Dixons reports strong sales growth

Currys and PC World owner Dixons Retail has reported strong Christmas trade amid Comet’s demise and growing demand for tablet computers.

Sales across the group in the 12 weeks to 5 January we up 7% on the previous year, with sales UK and Ireland sales climbing 8%, despite the lure of fire-sale prices at Comet at the time.

Dixons said its profit margins had been squeezed during the reporting period, but put this down to a change in the mix of products that customers were buying - with low-margin tablet computers selling particularly well - rather than rising costs or price discounts.

Full-year profits would be £75m-£85m, the firm said.