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Dixons Carphone returns to profit, resumes dividend as online sales soar
30th Jun 2021 07:01
(Sharecast News) - Dixons Carphone reinstated its dividend as it swung back to profit on the back of a massive boost in online electrical goods sales during Covid lockdowns.
The company on Wednesday reported pre-tax profits of £33m compared to a £140m loss a year earlier. Group revenue rose 2% to £10.3bn, offset by Carphone Warehouse closures in March, but online electrical sales more than doubled to £4.7bn. A dividend of 3p a share was declared.
Like-for-like sales of electricals rose 14% despite stores in the UK, Ireland, Norway, Denmark and Greece being shut for substantial periods.
Dixons, which trades as Currys PC World and Carphone Warehouse and plans to change its name to Currys in September, posted adjusted pre-tax profit of £156m in the year to May 1. The outcome, after paying back UK government staff furlough support of £73m, compares with guidance of £151m and £116m made in 2019-20.
Dixons added that the start to the financial year has seen continued strong trading with evidence that its markets would be structurally larger post-pandemic, and that not all last year's growth was pulled forward.
"In UK & Ireland electricals, our sales are up on last year, with around half of the sales through our stores, as expected. In International, our sales are trending positively against strong growth in the previous year," the company said.
"The start of the financial year has seen continued strong trading in all our markets and I'm more confident than ever in our prospects," said chief executive Alex Baldock.
The company on Wednesday reported pre-tax profits of £33m compared to a £140m loss a year earlier. Group revenue rose 2% to £10.3bn, offset by Carphone Warehouse closures in March, but online electrical sales more than doubled to £4.7bn. A dividend of 3p a share was declared.
Like-for-like sales of electricals rose 14% despite stores in the UK, Ireland, Norway, Denmark and Greece being shut for substantial periods.
Dixons, which trades as Currys PC World and Carphone Warehouse and plans to change its name to Currys in September, posted adjusted pre-tax profit of £156m in the year to May 1. The outcome, after paying back UK government staff furlough support of £73m, compares with guidance of £151m and £116m made in 2019-20.
Dixons added that the start to the financial year has seen continued strong trading with evidence that its markets would be structurally larger post-pandemic, and that not all last year's growth was pulled forward.
"In UK & Ireland electricals, our sales are up on last year, with around half of the sales through our stores, as expected. In International, our sales are trending positively against strong growth in the previous year," the company said.
"The start of the financial year has seen continued strong trading in all our markets and I'm more confident than ever in our prospects," said chief executive Alex Baldock.