Dixons Carphone upbeat on Brexit as annual sales jump

Referendum result could create 'opportunities for additional growth', says retailer as it announces five per cent leap in like-for-like sales

The CEO of Dixons Carphone said he expects Brexit to offer up "opportunities for additional growth" as the retailer announced a leap in annual sales and profits.

Full-year revenues at the electronics specialist were flat at £9.7bn, but like-for-like sales were up five per cent, with UK & Ireland like-for-like sales rising six per cent.

Headline pre-tax profit leapt 17 per cent to £447m.

CEO Sebastian James said Dixons Carphone has been giving the referendum result - which knocked over a fifth off its share price - "some thought".

"Our view is that, as the strongest player in our market and despite the volatility that is the inevitable consequence of such change, we expect to find opportunities for additional growth and further consolidate our position as the leader in the UK market," he said.

During the year, the retailer largely completed the merger of Dixons Carphone's two constituent businesses following their £3.8bn union in 2014, James said. Its market share is now at an "all-time high" in "virtually all our markets", he added.

UK & Ireland sales for the year hit £6.4bn, up two per cent in local currencies and six per cent on a like-for-like basis. The Nordics and Southern Europe contributed a respective £2.6bn and £550m to the top line.

After launching its Sprint joint venture in the US last summer, 150 new Sprint stores will be opened in fiscal 2017, James pledged. That business is expected to contributed $40m-$50m of annual EBIT to the group by 2019/20.

The retailer also plans to convert every one of the former Dixons stores into the new three-in-one shop format this year, James added.

Despite the upbeat announcement, Dixons Carphone's share price of 334 pence is 22 per cent down on the 427 pence it stood before last Thursday's stock market plunge.