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Dixons Carphone enjoys 'terrific' first year as a merged company - PC Retail

Dixons Carphone enjoys 'terrific' first year as a merged company

Profit before tax rises 21 per cent to £381 million
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Dixons Carphone has posted its trading results for the 13 months ending May 2nd 2015 - its first full year as a merged company.

Group like-for-like revenue was up six per cent overall (with the UK and Ireland up eight per cent and Nordics up four per cent).

The group - consisting of retail brands PC World, Currys and Carphone Warehouse - saw profit before tax increase 21 per cent to £381 million during the period, with earnings per share standing at 25.5p.

Total statutory profit reached £97 million after charges of £188 million, which include a loss from discontinued operations of £114 million. Year-end pro forma net debt was £260 million.

Dixons Carphone said the integration between the two companies (originally Dixons Retail and Carphone Warehouse) was 'progressing well', and the group is expecting to deliver at least £80 million of synergies by 2016/17, one year ahead of plan.

The news comes after Dixons Carphone announced it is partnering with Sprint to potentially open 500 US stores.

Sebastian James, Group Chief Executive, said: “This has been a terrific first year for Dixons Carphone. We have seen excellent increases in both sales and profitability and we have made very encouraging progress with the tricky job of integrating these two great companies.

"At the same time, we have continued to generate strong customer satisfaction numbers, made significant strides in our Connected World Services business including our agreement with Sprint, and launched a brand new mobile network.

"The job is far from done. I am acutely aware that there is no room for complacency in a sector which has seen unprecedented change, bringing both opportunities and challenges. We have set ourselves ambitious goals, not only financial, but also in terms of driving customer happiness, building a completely integrated company and delivering a brand new global services business with CWS. To achieve these, we will need to exhibit creativity, energy, resilience and toughness of purpose.

"Nevertheless we are very optimistic about the road ahead, and Dixons Carphone is lucky to have such a fantastic team of people - in every part of the business - to deliver these goals. My sincere thanks to them for everything that has been done so far.”

James also told PCR that Dixons Retail is more competitive on price than ever before during a press briefing earlier today.

Dixons Retail and Carphone Warehouse first announced plans to merge in an £3.8 million deal in May 2014. Over the past year it has also disposed of non-core operations in France, Germany, the Netherlands and Portugal.

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