Dixons Carphone has reported losses before tax of £440m in its half-year trading report, compared with the profit before tax of £54m last year, as shares in the company dived by 8.71% to 137.75p.
The business said the figures were a result of non-headline charges of £490m, attributed to a write-down of its loss-making Carphone Warehouse mobile business, and group headline interim pre-tax profits have decreased to £50m from the £73m seen in 2017.
A spokesperson told Retail Sector: “Carphone Warehouse is not profitable in its current configuration, notwithstanding that the mobile component of our One Business technology retailing in the future will be very important to us, profitable and cash generative, when we have completed the transformation.”
The group said the half-year results were “as expected”, as it undertakes a transformation plan to deliver a “more valuable business”. Group CEO Alex Baldock said there are “headwinds and uncertainty facing any business serving the UK consumer”, and added that the company has had its “own challenges, and [its] plan will take time”.
He added: “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.”
“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.”