Dixons Retail PLC (LON:DXNS) reveals a year of "very strong cash generation".
Shares in Dixons Retail (LSE: DXNS) jumped up over 3% in early trade this morning, following the release of its preliminary audited results for the year ended 30 April 2013.
Underlying pre-tax profit rose to £94.5m, up 15% from 2011/12's figure of £82.1m, with the UK & Ireland and Northern Europe showing good progress, with profits up 39% and 6% respectively.
Group underlying total sales and like-for-like sales increased 4% in the full year to £8.2bn versus £7.9bn in 2011/12, up 13% in the UK & Ireland and 14% in Northern Europe in the final quarter.
Elsewhere, Southern Europe showed "robust performance" despite challenging markets, but the company's eCommerce business PIXmania continues to be loss-making. Management confirmed restructuring plans to put the business "on a firmer strategic footing".
Chief executive Sebastian James commented:
"We have returned to growth for the Group as a whole, and also to a net cash position, marking an important milestone in our transition from survivor to winner.
"Our success has not been the result of short term changes, but rather a fundamental shift in our trading philosophy over the last few years so that we are increasingly standing shoulder-to-shoulder with our customers in this difficult and uncertain world. This has enabled us to take full advantage of the opportunity arising from some consolidation in our markets, but we can allow for no complacency. The economic backdrop remains tough; we will have to strive hard to keep up our momentum and will flourish only if we continue to offer ever higher levels of service, and the sharpest possible prices, no matter which channel our customers choose."
Overall, Dixons stated that significant progress was made against its three strategic priorities, while group costs were reduced in line with expectations, by £45m as part of the company's two-year £90m cost-reduction initiative.
Cash generation was particular strong this year, with the group ending the year with net cash of £42.1m compared to net debt of £104m at the start of the year.
It's been a choppy few years for the Dixons share price; however, today's news has helped it to a new five-year high, and more than 4.5-fold on its 9.36p low just two years ago.
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> Sam does not own shares in Dixons Retail.