Dixons shares tumble despite profit surge

Keeping mum about Freeserve

Dixons saw its share price fall today despite topping profit forecasts.

The PC retailer's share price fell six pence in morning trading to 274 pence after it failed to reveal details of trading for the current financial year or any fresh information on the Freeserve situation.

Pre-tax profit rose 104 per cent to £472.1 million for the year ended April 29 2000, on the back of a 23 per cent increase in sales to £3.89 billion. Analysts had predicted £255-262 million.

Profit before exceptionals, tax and Freeserve were up 11 per cent £263 million. Gross margin fell one per cent over the year.

Regarding Freeserve, the company only repeated what was said on June 26 - that the two "continue to have discussions with a number of parties about a variety of potential transactions".

In regard to current trading, Dixons revealed no more than: "The new financial year has started with further sales growth against tough comparatives."

Last month the company confirmed that T-Online had pulled out of a deal to buy Freeserve. ®

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