FINANCIAL ANALYSIS

Financial Analysis

[Name of student]

An analysis and evaluation of the business and financial performance of an organization over a three year period

Introduction

This paper discusses and analyzes the financial performance of Dixons Retail over a three year period. We will be discussing the financial performance and the market environment analytics in which they are working. There are three parts of this report:

Productions of significant ratios for Dixons Retail with historical comparatives as a basis for producing an analysis of the financial situation for Dixons Retail.

Comparison of Dixons Retail to Comet Group one of the largest competitor present in the same sector in order to identify Dixons Retail doing "right" Or "wrong". Additional commentary will be provided showing whether or not it is performing better or worse than expected compared to its peers.

Comparison of cash flow forecasts and financial statements to show which statement provides better information on the financial situation of Dixons Retail.

Company Background

Dixons Retail is a specialist electrical and computing retailer which sells consumer electronics, personal computers, domestic appliances, photographic equipment communication products and related services. Co. is a multi-channel retailer, selling products in stores, over the internet and by phone and provides product support services to its customers. Co. also undertakes business to business (B2B) sales and services. Co. is organized into four divisions: U.K. & Ireland, Nordics, Other International and pure play e-commerce. Each division offers a full range of Co.'s products and services.

Dexcom Holdings was formed in 2006 after the acquisition of electronics specialist retailer Dixon from Royal Vendex KBB and Dynabyte. Dixons operates a network of 250 outlets throughout the Netherlands and is focused on consumer electronics such as computers and projectors, audio and home cinema and portable consumer electronics. Dynabyte is specialised in computers and peripherals, having a countrywide presence in all medium-sized and large cities. In November 2008 the company announced its plans to purchase the internet retailer Coolblue. Due to the weak economic environment the company postponed the acquisition plan, which involved Coolblue internet retailing portals such as Pdashop.nl, Smartphoneshop.nl and Memoryshop.nl.

Private Label

Dexcom Holdings does not have a strategy regarding private label. The company sells mainly branded products within consumer electronics. The preference for well-known brands among the Dutch is the reason why retailers such as Dixons do not stock private label. Intensified promotion in terms of price means that consumers often wait for reduced prices of well-known brands and then decide to make their purchase.

Summary 3 Dexcom Holdings: Private Label Portfolio

Private Label Brand

Sector(s)

Dixons 

Consumer electronics

Competitive Positioning

Dexcom Holdings saw overall sales increase in 2010, with growth in online sales compensating for a fall in sales through store-based outlets. In 2010 the company saw retail sales through electronics and appliance specialists drop by -0.5%. This was the result not only of increased competition from sector leader Metro but also a stabilisation of sales following stronger growth in 2009 following the agreement with Vroom & Dreesman department store chain to place the Dixons brand in the chain's electronics and appliance specialists departments...