Currys Share Discussion Threads

[cockneyrebel] 09/9/2014 07:53

An interesting run up to FTSE entry on Sep 22nd.

Greece stands out there, quite a turnaround imo.

CR

[xxx] 09/9/2014 07:52

As a holder via Dixons, the statement reads as I feared it might. Seb though good at being +ve and focussing on morale, was entirely out of his depth negotiating exchange of relative value with cpw, which is shrinking....'merger of equals'

[undervaluedassets] 09/9/2014 07:47

This is going to be a conference call worth listening to.

[robo175] 08/9/2014 19:12

I'm still here waiting patiently.

[mikepompeyfan] 08/9/2014 18:43

Cpw was always a dead thread prior to the merger.
Dxns lost it's popularity and number of posts when the share price stagnated for a long time between 44p and 50p. Nice to see the patience of the rest of us is being rewarded. Sometimes you need to be resolute and keep the courage of your convictions. :-)

[ravin146] 08/9/2014 18:31

It is quite odd considering this has been popular in the run up to the merger that this thread is so quiet...does this company have a popular thread on lse etcTomorrow is a big first results days after the merger. A simple merger is going better than expected or saving are more than expected will be ok. Can't see anything special but being on track is key.

[mikepompeyfan] 07/9/2014 08:01

PHONES 4U faces a fight for survival after Vodafone “blind-sided” it last week with a decision to end a contract that accounts for a third of the high street retailer’s new business.

The value of one of the company’s loans plummeted from 87p in the pound to 30p within two hours of the announcement, indicating grave worries about Phones 4u’s financial health. It employs more than 6,000 staff in 700 stores.

In a hastily arranged conference call with lenders, the transcript of which has been seen by The Sunday Times, the chief executive David Kassler said the loss of Vodafone had forced the company to consider “all options”, including deep cost-cuts or a merger.

Vodafone accounted for a third of its new connections, a fifth of overall business and £70m of gross profit. Losing it was a “significant blow”, Kassler admitted.

Vodafone announced an extension of its distribution deal with rival Carphone Warehouse on the same day. The hit comes just nine months after Phones 4U was dumped by O2, which accounted for 10% of its business.

In a public statement, Kassler was more upbeat. “Although we are disappointed with the decision by Vodafone, Phones 4u continues to trade well in the market. We have high levels of market share, especially in the youth segment.”

The company’s bondholders were less optimistic. One asked “Can your company exist on a standalone basis?”

The Vodafone deal, which expires in February, accounted for just £18.5m in earnings, the company said. However, that figure was calculated by subtracting about £50m in costs estimated to be wrapped up in selling Vodafone mobiles. The gross profit figure is £70m, which will have to be replaced by signing up new suppliers, slashing costs or both.

In the conference call, Kassler said: “There is no automatic saving of the £50m in fixed costs, just because Vodafone goes away, so it’s very much an allocation of costs that we have in our business, mainly rent and staff costs in the stores. If you were not able to replace that volume, clearly there is a major management challenge on cost reduction.” He added: “If we lost £70m, clearly we would be in breach of covenants.”

The company’s situation has been exacerbated by its private equity owner, BC Partners. Last year it paid itself a £223m dividend, partly by loading the company with a £205m payment-in-kind (Pik) note, a type of high-interest loan. Months later Phones 4u lost O2. Then the rival chain Carphone Warehouse merged with Dixons, the electronics retailer with which Phones 4u had had a long-standing partnership.

It emerged in May that BC had written down the value of Phones 4u on its books by 86% to just €7.7m (£6.1m).

[mikepompeyfan] 06/9/2014 07:13

Tuesday 9 September

A first-quarter update from Dixons Carphone (DXNS) will be published on Tuesday, with management keen to showcase progress so far.

Analysts' expectations: Positive trading figures are expected from Dixons, which should benefit from its UK business and outperformance in North European markets, says Investec. The World Cup and an improved customer back drop should boost growth by 4.5%.

However, Carphone Warehouse's like-for-likes are expected to be hit, due to exceptionally tough comparatives, although new products are tipped to aid a rebound. Investec reckons there will be negative growth of -6%.

The analysts say: "Management has been quick to roll-out the store-in-store concept (worth around £30 million of synergies in our estimates), with nine open, and 30 anticipated by Christmas, ahead of our thinking. A strategy day is scheduled for 8 October where we expect more colour on the new business and its opportunities."

Valuation: In line with the sector, Dixons Carphone's is trading on a forward price/earnings ratio of 15 times, but Investec does not feel this factors in strong earnings growth and the upside risk is synergies beat the £80 million guidance.

With a 'buy' recommendation, the analysts have a 395p target price on the stock, a 15% premium to the sector.

[mikepompeyfan] 05/9/2014 15:02

Families shopping for the start of the new school term and the cooler weather boosted sales across John Lewis and Waitrose stores last week.

Department store retailer John Lewis posted a 16.2% surge in sales for the week to August 30 driven by its back-to-school offer, which recorded a record week, up 20.3%, while it also reported a record performance online.

Electricals and home technology sales jumped 15.4% as tablets and computing sales, up 10.2%, were helped by the launch of the Microsoft Surface tablet.

[ravin146] 05/9/2014 13:41

Interesting day so far...results next Tuesday, looks like the excitement is building here in addition to be included in the ftse 100 - fund managers will now be adding these to track the index before they get expensive...exciting week next week. My 400p target may be achieved next week! Gla

[undervaluedassets] 05/9/2014 13:23

Always good read across from JL electricals to dixons.

