New stores planned as profits jump ahead of Carphone Warehouse-Dixons merger
The £3.8bn merger between Carphone Warehouse and Currys owner Dixons will see the first integrated stores launched within the next few months, Dixons' chief executive Sebastian James said yesterday.
Shares in both firms will cease trading on 5 August with the new Dixons Carphone shares launching two days later in a climate of improving consumer confidence according to Mr James, who claims to have fended off competition from the white goods firm AO World, which recently floated.
Mr James, who is set to take the helm of the merged group, said consumer confidence has increased in recent months. "I think we are seeing some glimmers of recovery, particularly to do with housing – white goods in particular. Long may that continue. We are not concerned by modest interest rates rises, it's about consumer sentiment that drives sales and that appears to be high," he said.
The first Carphone Warehouse stores inside a Currys PC World will be launched in the autumn, with a handful expected by the end of the year. The merger of equals between the two retailers will see savings of around £80m, with half from cost savings and half from placing shops in shops.
Both companies posted strong results yesterday, with Dixons' pre-tax profits up 53 per cent to £133m on sales up 3 per cent to £7.2bn. UK profits jumped 24 per cent and the World Cup has boosted sales of televisions, Mr James added, despite England's early exit.
Carphone Warehouse meanwhile said the roll-out of super-fast 4G mobile networks helped drive sales revenues more than 5 per cent higher to £3.28bn in the year to March as consumers pay more to upgrade to faster smartphones.
Its chief executive Andrew Harrison was bullish about the outlook, saying the completion of the merger with Dixons in August should mean Carphone is well placed for the launch of the next iPhone in the autumn.
Some analysts have fretted about reports that Britain's biggest mobile operator, EE, owner of T-Mobile and Orange, could stop selling through Carphone and focus on its own stores, but Mr Harrison played that down as "mischief".
He said EE's contract with Carphone is "not up for renewal" and that his plans to roll out 400 extra stores and the Dixons tie-up "provides even more compelling opportunities for our partners" to sell to customers.
Liam Neeson's Downton dreams
Thriller is set in the secret world of British espionage
Bomber jacket worn by Mary Berry sells out within an hour
- 1 Scottish independence results live: Reunited kingdom - Scotland gives a clear 'No' in historic referendum
- 2 Scottish referendum results: David Cameron set to unveil major devolution of powers to England
- 3 iOS 8 is full of shiny new features - but it's terrible news for app developers
- 4 Scottish independence: Tory revolt against 'devo max' grows as Rail Minister Claire Perry joins
- 5 Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Scottish independence results live: Reunited kingdom - Scotland gives a clear 'No' in historic referendum
Scottish referendum results: David Cameron set to unveil major devolution of powers to England
Iranian blogger found guilty of insulting Prophet Mohammad on Facebook sentenced to death
Scottish independence: YouGov final prediction puts No campaign 8 points ahead - but Yes team remains optimistic
Scottish independence: Tory revolt against 'devo max' grows as Rail Minister Claire Perry joins
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Scottish independence referendum: A nation divided against itself
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Scottish independence: The Queen breaks silence on referendum debate – as think tank warns of £14bn black hole if Scotland votes Yes
Portuguese academic says British are 'filthy, violent and drunk'
iJobs Money & Business
£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...
To £85,000 + banking benefits: Saxton Leigh: You will be expected to carry out...
Up to £90,000 + benefits: Saxton Leigh: Credit Risk Audit Manager required to ...