Carphone on track to hit targets as sales rise

Mobile phone retailer Carphone Warehouse today said it was on track to meet its targets for the full year as it reported a rise in first-half sales.

The group reported an 8.3 per cent increase in like-for-like sales for the six months to 28 September, and said it has been “encouraged” by the take-up of superfast 4G services.

However, as customers delayed buying new handsets in the run-up to 4G becoming widely available, sales growth at its stores slowed to 3.6 per cent in the second quarter, from 13.2 per cent in the first six months of the year.

Headline pre-tax profits jumped to £19 million, up from £4m a year ago, and Carphone said it remained on track to deliver full-year earnings per share of between 17p and 20p.

Chief executive Andrew Harrison said: “We are in excellent operational shape to take advantage of the key Christmas trading period and are encouraged by the growth of 4G as it starts to arrive across all the major networks.”

Shareholders will receive an interim dividend of 2p a share on 13 December, up from 1.75p a year ago.