Dixons Carphone PLC (LON:DC.) cut losses before tax shrank 80% to £86mln while net debt was 83% wider at £1.5bn, but the retailer said it would cut more net debt than expected this year.
This will be achieved by delaying some spending on IT systems and copes with the foreseen “significant” loss in the UK & Ireland mobile division.
The electrical and telecommunications retailer and services company said the market has been challenging and plans are to break even by 2022, with £90mln losses in 2021.
Capital expenditure is now set to be £200mln, down from £275mln, due to rephasing of spending on some larger IT projects, and adjusted net debt will be down year-on-year rather than broadly flat.
In the six months to 26 October, total revenue was 4% lower than the same period last year at £4.7bn, with UK & Ireland mobile plunging 18% to £830mln and the electricals divisions flat at £3.8bn.
Adjusted profit fell 60% to £24mln but previous guidance of £210mln for the full year was kept unchanged.
“Good progress, yes, but all of us at Dixons Carphone are shareholders, and conscious that our business is still nowhere near its full potential,” chief executive Alex Baldock said in a release.
“We are determined to realise that potential, and confident we are on the right path to do so.”