Dixons Carphone profits plunge in wake of cyber hack

The group said underlying pre-tax profits fell by 24% to £382 million for the year to April 28, and warned that cost pressures would hit profits once again in the year ahead.

Sales rose 4% on a like-for-like basis, with total revenue coming in at £10.5 billion. In the UK, sales were down 1%.

New Dixons CEO Alex Baldock said there was “plenty of work to do” in the wake of the attack, which saw 5.9 million customer bank card details and 1.2 million personal data records hacked.

The retailer behind Currys said that while 5.8 million of the cards targeted were protected by chip and Pin, around 105,000 non-EU cards without chip and Pin protection were compromised.

In its full-year results, the group confirmed it expects profits for 2018-19 to be £300m - a fall of 22%. It revealed plans to close nearly 100 stores last month and warned over the expected profits hit for the new financial year as it braces for a slowdown in the UK electricals market and cost increases from the national living wage and IT depreciation.

Mr Baldock said: ““I’m delighted to be at Dixons Carphone, in a business with so many strengths, and with so much more to go for.”