Dixons Carphone records £440m loss
Written by Peter Walker
Dixons Carphone has reported a £440 million pre-tax loss for the half-year period ending 27 October, compared to profits of £54 million over the same time last year.
The electronics retailer attributed the results to charges of £490 million, largely due to a writedown on the value of its loss-making Carphone Warehouse mobile phone business and store estate.
On an underlying basis, interim pre-tax profits dropped to £50 million, from £73 million a year earlier.
Dixons Carphone also stated that it expects a rise in full-year costs to £190 million – including £17 million from the cyber attack in June, which saw 5.9 million bank card details and 10 million personal data records hacked.
Group chief executive Alex Baldock said Dixons Carphone remained committed to its store estate and there were no plans to close down more than the 102 stores already announced this financial year. Cost-cutting measures are not expected to result in any job losses, with the savings due to come from a merging of IT systems and reduction in supplier costs.
“There are headwinds and uncertainty facing any business serving the UK consumer, we’ve had our own challenges, and our plan will take time,” said Baldock. “We believe in our plan, are under way making early progress and determined to make it a lasting success.”