Currys Share Discussion Threads

[bc4] 30/6/2021 20:48

Dixons Carphone PLC Dividend Declaration
30/06/2021 5:06pm
Wednesday 30 June 2021
Dixons Carphone plc
Dividend Declaration

The Board has proposed a dividend for the full year of 3.00p per ordinary share for the financial year ended 1 May 2021.

The final dividend is subject to shareholder approval at the Company's Annual General Meeting to be held on 15 September 2021. The ex-dividend date is 19 August 2021, with a record date of 20 August 2021 and an intended final dividend payment date of 24 September 2021.

[tim 3] 30/6/2021 16:47

Looking good if past performance is anything to go by results day moves see some follow through.

[commuter10] 30/6/2021 14:33

Just received this: hxxps://ukinvestormagazine.co.uk/dixons-carphone-posts-4-9bn-revenue-on-growing-demand-for-tech-during-pandemic/?mc_cid=a579d767fd&mc_eid=ad8d6481ef

[ander] 30/6/2021 12:14

Liberum Capital reiterated its ‘buy’ rating and 175p price target,

[hades1] 30/6/2021 12:10

Shares Magazine - just out

Dixons Carphone restarts dividends after sustaining strong trading
30 June 2021, 10:38
Technology products retailer Dixons Carphone (DC.) is restarting dividends after delivering better-than-expected annual profits as an online sales surge offset lost revenues from Covid-enforced store closures.
Chief executive Alex Baldock insisted the start of the current financial year has seen ‘continued strong trading in all our markets’ and is ‘more confident than ever in our prospects’.
Given this bullish outlook, Dixons Carphone reinstated the shareholder reward by proposing a full year dividend of 3p, though the shares were 0.7% lower at 122p by mid-morning.

EARNINGS SPARK

For the year ended 1 May 2021, the Currys PC World-to-Carphone Warehouse brands owner’s adjusted pre-tax profit grew 34% to £156 million, ahead of previous guidance of £150 million, driven by a very strong last couple of weeks to the year.
While mobile sales declined due to both planned and enforced Carphone Warehouse store closures, like-for-like electricals sales sparked up 14% despite pandemic-enforced stores in the UK, Ireland, Norway, Denmark and Greece.
Online electricals sales grew 103% to £4.7 billion last year, highlighting the group’s strengthening omni-channel position and market share gains.
The news on current trading is also encouraging, with UK & Ireland electricals in growth year-on-year and international sales trending positively.
And Dixons Carphone sees evidence that its markets will be ‘structurally larger post-pandemic, and that not all last year’s growth was pulled forward’.

POSSIBLE TAKEOVER TARGET?

Russ Mould, investment director at AJ Bell, said the soon-to-be Currys PLC has developed a reputation ‘for having stores that act as a place not only to showcase products but also to help customers struggling with electrical device problems. This personal touch has been crucial to helping Dixons compete against the likes of Amazon.’
He also believes that the work Baldock has done to reshape Dixons won’t go unnoticed in the private equity world.
‘Dixons could easily be a takeover target given it has a net cash position, it is generating lots of free cash flow, it boasts a strong brand in Curry’s, and strategically it has already done a lot of hard work to fix the problems of the past.
‘A private equity buyer could find ways to accelerate growth and push the Currys brand even harder.’

THE LIBERUM VIEW

Liberum Capital reiterated its ‘buy’ rating and 175p price target, arguing the results give ‘further reasons to be positive on Dixons Carphone’s outlook and the ongoing progress under its transformation plan.
‘Current trading remains strong with electricals in growth year-on-year across all territories. There are two upgrades to guidance with management now expecting a stable net cash position in full year 2022 year on year and a 3p dividend will be reintroduced.
‘Dixons Carphone’s enduring strong performance throughout the pandemic reflects the resilience of its market-leading electricals offer, and particularly the strength of its online proposition, which we think has surprised the market. With the UK & Ireland mobile turnaround on track and medium-term guidance reiterated the shares continue to look too cheap to us.’

[salpara111] 30/6/2021 12:05

Well, if there was a conference call I think we can assume that the takeaway was positive!

[tim 3] 30/6/2021 10:36

Yes the numbers look good with a doubling of online business but it's kind of a false environment what we really need to know is how things are trading right now with all stores reopened.Might be a conference call later.

[salpara111] 30/6/2021 08:35

Was waiting on the results before deciding whether to take a stake.
I thought they looked good but the market seems to be taking a pretty neutral view.

[jondev] 30/6/2021 08:26

Good news about the dividend restarting. Results are looking good I think from the initial read through

[tim 3] 26/6/2021 12:55

Thanks for the reminder."Sophie Lund Yates market related / business qualifications none market experience 4 years at Hargreaves and basically copies what we already know to think people make decisions based on these people's write ups!Most posters on here could tell you more.Sorry just incredible how these people make a (good) living.

[hades1] 26/6/2021 08:07

Today's Daily MailShare of the weekDixons CarphoneBY MARK SHAPLANDALL eyes will be on Dixons Carphone next week to see if it has managed to maintain its online momentum.The electrical goods seller which is changing name to Currys in October is expected to post £151m in profits and a doubling of online sales to around £4.5 billion for the past year after it saw its online strategy shift accelerated by the pandemic.Sophie Lund Yates, analyst at Hargreaves Lansdown, said: 'Covid meant the electrical equipment specialist had to speed up its pivot to digital.'The group has doubled down on its online service proposition, launching its ShopLive function, which connects customers to a real-life store assistant for help and product demonstrations.'We wonder if this has helped keep online momentum moving in the right direction, even as restrictions ease.' The firm made a number of successful strategic decisions during the pandemic, including closing its airport store business Dixons Travel after it was hammered by the lack of travellers and the end of tax-free tourist shopping.Investors will also be keen to hear more details about the company's rebranding plans. They will be looking for how the company's restructuring programme is panning out as well. The plan includes closing all standalone Carphone Warehouse stores and integrating them into Dixons and Currys PC World shops.Worries are that this plan is running over budget.However, the listed company will change its name from Dixons Carphone to Currys in October following its annual general meeting.

