Results round-up
Electronics retail group Dixons Carphone released its preliminary results for the 12 months to 29 April on Wednesday, reporting group like-for-like revenue as growing 4%, with statutory revenue up 9%.
The FTSE 250 firm claimed “strong” profit performance, with headline profit before tax of £501m, up 10%, and headline basic earnings per share rising to 33.8p from 30.2p.
Total statutory profit before tax improved to £386m from £263m, after non-headline charges of £115m - a figure reduced from £194m year-on-year.
Free cash flows stood at £160m - a decrease from the £202m reported in the prior year - and net debt was "broadly flat" at £271m.
Dixons’ board proposed a final dividend of 7.75p, up from 6.50p, taking the total dividends for the year to 11.25p - a 15% improvement.
On a divisional basis, the company’s operations in the UK and Ireland saw revenue of £6.55bn - up 2% on a reported basis, and 4% on a like-for-like basis.
Nordic revenue rose 20% on a reported basis, but 1% on a like-for-like basis to £3.16bn, while Southern Europe operations drew revenue of £661m - a 20% improvement on a reported basis, and a 6% like-for-like increase.
Connected World Services revenue was up 41% at £213m.
"Over the last few years a great deal of work has been done to make the company stronger, lower risk and more resilient," said group chief executive Seb James.
"We are seeing the upside of these efforts now as we declare record headline profits before tax of over half a billion pounds - up 10%.
"More importantly, the improvement in our cost base, the strong leadership position that we have built, the investment that we have made in our digital business and, above all, the enormous shift in customer satisfaction and price competitiveness that we have driven leave us well positioned to flourish in the years ahead."
James said that, while the UK consumer environment seemed to be "holding up", there would continue to be changes in the way people buy all the products the company sells - "from phones to washing machines".
"Change always represents opportunity, and our job is to find the propositions that keep us compelling to our customers forever."
James said the board and management team was "excited" about the group's plans in services, and about the myriad of initiatives that he believed would drive long-term relationships with customers.
"In short, it has been a good year for Dixons Carphone and it gives me great pleasure once again to thank my 43,000 colleagues for the work that they have done to deliver so well and so energetically for our customers."
Dixons Carphone shares were higher at the open, rising 2.67% to 303.8p at 0840 BST, with ETX Capital senior market analyst Neil Wilson suggesting investors were pleased by its profit performance going against the recent downward trend among high street retailers.
Petra Diamonds warned on Wednesday that its full-year results are likely to be below market expectations, with revenue around 8% to 9% below consensus on the back of lower production.
The company said it is on track to achieve record revenue and production figures in FY2017. However, slower-than-expected build-up of its expansion programmes across its operations means production is now estimated to be around 8% to 9% lower than guidance of approximately 4.4m carats.
Petra said it has now reached an operational run rate across the group which supports FY 2018 production guidance of around 5m carats. While the ramp-up of production from the sub level cave at Finsch took longer than expected, it is now operating at the required levels. At the new Cullinan plant, both mills and crushing circuits have now been commissioned, with the first mill and crushing circuit having been run very successfully for over a month.
The company also said it was likely to be in breach of its banking covenants, but added that this was not expected to be an issue.
"With respect to the covenants relating to its banking facilities, the company has had initial constructive discussions with its lender group and is confident that the likely shortfall in the upcoming ratio measurement, arising from the lower production levels, will not present an issue."
Shore Capital said: "All things considered, we would not be surprised to see Petra’s shares sharply down today. However, we note that the share price had already come off significantly, and any significant fall today could represent a tempting opportunity, as we expect FY2018 operational and financial performance to be materially better."