Dixons Carphone warning despite 19% rise in profits

Planning for the possibility of more uncertain times ahead - CEO James
Planning for the possibility of more uncertain times ahead - CEO James
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Electricals and mobile phones giant Dixons Carphone cheered its best ever Black Friday as it posted a 19% jump in half-year profits, but said it was planning for “more uncertain times”.

The group said that, while it had yet to see a knock to shopper confidence from the Brexit vote, it was bracing for a more unsettled 2017 as EU exit negotiations loom large and amid cost pressures from the sharply weaker pound.

Dixons Carphone buys around 90% of its products in sterling, although its manufacturers are expected to start increasing prices as the Brexit-hit pound sends their costs soaring. It hopes to offset this and insisted customers were unlikely to see any noticeable hike in prices.

Dixons Carphone chief executive Seb James of said: “While we have still not seen any effect on consumer demand as a consequence of Brexit, we have been planning for the possibility of more uncertain times ahead.

“We are also planning our offer so that potential currency impacts are minimised for the customer, and are ensuring that next year, as always, everybody can be absolutely sure that they won’t get a better deal anywhere.”

Dixons Carphone posted a 19% jump in underlying pre-tax profits to £144m for the six months to October 29 after notching up a 5% rise in like-for-like sales across the UK and Ireland.