“There is uncertainty facing any business serving the UK consumer,” says Dixons Carphone as it reports £440m loss

Dixons Carphone has today unveiled its interim results for the 26 weeks ended 27th October 2018, reporting a £440 million loss during the first half of the year.

The national retailer, which also owns Currys PC World, said that despite the loss, the company’s underlying sales improved. During its statement, Dixons Carphone also outlined plans to “transform” the business.

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

The retailer intends to focus on “the core”, this includes growth opportunities in online and credit, revitalising its mobile business, and giving customers an “easy experience”.

It will aim for market share gains and LFL sales growth, and Group EBIT margin improvement to at least 3.5%(8) over 5 years. Dixons Carphone will also look to make £200 million of identified gross cost savings available for reinvestment and margin progression, and find an additional £200 million of capex over 3 years, to “accelerate transformation”, funded by working capital improvement.

“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,” said Baldock.

Dixons Carphone also unveiled plans to invest in its workforce. “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,” he added.

“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.”

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