Dixons Carphone hails 'strong' year

Currys, PC World and Carphone Warehouse signs Image copyright PA

Dixons Carphone says "strong" trading since its merger means full-year profits will be "slightly above" the top end of its guidance range.

The electrical goods and mobile retailer said like-for-like sales, which strip out new store openings, rose 9% in the 17 weeks to 2 May.

The owner of Currys, PC World and Carphone Warehouse had previously forecast pre-tax profit of between £355m and £375m for the full year.

The two firms merged last August.

"Nearly a year into our merger, I am very pleased to be posting such a strong first full year trading statement," said Dixons Carphone chief executive Sebastian James.

He credited gains in market share as well as strong promotional periods, including Easter, for the higher-than-expected profit forecast.

The strongest performance came in the UK and Ireland, where like-for-like sales in the fourth quarter rose by 13% - well ahead of analysts' forecasts.

Revenues also rose in the Nordic countries and in southern Europe.

Mr James said the company had made good progress in integrating the two firms.

He said the company would now focus on improving its IT and delivery options "to make us stronger in the long term".

Hargreaves Lansdown Stockbrokers' head of equities Richard Hunter said the profit upgrade was "testament to the early benefits" of the Dixons Carphone merger.

"Promotional activity, an ongoing focus on cost synergies and a continuing pipeline of innovation has both bolstered the numbers and also allowed more investment into the business," he added.

Dixons Carphone shares rose 1% in early trading, continuing their strong run. Since the merger, the shares have risen 38% - well above the FTSE 100's 5% rise throughout the same period.

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