Surging sales and profits, US expansion plans and the launch of the iPhone helped Carphone’s shares tick up in the wake of interim results.
An 18 per cent advance in revenues to£2.14 billion generated a profit leap, from£14 million to£56 million.
Hold, advised Numis. “Car-phone is an attractive roll-out story, which will benefit from improving profitability in its UK fixed-line business and from new phones coming on to the market. We are expecting strong profit growth in coming years,” it said.
Panmure Gordon reiterated its buy recommendation. “We believe the company is better placed than almost any other retailer to capitalise on Christmas trading,” argued the broker.
Deutsche Bank, also advising buy, said: “At a time when the visibility for the general retail sector is deteriorating, we are comforted that the visibility over Carphone Warehouse’s profitability is improving.”
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