Shares rise as Dixons exits Spain
Published 15/04/2011 | 05:00
SHARES in embattled UK consumer electronics retailer Dixons rose yesterday after the group confirmed that it plans to exit the Spanish market.
In a statement to the stock exchange, Dixons, which owns the PC World and Currys chains, said that having considered its options for its Spanish operations, it has "commenced procedures to exit" from the country.
This will result in the closure of 34 stores in Spain, together with the head office and online business there.
At the end of March, Dixons warned profits for the current financial year would be at the bottom end of analyst expectations.
The company, which operates almost 30 outlets in Ireland, has been trying to contain sales slippage as consumers rein in spending. Chief executive John Browett pinned hopes of a recovery for the group on bigger, revamped stores.
Shares in the group have fallen significantly over the past few weeks, slumping 18pc on the day when the profit warning was issued in March.
They're currently down about 69pc compared to their highest level over the past 52 weeks.
Yesterday the stock closed up 8.1pc in London.