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DixonsCarphone sees profits more than halve as lockdown hits performance

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Mobile sales suffered at DixonsCarphone (Stock photo)

Mobile sales suffered at DixonsCarphone (Stock photo)

Mobile sales suffered at DixonsCarphone (Stock photo)

Electricals retailer DixonsCarphone has seen annual underlying profits more than halve after a hit from lockdown store closures and worse-than-expected sales in its mobile arm.

The group reported underlying pre-tax profits of £166m (€183m) for the year to May 2, down from £339m (€374m) the previous year.

On a statutory basis, it saw group pre-tax losses of £140m (€154m), but this was narrowed from losses of £259m (€285.6m) the year before.

Electricals sales held up well amid the lockdown thanks to surging online demand and have continued to grow since the year end, but mobile sales suffered and losses in 2020-21 are expected to widen.

Alex Baldock, group chief executive of Dixons, said: "Since the year-end, all our electricals businesses have continued to grow sales.

"Where our stores have reopened we've performed well,while continuing to see strong online sales growth.

"That said, we expect a weakening of consumer spending later this year and are being cautious in our planning."

PA Media