges relate to the renewal and transformation of the UK business which has been focused mainly on the reformatting of the UK store portfolio and the reorganisation of the service offering. Property charges comprise onerous lease costs and charges related to vacating properties. Asset impairments, which are mainly in respect of the reformatting of the UK store portfolio, relate to intangible assets and items of property, plant equipment which are to be eliminated from the business over a shorter period than their current useful expected lives and in addition for 2008/09, inventories. Impairments of intangible assets and property, plant equipment comprise a combination of asset write offs and incremental accelerated depreciation charges associated with the economic useful life of these assets being shortened and for which incremental charges of GBP5.0 million (2008/09 GBP5.0 million) are expected to be incurred, spread over the next three financial periods. In 2008/09, other charges predominantly comprised employee severance and contract termination costs.

3 Non-underlying items continued

(iii) Net business impairment charges:

Property Other Total credits / credits / Goodwill Other (charges) (charges) GBPmillion impairment assets impairment GBPmillion GBPmillion GBPmillion GBPmillion 2008/09 Italian business - - 12.4 6.4 18.8 Other businesses (10.2) (45.2) (50.5) (9.0) (114.9) (10.2) (45.2) (38.1) (2.6) (96.1) In 2009/10, no such charges were incurred. 2008/09: The Italian business impairment credits related to the reversal of charges incurred in prior periods whereby liabilities were settled at lower amounts than those originally provided. 2008/09: Other business impairments comprised businesses in Spain, closed businesses in the Nordics as well as stores in underperforming locations in the UK High Street. Goodwill impairment related to the full write off of Markantalo in Finland following the announcement of the closure of this business. Other asset impairments comprised the Markantalo brand name, other intangible assets, property, plant equipment and inventory. Other charges related predominantly to employee severance. (iv) The change in pension benefits arises from the closure to future accrual of the defined benefit section of the UK pension scheme which occurred on 30 April 2010. (v) 2008/09: Other items related to releases of unutilised provisions and settlement income received for claims for damages incurred following the Buncefield explosion in December 2005 and for which exceptional charges were incurred in the 2005/06 financial year. (vi) Net fair value remeasurement gains and losses on revaluation of financial instruments: Items excluded from underlying finance income and expense represent the gains and losses arising from the revaluation of derivative financial instruments under methodologies stipulated by IAS 39 compared with those on an accruals basis (the basis upon which all other items in the financial statements is prepared). Also included within this amount are remeasurement losses relating to put options predominantly held by minority shareholders. Such a treatment is a form of revaluation gain or loss created by an assumption that the derivatives will be settled before their maturity. Such gains and losses are unrealised and in the directors' view also conflict with both the commercial reasons for entering into such arrangements as well as Group Treasury policy whereby early settlement in the majority of cases would amount to speculative use of derivatives. (vii) 2008/09: On 4 June 2009, following an agreement in principle in April 2009, the Group agreed a settlement with HMRC in respect of a dispute concerning certain historical intra group trading arrangements in the years 1997 to 2005 as well as certain other matters. The settlement exceeded the provision already held in the balance sheet and accordingly a non-underlying income tax charge of GBP52.7 million was recorded in current tax. This charge was in addition to the tax effects applied to the net non-underlying charges before tax and was treated as non-underlying owing to its size and one-off non-recurring nature.

4 Net finance costs

2009/10 2008/09 GBPmillion GBPmillion Bank and other interest receivable 20.6 21.8 Expected return on pension scheme assets 37.6 47.8 Fair value remeasurement gains on * 1.1 32.2 financial instruments Finance income 59.3 101.8 6.125% Guaranteed Bonds 2012 interest and (18.3) (18.3) related charges Bank loans, overdrafts and other interest payable Underlying (29.9) (24.1) Closed businesses * - (1.9) Finance lease interest payable (7.1) (6.9) Interest on pension scheme liabilities (45.6) (47.2) Fair value remeasurement losses on * (1.9) (39.6) financial instruments Finance costs (102.8) (138.0) Total net finance costs - continuing (43.5) (36.2) operations Underlying total net finance costs - (42.7) (26.9) continuing operations

Underlying total net finance income excludes items marked *. See note 3 for a description of such items. Net finance costs for closed businesses comprise interest on bank loans and overdrafts.

