Currys Share Discussion Threads

[undervaluedassets] 18/12/2014 10:21

A little gentle selling by the "it is better to travel than arrive" mob. .

[tim 3] 18/12/2014 10:08

quite clever the warrenty thing.

offering free warrentys on high end products with good margin where extended warrenty sales are probably low anyway.

therby competing with JL without affecting this highly lucrative market too negatively.

Certainly on the white goods side would not surprise me if its manufacturer funded.

[undervaluedassets] 18/12/2014 09:56

hmm. . .job cuts here apparently.

[mikepompeyfan] 18/12/2014 06:16

Dixons Carphone will up the stakes against John Lewis by extending its free warranty proposition as it seeks to double the value of the company.

The extension of its warranties is being supported by the rolling out of more free deliveries and the comparing of prices against Amazon.

Dixons Carphone group chief executive Sebastian James said: “I think we can double the value of the company by continuing to drive price, service and market share and making sure anywhere where our competitors are strong we can match or beat them.”

As part of the strategy Dixons Carphone has begun rolling out free warranty on high value products to take on John Lewis.

James said: “We know John Lewis has had free warranty for a while and we think it is important we offer free warranty for all the top-end TVs and washing machines and we will extend that programme next year.”

Dixons Carphone will also extend the breadth of its free delivery proposition in the coming years.

Amazon’s reputation as the price leader is also being put in the spotlight by Dixons Carphone with the launch of its much-delayed ‘Compare Prices’ app.

The app will compare prices on products ranging from fridges to tablets to prove Dixons Carphone is “in line or even cheaper than Amazon pricing”.

The app was initially due to launch in September of last year and has now been soft launched without any marketing spend as the retailer seeks to iron out any glitches.

James said: “All the time we are thinking where our competitors are strong, where can we be stronger and where are we strong against our competitors?”

Underlying profit before tax increased 30% to £78m for the 31 weeks ending November 1, while group like-fo

[tim 3] 17/12/2014 22:58

Well done the longs.

Great update they really seem to be motoring.

[tiptv1] 17/12/2014 15:48

Live Market Round-Up with Zak Mir - PR Master Investor covering: FTSE 100 (UKX) Resistance towards 6,330 former 2013 support, Solo Oil (SOLO) Possible bear trap rebound from below 200 day moving average, AudioBoom (BOOM) Maintains full year forecast, Xaar (XAR) Chance of a squeeze towards gap resistance at 350p, Ortac Resources (OTC) Downtrend in stock remains despite fundamental improvement, MySale (MYSL) Initial Rebound after this week's share price plunge, DixonsCarphone (DC.) £80m cost savings now expected ahead of forecast.




- See more at:

[v11slr] 17/12/2014 12:34

Investec reiterates 'buy' and raise their price target from 395p to 465p.

[muscletrade] 17/12/2014 11:51

Courtesy of FT Alphaville, some comments from Barclays and Deutsche

Barclays
2Q UK LFLs up 11% better than consensus at +2.5%. Strength across the board but mobiles significantly performed better than the UK average given P4U bankruptcy and iPhone 6 launch but white goods and TVs also grew strongly, particularly high-end TVs.

2Q Northern Europe LFLs up 9% better than consensus at +4%. It is encouraging to see competition reducing in Northern Europe although Netherlands proved to be more challenging than we initially expected. FX continues to be adverse for the region’s profitability.

2Q Southern Europe LFLs down 5% worse than consensus at -4%. There is some wide variation in S.E with Greece performing strongly and Spain seeing challenges. As a response DC recently started a relationship with Telefonica to distribute the products and services of Movistar in the company’s stores for the first time.

Maiden results from CWS reassure that this part of the business has positive value. 1H EBIT of £4m is mainly due to collaboration with Samsung but it is encouraging that the rest of the Connected World Services yield incrementally positive results. We remind investors that we do not yet ascribe any meaningful value to CWS services in our model.

Dixons trades on 15x CY15 PE broadly in line with the UK General Retail sector but we see significant upside risk to our earnings forecasts if all cost and revenue synergies we highlight in our November note Revisiting our Overweight; raising PT come through.


And Deutsche ....

EBIT of £100m was significantly ahead of our £76m forecast, though in effect £14m of this beat represents a phasing of profits, which we explain below. On a truly comparable basis we estimate pre-tax profits were 5% ahead of our forecasts. Since H1 profits represent only around a quarter of annual profits, we leave our full-year forecasts unchanged. However, double-digit UK sales growth is encouraging as we head into peak trading. We reiterate our Buy.


Dixons Carphone reported pro-forma EBIT of £100m versus £85m in the prior year. The periods are not directly comparable, however. There are significant differences between the periods in terms of accounting treatment, scope of activities, and even the number of weeks being reported. What is important for our purposes is that our £76m forecast was based on a split of prior year H1/H2 profits which have now been restated. £14m of profits that were recognized in H2 2013/4 have been moved into H1 2013/4. This relates to conservative revenue recognition and has been adjusted due to IFRS rules applicable to the acquisition of Best Buy Europe last year.


