Dixons Carphone profits plummet

High street technology retailer Dixons Carphone (LON:DC.) has clawed back some ground today after the company’s preliminary results were published. While revenues rose modestly to £10.5 billion, pre-tax profits tumbled by 23.6% to £382 million as gross margins in the UK softened and the company booked £87 million in negative revaluations and insurance changes. 

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The company is holding dividends steady at 11.25p due to restricted free cashflow. Management also warned that profits were likely to fall further in the current financial year, due to increased reinvestment, low inflation and continuing changes in the UK market, and offered £300 million as their guidance. Shares in Dixons Carphone were 197.40p at 15:45 BST, up by 3.47% over today’s open but still well below the 233.40p level they were at on the 25th of May before the company issued its profit warning.