Dixons Carphone plc
Q4 2014-15 trading statement for the 17 weeks ended 2 May 2015
PBT expected above top end of guidance; UK & Ireland Q4 like-for-like up 13%
• Group pro forma Headline PBT expected to be slightly above the top end of previously guided range of £355m to £375m
• Group Q4 like-for-like revenue up 9%, full year up 6%
• Further market share gains across electricals and mobile in the UK & Ireland, Nordics and Greece
• Group gross margins were stable in the full year
• Strong balance sheet with year-end net debt expected to be ahead of guidance of £300m
• Disposal of non-core operations in Germany and The Netherlands
Like-for-like revenue1 |
Q4 |
H2 |
FY |
UK & Ireland |
13% |
10% |
8% |
Nordics |
1% |
3% |
4% |
Southern Europe |
8% |
2% |
-5% |
Total Group |
9% |
8% |
6% |
Sebastian James, Group Chief Executive, said:
"Nearly a year into our merger, I am very pleased to be posting such a strong first full year trading statement for our combined Dixons Carphone Group. Good trading, driven by market share gain and by strong promotional periods - including Easter - coupled with successfully streamlining the Group's international assets, means that we are now guiding PBT to be slightly above the top end of our previously disclosed range for the full year.
On the integration, our teams should be very proud of the progress that we have made. A very committed group of people has achieved this; it has required not just hard work, but also pragmatism - and a willingness to roll up sleeves and get stuck in. By the autumn, in the UK, Ireland and Sweden, we will have moved our head offices, begun moving our logistics and our repair centres, built integrated management teams and opened almost 280 new mobile stores. This is tricky to achieve - to say the least - and I would like to record my thanks to the teams for making it look so comparatively easy.
It is a truism that the time to fix the roof is when the sun is shining, and we will pursue continued investment in the business this year to do just that. We are making excellent progress but there is still much to do, and many areas of the business that we want to improve further. Delivery options, IT investment, extending our free warranty programme, further training for our colleagues, Norwegian pricing and others are in our sights to make us stronger in the long term.
Also, I am really pleased that we have launched our new mobile virtual network operator, iD. So far it is doing everything that we hoped it would, and some of the features we plan for the summer are genuinely unique. Finally, in the CWS business, the management has worked hard to build on our already strong pipeline, which is now looking quite exciting and which I look forward to talking more about in due course."
UK & Ireland
Q4 like-for-like revenue growth was 13%, improving on the momentum seen during our Christmas quarter, with both electricals and mobile trading strongly and gaining market share. Our pricing versus the market is at our most competitive ever and NPS / Advocacy scores are at all time highs. Integration is progressing as planned with key organisational structure, head office and warehousing decisions now made. The CPW stores-within-a-store continue to perform well. There are now 233 open within CurrysPCWorld stores, of which 95 are full CPW executions, and we are averaging 4 additional stores each week.
Nordics
In the Nordics we gained market share in all key markets. However, as expected, Q4 like-for-like revenue growth was slower than previous quarters due to the impact of the weaker oil price on the Norwegian economy and its currency, as well as a softer consumer backdrop in Finland. Nevertheless we have a very strong business in the Nordics and feel confident that the projects we are undertaking will drive continued good performance in the year ahead and into the future. Integration continues to progress well with Sweden moving to a joint head office, the building of a new state of the art small products warehouse and the El Giganten Phone House trials performing ahead of plan.
Southern Europe
Q4 like-for-like revenue growth of 8% reflected a significant improvement on the Christmas quarter driven by a strong like-for-like performance in Greece, despite the political backdrop. The market in Spain remains tough but our stores have seen improved trading quarter on quarter boosted by the distribution of Movistar quad play offerings.
Notes
(1) Like-for-like sales are calculated based on Headline store and internet sales using constant exchange rates. New stores are included where they have been open for a full financial year both at the beginning and end of the financial period. Closed stores are excluded for any period of closure during either period. Customer support agreement sales and income earned from insurance policies are excluded from like-for-like calculations, along with revenues from wholesale operations, Connected World Services and other non-retail businesses.
Investor and analyst webcast
There will be a conference call for investors and analysts at 9:00 am (BST) this morning. The call will also be broadcast on our website, www.dixonscarphone.com via a listen-in only webcast.
Dial-in details - UK/International: +44(0) 20 3003 2666; passcode: 5271987
Seven-day replay - UK/International: +44(0) 20 8196 1998; passcode: 5271987
Next announcement
The Group will publish its full year results on Thursday, 16 July 2015.
For further information
Kate Ferry |
IR, PR & Corporate Affairs Director |
+44 (0)7748 933 206 |
Mark Reynolds |
Head of Investor Relations |
+44 (0)7979 696 498 |
Hannah Collyer |
Head of Media Relations |
+44 (0)1727 203 041 |
Nick Cosgrove, Helen Smith |
Brunswick Group |
+44 (0)207 404 5959 |
Information on Dixons Carphone plc is available at www.dixonscarphone.com Follow us on Twitter: @DixonsCarphone and @DCSebJ |
About Dixons Carphone Dixons Carphone plc is Europe's leading specialist electrical and telecommunications retailer and services company, employing over 40,000 people in 11 countries. Focused on helping customers navigate the connected world, Dixons Carphone offers a comprehensive range of electrical and mobile products, connectivity and expert after-sales services from the Geek Squad and Knowhow. Dixons Carphone's primary brands include Carphone Warehouse, Currys and PC World in the UK and Ireland, Elkjøp, El Giganten, Gigantti and Lefdal in the Nordic countries, Kotsovolos in Greece, Dixons Travel in a number of European airports and Phone House in The Netherlands, Portugal, Spain and Sweden. Our key service brands include Knowhow in the UK, Ireland and the Nordics, and Geek Squad in the UK, Ireland and various other European markets. Business-to-business services are provided through Connected World Services, PC World Business and Carphone Warehouse Business. Connected World Services aims to leverage the Group's existing expertise, operating processes and technology to provide a range of services to businesses. |
Certain statements made in this announcement are forward-looking. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future events or results referred to in these forward-looking statements. Unless otherwise required by applicable laws, regulations or accounting standards, we do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. Information contained on the Dixons Carphone plc website or the Twitter feed does not form part of this announcement and should not be relied on as such.
