Connecting to LinkedIn...

Dixons agrees extended credit facility


Electricals retailer Dixons Retail has confirmed today that it has extended and improved the terms of its revolving credit facility with its major lenders.

The owner of the Currys and PC World high street brands has started to see markedly improved results as a consequence of its long-term turnaround strategy, with like-for-like UK sales during the final quarter of its financial year ending April 28th 2012 up eight per cent year-on-year.

On the back of this strong performance, a new facility worth £300 million has been agreed with the retailer’s syndicate of lending banks which will effectively extend the current facility, which was due to mature next year, until June 30th 2015.

A statement from Dixons today read: “In line with the group’s expected requirements and objectives, the facility will reduce in size over its life to £200 million by September 2014.

“This facility provides the appropriate level of committed financing for the group’s needs and the financial covenants have been slightly relaxed, reflecting the group’s improving cash generation.”

Dixons also revealed that it remains on-track to pay off the bonds worth £160 million at 6.125 per cent, which are due in November 15th 2012.

Full-year profits for the retailer, which are due to be announced next month, are set to be at the top end of market expectations at between £65 million and £70 million.

Published on Friday 25 May by Editorial Assistant

Articles similar to Dixons

Articles similar to Dixons Retail

comments powered by Disqus
Top Feature