5 Taxation

2009/10 2008/09 GBPmillion GBPmillion Current tax UK corporation tax at 28% 0.4 0.2 Double tax relief (0.4) (0.2) - - Overseas - underlying 25.0 24.2 taxation - non-underlying: closed * - (1.1) businesses Credit in respect of other * - (3.1) non-underlying items Adjustment in respect of earlier periods: UK - underlying (1.8) 6.8 corporation tax - non-underlying * - 52.7 Overseas taxation 1.3 (5.3) 24.5 74.2 Deferred tax Current - underlying 18.0 9.6 period - non-underlying: closed * (0.1) (2.5) businesses Charge / (credit) in respect of * 6.1 (24.4) other non-underlying items Adjustment in respect of earlier periods: UK - underlying (6.0) 1.6 corporation tax Overseas - underlying 4.2 (2.6) taxation - non-underlying: closed * - 0.9 businesses 22.2 (17.4) Income tax expense - continuing operations 46.7 56.8 Underlying income tax expense - continuing 40.7 34.3 operations

Underlying income tax expense excludes those items marked *. The effective tax rate on underlying earnings of 45% (2008/09 61%) is expected to fall in future periods due mainly to unrecognised losses starting to form a lower proportion of net profits.

6 Earnings / (loss) per share

2009/10 2008/09 GBPmillion GBPmillion Basic and diluted earnings / (loss) Total (continuing and discontinued operations) 59.8 (219.4) Discontinued - loss after tax 8.7 38.9 operations Continuing operations 68.5 (180.5) Adjustments Closed businesses 0.2 14.1 Amortisation of acquired intangibles 4.6 4.9 Net restructuring charges 5.6 59.1 Business impairment charges - 96.1 Other items - (1.9) Change in pension benefits (33.4) - Net fair value remeasurements of financial 0.8 7.4 instruments (22.2) 179.7 Tax on adjustments Closed businesses (0.1) (2.7) HMRC settlement - 52.7 Other non-underlying items 6.1 (27.5) 6.0 22.5 Total adjustments (net of taxation) (16.2) 202.2 Underlying basic and diluted earnings 52.3 21.7 Million Million Basic weighted average number of shares 3,495.6 2,148.7 Employee share option and ownership schemes 23.9 3.1 Diluted weighted average number of shares 3,519.5 2,151.8 Pence Pence Basic earnings / (loss) per share Total (continuing and discontinued operations) 1.7 (10.2) Discontinued operations 0.3 1.8 Continuing operations 2.0 (8.4) Adjustments (net of taxation) (0.5) 9.4 Underlying basic earnings per share 1.5 1.0 Diluted earnings / (loss) per share Total (continuing and discontinued operations) 1.7 (10.2) Discontinued operations 0.2 1.8 Continuing operations 1.9 (8.4) Adjustments (net of taxation) (0.4) 9.4 Underlying diluted earnings per share 1.5 1.0

The weighted average number of shares used in the calculation for earnings per share information for the periods prior to the rights issue, which completed on 9 June 2009, has been multiplied by an adjustment factor to reflect the bonus element in the shares issued under the terms of the rights issue. The adjustment factor used was 1.2138.

Basic and diluted earnings / (loss) per share are based on the loss for the period attributable to equity shareholders. Underlying earnings per share are presented in order to show the underlying performance of the Group. Adjustments used to determine underlying earnings are described further in note 3.

7 Notes to the cash flow statement

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

2009/10 2008/09 GBPmillion GBPmillion Operating profit / (loss) 153.2 (125.7) Operating loss - discontinued operations 3.0 38.3 Operating profit / (loss) - continuing operations 156.2 (87.4) Amortisation of acquired intangibles 4.6 4.9 Amortisation of other intangibles 25.8 23.3 Depreciation 102.8 111.4 Share-based payment charge 5.7 1.8 Share of post-tax results of associates (1.6) (3.6) Loss on disposal of property, plant equipment 19.6 19.9 Additions to - provisions 2.3 84.5 non-underlying - impairment and accelerated 3.3 69.0 depreciation / amortisation - change in pension benefits (33.4) - Utilisation of non-underlying provisions (54.7) (82.2) Operating cash flows before movements in working 230.6 141.6 capital Movements in working capital: Decrease in inventories 14.1 166.7 Decrease / (increase) in trade and other 117.6 (58.5) receivables Decrease in trade and other payables (92.0) (393.6) 39.7 (285.4) Cash generated from / (utilised by) operations - 270.3 (143.8) continuing operations

