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Dixons turnaround hope dwindles

Dixons turnaround hope dwindles

Shares in electricals retailer Dixons Carphone (DC.) plummeted by around a fifth on the day of yet another profit warning from the company. New chief executive Alex Baldock only joined the group a matter of weeks ago, taking over from Sebastian James after his surprise departure at the beginning of the year. But he’s the first to admit that “nobody is happy” with the recent performance. In the final quarter, a sluggish mobile phone market in the UK put further downward pressure on margins and UK electricals’ margins suffered as a result of a changing sales mix. Challenges in the latter division are expected to persist, so while group pre-tax profits should land in the region of £382m this year – down from £501m in 2017 – that will fall to £300m in 2019.

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