Dixons Carphone shares jump after a “good year” of trading

Shares in electrical giant Dixons Carphone (LON:DC) jumped higher in early trade, after the company disclosed a 10 percent rise in pre-tax profit in the year to April.

Annual profit surpassed £500 million for the first time, the PC World and Currys owner said on Wednesday, with income rising by 10 percent to £501 million.

Profits before tax rose from £457 million to £501 million, with revenue up 9 percent to £10.5 billion. In the group’s UK division, revenue jumped by 2 percent to £6.5 billion, helped by the company’s electrical business.

Seb James, Group Chief Executive, said it had “been a good year for Dixons Carphone”, adding that:

“While the UK consumer environment seems to be holding up for us, there will undoubtedly continue to be changes in the way people buy all of the products that we sell from phones to washing machines.”

However, he continued: “Over the last few years a great deal of work has been done to make the company stronger, lower risk and more resilient.”

A resilient electrical goods market helped offset a “more challenging” mobile market, affected by Samsung’s exploding Galaxy Note 7 smartphone. The company has also seen increasing competition from SIM-only customers, who now buy their handsets elsewhere.

The firm was formed through a merger of Dixons and Carphone Warehouse in 2014, in owns both Currys and PC World. Shares in Dixons Carphone jumped in early morning trade before recovering to trade slightly lower; they are currently up 1.22 percent at 299.50 (0907GMT).