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Dixons Carphone 'well positioned' as profit beats forecasts

The firm trades as Currys, PC World and Carphone Warehouse in the UK and Ireland
The firm trades as Currys, PC World and Carphone Warehouse in the UK and Ireland

Dixons Carphone, Europe's second largest electricals retailer, beat forecasts with a 10% rise in full-year profit and said it was "well positioned to flourish" despite Britain's tough economic outlook. 

The company said it made an underlying pretax profit of £501m in the year to April 29. 

That record outcome compares with analysts' average forecast of £498m and £457m made in 2015-16. 

The firm trades as Currys, PC World and Carphone Warehouse in the UK and Ireland, Elkjop and Elgiganten in Nordic countries and Kotsovolos in Greece.

"While the UK consumer environment seems to be holding up for us, there will undoubtedly continue to be changes in the way people buy all of the products that we sell," the company's chief executive Seb James said.

Dixons Carphone raised its dividend 15% to 11.25 pence a share.

Though the firm has had a strong run of trading over the last year its shares have fallen 17% so far in 2017, making it one of the worst fallers in Britain's FTSE 100 index of blue chip stocks since the country voted to leave the European Union last June. 

The decline reflects its exposure to high-cost goods and perceived vulnerability to a squeeze in consumers' spending power this year. 

Surveys published earlier this week showed British consumer confidence plunged during the political crisis sparked by Prime Minister Theresa May's election flop. 

UK consumers have been hit by a sharp rise in inflation, caused in large part by the fall in the value of the pound since the Brexit vote, and by a slowdown in wage growth. The housing market is also starting to cool.