‘Barnstorming’ first half for Dixons’ UK and Irish stores

Dixons Carphone, the electricals and telecommunications retailer, posted a 30 per cent rise in first half profit on the back of market share gains and said it was on track to make expectations for the full year.

In August Dixons Retail, Europe's number two consumer electronics retailer, and Carphone Warehouse CPW.L, Europe's largest independent mobile phone firm, concluded an all-share merger to create Dixons Carphone, a consumer electricals powerhouse with a place in Britain's blue chip FTSE 100 index.Carphone Warehouse employs 700 people across 91 stores in Ireland. The company will launch a new mobile operator in Ireland in 2015.

The merged firm, which trades as Carphone Warehouse, Currys and PC World in the UK and Ireland, Elkjop and El Gigantti in Nordic countries and Kotsovolos in Greece, said on Wednesday it made a pro forma pretax profit of £78 million in the 31 weeks to November 1st.

The group also posted a 5 per cent rise in sales at stores open over a year. Second quarter like-for-like sales were up 9 per cent, while gross margins were stable in the first half.

The firm made market share gains across its electrical and mobile businesses in the UK and Ireland, Nordics and Greece.

However, it said the Netherlands and Germany remained “challenging”, with action underway to “review and restructure”.

Dixons Carphone said its overall integration was progressing well and it now expected to deliver a minimum 80 million pounds of synergies by 2016-17, one year ahead of plan.

However, it posted statutory loss before tax from its continuing operations of £20 million after booking exceptional charges of £100 million.

Shares in Dixons Carphone, up 16 per cent over the last three months, closed Tuesday at 427 pence, valuing the business at £4.9 billion.

The firm is paying an interim dividend of 2.5 pence.

Reuters