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UK's Dixons Carphone skips final dividend as annual profit halves

The UK-based company is reviewing its future shareholder payouts as it grapples with the hit from UK's coronavirus-led shutdown, and has taken steps like many other retailers to beef up its finances and conserve cash to weather the crisis.

Article originally published by Reuters. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

Electricals retailer Dixons Carphone opted not to pay a final dividend for its financial year ended in May after strong online sales failed to offset underperformance of its mobile unit and a lockdown hit to store sales, halving annual profit.

The UK-based company is reviewing its future shareholder payouts as it grapples with the hit from UK's coronavirus-led shutdown, and has taken steps like many other retailers to beef up its finances and conserve cash to weather the crisis.

Dixons also did not issue an outlook after its adjusted pretax profit for the year fell to 166 million pounds ($208.81 million) from 339 million pounds last year, with UK and Ireland mobile sales slumping 20%.

Dixons Carphone plc

Sell: 88.20 | Buy: 88.35 negative 3.15 (-3.46%)
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Prices delayed by at least 15 minutes.

"Since the year-end, all our electricals businesses have continued to grow sales. Where our stores have reopened we've performed well, while continuing to see strong online sales growth," Chief Executive Officer Alex Baldock said.

Baldock, however, pointed to a weakening of consumer spending later this year, while peer AO World said on Tuesday that it expects demand for online shopping to continue even after the reopening of brick-and-mortar stores.

($1 = 0.7950 pounds)

(Reporting by Pushkala Aripaka and Tanishaa Nadkar in Bengaluru, Editing by Sherry Jacob-Phillips)


Copyright (2020) Thomson Reuters.This article was from Reuters and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to legal@newscred.com.

Article originally published by Reuters. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

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