Dixons Carphone Plc (LON:DC.), today announced interim results for the 26 weeks ended 27th October 2018
New vision and strategy launched
• Transformation plan underway to deliver a more valuable business
• Focusing on the core; two big growth opportunities in online and credit; revitalising our mobile business; and giving customers an easy experience
• Over 30,000 colleagues to become shareholders through new share awards, aligning business behind strategy
Results Summary
• Gained market share in electricals in all territories
• Group H1 like-for-like revenue(3) up 2%; Q2 like-for-like up 4%
• Group headline PBT(1) of £50 million (2017/18: £73 million)
• Statutory loss before tax of £440 million (2017/18: profit before tax of £54 million), including non-headline charges of £490 million (2017/18: £19 million), primarily relating to non-cash impairments, mainly goodwill(4)
• Free cash flow(5) of £116 million (2017/18: £174 million), with different working capital phasing year-on-year
• Net debt(6) of £274 million (2017/18: £206 million)
Financial Guidance(7)
• 2018/19 headline PBT guidance of around £300 million unchanged
• Transformation plan targeting:
o Market share gains and LFL sales growth
o Group EBIT margin improvement to at least 3.5%(8) over 5 years
o £200 million of identified gross cost savings available for reinvestment and margin progression
o Additional £200 million of capex over 3 years, to accelerate transformation, funded by working capital improvement
• Board committed to maintaining a strong balance sheet and investing in the colleague and customer experience to deliver long term shareholder value
o For 2018/19, dividend rebased to 3 times earnings cover; expected to grow dividends from this level
o Interim dividend 2.25p (2017/18: 3.5p)
• Expect to generate more than £1bn of free cash flow over 5 years
Alex Baldock, Group Chief Executive, said:
“We believe that Dixons Carphone is now on the path to sustainable success. We have set a clear long-term direction that will deliver more engaged colleagues, more satisfied customers and a more valuable business for shareholders.
We have powerful strengths, as a growing market leader with amazing people and capabilities no competitor can match. Our plan builds on those strengths. We’re focusing on our core, and on four things that matter most: two big profitable growth opportunities in online and credit; revitalising our mobile business; and giving customers an easy experience. We’ll deliver these through capable and committed colleagues, working in one joined-up business, with strong infrastructure.
We’re underway and investing in all of these, including giving our colleagues at least £1,000 of shares, making every colleague a shareholder. We strongly believe aligning and energising the business behind our strategy in this way will benefit customers and shareholders.
There are headwinds and uncertainty facing any business serving the UK consumer, we’ve had our own challenges, and our plan will take time. But, with this plan, we can now see the way to unleashing the true potential of this business. We believe in our plan, are underway making early progress and determined to make it a lasting success.”
H1 results summary
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|
|
|
Headline revenue (1)
|
Headline profit / (loss) (1) |
||||||
|
|
|
H1 18/19 |
H1 17/18 |
Reported |
Local currency(2) |
Like-for- like (3) |
|
H1 18/19 |
H1 17/18 |
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|
|
Notes |
£m |
£m |
% change |
% change |
% change |
£m |
£m |
||
|
UK & Ireland electricals* |
(4) |
1,997 |
1,953 |
2% |
2% |
2% |
|
42 |
70 |
|
|
UK & Ireland mobile* |
(4) |
1,009 |
1,056 |
(4)% |
(4)% |
-% |
|
(31) |
(36) |
|
|
Nordics |
(4) |
1,675 |
1,666 |
1% |
4% |
3% |
|
44 |
42 |
|
|
Greece |
(4) |
212 |
191 |
11% |
11% |
11% |
|
6 |
6 |
|
|
Group |
|
4,893 |
4,866 |
1% |
2% |
2% |
|
61 |
82 |
|
|
Net finance costs |
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|
|
|
|
|
|
(11) |
(9) |
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|
Profit before tax |
|
|
|
|
|
|
|
50 |
73 |
|
|
Tax |
|
|
|
|
|
|
|
(12) |
(17) |
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|
Profit after tax |
|
|
|
|
|
|
|
38 |
56 |
|
|
Headline basic EPS(1) |
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|
|
|
|
|
|
3.3p |
4.8p |
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* – previously reported as combined UK & Ireland – see footnote 4
Quarterly revenue summary
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Q2 2018/19 |
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Q1 2018/19(4) |
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Notes |
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Reported % change |
Local currency(2) % change |
Like-for- like (3) % change |
|
Reported % change |
Local currency(2) % change |
Like-for- like (3) % change |
|
UK & Ireland electricals |
(4) |
|
|
|
|
4% |
4% |
3% |
|
-% |
-% |
-% |
|
UK & Ireland mobile |
(4) |
|
|
|
|
(2)% |
(2)% |
1% |
|
(7)% |
(7)% |
(1)% |
|
Nordics |
(4) |
|
|
|
|
3% |
7% |
7% |
|
(2)% |
1% |
-% |
|
Greece |
(4) |
|
|
|
|
12% |
12% |
12% |
|
11% |
11% |
9% |
|
Group |
|
|
|
|
|
3% |
4% |
4% |
|
(2)% |
(1)% |
-% |
