Dixons Carphone’s FY20/21 results were in line with our expectations. The adjusted PBT came in at £156m, led by a strong show in the UK&I electrical business. The turnaround of the mobile business remains on track. The current trading has been positive in both UK&I and international segments. We believe DC will be able to achieve the guidance of 4% EBIT margin in the forecast years. No change in the stock recommendation.
Companies: Currys PLC
Dixons Carphone has announced a strong closure to FY20/21 (lfl sales at +12% in 25 weeks ended 24 April). The full-year adjusted PBT is guided to be in line with market consensus despite the decision to repay the £73m furlough benefit to the UK government. The closure of Dixons Travel is not a surprise, despite the knee-jerk reaction by the market. We continue to believe in the strength of the business and maintain a positive stance on the stock’s valuation.
Dixons’ trading performance in the 10 weeks ended 9 January 2021 was a mixed bag. The strong lfl growth in the first six weeks is in contrast to the subsequent period. Management has expressed it is comfortable with the consensus of the current financial year and reaffirmed its mid-term guidance. Overall, the business remains in good shape despite the adverse impact of frequent lockdowns and the dilutive impact of the growth in e-com. We maintain a positive stance on the stock recommendation.
Dixons Carphone has announced a strong trading performance for the 17 weeks ended 29 August 2020. The momentum was led by the online format (+124% yoy) which accounted for c.40% of total electrical sales. We also note the company’s success in gaining market share in the operating geographies. We believe DC is well placed to maintain lfl growth in the remainder of the year. No change in the stock recommendation.
While Dixons Carphone has witnessed strong lfl growth in the recent weeks, the shutting down of stores in the UK&I and Greece is likely to dent its near-term profits. However, we continue to see the electrical business as well placed, especially considering DC’s strong presence in the e-com format. A profit warning has also been factored into our estimates but we maintain a positive stance on the back of the inexpensive valuation and lack of structural issues.
DC’s peak trading performance was in line with our estimates. Electricals business performed ahead of the market across all geographies. Customer satisfaction and NPS improved in double digits as management continued to offer best-in-class prices (despite taking a planned hit in gross margin). Reconfirmation of all financial targets is also comforting. No change to our financial estimates.
Dixons Carphone (DC) has reported LFL sales growth of +2% and -9% yoy in its main UK trading divisions, Electrical and Mobile Phones over the 10 weeks to 4 January 2020. It also appears to have held PBT guidance for the year to April 2020 at £210m although this is not specifically stated (“we are on track to deliver what we promised for this year..”) The sales out-turn appears to be around a 1% point beat of expectation but the announcement also highlights price investment in the UK electricals
Dixons Carphone (DC) has reported 1H results slightly above consensus at PBT £24m (consensus £8m 1H LY £60m) in the less significant first half (both numbers presented on a pre IFRS 16 basis). Pre -existing 2019/20 PBT guidance of PBT £210m has been re-iterated and guidance has been given on a flat dividend expectation. The overall shape of the Group’s strategic projects re credit, online, customer service and mobile are progressing in line with pervious guidance.
There were no major surprises in the Q1 trading update. The UK mobile business remains weak (and was worse than our expectations) and other segments continued to be in the black. Management’s confidence is reassuring – achieve the annual guidance and implement successfully the longer-term transformation plan. No significant changes in our estimates.
Actually we think DC shares are going down for now. This is because they are clearly exposed to UK discretionary spend and as a low margin model with correspondingly high operational gearing, this is likely to result in further forecast reductions for the near years in our view.
FY18/19 results were in line with our estimates (headline PBT at £298m) but management has issued yet another profit warning. This is attributable to the weaker than expected performance in the UK&I mobile business. DC anticipates this segment to break even in two years. While we will revise our estimates and target price downwards, we reiterate our positive stance on the stock – the valuation is still attractive on both a fundamental and relative basis.
There were no major surprises in the Q3 results. We expect the UK businesses to remain weak in the near term even if the company is succeeding in gaining market share. Any tangible progress towards implementation of the recently-announced turnaround plan would be the biggest upside trigger for the stock price. No change in our stock recommendation.
DC reported broadly in-line with expectations but news on contract negotiations with the UK mobile operators was restricted to the analyst conference Q&A suggesting no material benefit to DC from the renegotiations. The uncertainty surrounding this part of its business is highlighted by the minus 7% LFL in UK & Eire Mobile LFLs (worse than the - 5% consensus expectation) albeit this is against a similar magnitude increase last year giving a two-year flat LFL (in turn highlighting the scale of de
Despite decent lfl growth in Q2, the underlying profitability was below our estimates. Although the new turnaround plan looks rational, it is below our expectations. The key pain-points are lack of granular details, the tough outlook for consumer demand in the UK and high risk of implementation (spread across the next three years). Investors would need at least a few quarters of convincing progress (on-time implementation of the restructuring proposal) to restore faith in the UK’s number one ele
Dixons Carphone reported disappointing Q2 FY18/19 results. While group lfl sales growth improved across all geographies (UK&I electricals: +3.0%, UK&I mobile: +1.0%, Nordics: +7.0% and Greece: +12.0%), the company incurred various non-recurring expenses during the quarter (including a goodwill impairment on UK mobile business, property rationalisation expenses, and regulatory and data incident costs). As a result, H1 FY18/19 net loss came in at £472m (vs £38m profit in H1 FY17/18). While managem
Research Tree provides access to ongoing research coverage, media content and regulatory news on Currys PLC.
We currently have 0 research reports from 0
No Joiners Today.
No Leavers Today.
What’s cooking in the IPO kitchen?
