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Dixons Carphone reports 24% fall in annual profits in wake of cyber attack

PUBLISHED: 08:55 21 June 2018 | UPDATED: 08:55 21 June 2018

Retailer Dixons Carphone has reported a fall in annual profits and a slight drop in UK sales. Picture: Nick Ansell/PA Wire

Retailer Dixons Carphone has reported a fall in annual profits and a slight drop in UK sales. Picture: Nick Ansell/PA Wire

Annual profits at Dixons Carphone have slumped by almost a quarter - and the group has warned that cost pressures will continue to squeeze its margins.

The retailer reported underlying pre-tax profits of £382m in the year to April 28 – down 24% year on year.

Overall sales rose 4% on a like-for-like basis, but were down by 1% in the UK. Total revenue came in at £10.5bn.

It came a week after Dixons Carphone came clean about a cyber attack which saw 5.9 million customer bank cards details and 1.2 million personal data records hacked.

Alex Baldock, the group’s new chief executive, said the company had “plenty of work to do” in the wake of the attack, in which 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 – representing a fall of 22%.

The firm 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: “It’s now a little over three weeks since our last trading statement, and just over two months since I joined.

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

“Recent events have underlined that we have plenty of work to do, and it will take time, but I’m even more confident than the day I took the job in our long-term prospects.”

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