[pepepepe73] 24/6/2021 16:45

Seems Delta Covid is out of control and investors are selling this stock.

[tim 3] 23/6/2021 19:32

Good point no idea about the leases maybe it will be one of their famous one off write offs in the future!It will be interesting to see where they are in a few years time, go to far down the internet route and they lose their advantage and become just another internet player.One area they have been incredibly successful is their click and collect model and to do that they need stores!But they need to be realistic they have 4 large stores in our city that's a hell of a lot of overheads.I notice the tie in with Tesco a few years back was quietly ended but something similar with low overheads could be the way forward.Interesting times ahead and there's the potential sell off of the Nordics.All bode for interesting times ahead can't see them looking like they are now in a few years time

[essentialinvestor] 23/6/2021 13:30

Tim, that retail estate size is unsustainable over the longer term,
perhaps that is what the market is focussed on as it comes with legacy lease liabilities.

[tim 3] 22/6/2021 22:04

I would guess most do not expect much from mobile now it may break a profit at some point but its glory days are long gone.

The ability to cut costs instore must be getting close to being impossible I know many large stores now open in the week with just one or two sales staff and not being able to get served is a regular complaint.

In the circumstances they do quite well but like John Lewis and others just not sure that with the increasing move online doubt they will be able to operate 900 stores profitably.

The next update should be interesting.

[essentialinvestor] 22/6/2021 15:53

Not holding ATM but this seems quite strange, is it still a lockdown play unwind

or some other factor?. Mobile etc?.

[hades1] 22/6/2021 15:36

Dying a little more each day.Must be expecting poor numbers at end of month.Not encouraging.

[tim 3] 19/6/2021 12:02

Agree about the Nordics, this has always been a good sauce of positive news for the shares, not so sure about mobile where the opposite has been true for years.

Would like to see a clearer picture of how post pandemic "normal" trade pans out.

[libertine] 19/6/2021 09:21

Questor says: buy Dixons Carphone, WH Smith, Admiral, RWS

First is Dixons Carphone. When we tipped it in December we pointed out a number of ways in which it seemed mispriced: against the cash due from mobile phone contracts already signed, against expected total cash flows and against the expected value of its Nordic operations, which it plans to list separately. It may seem to lack pricing power but it gets better terms from its suppliers than Amazon.

[lippy4] 18/6/2021 12:49

recommended by the telegraph today as a inflation busting share ..

[farrugia] 18/6/2021 12:39

thanks it is on the watchlist now not tempted for now, a lot of stocks seem to be pulling back. Look how AO has retreated.

[tim 3] 16/6/2021 13:23

Respect to Farrugia who called this bang on.Any ideas why the big drop you would think the Euros would help TV sales.Maybe the cost of operating stores with all the restrictions particularly with so many buying online causing concerns?

[hades1] 30/5/2021 20:07

Monday 31/5/21 Daily Telegraph

BT takes £149m hit to hang up Carphone Warehouse deal
The settlement cost consisted of a cash payment made in April and writing off balance sheet prepayments
ByBen Woods
30 May 2021 • 6:19pm
BT has taken a £149m hit after ending a two-decade old relationship with electricals retailer Dixons Carphone.
A disclosure in the telecoms operator’s annual report revealed the cost of the settlement after it chose to end a contract between EE, its mobile division, and Carphone Warehouse last September.
BT said it had resolved all outstanding matters with the retailer, including “revenue share costs that could have previously been recognised over future years”.
The £149m settlement cost consisted of a cash payment made in April and writing off balance sheet prepayments.
BT said at the time it had decided to focus on selling EE services online or through its own 575 stores following months of “challenging discussions and negotiations”.
The company’s decision to end the agreement came after O2 severed ties with Carphone Warehouse last year.
Tensions between mobile network operators and Dixons Carphone intensified three years ago when chief executive Alex Baldock pushed to renegotiate “unsustainable” contracts.
Carphone Warehouse and Currys PC World were being hit with financial penalties because they could no longer reach stringent sales targets agreed with operators when they were selling more mobile phones.
The electricals retailer earns a commission for each customer it signs up to a mobile network.
Carphone Warehouse has been a waning force in EE’s distribution in recent years, dropping more than 50pc to account for less than 15pc of new customers and upgrades.
The brand, which was founded by Sir Charles Dunstone and Julian Brownlie in 1989, is set to disappear from the high street after Dixons Carphone said it would change the name of all its shops to Currys.
Dixons Carphone closed 531 Carphone Warehouse stores last year as it shifted towards selling mobile phones online and through its 305 Currys PC World stores.
In May, BT recorded a 7pc fall in revenue to £21.3bn for the year to March in response to the pandemic-induced pressure on its consumer and business arms.
Pre-tax profits also fell 23pc to £1.8bn.

[tim 3] 14/5/2021 10:27

Indeed Carphone has to be one of the biggest waste of money ever.Probably the start of Sebs downfall.

When it originally happened management saw pound signs because of the amount the operators paid in kick backs.

However they failed to note what as investors we should all know about past performance ...

Mobile will now be a much smaller operation for them and just another department hopefully without the need and cost of dedicated staff.

Would actually not surprise me if mobile disappeared altogether from stores at some point and just went online.