(b) Analysis of net funds / (debt)

Other Currency Cash flow non-cash translation 1 May 2010 3 May 2009 movements GBPmillion GBPmillion GBPmillion GBPmillion GBPmillion Cash and * 192.6 102.8 - 0.3 295.7 cash equivalents Bank (4.8) 0.3 - (0.4) (4.9) overdrafts 187.8 103.1 - (0.1) 290.8 Short term 9.0 (1.3) 0.8 - 8.5 investments Borrowings (250.1) 151.6 - - (98.5) due within one year Borrowings due (322.5) - 1.1 - (321.4) after more than one year Obligations under (101.7) 1.7 - - (100.0) finance leases (674.3) 153.3 1.1 - (519.9) Net debt (477.5) 255.1 1.9 (0.1) (220.6)

7 Notes to the cash flow statement continued

(b) Analysis of net funds / (debt) continued

Other Currency 4 May 2008 Cash flow non-cash translation 2 May 2009 movements GBPmillion GBPmillion GBPmillion GBPmillion GBPmillion Cash and * 365.8 (188.8) - 15.6 192.6 cash equivalents Bank (2.1) (2.5) - (0.2) (4.8) overdrafts 363.7 (191.3) - 15.4 187.8 Short term 82.0 (73.3) (0.9) 1.2 9.0 investments Borrowings (0.2) (249.9) - - (250.1) due within one year Borrowings due (294.6) 0.1 (28.0) - (322.5) after more than one year Obligations (100.8) 1.7 (2.4) (0.2) (101.7) under finance leases (395.6) (248.1) (30.4) (0.2) (674.3) Net funds / 50.1 (512.7) (31.3) 16.4 (477.5) (debt)

Restricted funds, which predominantly comprise funds held under trust to fund customer support agreements were GBP78.9 million (2009 GBP67.6 million). Net debt excluding restricted funds totalled GBP299.5 million (2009 GBP545.1 million).

* Cash and cash equivalents are represented as a single class of assets on the face of the consolidated balance sheet. For the purposes of the consolidated cash flow, cash and cash equivalents comprise those amounts represented on the consolidated balance sheet as cash and cash equivalents, less bank overdrafts (which are disclosed separately on the consolidated balance sheet).

8 Related party transactions

Transactions between Group undertakings, which are related parties, have been eliminated on consolidation and accordingly are not disclosed.

Steve Rosenblum and Jean-Emile Rosenblum, members of the Executive Committee, together with close family members and companies controlled by them, own 22.0% of PIXmania, a company controlled by the Group. In connection with their management roles with respect to PIXmania, Steve Rosenblum and Jean-Emile Rosenblum received management fees of EUR258,000 (GBP228,000) (2008/09 EUR258,000 (GBP217,000)). Steve Rosenblum and Jean-Emile Rosenblum together hold call options over additional shares in PIXmania representing 16.8% of its share capital. The options can be exercised from 30 April 2011 and are subject to certain conditions including the achievement of targets related to earnings and certain capitalisation values of the PIXmania business. In addition to the call options, Steve Rosenblum and Jean-Emile Rosenblum have certain exit rights exercisable between July 2011 and July 2013 in relation to their holdings in PIXmania.

Steve Rosenblum and Jean-Emile Rosenblum own a building which is occupied and leased by PIXmania. During 2009/10 total rental payments of EUR645,000 (GBP570,000) (2008/09 EUR597,000 (GBP502,000)) were charged in relation to this property. 9 Post-balance sheet event

On 12 May 2010, the Group signed a new revolving credit facility agreement (the New Facility) for GBP360 million. The New Facility will come into effect by 15 August 2010 at which time it will replace the Group's existing GBP400 million Facility. The terms and covenants attaching to the New Facility are substantially the same as that for the GBP400 million Facility except that the guarantee structure comprises UK and Irish companies only, thereby aligning it more closely to the Bonds. At the earliest, the New Facility will mature on 15 August 2012 and the Group has the ability to extend the New Facility to 15 August 2013 in the event that it raises additional finance of a minimum of GBP100 million by November 2011.

