Dixons Carphone celebrates record results despite "challenging" mobile market

 
Helen Cahill
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The group formed from a merger of Dixons and Carphone Warehouse in 2014 (Source: Dixons Carphone)

Dixons Carphone celebrated record results this morning, prevailing as peers struggled in a tough retail environment.

The figures

For the year to 29 April, like-for-like revenue rose four per cent, and profit before tax rose 10 per cent, up from £457m to £501m, the first time Dixons Carphone's annual income has tipped over £500m.

Total sales for the group rose three per cent to £10.5bn. Total sales in the UK were £6.5bn, a growth of two per cent on the year before.

At time of writing, Dixons Carphone's share price was down 0.74 per cent at 293p, having initially risen 1.8 per cent on the results announcement.

Why it's interesting

It hasn't been an easy period for the retail sector; earlier this month, DFS was hit with a profit warning, and yesterday, shares in high street retailers fell following a gloomy outlook from department store Debenmans.

And Dixons Carphone has had plenty of its own challenges throughout the year. Mobile sales struggled due to the exploding Samsung model, the Galaxy Note 7, and the business has been facing stiff competition from the ever-expanding internet giant Amazon.

However, the firm has benefited over the past year from its "unique position as the last electrical specialist standing on the UK high street", said George Salmon, equity analyst at Hargreaves Lansdown.

What Dixons Carphone said

Group chief executive Seb James said: "Over the last few years a great deal of work has been done to make the company stronger, lower risk and more resilient.

"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 from phones to washing machines."

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