Dixons gets £300m backing of banks

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PC World and Currys owner Dixons Retail Group received the backing of its banks yesterday with a new £300m lending facility.

The arrangement with its syndicate of lending banks will run until June 30, 2015 and replace a facility which had been due to mature next year.

Shares jumped by more than 7 per cent as investors welcomed the latest boost from the retailer, which recently announced better-than-expected sales.

Dixons said it now had the “appropriate level” of committed financing for its needs, adding that financial tests placed on the loans have been slightly relaxed to reflect its improved cash generation.

The size of the lending will reduce in size over its life to £200m by September 2014, it added.

Chief executive Sebastian James has enjoyed a strong start since taking over at the helm from John Browett, who joined Apple in the United States.

The group, which has around 640 stores in the UK and Ireland, said it expects profits for the year to April to be near the top end of City forecasts at up to £70m.