Dixons signals caution over revival of phone business
ANNUAL profits more than halved at electricals retailer Dixons Carphone after the lockdown led to slumping sales at its mobile phone division.
The FTSE 250 company scrapped its final dividend and warned the pandemic would delay the return of its phone business to profitability, sending shares down 9.36pc to 78.4p at close of trade.
The retailer reported underlying pre-tax profits of £166m for the year to May, compared to £339m for the previous year. On a statutory basis, it posted narrowing pre-tax losses of £140m, down from losses of £259m the year before. Dixons did not issue an outlook and said it would review its future dividend payouts.
It said sales of electrical goods remained robust during the lockdown as consumers moved online to purchase large screen TVs, and computing and gaming equipment.
Alex Baldock, Dixons’ chief executive, said: “Since the year end, all our electricals businesses have continued to grow sales. Where our stores have reopened we’ve performed well, while continuing to see strong online sales growth.
“That said, we expect a weakening of consumer spending later this year and are being cautious in our planning.”
Meanwhile, its mobile phone division made a worse than expected loss, with the company saying the division would perform “slightly” worse than forecast in the current year.
Dixons decided to close its standalone Carphone Warehouse stores earlier this year, before the shutdown, with the loss of 3,000 jobs.
Yesterday it said the unit would take an extra six to 12 months to break even than previously anticipated.