Carphone Warehouse Profits Surge on Exceptional Items

The Carphone Warehouse has reported a massive jump in full-year profits to £550 million, from £73 million a year ago - due to a one-off gain of £608 million on the 50% disposal of its retail business. Revenue dipped to 1.39 billion pounds, from 1.42 billion pounds last year.

Headline earnings declined to £112 million from £137 million a year ago. The loss from continuing operations reached £41 million, down on the £64 million last year.

The company is now split into two units, the fixedline telephone and ISP division, TalkTalk and its retail arm,  Best Buy Europe - which is a 50:50 venture with Best Buy USA. The company is demerging the two divisions and expects the split to be completed by July 2010.

The retail arm, opened 180 stores during the year, and closed or relocated 132, giving net store additions of 48. The total store base was 2,459 at the year end.

Posted to the site on 5th June 2009