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July 15, 2020, 2:48 a.m. EDT

Dixons Carphone books FY loss on store closures

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By Anthony O. Goriainoff

Dixons Carphone PLC said Wednesday that it booked a pretax loss for fiscal 2020 and wasn't issuing any electricals sales or profit guidance for the current year due to uncertainty stemming from the coronavirus pandemic.

The company said should the effect of the pandemic on trading conditions be more prolonged or severe than expected, it would need to implement additional operational or financial measures.

The retailer of electrical and telecommunications products said for the 53 weeks ended May 2, its pretax loss was 140 million pounds ($175.8 million) compared with a pretax loss of GBP259 million for fiscal 2019. The company said the loss was a reflection of U.K. mobile store closure costs.

Adjusted pretax profit--the company's preferred metric which strips out exceptional and other one-off items--was GBP166 million compared with GBP339 million in the year prior.

Revenue was GBP10.17 billion, compared with GBP10.43 billion the year before, and market consensus of GBP10.07 billion taken from FactSet and based on five analysts' estimates.

The company said that U.K. and Ireland Electricals revenue rose 1%, and that online sales were up 22%. Mobile revenue for the U.K. and Ireland fell 20% due to enforced store closures due to the coronavirus pandemic and low sales transfer to online. International revenue rose 2%, or 4% on a like-for-like basis.

The company said dividend payments wouldn't resume until its standby debt facilities have been cancelled, and that the board will keep dividend payments under review.

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