Dixons Carphone PLC (LON:DC.) said it is considering a listing a minority stake of its Nordics business next year following a decade of strong performance.
The electricals retailer said it would strengthen the capital structure while retaining the full benefits of Nordics staying part of the Dixons Carphone Group.
READ: Dixons Carphone, Pizza Express in latest round of proposed redundancies with 1,900 jobs potentially culled
The firm released a trading statement but said it would provide guidance in its interim results, scheduled for December.
In the 17 weeks to August 29, revenue for electricals in UK & Ireland advanced 12%, but mobile in the same region slumped 56% after the closure of UK standalone stores.
Online sales more than tripled year-on-year while stores were closed and have continued at more than double last year's sales since stores reopened.
However, gross margin was lower compared to 2019 due to strong online performance and loss of higher-margin travel sales.
Total revenue in Nordics and Greece rose 17% and 12% respectively, with online sales up 49% and 115% respectively.
The group reached a net cash position and has access to over £1.3bn of available committed debt facilities.
Liberum said exploring a minority listing of the Nordics business is "a sensible move".
"We think the quality and value within these international operations, which have achieved average profit growth of circa 10% per annum over 2017-20, have been overlooked by the market for some time," analysts commented.
"This is a standout update, highlighting just how undervalued we believe DC currently is."
Shares advanced 7% to 87.25p early on Thursday.
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