Devolver Digital to join AIM, an award-winning digital video games publisher and developer in the indie games space. Recently awarded indie 'Publisher of the Year 2021' by GamesIndustry.biz. Offer TBA. Due early Nov.
Life Science REIT to join AIM raising up to £100m. This will be the first London listed real estate investment trust (REIT) focused on UK life science properties providing investors with exposure
Companies: SYS1 ARE SO4 SNG TMG TMT OHG IDE KIBO MRL
Companies: WAND SDX SEMP BMK LVCG MOS ACC
No Joiners Today
No Leavers Today
What’s cooking in the IPO kitchen?
Arrow Exploration Corp. (AIM: AXL ; TSXV: AXL) , the oil and gas exploration and production company, has conditionally raised approximately £8.8m and is due to complete its dual listing on AIM on 25 Oct. Market cap c£13.1m.
Devolver Digital to join AIM, an award-winning digital video games publisher and developer in the indie games space. Recently awarded indie 'Publisher of the Year 2021' by GamesIndustry.biz.
Companies: ZYT CIC DMTR GILD LMS MMAG PYC SMRT SBI
Companies: Vertu Motors PLC
Netflix surged past the target price from our last report as the company reported an exceptionally good result with strong subscriber growth and earnings. The company added as many as 4.38 million subscribers in the quarter, well above the 2.2 million in the corresponding quarter of the previous year on account of the huge success of many of its originals such as Squid Game, Lupin and Money Heist’s latest season. Its 213.56 million paid subscribers across the globe have grown by 9.4% year over y
Companies: NETFLIX (NFLX:NYSE)Netflix, Inc. (NFLX:NAS)
Guild Esports provided an encouraging operational update and published H1 results yesterday. H1 financial results do not reflect the company’s substantial progress on sponsorships signings, tournament wins and fanbase growth:
Companies: Guild Esports PLC
*A corporate client of Hybridan LLP
No joiners today.
Conduity Capital has left AIM.
What’s cooking in the IPO kitchen?
Softline the global solutions and services provider in digital transformation and cybersecurity, with its headquarters in London, is considering proceeding with a potential initial public offering of global depositary receipts representing its ordinary shares. The Company is considering applying for admission of the GDRs to the standard listing segm
Companies: SEN SEMP DNORD DNORD FAB MAST SAR CZA MRL
Brighton Pier Group Plc (BPG) has traded remarkably well during the first 13 weeks of its financial year, with net sales up 44% versus the same period (pre-Covid) in 2019. BPG also successfully settled its business interruption insurance claims in full, meaning it will now receive £2m more in FY21E than we had forecasted (£5m in total). We update our FY21E forecasts to account for this, as well as materially upgrading our FY22E projections (Adj EPS raised 85% to 11.9p) to reflect the very positi
Companies: Brighton Pier Group Plc
H1 trading was slightly ahead of expectations from a sales and margin perspective, with UK sales positive in Q2 after annualising very tough Q1 comps. Despite exceptional comps, a good proportion of the gross margin uplift has also been retained. G4M continues to minimise the impact of various global supply chain headwinds. and has good visibility of stock/availability for peak. It is therefore confident of hitting full year expectations. Recent de-rating looks unjustified, particularly given a
Companies: Gear4music (Holdings) PLC
Companies: Loungers Plc
Guild Esports is positioned to become the leading global esports brand based in the UK. With strong support from David Beckham, the company plans to pioneer the UK Premier League academy model in esports, attract leading sponsors, build a loyal fan base and establish a premium line of merchandise. Within 12 months of the IPO, Guild plans to contract 19 esports staff, register 1m fans and generate £5m sponsorship revenue, £1m merchandise revenue and £0.6m media revenue. Today, Guild announced a £
PensionBee, the online pensions provider, with a mission to make pensions simple, so that everyone can look forward to a happy retirement, considering an IPO on the High Growth Segment of the Main Market of the London Stock Exchange. PensionBee is a leading online pensions provider in the UK, with approximately 130,000 Active Customers and £1.5 billion of assets under administration , in each case as at 28 February 2020. Cornerstone FS to join AIM, an SME focused, cloud-based provider of inter
Companies: TMT OHG MDZ FME LTHM ORPH BARK VEL MOS EQLS
Wickes to demerge from Travis Perkins and list on the Main Market. Expected 28 April. Advance Energy to complete an RTO on AIM indirectly acquiring up to 50% of Carnarvon Petroleum Timor which holds a 100 per cent. working interest and is the contractor under the Buffalo PSC, offshore Timor-Leste. Carnarvon Petroleum Timor is a subsidiary of ASX listed company, Carnarvon Petroleum Limited. The net proceeds of the Placing of approximately £20.01m (approximately US$27.51mm) will be used to fund
Companies: GOOD FIH SRT NFC RFX ARCM ACRL EQLS ORPH VRS
REACT Group plc (REACT), the leading specialist cleaning and decontamination company, has announced its results for the half year to March 2021. They do not include any contribution from the acquisition of Fidelis (completed on 26 March 2021) but do include the assets and liabilities for Fidelis at 31 March 2021. Strong progress has been achieved across the business with good growth in revenues, a 733bps rise in gross margin and a significant increase in underlying EBITDA. The Group remains well
Companies: REACT Group Plc
The restaurant industry has started its journey of recovery over the past couple of quarters and Darden Restaurants is riding the recovery wave as well. The company had a solid performance in the recent quarter and reported a humungous year-on-year growth of 80% after the management added 14 new restaurants to make the most out of the increasing customer footfalls. The company has an excellent portfolio of brands including Olive Garden, LongHorn Steakhouse, The Capital Grille and Eddie V's. The
Companies: Darden Restaurants (DRI:NYSE)Darden Restaurants, Inc. (DRI:NYS)