Jun 21, 2018
Opening Quote: Dixons Carphone — not talking about IT
2018 is turning into something of an annus horribilis for electricals retailer Dixons Carphone. That's assuming the group's creaking IT systems - which are still not fully integrated nearly four years after the Dixons and Carphone Warehouse businesses were merged - can recognise dates beyond 1999. New boss Alex Baldock has already warned that earnings will take another hit in the current year, and the company today confirmed that "2018/19 group headline profit before tax [is] expected to be around £300m", with the closure of 92 Carphone Warehouse stores. Dixons Carphone has been warning for some time that consumers are not rushing to upgrade their phones, and are happy to hold on to handsets for longer or switching to sim-only contracts - which hits the group's profit hard. Equally importantly for the group, which is amid a four year restructuring programme aimed at restoring its financial strength, net debt was down by more than a fifth to £85m. Until now, Chemring has had a turbulent few years after a 2016 profit warning sent its shares falling 35 per cent, and the Serious Fraud Office announced an investigation into a subsidiary for alleged corruption.
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