(Alliance News) - Dixons Carphone PLC on Wednesday decided against issuing guidance for financial 2021 due to the "high levels of uncertainty" created by the Covid-19 pandemic, but warned that its mobile phones business will be hurt by the virus outbreak.
Shares in the FTSE 250-listed company were down 9.0% at 78.75 pence each in London.
The technology products retailer also reported a narrowed pretax loss for the financial year that ended May 2 of GBP140 million compared with a GBP259 million loss a year ago.
Adjusted pretax profit - the company's preferred profit measure - fell 51% to GBP166 million from GBP339 million due to a poor performance from its mobile phones business and Covid-19 related store closures. The adjusted profit figure was GBP44 million below the company's guidance reiterated in January.
UK & Ireland Mobile revenue fell 20% in financial 2020 to GBP1.59 billion due to 3-in-1 store closures during lockdown and low transfer of store sales to Dixons' online channel. The division swung to an adjusted loss before interest and tax of GBP104 million from a GBP50 million profit. Dixons' 3-in-1 stores are its large stores that feature the Currys PC World and Carphone Warehouse brands.
Revenue in the UK & Ireland Electrical unit, however, rose 1% to GBP4.54 billion. Adjusted Ebit fell 10% to GBP162 million.
Overall, annual group revenue fell 3% year-on-year to GBP10.17 billion from GBP10.43 billion.
For financial 2021, Dixons Carphone expects to maintain a good liquidity position, even as it anticipates GBP175 million in exceptional restructuring costs, mainly relating to restructuring of its mobile phones business.
The UK & Ireland mobile business is predicted to post a slightly worse Ebit loss in financial 2021 than in financial 2020 due to the Covid-19 pandemic. The division, as a result, is anticipated to reach breakeven level 6 to 12 months later than previously expected.
Chief Executive Officer Alex Baldock said: "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. That said, we expect a weakening of consumer spending later this year and are being cautious in our planning."
By Tapan Panchal; tapanpanchal@alliancenews.com
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