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Carphone buoyant before Dixons tie-up

CARPHONE Warehouse has said it is approaching its £3.6 billion tie-up with the owner of PC World and Currys from a "position of strength" as the two merger partners delivered separate results for the final time.

CROSS OVER: The Carphone-Dixons tie-up hopes to take advantage of the increasing overlap between the mobile phone and electrical goods sectors.
CROSS OVER: The Carphone-Dixons tie-up hopes to take advantage of the increasing overlap between the mobile phone and electrical goods sectors.

Dixons Carphone is set to be created before the end of September and aims to tap into the way technology is transforming modern households through the increasing overlap of the mobile phone and electrical goods sectors. Carphone said a 14 per cent rise in its underlying earnings to £151 million was in line with guidance for the year to March 29 after like-for-like revenues grew 5.3 per cent.

Dixons Retail Group said its profits increased by 76 per cent to £166.2 million, with same-store sales in the UK & Ireland up five per cent and underlying profits for the region up 24 per cent to £141 million in the year to April 30. Its boss Sebastian James, who will be chief executive of the enlarged group, said Dixons was stronger than it has been for a number of years and "well positioned to set sail into new waters".

He said the new financial year has started well, with an uplift in TV sales driven by the World Cup and the early glimmers of a consumer recovery.

Mr James added: "On this there is no certainty just yet, but what we know for sure is that if we maintain a tight rein on costs, our pricing sharp - against all comers - and our service levels high, customers will continue to choose us over others."

Carphone reported good performances in the UK, Spain and Ireland, offset by tougher mainland European markets including the Netherlands and Germany.

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