The 2009/10 Annual Report and Accounts which will be issued on 15 July 2010, contains a responsibility statement in compliance with DTR 4.1.12 of the Listing Rules which states that as at the date of approval of the Annual Report and Accounts on 24 June 2010, the directors confirm to the best of their knowledge:

- the Group and unconsolidated Company financial statements give a true and fair view of the assets, liabilities, financial position and profit / (loss) of the Group and Company, respectively; and - the business and financial review includes a fair review of the development and performance of the business and the position of the Group together with a description of the principal risks and uncertainties they face.

At the date of this statement, the directors are those listed in the Group's 2008/09 Annual Report and Accounts with the exception of the following appointments and resignations:

- Sir John Collins who resigned as a director and Chairman of the Board on 2 September 2009; - John Allan who was appointed to the Board on 23 June 2009 and was appointed Chairman on 2 September 2009; - Count Emmanuel d'Andre who retired as a director with effect from 2 September 2009; - Tim How who was appointed to the Board on 8 September 2009; - Prof. Dr. Utho Creusen who was appointed to the Board on 1 February 2010; and - John Whybrow who retired as a director with effect from 31 March 2010.

In my view risk management is an integral part of business management and it's something we at DSGi take seriously. The Group's approach to risk management combines a top-down understanding with bottom-up activity to gain a holistic view of risk. For example, the Board undertakes a regular review of risks facing the business, which included a thorough risk assessment from first principles at the beginning of 2010. Below are some of the key risks facing the business, along with an illustration of what is being done to mitigate them. John Browett

Key Risks

Risk Examples of Mitigating Action Economic environment Risk that a prolonged economic - Ongoing monitoring by Finance downturn, particularly in the and the Executive Committee, UK, severely impacts our including review of portfolio of business businesses - Renewal and Transformation plan to improve our business performance irrespective of macro economic factors - Strategy and business planning which takes into account varying economic scenarios Meeting customer needs Risk that our retail brands - Understanding our customer and fail to meet the expectations monitoring our level of service of our customers through mystery shopping, customer exit surveys and analysis of purchase data - Renewal and Transformation plan improving our stores across the Group - 'FIVES' customer service training for all colleagues and product workshops to improve product knowledge - Implementation of the 'Customer Plan' in the UK to improve the customer journey - a clear and focused plan at the heart of the business - Innovations in service propositions and improved customer service levels across the Group - Clearer and easier navigation of our e-commerce websites Competition Risk that competitors reduce - Renewal and Transformation plan the Group's market share and/or improving our stores and service drive down margins in specific proposition markets - Continuing development of strong online brands, notably PIXmania and Dixons.co.uk - Ensuring our prices offer good value, including a customer price index Market margin pressure Risk that margins are reduced - Continued focus on ensuring we due to falling consumer demand, have an excellent range across all manufacturer supply, price points, including own label competitors, regulation and tax brands - Continuing to take money out of our cost base - Building ever stronger relationships with suppliers Changes in supplier credit Risk that credit insurance is - Ongoing engagement with no longer available to suppliers and credit insurers electrical/computing suppliers to protect their receivables - Improvements in stock turn against the risk of bad debt - Innovations in and close scrutiny of working capital together with regular monitoring and review Employees Risk that we fail to attract, - Group-wide standardised develop and retain the performance management necessary talent for our business - Talent reviews across the business - Store structures which provide a clear career path for all employees - Improved quality of training courses and development programmes with specialist focus on service, product, commercial and technical - Bonus plans, which include a component relating to individual performance and business performance - Reward strategy aligned to retain best talent Changing technology/consumer preferences - Strong supplier relationships Risk that we fail to capitalise (e.g. exclusive UK launch of iPad) on new technology or emerging trends to maximise revenues - Delivery of Customer Plan to respond to identified changes in technology - Store transformations to take into account emerging trends in store layouts - Exciting product launches to make our stores the destination for the latest technology (e.g. 3D TVs) Finance Treasury Finance /Treasury/Exchange - Detailed group hedging policies Rate/Interest Rate/ Liquidity/ reviewed through a separate Tax Credit Risk and Treasury Committee - Balance sheet management and reviews - Regular monitoring of receivables balances - Strong pre and post investment appraisal processes - Central control of treasury activity Pension risk policies Risk that the pension funding - Deficit reduction activities in policy fails to react to or place address deficits, which may arise on the Group's pension - Defined benefit section of UK schemes scheme closed to future accrual Systems failure Risk that a key system becomes - Contingency plans developed that unavailable for a period of are tested regularly time - Evaluation, planning and implementation analysis carried out before updating or introducing new systems that have an impact on critical functions - Ongoing systems implementation in key areas of the business Legislative, contractual, reputational and regulatory risks - In-house legal teams communicate on a regular and frequent basis Risk that we suffer and legal reports are submitted to reputational and/or financial the Board damage as a result of an exposure in our compliance - Launch of Group Ethical Conduct activities (e.g. competition, policy, supported by annual consumer rights, intellectual declaration of compliance by property, contractual colleagues obligations, health safety or compromise of customer - Monitoring changes in confidentiality data) legislation / regulation - Corporate Responsibility Committee meets regularly to discuss reputational and regulatory risks - Quality checks and factory audits for own-branded product assembly - Compliance Committee approves activity that may impact the terms of Group credit facilities Project delivery Risk that a project delivering - The portfolio plan is clearly an element of our Renewal and defined and is managed and Transformation Plan does not governed through regular processes deliver its anticipated and meetings benefits. - Post-investment analysis and performance tracking put in place including financial and customer measures - Projects under the Customer Plan aligned to our UK budget

