Dixons Retail Share Discussion Threads

[undervaluedassets] 26/6/2014 11:39

listen to the conference call . . on their website

Instructive

slightly surprised that the CPW and DXNS shareprices are not moving in lockstep now.

Certainly should begin to do so - the merger is a done deal.

marriage of equals with roughly the same market cap

[hmrc inspector] 26/6/2014 11:24

UPDATE: Dixons Carphone To "Get Married" From "Position Of Strength"
Thu, 26th Jun 2014 10:29

[skinny] 26/6/2014 10:47

Investec Buy 48.04 56.00 56.00 Retains

Cantor Fitzgerald Buy 48.04 60.00 60.00 Reiterates

[undervaluedassets] 26/6/2014 09:34

thin summer market.

not many people on here either betrays that fact.

......On the conference call.....

[mikepompeyfan] 26/6/2014 09:26

The EE review into it's partnership with cpw should be concluded soon. Just possibly, they could decide to continue with cpw and ditch phones4u. That might be a trigger point for a rethink of the benefits of the merger and give impetus to the share price imo.

[tim 3] 26/6/2014 09:06

Cant believe these aren't up more, seems no to logic to the market at present.

[billiam] 26/6/2014 09:04

Meanwhile, over at Carphone Warehouse:

RNS Number : 5744K
Carphone Warehouse Group PLC
26 June 2014
Thursday 26 June 2014
Embargoed until 7h00

Carphone Warehouse Group plc (the "Company", "Carphone Warehouse" or the "Group")

Preliminary results for the year ended 29 March 2014
Strong performance; CPW pro forma Headline EBIT up 14%;
Full year dividend up 20%; Positive outlook.

CPW
-- Pro forma Headline EBIT of GBP151m (2013: GBP132m), in line with guidance range of GBP145m - GBP155m
-- Full year like-for-like revenue growth of 5.3% (2013: 4.6%)
-- Acquired Best Buy's 50% share in CPW Europe in June 2013

-- Store-in-store partnerships with Media-Markt Saturn in the Netherlands and Harvey Norman in Ireland
-- Connected World Services progressing well:
-- preferred-partnership agreement to run Samsung Experience Stores across Europe
-- developed honeyBee platform with Accenture

Virgin Mobile France
-- Exclusivity agreement for the sale of Virgin Mobile France to Numericable Group

Group
-- Headline PAT GBP102m (2013: GBP55m)
-- Statutory PAT of GBP48m (2013: GBP4m)
-- Headline EPS of 18.4p (2013: 11.6p), in line with guidance range of 17.0p to 20.0p
-- Statutory EPS of 8.6p (2013: 0.9p)

-- Recommended final dividend 4.00p per share, bringing full year dividend to 6.00p per share, 20% up on the prior year (2013: 5.00p per share)

A reconciliation between Headline results and statutory results and between pro forma results and Headline results is provided in note 6 to the financial review.

Recommended all share merger with Dixons Retail plc
-- The Board announced on 15 May 2014 that it had reached an agreement on the terms of a recommended all-share merger of Carphone Warehouse Group plc and Dixons Retail plc
-- The Company's prospectus and shareholder circular are expected to be published later today
-- The proposed merger is progressing in line with the anticipated timetable and has already been cleared by the European Commission

Andrew Harrison, CEO, said:
"Carphone Warehouse has had a strong year. We have delivered on our guidance, increasing pro forma Headline EBIT by 14% from GBP132m to GBP151m. Strategically and operationally, we have moved our business forward significantly, showing further progress on 4G, developing our award-winning tablet-based assisted sales tool, Pin Point, growing our Connected World Services business, and taking steps to realise value through the proposed sale of Virgin Mobile France.

"4G is now a major new dynamic in the mobile marketplace. The speed, range of new devices, increased data usage and new 4G tariffs have all increased our appeal to customers, building on our long-standing reputation for impartial advice and value. Operationally we have taken further steps forward in delivering record levels of customer satisfaction through the hard work of our people and through introducing Pin Point.

"Our European partnerships are helping us to gain scale and grow value within our existing markets, having signed two agreements during the year.

"We have also made some key strategic developments in our Connected World Services business, including our preferred-partner agreement with Samsung to roll out and manage their stores across Europe.

"For some while, we have signalled that Virgin Mobile France could be for sale and, in May this year, together with our fellow shareholders, we announced an exclusivity agreement for its proposed sale to Numericable Group.

