Solid first half year for Dixons Carphone

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UK revenues grow by six per cent in first half year results for combined Carphone Warehouse and Dixons Retail – results described as “barnstorming”

Dixons Carphone has increased its UK revenues by six per cent in the first half yearly results of the new company.

UK revenues were £2.95 billion over the period compared with £2.74 billion the previous year when they were trading as two separate companies.

The results reflect the 31 weeks ending November 1 for Carphone Warehouse, as opposed to 26 weeks the year previously, and the 26 weeks ending 31 October for Dixons Retail.

UK profits also increased from £61 million a year ago, to £80 million in the first half of the financial year. Q2 revenues also increased by 11 per cent.

The retailer said it saw strong performances in its mobile with “particularly strong” contract sales which were partially offset by a decline in prepay sales. The group also reported tablet sales were down year-on-year.

Dixons Carphone said that while the collapse of Phones 4u created market opportunities, it also “presented a short-term requirement for increased investment”. It also disclosed it had bought 12 standalone Phones 4u stores.

At a group level revenues increased to £5.02 billion, an increase of five per cent on the £4.97 billion a year previously.

“It is clearly a symbolic moment in the history of our great new shared enterprise to be reporting our first half year results,” said group chief executive Sebastian James. “And they are, I am pleased to say, encouraging. Overall sales in the period have grown by 5 per cent on a like-for-like basis and profit before tax has grown by 30 per cent.

“We have seen a barnstorming performance from our UK & Ireland division with like-for-like sales growth of 6% in the first half and 11% in Q2. This has been driven by continued improvements in price and service, competitive changes, technology launches and some recovery in the economy.”

 

 

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