Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on DIXONS CARPHONE PLC. We currently have 9 research reports from 2 professional analysts.
|01Dec16 11:46||RNS||Total Voting Rights|
|16Nov16 04:20||RNS||Holding(s) in Company|
|16Nov16 04:15||RNS||Holding(s) in Company|
|04Nov16 04:29||RNS||Holding(s) in Company|
|01Nov16 09:00||RNS||Total Voting Rights|
|11Oct16 10:28||RNS||Director/PDMR Shareholding|
|03Oct16 02:24||RNS||Director/PDMR Shareholding|
Frequency of research reports
Research reports on
DIXONS CARPHONE PLC
DIXONS CARPHONE PLC
Strong results once again
26 Sep 16
Dixons Carphone released Q1 FY16/17 results ahead of our estimates as well as market consensus. The lfl revenue increased by 4% (vs Q4: +5%, Q3: +5%; our estimate: +2.9%) on the back of strong performance across all geographies. The UK & Ireland retail business was up 4% (vs Q4: +4%, Q3: +5%, our estimate: +3%; the adverse impact due to store refurbishment was offset by sales transferred from store closure program), largely driven by robust demand of white goods (majorly built-in appliances), TVs (mega-site and 4K TVs) and mobile phones. The strong demand of air-conditioners in Greece propelled the lfl revenue growth to +13% in Southern Europe (vs Q4: 0%, Q3: 9%; our estimate: +2%). In Nordics, the lfl revenue was up +2% (vs Q4: 9%, Q3: 3%; our estimate: +3%) on the back of positive momentum in the kitchen business (extended product ranges). The FX tailwinds (+5%; largely due to depreciation of GBP vs Euro and Norwegian Krone) pushed up the total revenue growth to +9% (vs Q4: +5%, Q3: +5%; our estimate: +1.1%). The CWS business continued strong momentum (+42% at CER vs FY 15/16: +26%, FY14/15: +67%). The roll-out of sprint stores has progressed well (currently 31 stores; 130 planned by Christmas), complemented with the ‘honeyBee’ software implementation undergoing across the stores. Also, the management signed an additional distribution agreement with TalkTalk to manage direct channels (indirect channels only previously). The company also updated about the launch of a new e-commerce platform for Carphone Warehouse and the 3-in-1 property program across the UK (completed 278 stores out of total planned 323 SWAS stores by end of FY16/17) Lastly, management has shrugged off any detectable impact of the Brexit vote on consumer behavior in the UK and is optimistic about the future performance.
09 Sep 16
"Overnight markets ended mostly weaker in relatively quiet trading. The principal drivers were yesterday's decision by the ECB to leave its €1.7 trillion stimulus package unchanged and a continuing sell off of technology stocks, following Apple's launch of its rather less than inspiring iPhone 7 and Hewlett Packard Enterprise's plan to spin off and merge most of its software operations with the UK's Micro Focus international (MCRO.L). As a result, the NASDAQ took the biggest hit amongst the main US equity indices, while elsewhere energy stocks took confidence from the largest one-day gain in the benchmark Nymex contract for almost six months after the US Energy Information Administration data revealed the steepest fall in crude stockpiles since 1999. Interesting also, the Fed Funds futures appear to finally be forming a consensus regarding rate expectations, with bets now indicating the chance of a September rise has fallen to just 24%, while expectation of one in December is now put at 60%. The Hang Seng was the only winner amongst Asia's major equity markets, celebrating news that the Chinese regulator had finally confirmed it will allow domestic insurers to invest in Hong Kong-quoted shares through a trading link with Shanghai. This further opening follows last month's go-ahead for the Shenzhen-Hong Kong Stock Connect, which is due to open by the end of this year and create a second portal for foreign investors looking to access China's US$6.5tn equity market. This news was tempered on the Composite index, however, as CPI data released for August showed prices slowing for the fourth month in a row and remaining firmly below Government target. The UK this morning is expected to provide Trade Construction figures, while EU finance ministers will meet in Bratislava to discuss, amongst other things, the ECB's continuing policy inaction. The Fed's Eric Rosengren is scheduled to make a speech this afternoon which could further help traders firm expectations regarding the FOMC meeting now due in less than two weeks. Corporates due to release earning figures this morning include Comptoir Group (COM.L), Richoux Group (RIC.L) and JD Weatherspoon (JDW.L). Investors will also remain sensitive to further disclosures regarding North Korea's reported fifth nuclear test this morning and the planned meeting between Saudi, Algerian oil ministers and OPEC's general secretary. The FTSE-100 is seen modestly weaker, losing perhaps 10 points in opening trade." - Barry Gibb, Research Analyst
Strong performance in Q4; Brexit mires the near-term
03 Aug 16
