Dixons Carphone will resume dividend payments
Dixons Carphone (LON:DC) confirmed on Wednesday that it made £4.9bn in revenue across the UK and Ireland as demand for technology products soared during the pandemic.
The company also posted a 34% increase in yearly profit and committed to resuming its dividend payments.
The group, better known s Currys PC World and Carphone Warehouse in the UK, announced an adjusted profit before tax of £156m for the year ended at the beginning of May.
“Technology has become even more central to people’s lives,” said Alex Baldock, CEO of Dixons Carphone.
James Andrews, Personal Finance Expert at money.co.uk, commented on how Dixons Carphone outperformed other retailers throughout the pandemic.
“The secret to its success has been its ability to successfully market products online to rival that of in-store shopping. The online push – which includes the ShopLive service connecting potential customers with real-life store staff for demonstrations and more – started before the virus hit, seeing the high street chain already one step ahead of many rivals,” Andrews said.
“Thanks to Dixons Carphone’s strong online offering, the retailer has managed to keep profitable despite the closure of its stores around the UK. Over the past year, digital sales have grown by triple digit figures, backing up the sentiment that a smooth online buying process is imperative to its 2021 success.”
“The retailer had a quick decision to shutter stores that had become unsustainable and move stand-alone Carphone branches into Dixons or Currys PC World stores, also helped the retailer drastically limit its losses.”
“This week Dixons Carphone also secured an exclusive deal with Vodafone to its mobile phone plans across its 300 stores. This is a strong signal to customers and investors, following EE and O2’s decision to sever its contracts after being hit by financial penalties for not reaching sales targets.”
