UK shares continue to recover ground as Carphone profits jump

UK shares have continued to regain some of the ground lost in the wake of the Brexit vote as Dixon Carphone’s profiits jumped by 17 pc.

UK shares have continued to regain some of the ground lost in the wake of the Brexit vote as Dixon Carphone's profiits jumped by 17 pc
After rising 2.6% on Tuesday, the FTSE 100 share index opened up 1.6% at 6,240.31. The more UK focused FTSE 250 index rose 1.6% in early trade. On Tuesday it had closed 3.6% higher.

After rising on Tuesday, the Pound was little changed against the dollar at $1.3341. Sterling had risen as high as $1.50 before the referendum. On Monday, the currency had plunged to a 31-year low against the dollar.

In volatile trade following the referendum result, the FTSE 100 had dropped 5.6% by the end of Monday, while the FTSE 250 had slumped 13.7%.

“With no likelihood of Article 50 of the Lisbon Treaty getting triggered any time soon, it seems that the status quo isn’t likely to change in the short term.

Whilst that doesn’t remove the uncertainty with respect to the eventual outcome, it also means that markets are going to have plenty of time to settle into their new-found reality and equilibrium, as the extra time allotted could well see cooler heads prevail.”

Shares in banks – which had been particularly hard hit in the wake of the referendum – continued to recover, with Barclays up 4% and RBS 3.3% higher.

The increases come as Dixons Carphone announced that it’s profits have jumped by 17%.

Dixons Carphone chief executive has said the company expects to find “opportunities for additional growth” in the wake of Brexit as it announced a 17% jump in profits.

Underlying pre-tax profits in the year to 30 April rose to £447 million from £381 million a year earlier. Group like-for-like revenues were up 5%, with turnover at £9.7 billion.

The company was formed by a merger between Carphone Warehouse and Dixons Retail in 2014.

In the UK and Ireland the group trades as Carphone Warehouse, Currys and PC World.

Regarding the referendum result, chief executive Seb James said: “The nation has spoken and there has been a vote to exit the EU in due course. As you can imagine, we have been giving some thought to this.

“Our view is that, as the strongest player in our market and despite the volatility that is the inevitable consequence of such change, we expect to find opportunities for additional growth and further consolidate our position as the leader in the UK market.”

The company also has operations in Europe and trades as Elkjop and El Giganten in Nordic countries and Kotsovolos in Greece.

Mr James said they had posted record profits but it was vital the government struck a deal that ensured Britain continued to have access to the European single market.

“We’re going to see lots of screaming and shouting, but my message to my team is to absolutely make sure we do everything in our power to ensure our leaders get access to the single market and make sure we heal the rifts that this debate has caused in our society,” he added.

Mr James said despite last Thursday’s vote, business had continued as normal, with sales up and most customers carrying on with their lives as normal.

June 29, 2016  Tags: , , , , ,   Posted in: Business Exports, Business Growth, Business Profits, Business Win, Digital Business, Exporting Businesses, Growing Businesses, Growing Profits, Growing Sales, Technological Businesses, Uncategorized

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