Given how much Dixons Carphone (DC.) investors have endured over the last few months – a profit warning and a serious data breach included – it’s a relief that these results didn’t contain any further surprises. In fact, even though reported profits plunged by roughly a quarter, the shares actually rose on release of its full-year figures.
Like-for-like sales across the UK rose by 2 per cent during the period, but that slowed from a 4 per cent growth rate the year before. And on an underlying basis, domestic growth was flat as UK margins continued to come under pressure thanks to a sluggish mobile market and a shift in the sales mix towards electronics and white goods. International growth was more robust – particularly across the Nordic region and Greece.
But chief executive Alex Baldock admits recent events have “underlined” the amount of work Dixons must do to get back on track. Last month Mr Baldock announced the closure of 92 standalone Carphone Warehouse stores to reduce costs and stem margin deterioration.
Analysts at Liberum expect adjusted pre-tax profits of £298m for the year ending April 2019, giving EPS of 20.1p, down from £382m and 26.2p in FY2018.
| DIXONS CARPHONE (DC.) | ||||
| ORD PRICE: | 198p | MARKET VALUE: | £2.29bn | |
| TOUCH: | 197.7-198.1p | 12-MONTH HIGH: | 306p | LOW: 146p |
| DIVIDEND YIELD: | 5.7% | PE RATIO: | 10 | |
| NET ASSET VALUE: | 276p* | NET DEBT: | 8% | |
| Year to 28 Apr | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2014 | 1.94 | 77.0 | 10.4 | 6.00 |
| 2015 | 8.26 | 287 | 22.0 | 8.50 |
| 2016 | 9.74 | 263 | 15.6 | 9.75 |
| 2017 | 10.2 | 404 | 26.7 | 11.25 |
| 2018 | 10.5 | 289 | 20.4 | 11.25 |
| % change | +3 | -28 | -24 | - |
| Ex-div: | 23 Aug | |||
| Payment: | 21 Sep | |||
| *Includes intangible assets of £3.57bn or 308p a share | ||||
