DixonsCarphone sees profits halve due to lockdown

The group reported underlying pre-tax profits of £166m for the year to May 2, down from £339m the previous year.

On a statutory basis, it saw group pre-tax losses of £140m, but this was narrowed from losses of £259m the year before.

Electricals sales held up well amid the lockdown thanks to surging online demand and have continued to grow since the year end, but mobile sales suffered and losses in 2020-21 are expected to widen.

Alex Baldock, chief executive of DixonsCarphone, said: "The first ten months of the year was a story of delivering on our promises and accelerating the transformation of Dixons Carphone.

"We gained market share online as well as in stores, grew credit and services, drove big improvements in customer satisfaction, took difficult but essential decisions such as closing our UK standalone mobile stores, and were on track to meet financial expectations.

"With Covid-19, our immediate priorities abruptly changed to keeping everyone safe, helping our customers and securing our future.

"Our colleagues have delivered on all three, and I thank every one of them for the skill and determination with which they've responded.

"I'm struck by the vital role that technology has played in helping millions of families through this crisis, and I'm proud of how our business has stepped up, online-only outside the Nordics, to provide that help.

"Since the year end, all our electricals businesses have continued to grow sales. Where our stores have reopened we've performed well, while continuing to see strong online sales growth. That said, we expect a weakening of consumer spending later this year and are being cautious in our planning.

"We've learned a lot during this crisis and will emerge a better business from it. We've pioneered new ways of shopping, empowered our colleagues to move faster, and seen how technology is set to play an ever-bigger role in everyone's lives.

"We're also more convinced than ever that Dixons Carphone has the right strategy for our customers, our colleagues and our shareholders in the years ahead."