"The history of Carphone Warehouse has been one of anticipating change and positioning the business to take advantage of this change. Looking ahead, the shifts we see in the marketplace offer considerable opportunities to create value for our employees, our customers, our suppliers, our partners and our shareholders. From a position of strength, we are planning to take greater advantage of these developments through our proposed merger with Dixons Retail plc."

CPW
We completed our buy-back of Best Buy's 50% share in CPW Europe on 26 June 2013. Consequently, in order to give a more meaningful picture of our performance, we have provided the results for CPW on a pro forma basis, as if CPW Europe had been 100% owned by the Group for the whole of 2013-14 and the previous year.

Our retail operation enjoyed a good year with like-for-like revenue growth of 5.3%, despite the continued sharp reduction in the prepay market. While the fall in prepay connections reduced overall connections, both for us and for the market in general, we held our prepay market share. More important for CPW has been the strength of our postpay sales, on which we have again grown our UK market share. We have been particularly encouraged by the uptake of 4G phones. The speed of 4G has a significant impact on data usage, and the sale of 4G devices typically brings with it additional data packages, the result of which is an overall increase in the average revenue per user and therefore the revenues we earn.

During the last year we invested significantly in our brand and in our distribution channels. We introduced a new tablet-based assisted sales tool called Pin Point. This gives our customers a personalised experience, guiding them through the overwhelming variety of devices, networks, tariffs and services, to find the most suitable package to meet their needs. Pin Point has been rolled out throughout our stores in the UK and has resulted in our highest levels of customer satisfaction and customers' willingness to recommend us to others. Pin Point was acknowledged through the BT Retail Week Technology Awards, for the Customer Experience Technology Award of the year for 2014.

Our growth last year was the result of good performances in countries such as the UK, Spain and Ireland balanced by challenges in some of our other Mainland European markets. In the Netherlands, we experienced a weaker consumer market. In Germany, our performance was affected by challenges in the wholesale market. However, we are encouraged by our other business ventures in both of these markets, such as partnership opportunities in the Netherlands and our growing connections services business in Germany.

European partnerships
In the Netherlands we are on track to complete the roll-out of our store-in-store format across the Media-Markt Saturn estate by the end of September 2014.

In Ireland, we completed the roll-out of stores within all 12 Harvey Norman stores.

In Germany we have made good progress developing our relationship with the Metro Group and continue to work with them on a more tailored B2B offering.

Discussions continue with Media-Markt Saturn and with other partners across targeted territories and we believe that these partnerships offer a mutually beneficial way of expanding the sales of connected products and services.

Connected World Services
Connected World Services is our growing B2B business, which aims to leverage our core expertise and systems to provide a range of services to third parties. It was established around 18 months ago and has made significant progress during the year. In partnership with Accenture, we have developed our omni-channel platform called honeyBee. We have been highly encouraged by the initial response from manufacturers, networks and retailers across the globe to the wide range of expertise and services that CPW can provide. We concluded a preferred-partner agreement to operate Samsung Experience Stores in Europe, and we have now opened 33 Samsung stores in seven countries.

Over time, we see Connected World Services as a means to take Carphone Warehouse global, in a low-risk way, with limited demands on capital expenditure whilst leveraging our knowledge and expertise.

Virgin Mobile France
In a very tough French marketplace, Virgin Mobile France delivered a resilient performance, substantially maintaining its contract customer base and continuing to migrate this base onto its Full MVNO platform. This reflects extremely well on the quality and commitment of our French management team.

It was clear to us, however, that Virgin Mobile France's future would be best served by being part of a larger organisation. Subsequent to the year end, we and our joint venture partner, Virgin Group, together with management shareholders, announced an exclusivity agreement for the sale of Virgin Mobile France to Numericable Group.

Outlook
We have worked hard over the past year, focusing on our customer proposition, improving our operational excellence, driving 4G penetration, forging new partnerships in Europe with leading retailers and developing our Connected World Services business. This provides significant potential for growth over the future years and as such our outlook remains positive.

Investor and analysts' webcast
There will be a conference call for investors and analysts at 9.00 am this morning. The presentation slides will be available via webcast (listen only) on our corporate website, www.cpwplc.com.

