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

Credit: REUTERS/NEIL HALL

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.

Adds details on dividend, sales, and CEO comment

July 15 (Reuters) - Electricals retailer Dixons Carphone DC.L 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%.

"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 AO.L 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)

((Pushkala.A@thomsonreuters.com; Twitter: @pullthekart; within UK: +44 20 7542 1810, outside UK: +91 80 6182 2600; Mobile: +91 852 751 3793 ;))

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