As Dixons Carphone unveils a sharp decline in preliminary profits, chief executive Alex Baldock explains his plans to “stop the bleeding” and transform the struggling business
Since taking the helm of Dixons Carphone in April last year, former Shop Direct boss Alex Baldock has had his work cut out.
A month into the role, Dixons Carphone issued a profit warning closely followed by an interim pre-tax loss of £440m in December, triggered by a £490m charge that primarily related to a loss of goodwill of its mobile business.
Today, the electricals retailer posted a 22% fall in pre-tax to £298m in the year to April 27, 2019, as UK and Ireland mobile sales shrank 11% to £2bn.
Dixons Carphone’s share price slumped 28% in the wake of the announcement and the City seems unconvinced by the business’ turnaround plans.
Investec analyst Ben Hunt says: “We continue to believe a new strategy is lacking given that guidance implies flat profit growth over three years.”
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