Business

Currys owner Dixons Retail gets £300m in new bank loans

 

The owner of Currys and PC World, Dixons Retail, says it has been given new credit by its banks and will be able to meet debt repayments this year.

The company, which is Europe's second-biggest electrical goods retailer, said it had agreed a new banking facility of £300m, leaving it "well-placed" to make a £160m repayment due this year.

Shares in the company rose 7% following the announcement.

Two weeks ago, Dixons posted better-than-expected fourth quarter sales.

The new banking agreement effectively extends the firm's current facility, which was due to end in 2013, until 2015.

Dixons shares have risen 42% over the last six months.

Earlier this month the company said sales for the 16 weeks to 28 April rose 8% in the UK and the Republic of Ireland, where it has more than 600 stores.

It also forecast that full-year pre-tax profits, which will be released next month, will be between £65m and £70m, which is at the top end of expectations.

It said its new Knowhow service, which installs and repairs products, had proved to be popular.

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