Dixons Carphone mulls Nordic listing as sales rise

Dixons Carphone said it was considering a minority listing of its Nordics business as the electricals retailer reported strong trading supported by online sales.

Like-for-like electricals sales rose 14% in the 15 weeks to the end of August from a year earlier as online sales increased 124%. UK and Ireland like-for-like sales rose 12% and were up 20% in the 9 weeks to the end of August.

UK and Ireland online sales more than tripled while stores were closed in May and June and rose 122% in the following nine weeks. Dixons shares rose 5.5% to 86.43p at 11:56 BST.

The owner of Currys and PC World said it was considering a partial share offering for its Nordics business in 2021. The Nordics business was the strongest performer in the 17 weeks to the end of August with total sales up 17% and online business up 49%.

Sales at stores at airports and stations fell 90% with most outlets closed. Dixons said this reduced total sales by about 5% and reduced the company's gross margin.

Alex Baldock, Dixons chief executive, said: "In the UK and Ireland alone we grew online sales by more than £500m in four months, growth that stayed strong even as stores reopened.

"We're also in the early stages of exploring the option of listing a minority stake of our Nordics business next year. This would shine a light on the value of the Nordics business whilst retaining it as part of the group."

Baldock said despite strong current trading the outlook was uncertain and Dixons was cautious about business prospects. Many economists expect the economy to hit further trouble as unemployment rises and the deadline for a Brexit trade deal approaches.

Liberum analyst Adam Tomlinson, who has a 'buy' rating on the shares, said: "This is a standout update, highlighting just how undervalued we believe DC currently is. Given the stage in the year, there may be no material change to consensus numbers today, but the current performance and momentum mean the group is very well set as we head towards the most important trading period."

Dixons said it was in a net cash position and has access to more than £1.3bn of debt facilities. Baldock said the company had enough liquidity for any economic outcome.