Dixons Carphone annual pre-tax profit slumps 24% as UK and Ireland growth slows
StockMarketWire.com - Dixons Carphone reported Thursday annual pre-tax profit fell 23.6% despite a 4% uptick in like-for-like sales as its UK and Ireland mobile business faced headwinds, and margin growth in its UK electricals business slowed.
For the year to 28 April, like-for-like revenue rose 4%, and profit before tax fell 23.6% to £382m from £500m the previous year.
The firm blamed the poor performance on slowdown in its UK and Ireland business, which came under pressure following an £87m year on year impact from a change in receivables revaluations, changes to customer support agreement cost profiles and insurance contracts.
UK and Ireland total revenues decrease by 1% to £6.6bm, but rose 2% on a like-for-like basis amid falling gross margins in the electricals business as costs of providing home delivery and installation services as well as lower levels of service attachment weighed.
In UK mobile, like-for-like sales were flat as an ongoing decline in the postpay market held back performance.
The company said it expects the UK electricals market to continue to decline next year and a further decline in the postpay market.
Weaker UK performance offset good growth in international markets as Nordic businesses saw like-for-like revenue increase 9%, while Greece saw like-for-like revenues rise 11%.
The retailer maintained its final dividend of 7.75p per share, leaving the total dividend for the year unchanged year-on-year at 11.25p.
The company said it expected profit before tax for next year to come in lower at around £300m. Story provided by StockMarketWire.com