Dixons Carphone (DC) released Q4 and FY15 results (ending 30 April 2016) broadly in-line with our estimates. In Q4, lfl revenue increased by 5% (vs Q3 16: +5%, Q2 16: +3%), largely driven by strong growth in the UK (Q4 16: +4% vs Q3 16: +5%, Q2 16: +4%) and a sequential improvement in the Nordic region (Q4 16: 9% vs Q3 16: 3%, Q2 16: 0%; led by white goods, mobile and laptops). South Europe clocked flat growth due to a strong comparable (Q4 15: +8%) and the phase-out of the laptop promotion scheme by the Greek government in the current year. For the full year, a strong performance in the retail business and market share gains across all geographies underpinned the organic revenue growth of 5% (vs FY14: +6%; our estimate: +5.3%). In the UK, strong demand for white goods and mobile phones drove lfl revenue up by 6% (vs FY14: +8%; our estimate: +6.5%). Similarly, the Nordics clocked organic growth of 4% (vs FY14/15: +4%; our estimate: +3%) despite intensifying price competition and macro-economic challenges. In Southern Europe (FY 15/16: +4%, FY14/15: -5%; our estimate: +4%), the weak demand for TV and laptops was offset by strong purchases of white goods and tablets (especially in Greece). Furthermore, connected world services (CWS) continued the robust growth momentum (FY 15/16: +26%, FY14/15: +67%) on the back of new/renewed contracts in the support services business (EE, RBS, TalkTalk). However, fx headwinds (3% yoy; devaluation of the Euro and Norwegian Krone vs. GBP) and a negative scope effect (2% yoy) resulted in flat total headline revenue. The headline EBIT margin was in-line with our estimate of 4.8% (+60bp yoy), largely driven by operational efficiency in the UK (+90bp yoy) and merger synergies (single head office, one logistics and repair centre in the UK and the roll-out of 276 Carphone Warehouse SWAS stores). DC plans to roll-out c.150 new sprint stores across the US in FY16 (500 stores by FY18) and expects the JV to contribute $40m-$50m of annual EBIT by FY19. Additionally, the management plans to introduce a new e-Commerce platform for Carphone Warehouse, open a distribution centre in Sweden, and launch a new home services division across the UK. The management declared a final dividend of 6.50p, raising the full year total to 9.75p (+15% yoy).
30 Jun 16
"Yesterday's reminder from the President of the European Council, Donald Tusk, at the Brussels summit that the UK cannot 'have single market a la carte'', in terms of retaining current and uninterrupted trade conditions without first agreeing to wholly comply with its four membership 'freedoms', will likely take some of the wind out of the UK equity markets sails today. The FTSE-100 is seen opening just modestly better, up some 7 points, while continuing to glean confidence from expected firmer openings among the principal European markets, although some are predicting some profit taking ahead of the US open. Traders have yet to weight comments from the International Monetary Fund on Wednesday, which pointed out the knock- on effects of Britain's pending exit noting it poses "downside risk" to Germany's economic outlook and indicating that a downward revision to its current growth forecast may be on the cards. Instead traders have clung tightly to optimism that a new Tory leadership will be able to secure a good deal for London equities, delivering a sustained rally of the FTSE-100, which generates almost three-quarters of its earnings outside the UK and now trades above the level it was immediately pre-Brexit. US stocks put in good gains across the board again overnight as traders shared the hopes generated by their counterparts in London. Asian shares this morning did likewise, to the extent that investors there have even begun to label the international market response to Brexit as a 'phoney bear market'. Historic Data due for release this morning, including UK Final GDP and Eurozone inflation figures, will be largely overlooked given the significant prospective change to European economics. The closing of the Conservative leadership contest nomination period and the scheduled speech by the Fed's James Bullard will likely receive greater coverage. No major UK corporates are due to report this morning." - Barry Gibb, Research Analyst
26 May 16
"London equities are expected to take back a little of their recent gains, with the FTSE- 100 seen opening marginally lower. This is despite the US markets lifting further overnight, with the financials rallying to their 2016 high yesterday, powering the broader market ahead for the second straight session. The Dow industrials and S&P 500 have risen more than 2% since last Thursday, as oil prices approach $50 a barrel and fears were calmed regarding the prospect of higher Fed rates now widely anticipated. Set for June 14th and 15th June, the FOMC meeting is expected to initiate the central bank's first rise in interest rates since boosting the overnight target spread from almost zero levels to 0.25% - 0.50% last December. Asia, by comparison chose to focus on energy companies during Thursday's trading as oil prices breached a key US$50/bbl threshold; dull activity elsewhere left all principal indices across the territory to close modestly down, with China's Shanghai Composite Index being the largest casualty. Investors should watch for the UK's revised GDP estimate this morning, while later the US reports on durable goods, the Fed's Powell speaks and a G7 summit is held in Japan. Results are expected from Tate & Lyle." - Barry Gibb, Research Analyst
Latest trading numbers and store/offering integration impressive so far
