Overcast

Overcast

max temp: 19°C

min temp: 13°C

ESTD 1874 Search

Retail: Dixons and Carphone Warehouse post strong growth ahead of merger

09:00 26 June 2014

Andrew Harrison of Carphone Warehouse, left, and Sebastian, chief executive of Dixons Retail.

Andrew Harrison of Carphone Warehouse, left, and Sebastian, chief executive of Dixons Retail.

Carphone Warehouse said today it was approaching its £3.6billion tie-up with PC World and Currys owner Dixons from a “position of strength” as the two merger partners delivered separate results for the final time today.

Dixons Carphone is set to be created before the end of September and aims to tap into the way technology is transforming modern households through the increasing overlap of the mobile phone and electrical goods sectors.

Carphone said a 14% rise in its underlying earnings to £151million was in line with guidance for the year to March 29 after like-for-like revenues grew 5.3%.

Dixons Retail Group said its profits increased by 76% to £166.2m, with same-store sales in the UK and Ireland up 5% and underlying profits for the region up 24% to £141m in the year to April 30.

Its boss, Sebastian James, who will be chief executive of the enlarged group, said Dixons was stronger than it has been for a number of years and “well positioned to set sail into new waters.”

He said the new financial year has started well, with an uplift in TV sales driven by the World Cup and the early glimmers of a consumer recovery.

Mr James added: “On this there is no certainty just yet, but what we know for sure is that if we maintain a tight rein on costs, our pricing sharp - against all comers - and our service levels high, customers will continue to choose us over others.”

Carphone reported good performances in the UK, Spain and Ireland, offset by tougher mainland European markets including the Netherlands and Germany.

Chief executive Andrew Harrison said Carphone was approaching the merger from a “position of strength” as the speed, range of new devices, increased data usage and new 4G tariffs have increased its appeal.

He said 4G was a major new dynamic in the mobile marketplace as network infrastructure is rolled out more widely across the UK market.

Mr Harrison added: “The significantly improved network quality and download speeds have encouraged customers to take richer data packages, which in turn drive increases in monthly line rental.”

The new group will have combined sales of £12 billion and more than 43,000 staff at almost 3,000 stores, including more than 1,300 in the UK.

Search hundreds of local jobs at Jobs24

0 comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other East Anglian Daily Times visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by East Anglian Daily Times staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique East Anglian Daily Times account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

Earl Soham. Credit: Mike Page.

Owners of an east Suffolk business centre are looking to convert some of its older buildings into residential use – while finding new sites for those being displaced.

An example of the Mantsinen 200M hydraulic crane.
Picture: Cooper Specialised Handling

Associated British Ports (ABP) is investing £6m in new hydraulic cranes from Finnish firm Mantsinen for five of its ports including Ipswich.

Viv Gillespie,  principal at Suffolk New College.

Suffolk New College has become the first organisation to sign up as a patron of the Young Chamber scheme run by Suffolk Chamber of Commerce to bridge the gap between the worlds of education and work.

Concrete manufacturer Poundfield Products plans to expand after clinching £1m in funding.

A precast concrete firm has cemented a £1m investment deal to boost its manufacturing operation.

Grain handling at the Port of Ipswich.

The 2015 Port Freight statistics released by the Department for Transport (DfT) yesterday (Thursday, September 22) show that ABP’s Port of Ipswich is once again the UK’s leading export port for agricultural products.

HOT JOBS

Show Job Lists

Most read

Most commented

Topic pages

Streetlife

Newsletter Sign Up

Sign up to the following newsletters:

MyDate24 MyPhotos24