Q2 UK like-for-like sales were +11% against our +2.1% forecast. The Carphone Warehouse stores benefited from the iPhone6 product launch. The closure of its competitor Phones 4U will have boosted sales more than profits due to higher staff and advertising costs. Perhaps most surprising was the strength at Curry’s, which probably rose mid/high single-digit like for like against tough comparatives. Tailwinds include the macro and product cycle, but improved service levels and comparable pricing with Amazon are also bearing fruits.


There is a significant amount of other news. The date to deliver the £80m+ of synergies has been formalized at FY 2016/7. This is as expected, and one-year ahead of the original plan. The Carphone SWAS (Stores Within A Store) continue to perform better than expectations. Connect World Services has signed a contract with BT to assist in customer migration. Continental Europe remains mixed. Spain should improve in H2 since the business has reached agreement with Telefonica to distribute Movistar products services for the first time. However 50 stores in Netherlands and parts of the German operations are being restructured, with most of the associated charges being non-cash.


We leave our forecasts and our DCF-based 465p TP unchanged. A substantial proportion of the full-year remains ahead of the group, management may choose to invest further into price and service, and the Netherlands is weak. The stock trades on CY15 P/E of 17.3x, falling to CY16 P/E 14.8x as synergies flow through. Our bull case implies 480p on a twelve month basis. Buy.

[gerdmuller] 17/12/2014 11:05

He seems to have done an excellent job so far of completely modernising and turning the co around and getting rid of the poor customer service tag they had.

Probably still a lot to do but co seems in very good shape now. They say back management not companies so things look very good so far for the future of these.

[mikepompeyfan] 17/12/2014 08:43

Tweets Tweets & replies Photos & videos
Sebastian James @DCSebJ · 52m 52 minutes ago
Barnstorming performance from the UK & Ireland teams in this half year. Plenty more year left though so need to keep on it...
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Sebastian James @DCSebJ · 1h 1 hour ago
Better than the profits we should all feel good about another year on year uplift in customer satisfaction. This is what secures our future.
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Sebastian James @DCSebJ · 1h 1 hour ago
Feeling very lucky to have teams rolling up their sleeves and getting on with our integration. Makes a real difference to how markets see us
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Sebastian James @DCSebJ · 2h 2 hours ago
Off to cracking start, profits up 30%. The result of lots of hard work from 45,000 people, huge team effort. Now to trade Christmas!

[mikepompeyfan] 17/12/2014 08:41

I read it as £78m v £59m forecasts too which is outstanding. Didn't like to headline it though in case l was reading it wrong or if it's affected by exceptionals etc. SJ sounds very quietly confident, almost as if he's having to reign in his enthusiasm.

[muscletrade] 17/12/2014 08:36

Telegraph regurgitating the results.

[muscletrade] 17/12/2014 07:19

Citi pre tax forecast £59.4 actual £78. Like for likes also well ahead of citi forecast. "Barnstorming" results from uk/ireland.
dividend increased and £80m savings a year ahead of schedule. Excellent.

[mikepompeyfan] 17/12/2014 07:06

Dividends

The Board has declared an interim dividend of 2.50p per share, up from 2.00p per share last year. The ex-dividend date is Friday 2 January 2015, with a record date of Monday 5 January 2015 and an intended payment date of Friday 23 January 2015.

[skinny] 17/12/2014 07:02

A strong half year for our new company with pro forma Headline profit before tax up 30%


Highlights

• Group H1 like-for-like revenue up 5%; Q2 like-for-like up 9%, with stable gross margins in H1
• Market share gains across electrical and mobile businesses in the UK & Ireland, Nordics and Greece
• Netherlands and Germany remain challenging but action underway to review and restructure
• Group pro forma Headline PBT of £78m (2013: £60m), up 30%
• Group pro forma Headline EBIT of £100m (2013: £85m)
• Headline basic EPS from continuing operations 7.1p (2013: 3.2p)
• Statutory loss before tax from continuing operations £20m (2013: loss of £27m) after non-Headline charges of £100m, statutory basic EPS from continuing operations loss of 4.7p (2013: loss of 5.4p)
• Interim dividend of 2.5p, payable in January 2015
• Integration progressing well and now expected to deliver a minimum £80m of synergies by 2016-17, one year ahead of plan
• Disposal of Virgin Mobile France completed on 4 December 2014 with net cash proceeds of £104m

[mikepompeyfan] 14/12/2014 12:35

Times have £59m interim profits penciled in too.
They say the aim is to double market cap to £1b. Bring it on. :-)

[muscletrade] 14/12/2014 11:53

Thanks for posting the telegraph article Manics, Quite standard for Telegraph to have a short Sunday article on a company due to update in the next few days. For those not aware....worth noting that Citi are joint house broker so are probably gently steering investors towards what the results will say. Although on the day I would not be surprised if the announcement was a little better.

Citi reiterated their BUY and 480p target last week, while Deutsche (joint house broker)also reiterated their BUY and 465P target at the end of November.

[maximillian1] 12/12/2014 11:34

mikepomeyfan


Message in your in you private mail box..regards

[maximillian1] 12/12/2014 11:02

Just remind me to get the old price...current price x 0.115 ..cheers..not sure

[ravin146] 10/12/2014 22:08

Anyone know the reason for that spike?

[anony mous] 10/12/2014 17:09

Touched 4.47 today spike then landed down at 4.29.Quite a swing that.

[undervaluedassets] 09/12/2014 07:42

Good retail trading numbers from the high street reported by the BBC.