Dixons Carphone reports losses of £440 million

Dixons Carphone has reported a pre-tax loss of £440 million as part of its Interim Results for the 26 weeks ended 27 October 2018. This compares to a pre-tax profit of £54 million in the same period last year.

The company said that non-headline charges of £490 million – in relation to its mobile business – were the main reason for this loss.

It said that a “transformation plan” is underway to “deliver a more valuable business”, focusing on two big growth opportunities, including “revitalising our mobile business, and giving customers an easy experience”.

The company also reported that over 30,000 colleagues will become shareholders through new share awards.

Other results from Dixons Carphone include: Group H1 like-for-like revenue up two per cent; net debt of £274 million. Transformation plan targeting – £200 million of identified gross cost savings available for reinvestment and margin progression; additional £200 million of capex over three years, to accelerate transformation, funded by working capital improvement.

Alex Baldock, Group Chief Executive, said that Dixons Carphone is now on the path to sustainable success, having set a clear long-term direction that will deliver more engaged colleagues, more satisfied customers and a more valuable business for shareholders.

“We have powerful strengths, as a growing market leader with amazing people and capabilities no competitor can match. Our plan builds on those strengths. We’re focusing on our core, and on four things that matter most: two big profitable growth opportunities in online and credit; revitalising our mobile business; and giving customers an easy experience. We’ll deliver these through capable and committed colleagues, working in one joined-up business, with strong infrastructure.

“We’re underway and investing in all of these, including giving our colleagues at least £1,000 of shares, making every colleague a shareholder. We strongly believe aligning and energising the business behind our strategy in this way will benefit customers and shareholders.

“There are headwinds and uncertainty facing any business serving the UK consumer, we’ve had our own challenges, and our plan will take time. But, with this plan, we can now see the way to unleashing the true potential of this business. We believe in our plan, are underway making early progress and determined to make it a lasting success.”