Dixons warns of looming Brexit storm cloud amid bumper results
Planning for the worst 'just in case', says chief exec Seb James
A spectre is haunting Dixons Carphone - the spectre of Brexit. Despite posting a 19 per cent jump in half-year profits to £144m, the reailer is warning of stormy times ahead.
Sales in UK and Ireland rose 4 per cent to £3bn for the six months to 29 October, as group turnover increased by 11 per cent to £4.9bn, the electronics and mobile tech borg said today.
Seb James, Dixons group CEO, who went to Eton with chief Brexiteer Boris Johnson, hinted the firm may finally start battening down hatches for Brexit.
He said that while the business has still not seen any effect on consumer demand as a consequence of the referendum "we have been planning for the possibility of more uncertain times ahead."
"In particular, we have been focusing on reducing our fixed cost base, identifying areas of potential market share growth if the world becomes a tougher place for our competitors, and generally preparing for all eventualities - just in case."
Dixons Carphone buys 90 per cent of items in UK pounds, and prices could rise further if the currency continues to slide.
An increase in import costs has already hit a number of businesses. Some companies are being accused of profiteering over Brexit, increasing prices above the exchange rate post-Brexit fluctuations.
Dixons Carphone employs a total of 42,000 staff in Europe and the US across a number of brands - including Carphone Warehouse, Currys PCWorld and Simplifydigital in the UK & Ireland.
The borg is rolling out its 3-in-1 store plan, merging PC World, Currys and Carphone Warehouse. The refitting programme will lead to the closure of 134 stores, and will dampen profits in the current fiscal ’17, the firm has previously said. ®