[billiam] 26/6/2014 09:01

Got to be some shorts having a serious look at closing out now.
When profits are rising so significantly year on year and outcomes looking stronger, why keep hanging on?

[undervaluedassets] 26/6/2014 08:07

First few hours pricing (sometimes even first few day's pricing) after results are meaningless.

But if you think the results are good and the price goes down that is an opportunity.

I think that the main consideration has to be that Dixons carphone now set to be the largest electrical retailer in Europe by a country mile.

That is going to confer all kinds of advantages.

[undervaluedassets] 26/6/2014 08:06

If the results are good and the price goes down you buy.

(some will sell on results whatever)

You buy good results - especially if the price goes down.

It is a silly thin market - take advantage!!

[hippo] 26/6/2014 08:03

will finish blue through the 50p barrier

[anony mous] 26/6/2014 08:01

As i thought.Good results and down it goes.Pathetic.

[robo175] 26/6/2014 07:59

Impressive, great turnaround going on.

[hippo] 26/6/2014 07:49

imho what a corker.....great results, turning back into a true retail goliath...building a nice cash pile too.

[anony mous] 26/6/2014 07:44

DIXONS PROFITSBBCMore from Dixons boss Sebastian James on the company's annual results. He tells Today there's been a particular recovery in sales related to housing. "Anything to do with white goods is going really well," he says. More evidence of a pick-up in consumer confidence?Dixons said sales rose 3% to £7.22bn. "We are seeing the early glimmers of a consumer recovery," chief executive Sebastian James says. Predictably, the current financial year has kicked-off with a big jump in TV sales due to the football World Cup.

[undervaluedassets] 26/6/2014 07:29

hmmm.

Topped own expectations of profits of between 150-160 million as set out in the May trading statement.

I have to confess back in May I was dubious that they could achieve that ...Outlook promising.

Nice

[mikepompeyfan] 26/6/2014 07:08

Great results imo.

This is what should be focused on - 'we also believe we are seeing the early glimmers of a consumer recovery'.

That could cause a stir in the share price on it's own.
It's a brave thing to say after all the years of austerity and a profound change in outlook.

[skinny] 26/6/2014 07:02

Key highlights
· Group underlying profit before tax increased by 76% to £166.2 million versus £94.5 million reported last year and up 10% on a restated basis (1),(2).

- Further strong progress in the UK & Ireland with underlying operating profits up 24%(1)

- Elkjøp delivered another strong year with record sales

- Greece delivered an improved performance with some signs of stability returning to the market

· Another successful year for the Group, delivering on its key objectives:

- Firm establishment of a sustainable business in a multi-channel world

- Disposals of all non-core operations, leaving the Group with leading positions in all our core markets

· Proposed merger with Carphone Warehouse announced to develop a leading position across electricals, mobiles and connectivity.

- European Commission has confirmed that it has unconditionally cleared the proposed merger

· Group online sales increased by 16% to £1 billion.

· Customer service metrics at their highest ever recorded levels in all markets.

· Return on capital employed of 16.3%, up from 14.9% in the prior year.

· Group costs reduced by a further £45 million completing the two year £90 million cost reduction initiative.

· Very strong cash generation with the Group ending the year with net cash increasing to £70.9 million.



Financial highlights
· Total underlying Group sales up 3% at £7.22 billion (2012/13 £7.03 billion) (1).

· Group gross margins down 0.2% in the full year, with an improvement in the second half.

· Total profit before tax after non-underlying items increased by 53% to £132.9 million (2012/13 profit of £86.6 million).

· Post tax non-underlying charges of £186.0 million, relating mainly to disposals of non-core operations. (1)

· Underlying diluted earnings per share 3.0 pence (2012/13 earnings of 2.6 pence)(1). Basic loss per share including discontinued operations of (1.9) pence (2012/13 loss per share of (4.5) pence).

[skinny] 26/6/2014 07:01

From yesterday afternoon.

[tim 3] 25/6/2014 20:32

Sure many will have purchased before but would still expect increased sales during the competition particularly if we had made good progress.

[billiam] 25/6/2014 20:21

Wouldn,t most have already bought their new big screen?
Nice hurdle cleared today
Next step results and c300m joint profit with another c80m in savings to come

[mikepompeyfan] 25/6/2014 19:45

Loads of people threw things at the TV and broke them while watching England. Good for sales then ;-)

[tim 3] 25/6/2014 18:59

England knocked out so early not great for them.