Dixons Carphone Posts Loss In FY19, Warns On FY20 Headline Profit; Stock Dips

Shares of Dixons Carphone plc (DC.L) were plunging around 18 percent in the morning trading in London after the consumer electrical and mobile retailer reported Thursday a loss in its fiscal 2019, compared to prior year’s profit. The company further trimmed its dividend, and warned on fiscal 2020 headline profit.

In the year, loss before tax was 259 million pounds, compared to profit of 289 million pounds last year. Loss per share was 27.6 pence, compared to profit of 14.3 pence a year ago.

The latest results included non-headline charges of 557 million pounds, compared to 93 million pounds a year ago. The charges were primarily non-cash impairments relating to the changing UK mobile market.

Group headline profit before tax was 298 million pounds, compared to 382 million pounds last year. Headline basic earnings per share were 20.4 pence, down from 26.2 pence last year.

Revenues were down 1 percent to 10.43 billion pounds from prior year’s 10.53 billion pounds. Group like-for-like revenue went up 1 percent.

Further, the company announced final dividend of 4.50 pence, down from 7.75 pence last year. This brings full year dividend at 6.75 pence, down from 11.25 pence a year ago.

Looking ahead, for fiscal 2020, the company said it expects headline profit before tax to be around 210 million pounds, with growth thereafter as transformation benefits feed through.

The company said its sales and profit would grow in Electricals in both UK & Ireland and International. Meanwhile, UK mobile will be significantly loss making this year.

Further, full year dividend is expected to be flat year on year.

In London, Dixons Carphone shares were trading at 102.45 pence, down 17.74 percent.

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