Dixons Carphone has reported an uplift in profits at the half-year mark bolstered by strong sales growth which boss Alex Baldock attributes to the “grit and skill” of staff.

The electricals giant has reported adjusted pre-tax profits of £89m in the half year to October 31 in comparison with pre-tax profits £2m during the same period the previous year.

On a statutory basis the retailer reported pre-tax profit of £45m in comparison with an £86m loss the previous year.

This jump in profits was bolstered by a 17% rise in like-for-like electricals sales despite substantial parts of Dixons Carphone’s store portfolio across the UK, Germany and Greece being shuttered due to coronavirus restrictions for substantial portions of the financial period.

The electricals retailer gained market share in all channels when open, particularly online where sales jumped 114% year-on-year to £1.8bn across the group overall and 145% to £1.3bn across the UK and Ireland specifically. 

UK and Ireland electricals sales rose 15% overall and 16% on a like-for-like basis driving a 6.5% rise in online market share. By contrast mobile revenue across the UK and Ireland slumped 54%, exacerbated by store closures.

International revenue during the period increased 16% overall and 18% on a like-for-like basis boosted by a 57% uplift in online revenue.  

Dixons Carphone received £103m in business rates relief and furlough payments, but said the impact on its profits since the start of the pandemic was £155m, outstripping this figure.

Chief executive Alex Baldock said: “I’m especially proud of our colleagues today. Thanks to them, we’ve come through an exceptionally challenging time and emerged a better business. We’ve grown sales and profits, preserving our market leadership while accelerating our transformation in the UK, and continuing to power ahead internationally. 

“The outlook remains uncertain, and we’re still nowhere near our full potential. Much hard work lies ahead. But this year has shown this business’s qualities, especially the grit and skill of our colleagues. Our strategy has been stress-tested as never before, we’ve had one arm tied behind our back versus our competitors, and we’ve responded with stronger performance and an accelerating transformation. I’m more confident than ever that we’re on the right path to create a world class business for colleagues, customers, shareholders and society.”

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