LONDON (Alliance News) - Dixons Carphone PLC on Wednesday reported a swing to an interim loss due to impairment charges, but reiterated confidence in its full-year guidance.
Shares in the FTSE 250-listed retailer were trading down 9.7% at 136.40 pence, the second worst performer in the mid-cap index early Wednesday morning.
For the six months to October 27, the electronics retailer posted a GPB440 million pretax loss, compared to a GBP51 million profit a year ago.
The firm said it booked non-headline charges of GBP490 million in the period, primarily relating to non-cash impairments, mainly goodwill.
Revenue meanwhile, grew marginally to GBP4.89 billion from GBP4.87 billion a year prior. Like-for-like revenue increased 2% in the half, with the second quarter up 4%.
Dixons cut its interim dividend by 36% to 2.25p per share compared to its prior year's interim payout of 3.5p.
Despite swinging to a loss, Dixons left its full-year profit guidance unaltered. It continues to forecast headline pretax profit of around GBP300 million. A year ago, statutory pretax profit came in at GBP289 million.
For the half-year, headline pretax profit came in at GBP50 million, down from GBP73 million a year ago.
The company has launched a transformation plan aiming to grow in all four business divisions, mobile, online, credit and customer experience.
"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," Chief Executive Officer Alex Baldock said.
He added: "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."
