Dixons Carphone axes dividend as profits halve

Business


Dixons Carphone axes dividend as profits halve: Electronics chain warns of ‘weakening’ consumer spending

Dixons Carphone axed its final dividend in a fresh blow to investors after annual profits more than halved.

Warning of ‘weakening’ spending later this year, it will not resume dividends until finances are on a better footing. 

The dividend last year was worth £52.5million.

Annual profits at Dixons Carphone which has almost 940 stores, fell to £166m for the year to May 2, down from £339m the previous year

Dixons shares fell 9.4 per cent, or 8.1p, to 78.4p, after it said annual profits at the group, which has almost 940 stores, fell to £166million for the year to May 2, down from £339million the previous year.

Electrical sales were up 22 per cent as shoppers bought home working and schooling supplies, but mobile sales slumped 20 per cent. 

In March it announced it would close 531 stand-alone Carphone Warehouse stores, affecting 3,000 staff.

Dixons received £16million from the furlough scheme and will get £14million if all return to work, and will save £52million on business rates.

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