2017/18 preliminary results

Preliminary results for the 12 months to 28 April 2018*

• Group like-for-like revenue⁽³⁾ up 4%, Statutory revenue up 3%, maintained market leading shares

  • UK & Ireland like-for-like revenue up 2%

  • Strong growth in International; Nordics like-for-like revenue up 9%, Greece like-for-like revenue up 11%

• Group headline PBT⁽¹⁾ of £382 million (2016/17: £500 million):

  • International businesses’s EBIT growth of £20m year on year, Nordics up £12m, Greece up £8m

  • Gross margins: Challenges in UK mobile continued given market and current contractual constraints, UK electricals margin impacted in second half largely by category and channel mix

  • Includes £25m credit from acceleration of trade balances reconciliation ahead of new system launch

  • Includes a negative £87m year on year impact from revaluations and insurance contract terms

  • Disposal of honeybee in the period (non-headline item)

• Group headline basic EPS⁽¹⁾ 26.2p (2016/17: 33.5p), statutory basic EPS 14.4p (2016/17: 25.6p)

• Total statutory profit before tax of £289 million (2016/17: £404 million) after non-headline⁽¹⁾ charges of £93 million (2016/17: £96 million)

• Free cash flows⁽⁶⁾ of £172 million (2016/17: £178 million) and net debt⁽⁷⁾ reduced by £22 million to £249 million

• Final dividend of 7.75p proposed, maintaining full year dividend at 11.25p (2016/17: 11.25p)

• 2018/19 Group headline PBT expected to be around £300m

Headline results*

Notes:
- In the UK & Ireland, like-for-like revenues in the full year improved by approximately 2% as a net result of sales successfully transferred from closed stores and sales disruptions.
- *See notes on page 2 for an explanation of the basis of preparation and defined terms

Alex Baldock, Group Chief Executive, said:

“It’s now a little over three weeks since our last trading statement, and just over two months since I joined. I’m delighted to be at Dixons Carphone, in a business with so many strengths, and with so much more to go for. Recent events have underlined that we have plenty of work to do, and it will take time, but I’m even more confident than the day I took the job in our long-term prospects.

We’re number one, maintaining or growing share in each of our markets, with people and scale multichannel capabilities no competitor can rival.

We can make more of these strengths, by bringing clear long-term direction that sharpens our focus on our core, and that better joins up both our offer to customers and our business behind the scenes. There’s nothing here that can’t be done, and we expect top and bottom-line benefit of doing it.

Our new leadership team is working at pace to set that direction, and we’ve taken action already to invest more in our colleagues and the customer experience, as well as to improve our performance in the UK.

I look forward to giving a fuller update on our plans and progress in December.”

Investor and analyst webcast

There will be a conference call with presentation for investors and analysts at 9:00 am today. The presentation slides will be available via webcast (listen only) on our corporate website, www.dixonscarphone.com

Conference call details:
Dial-in details - UK/International: +44(0) 20 3936 2999; passcode: 27 41 71
Seven-day replay - UK/International: +44(0) 20 3936 3001; passcode: 82 33 71

Next announcement

The Group will publish its Q1 trading statement on Thursday 6th September 2018.

For further information

Assad Malic
IR, PR & Corporate Affairs Director
+44 (0)7414 191044

Mark Reynolds
Head of Investor Relations
+44 (0)7979 696 498

Amy Shields
Head of External Communications
+44 (0)7588 201 442

Nick Cosgrove, Helen Smith
Brunswick Group
+44 (0)207 404 5959

About Dixons Carphone:

Dixons Carphone plc is Europe's leading specialist electrical and telecommunications retailer and services company, employing over 42,000 people in eight countries.

Focused on helping customers navigate the connected world, Dixons Carphone offers a comprehensive range of electrical and mobile products, connectivity and expert after-sales services from Team Knowhow.

Dixons Carphone's primary brands include Currys PC World and Carphone Warehouse in the UK & Ireland, Elkjøp, Elkjøp Phonehouse, Elgiganten, Elgiganten Phone House, Gigantti in the Nordic countries, Kotsovolos in Greece, and Dixons Travel in a number of UK airports as well as Dublin and Oslo. Our key service brand is Team Knowhow in the UK, Ireland and the Nordics.

Business-to-business (B2B) services are provided through Connected World Services, Currys PC World Business and Carphone Warehouse Business.

Certain statements made in this announcement are forward-looking. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future events or results referred to in these forward-looking statements. Unless otherwise required by applicable laws, regulations or accounting standards, we do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. Information contained on the Dixons Carphone plc website or the Twitter feed does not form part of this announcement and should not be relied on as such.

Notes
(1) Headline results exclude amortisation of acquisition intangibles, Merger integration and transformation costs, businesses to be exited, property rationalisation costs, acquisition-related costs and other one-off, non-recurring items, net interest on defined benefit pension schemes and discontinued operations. Such excluded items are described as ‘non-headline’. For further details see notes 3 and 9 to the Group financial statements. Comparatives have been restated following the classification of the iD mobile operations in the Republic of Ireland as businesses to be exited, and classification of the Sprint joint venture, Spanish and honeybee operations as discontinued, and are therefore included in non-headline results. For further details see note 11 to the financial information.
(2) Change in local currency revenue reflects total revenues on a constant currency and period basis.
(3) Like-for-like revenue is defined in the glossary.
(4) During the year, the reportable segments of the Group have been changed and comparatives restated accordingly. Restatements are detailed in note 2 to the Group financial statements.
(5) UK & Ireland comprises operations in the UK and Ireland, the Dixons Travel business and the B2B operations which leverage the specialist skills, operating processes and technology of the Group to provide managed services to third parties looking to develop their own connected world solutions. Nordics comprises operations in Norway, Sweden, Finland, Denmark, and Iceland. Greece comprises operations in Greece and, for non-headline results, previously disposed operations in the Southern Europe region.
(6) Free Cash Flow comprises cash generated from / (utilised by) continuing operations before special pension contributions, less net finance expense, less income tax paid and net capital expenditure.
(7) Net debt is defined in the glossary.
See glossary for further definitions of terms.