June 27--Carphone Warehouse and Dixons Retail both reported 'strong' annual results yesterday ahead of their planned pounds sterling 3.6bn merger.
The high street chains have agreed to join forces to create a retail giant with combined sales of pounds sterling 12bn, more than 43,000 staff and nearly 3,000 stores.
Dixons Carphone, as the combined company will be called, aims to tap into the increasing overlap of the mobile phone and electrical goods sector as technology transforms the way families live.
Carphone reported a 14pc increase in profits to pounds sterling 151m for the year to 29 March while Dixons said its profits were up 76pc to pounds sterling 166.2m for the 12 months to 30 April.
Carphone chief executive Andrew Harrison said the company was approaching the merger 'from a position of strength'.
His counterpart at Dixons, 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'. The new financial year had started well, with an uplift in TV sales driven by the World Cup and the early glimmers of a consumer recovery.
Dixons shares rose 0.47p to 48.51p. Carphone was up 4.1p to 317.6p.
Richard Hunter, head of equities at Hargreaves Lansdown, hailed 'a sparkling set of full year numbers' from Dixons, saying: 'The future looks bright for Dixons Carphone.'
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