26th June 2014
Ahead of its upcoming merger with Carphone Warehouse, electronic retailer Dixons has boasted a 53% rise in its annual profits aided by a surge in television sales in the run-up to World Cup.
The FTSE 250 constituent and Curry’s owner announced today that total profit before tax soared to £132.9m up from the previous year’s total of £86.6m in the 12 months to the end of April.
In addition, soon to be partner Carphone Warehouse reported in its own set of full-year results where pre-tax profits rose to £67m in the 12 months to 29 March.
The pair, both in ‘buy’ territory according to analyst consensus, have enjoyed robust share prices rise over the past 12 months, with Dixons up 21% and Carphone Warehouse ahead by 31%. Following their respective market updates, by 2:55pm today, (26 June) Carphone Warehouse stock is up 1%, or 2.5p at 316p, while Dixons is flat at 48.19p
Last month Dixons announced its plans to join forces with Carphone Warehouse, Europe’s largest independent retailer of mobile communications, and this week the deal got the seal of approval from the European Commission.
Commenting on the results, Sebastian James, Dixons group chief executive said: “I am very excited about the opportunities that the proposed merger with Carphone Warehouse offers for the Group. We will build what I hope will be the first and best truly multi-channel proposition that allows customers not only to buy and experience the explosion of new connected products that are emerging, but to also get the advice, connectivity and services that will allow them to use technology as it should be used – to make their lives better. In turn, this will allow us profoundly to change the nature of what we do: we will move from a transactional to a lifelong relationship with customers everywhere.”
In a statement accompanying Carphone Warehouse’s results, chief executive Andrew Harrison added: “The history of Carphone Warehouse has been one of anticipating change and positioning the business to take advantage of this change. Looking ahead, the shifts we see in the marketplace offer considerable opportunities to create value for our employees, our customers, our suppliers, our partners and our shareholders. From a position of strength, we are planning to take greater advantage of these developments through our proposed merger with Dixons Retail plc.”