Dixons Carphone staff have just been given a bonus worth £1,000
PUBLISHED: 10:54 12 December 2018 | UPDATED: 16:23 12 December 2018
More than 30,000 staff at Dixons Carphone are in line for a bonus of at least £1,000 under a share scheme announced today by the struggling retailer.
The share incentive scheme will see workers who have been with the chain for at least 12 months given a stake in the business over the next three years.
The announcement was made as Dixons Carphone revealed plans to slash costs by £200m as it tumbled to a £440m pre-tax loss for the half-year to October 27.
The group’s shares dropped 14% as it booked charges of £490m, largely due to a writedown on the value of its Carphone Warehouse arm, which contributed to the swing from a £54m profit a year earlier.
It also said it was set to see full-year costs surge to £190m - including a £17m hit from the cyber attack revealed in June that saw 5.9 million bank card details and 10 million personal data records hacked last year.
Group chief executive Alex Baldock also said Dixons Carphone remained committed to its stores and has no current plans to shut more than the 102 shop closures already announced this financial year.
The firm said job losses are not expected as a result of the £200m cost-cutting, with the savings due to come from efforts to merge IT systems and reduce supplier costs.
It comes as part of a new strategy overhaul that includes a plan to turn around the fortunes of its loss-making Carphone Warehouse mobile phone chain.
Dixons Carphone said it expects a full-year loss from its struggling Carphone business, but confirmed it remains on track for underlying profit guidance of £300m in 2018-19.
Mr Baldock said: “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 under way making early progress and determined to make it a lasting success.”
Dixons Carphone said on an underlying basis, interim pre-tax profits dropped to £50m from £73m a year earlier.