Dixons Carphone admits ‘clerical error’ in trading update
22 Jan 2020
FTSE 250 electronics retailer Dixons Carphone has been left red-faced after being forced to issue a correction to its latest trading update, explaining its sales had decreased and not increased as it originally reported
22 Jan 2020
The company has put out an amendment to its trading update for the 10 weeks ended 4 January 2020, shortly after the figures were first issued.
This states: ‘Due to a clerical error, the previous version of the announcement showed group reported sales growth as "2%", the correct growth is now shown as "-2%".
‘All other details including group local currency and like-for-like sales growth remain unchanged.’
The update shows revenues from the company’s mobile phone business fell 9%, as market conditions grew tougher, but it is making headway in other areas.
Alex Baldock, group chief executive, said: ‘Our customers loaded up on amazing technology this Christmas. The supersizing TV trend kept on giving as we sold 75% more 65"+ TVs, Dyson Health & Beauty sales were up over +20%, Shark Vacuum sales almost doubled and we sold 8,000 smart speakers each day.’
Trading updates are not checked by a company’s external auditor, in this instance Deloitte, but mistakes in official announcements are rare.
Earlier this month Dixons Carphone was given a £500,000 fine by the Information Commissioner’s Office (ICO) for data security breaches, the maximum possible under the legislation at the time of the offence, after a point of sale computer system was compromised as a result of a cyber attack, affecting at least 14m people.