Critics of last year's merger between Dixons and Carphone Warehouse are eating their words after the now-combined group posted a strong set of annual numbers. Like-for-like revenues at Dixons Carphone (DC.) were up 6 per cent in the reported period, reflecting growth in its UK, Irish, Nordic and Greek markets. Meanwhile, pro forma pre-tax profits rose from £316m to £381m thanks to improved cash profits and a lower interest charge year on year. What's more, the head office teams are already operating as one, and the group's £80m cost synergy target has been brought forward by a year.
Admittedly, the Carphone Warehouse business did bring in an extra five weeks of trading on home soil, which explains the surge at its UK and Ireland division. However, like-for-like revenues still shot up 8 per cent there, as demand for electricals and mobile products showed no sign of slowing. The enlarged group also started the rollout of Carphone Warehouse stores-within-a-store, which helped to drive the like-for-like sales increase.