Shares in Dixons Carphone, Britain’s biggest electrical and mobile phone retailer, slumped almost 30% as it reported a big fall in profits and warned of “substantial” losses in its mobile phone business.

The group, which owns Currys, PC World and Carphone Warehouse, said it has been hit by a growing trend among consumers to delay upgrading their mobile phones.

Profits for the year to 27 April fell by a fifth, to £298m, down from £382m the previous year. New chief executive, Alex Baldock, who launched a turnaround strategy in December, warned profits will fall further this year, to around £210m. Analysts had been expecting a figure of about £296m.

Baldock said the UK mobile market was changing rapidly and the group had to move faster to respond, but that would mean“taking more pain in the coming year, when Mobile will make a significant loss.”

This is the second profits warning from the group since Baldock joined in April last year. Dixons Carphone shares tumbled almost 30% in early trading, to 91p.

More details to follow …



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