Dixons Carphone has posted a £440 million loss for the six months to 27 October, sending shares down 14%.
The loss compares to a £50 million pre-tax profit in the same period a year earlier.
Whilst underlying sales improved, the group paid out a £490 million for the restructuring of Carphone Warehouse.
The new boss, Alex Baldock, 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,” he added.
The struggling retailer announced plans earlier this year to close 92 out of 700 stores. Baldock confirmed there are no plans to close more.
The share price has fallen by 25% this year following various profit warnings from the group.
Richard Hunter, head of markets at Interactive Investor, said: “Unfortunately, this statement has laid bare the fact that Dixons Carphone has many plates to spin at a time when competition in the sector is intensifying.”
“The strategy to consolidate its competitiveness, which starts from a position of strength given its scale, will take some time to come through, even if successful.”
Shares in Dixons Carphone (LON: DC) are currently trading -8.11% (1045GMT).