02 Feb 16
Dixons Carphone released their trading update for 10 weeks ended 09 January 2016, reporting lfl growth of 5% (vs 3% in Q2 and 8% in Q1), driven by record Black Friday sales and market share gain across geographies. UK lfl revenue grew by 5% (vs 4% in Q2 and 10% in Q1) on the back of strong performance of mobile segment and Southern Europe was up 9% (vs 7% in Q2 and 0% in Q1) supported by good growth in Greece. Despite significant headwinds in Norway, the Nordics segment witnessed 3% growth (vs. 0% in Q2 and 4% in Q1). The company increased its annual PBT guidance to £440m-£450m (vs. our estimate of £395m), ahead of consensus expectations (c. £430m). Management also announced that the 3-in-1 format across the UK & Ireland will result in the closure of 134 stores (selling space of 12-13% of total) and the refitting of 93. The incremental capex towards refitting is expected to be £50m, while another c.£70m will be provisioned for property losses and asset write-offs; at net level is the closure is likely to contribute £20m to profits from FY17/18 onwards. Apart from the healthy results of the Retail business, there were a few positive developments on the CWS pipeline front. Post the successful completion of trial, the company officially announced a JV with Sprint in the US, which involves opening and managing 500 stores along with delivery of consulting services. In addition, technology platform ‘Honeybee’ will be rolled out for Apple, Sprint and T-Mobile in the US. CWS also entered into a distribution agreement with Talk Talk to support the sales and distribution of mobile, TV and broadband connectivity.
05 Dec 16
These interims show LPEs by is ahead of its plan to recruit 360 LPEs by April 2017 and is making impressive progress in Australia. The statement (and we expect the results presentation) provide considerable evidence of Purplebricks’ progress in building its brand, increasing its LPE footprint, developing its technology, creating engaging marketing and selling properties. We leave our forecasts unchanged. Investor confidence in Purplebricks’ ability to deliver sustainable profitable growth should result in share price appreciation towards a valuation based on its results for the year ended April 2019.
Successfully engaging players
06 Dec 16
Stride has a clear focus on online bingo and soft gaming and is growing rapidly, with FY16 l-f-l revenue up 22%. The acquisitions of Tarco and 8Ball at the end of FY16 doubled its share of the UK bingo-led market from 5% to 10% and should deliver material synergies from FY17. Our unchanged FY17 estimates are for 11% EPS growth and strong cash generation. We expect organic growth to be augmented by further accretive acquisitions in due course. Stride’s FY17 P/E is 10.3x and the calendarised EV/EBITDA is only 7.1x, implying considerable share price upside potential.
Small Cap Breakfast
07 Dec 16
Creo Medical group—Schedule 1 update.. £20m raise. Expected market cap £61.2m, admission expected 9 December. ECSC—Schedule 1 from provider of cyber security services. Raising £5m. Vendor sale £0.8m. Target date 14 Dec. Expected market cap £15m. RM Secured Direct Lending - The secured direct lending fund intends to float on the Main Market on 15 December raising up to £100m
Joy of Techs
21 Nov 16
ICT evolution is driven by technological development as advances are made which both meet and shape customer requirements. Our 2011 note No such thing as a telco described the modern reality in that former ‘telcos’ now deliver varying elements of a range of managed services. We built on this theme last year, exploring in further detail their evolutionary paths, operating fundamentals, and cashflow yield similarities. In the consumer environment, demand for bundles of technology is complemented by demand for content. Across the pond, the mooted combination of AT&T and Time Warner typifies the bundled need of ‘pipe’ and content, since unbundled alternatives such as FaceTime and WhatsApp can be easier and clearer to chat over, and Amazon and Netflix are easier to watch anywhere. In the UK, BT’s defensive actions cover delivery, content and capabilities, acquiring EE yet also buying football rights. While TV was long ago added to triple play to become quad play, voice is now merely an app, and fixed and mobile seen as just dumb pipes: it's the content that will influence consumer choices. Growth of TV and film as well as music and gaming over IP leads to UK small cap opportunities. In context of the drive to maximise value from pipes and access by offering content and data, we look at some amongst the potential tech small cap beneficiaries: Amino*, Keyword Studios, ZOO Digital*, 7digital*, KCOM* and CityFibre*.
Upping its game
21 Sep 16
32Red’s brand punches above its weight in the UK online casino market. Management has adopted a more aggressive stance since mid-2015, both in terms of marketing and with the highly accretive £8.4m Roxy Palace acquisition. Interims show H116 EBITDA rising to £4.5m (H115: £1.2m) and we initiate with forecast EPS more than doubling in 2016 and growing by over 65% between 2016 and 2018. Yet the 2016e P/E is only 13.5x and our peer group comparison and DCF suggest a value of 193-247p per share, 46-86% above the current share price.