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Carphone sees profits at top end of forecasts

Liz Vaughan-Adams
Thursday 26 September 2002 00:00 BST
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Shares in Carphone Warehouse jumped 7 per cent yesterday after the mobile phone retailer predicted profits for the half year would be at the top end of City forecasts.

Separately, the privately owned Caudwell Group, which owns the rival Phones 4U chain, predicted it was on track to hit £2bn of sales this year. "Phones 4U is performing very, very strongly. It's been the fastest growing retailer on the high street for the last 18 months," its chairman and chief executive, John Caudwell, said.

Carphone predicted its results for the 26 weeks to 28 September, due out on 6 November, would come in towards the "upper end" of the range of forecasts. Analysts are forecasting an underlying, or Ebitda, profit of £25m to £26m.

Like-for-like sales, gross margin and connection numbers since the end of July all continued to show "good improvement" over the previous year, the company said. The stock closed up 5.5p at 84p.

Similarly, Mr Caudwell said his Phones 4U chain was doing a roaring trade. He estimated like-for-like sales at the phone chain were 15 to 20 per cent higher than the previous year.

"For the moment, at least, consumers don't seem to be giving two hoots about the economy and appear determined to buy the latest gadgets," one City analyst said.

Caudwell yesterday published its 2001 accounts, which showed pre-tax profits of £22.6m, up from £20m. Sales were £1.4bn, up from £1.053bn. Around 17 per cent of the group's turnover came from the Phones 4U chain.

Mr Caudwell also insisted he still had no plans to float the business.

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