[mikepompeyfan] 05/9/2014 12:36

Tend to agree Septimus. Seen it so many times before. Private Equity firms take big dividends from a business, bleed it dry and leave it with massive debts. Trading takes a downturn and they can't service it. Bad for their staff but good for dc. Only way out will be as the earlier article says. Maybe a takeover by someone else such as BT.

[septimus quaid] 05/9/2014 12:22

Phones 4U is a dead man walking.

[billiam] 05/9/2014 10:42

Blimey, someone fancies JL:

boost
surge
jump
soar
rocket
advance

[cockneyrebel] 05/9/2014 10:36

Families shopping for the start of the new school term and the cooler weather boosted sales across John Lewis and Waitrose stores last week.


Department store retailer John Lewis posted a 16.2% surge in sales for the week to August 30 driven by its back-to-school offer, which recorded a record week, up 20.3%, while it also reported a record performance online.

Fashion generated a 17.9% sales rise against last year as shoppers started preparing from the cooler weather. Accessories, including gloves and scarves increased 25.7%. Womenswear was up 23.2%.

Home recorded a 17.1% lift in the week driven by furniture sales, which were up 24%. Beds and bedroom sales surged 27.3%, while filled bedding sales soared 38.6% as shoppers’ thoughts turned to winter.

Electricals and home technology sales jumped 15.4% as tablets and computing sales, up 10.2%, were helped by the launch of the Microsoft Surface tablet.

John Lewis’s online business generated a 27.7% sales rise.

Waitrose sales jumped 5.8% to £118.41m in the week.

Waitrose said sales of sandwich fillings leapt as the kids returned to school, with tuna fish sales up 10% and preserves up almost 13%. While online sales soared 25%, which Waitrose said was due to families restocking their kitchens.

It added that the coverage of the Great British Bake Off this week, which featured the baked Alaska, sent ingredients sales up 5.8%. Vanilla extract sales surged 26%, caster sugar sales jumped 10% and sales of large eggs increased by more than 37%.

And as the colder weather sets in Waitrose said sales of fresh soup rocketed 44%, tea jumped 24%, coffee was up 20% and hosiery also advanced 44%.

[mikepompeyfan] 05/9/2014 06:37

Phones4U suffered a new blow on Thursday as the ratings agency Moody’s warned clients the mobile phone retailer was under review for a downgrade, a measure that could make more difficult for the heavily-indebted company to raise funds.
It follows Vodafone’s decision on Monday not to renew its contract with Phones4U, cutting the retailer off from a swathe of the market that accounted for more than a fifth of revenues and gross profits last year.
The company, owned by the private equity firm BC Partners, now only has a deal in place with one of the main four mobile networks, EE, and that is also currently under review with the possibility it will not be renewed.
Moody’s said it would review all of its ratings for Phones4U debt including its probability of default rating and the ratings on bonds traded on the Irish stock exchange.
It is understood that Vodafone’s decision to abandon Phones4U in favour of strengthening ties with its rival Dixons Carphone was in part motivated by BC Partners’ decision earlier this year to issue more than £200m in bonds and then pay itself the same amount in a one-off cash dividend. A source said the mobile operator took it of a signal that the private equity owners did not see a long-term future in the business.
A source close to BC Partners said: “The main reason for the dividend was to distribute the proceeds following the sale of one of its division in 2013. Phones 4u had £100m of cash in the business after the refinancing and has continued to invest significantly in the business since then, so to suggest they didn’t see a long term future is simply nonsense.”
BC Partners' supporters point to Phones4U's financial strength at the time of the bond issue as evidence the dividend was not a sign of lack of faith in the business.
Vodafone placed its relationships with third party retailers under review as part of an effort to increase the proportion of subscribers with whom it deals direct at a higher margin. EE is undertaking the same process of weighing Phones4U against Dixons Carphone but has not yet come to a decision.
EE, Britain's biggest mobile operator, could opt to pull out of Dixons Carphone.
As well as losing an operator and potentially another, Moody’s said Phones 4U’s prospects had also been negatively affected by the end next year of a deal that allows it to run concessions in some Dixons Carphone stores. The ratings agency said it will put a further 8pc of Phones4U earnings before interest, depreciation and amortisation at risk.
A note to Moody’s clients said: “Moody's expects Phones 4U's liquidity profile to remain adequate for the time being and to continue to be credit supportive.”
BC Partners did not respond to requests for comment.
On Monday a Phones4U spokesman said: "The directors believe that it may be possible to replace the volume of connections it procured for Vodafone with connections for the existing networks offered by Phones4U."
Phones4U has 720 stores nationwide that could be attractive to another player such as BT, which is preparing to re-enter the consumer mobile market with its own network.

[maximillian1] 04/9/2014 18:19

Thanks CR..

[zimbi] 04/9/2014 17:19

Bill I am
Cheers

[cockneyrebel] 04/9/2014 16:59

DC. are in the FTSE100 MAX - it just takes a couple of weeks for the reshuffle to happen but it's a done deal.

Trackers to buy these up as that reshuffle approaches imo.

All imo/dyor etc.

CR

[anony mous] 04/9/2014 16:52

A swing of 15p today.

[billiam] 04/9/2014 15:45

I'm expecting an update next Tuesday zimbi - the 9th.

[zimbi] 04/9/2014 15:24

I seem to have 2 dates for update -5 and 9th -anyone give me the correct one?