Dixons Carphone set to report its first annual results

A STRONG first set of annual results is expected from Dixons Carphone this week.

Electricals to mobile phones giant Dixons Carphone will report its first set of annual results on Thursday since the creation of the £5 billion company after a merger.

Currys and PC World owner Dixons Ret ail completed its tie-up with Carphone Warehouse in August last year and shares have since risen by one-third in value.

The firm aims to the tap into the way technology is expected to transform households by fusing the mobile phone and electrical goods sectors in the “internet of things”.

This is seen as opening up a new world where smartphones, tablets and rapid internet speeds will mean appliances such as washing machines and refrigerators are controlled by the touch of a mobile device.

Dixons said last month in its latest trading update that a strong performance meant it would post annual pre-tax profits just above previous guidance of £355 million to £375m. Analysts have now pencilled in a figure of about £376m.

The firm said in the update that UK and Ireland same store sales rose 13 per cent in the 17 weeks to May 2 as the business built on momentum seen in Christmas trading, with the figure more than twice City forecasts.

For the full-year, like-forlike sales were up 8% in the UK and Ireland and by 6% across the group as a whole.

Chief executive Sebastian James said the business would “fix the roof while the sun was shining” and would continue to invest in its IT infrastructure, extend its free warranty programme and boost staff training.

In April the business launched its 4G virtual mobile network operator, called iD.

This month, it announced plans to launch up to 500 stores across the US under a tie-up with one of America’s biggest telecoms firms.

The group’s Connected World Services (CWS) arm agreed a deal with Sprint to open and manage Sprint-branded stores selling phones and t ablets, beginning with around 20 stores across areas such as Chicago and Miami.

Graham Spooner, investment research analyst at The Share Centre, said: “Investors will be interested to see whether the company can meet its forecast profit guidance.

“T here will al s o be interest in the level of TV sales following news of a poor performance in that area from some rivals recently, and any news on trading in Europe will attract attention given events in the eurozone at present.”