Other Risks Specific to a Specialist Electrical Retailer

In addition to the above, the Group is also subjected to a number of risks that are generic to a specialist electrical retailer. These include:

Risk Examples of Mitigating Action / Factors Seasonality A substantial proportion of - Financial planning takes into revenue and operating profit is account expected peaks and troughs generated during the third during the year and the business financial quarter, which is run accordingly includes the Christmas and New Year season. In addition, in - The proportion of services Southern Europe a second peak related business offers a regular exists in the summer period stream of income over the course through sale of air of the year conditioning units Price deflation Price deflation has been a - Effective launches of new common feature across most technology as it becomes available electrical goods categories for to the market a number of years, primarily driven by technological - Growth of services related advances and improved business to increase the number efficiencies in production and value of non-product sales throughout the life cycle of a product - Improve gross profit uplifts in transformed stores Quality location of store portfolio - The store portfolio is reviewed This is a key contributor to on a regular basis with a view to the Group's performance and optimising our retail estate growth strategy presence Damage to property consequential business interruption The Group's ability to - Disaster recovery plans are in distribute merchandise to its place stores and to sell and distribute merchandise to its - Insurance is purchased to customers is reliant on its mitigate against business operational infrastructure, interruption particularly the efficient functioning of its distribution - Preventative measures are centres and distribution constantly being updated to reduce network the likelihood of an incident Change in government policy The Group is subject to a range - A number of committees exist to of legal and regulatory help the Group manage its requirements originating from regulatory risks. There is a the UK and European Union Corporate Responsibility Committee and a Compliance Committee, both of which are supported by our Legal and Company Secretarial functions

Number of stores Selling space '000 sq ft 1 May 2 May 2009 1 May 2010 2 May 2010 2009 UK Ireland UK 654 680 7,582 7,533 Ireland 29 32 307 329 Total UK Ireland 683 712 7,889 7,862 Nordics Norway 121 114 1,506 1,348 Sweden 69 66 1,299 1,148 Finland 39 34 616 544 Denmark 28 27 481 473 Iceland 3 3 32 32 Islands 9 9 127 130 Total Nordics * 269 253 4,061 3,675 Other International Italy * 158 174 2,314 2,587 Greece * 103 102 1,147 1,133 Spain 32 41 408 603 Turkey 11 8 367 270 Southern Europe 304 325 4,236 4,593 Czech Republic 16 17 426 441 Slovakia 3 3 57 57 Central Europe 19 20 483 498 Total Other 323 345 4,719 5,091 International Continuing Retail 1,275 1,310 16,669 16,628 Hungary - 9 - 299 Poland - 9 - 257 Closed businesses - 30 - 429 Total Retail 1,275 1,358 16,669 17,613

* Includes franchise stores.

For further information Press and Media: Mark Webb +44-(0)1727-205019

SOURCE: DSG international plc

CONTACT: For further information: Press and Media: Mark Webb ,+44-(0)1727-205019