Dixons Carphone swings to first half loss
Dixons Carphone has swung to a first half pre-tax loss following the booking of £490 million in exceptional charges.
In the six months to 27 October the company reported a statutory pre-tax loss of £440 million compared to a profit of £54 million in the same period in the prior year. Meanwhile, headline pre-tax profit came in at £50 million compared to a previous £73 million.
Group revenue rose to £4.89 billion from £4.87 billion in the prior year and by 2% on a like-for-like basis. Revenue at its UK and Ireland electricals business increased by 2% and by the same percentage on a like-for-like basis. Dixons Carphone said the UK and Ireland uplift was driven by an increase in consumer electronics as well as strong gaming growth as the retailer rolled out gaming stations in seven stores.
Alex Baldock, Dixons Carphone’s recently joined chief executive, said: "We believe that Dixons Carphone is now on the path to sustainable success. We have set a clear long-term direction that will deliver more engaged colleagues, more satisfied customers and a more valuable business for shareholders.”
Baldock also laid out the company’s strategy for creating a more valuable business. This includes taking advantage of growth opportunities in online sales and credit, revitalising its mobile business, and making it easier for customers to shop with Dixons Carphone.
Looking ahead, he added: “There are headwinds and uncertainty facing any business serving the UK consumer, we've had our own challenges, and our plan will take time. But, with this plan, we can now see the way to unleashing the true potential of this business. We believe in our plan, are underway making early progress and determined to make it a lasting success."
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