Carphone Warehouse on strong form
Chairman Hans Snook to step down
Carphone Warehouse expects full year results at the top end of City forecasts after a strong fourth quarter.
The phone retailer and telecoms provider has also announced that former Tesco director John Gildersleeve is to take over as chairman, with current chair Hans Snook to retire.
In the fourth quarter, Carphone Warehouse saw 16.6 per cent growth in connections to 1.68m, with 9.9 per cent growth in subscription connections. The company now has 920,000 TalkTalk customers in the UK, and aims for 2m customers by March 2008.
The quarter saw 37 stores opened, bringing the total to 1,461. In the coming year 250 more new stores are planned, including 50 franchise stores.
Charles Dunstone, chief executive, said: “We are delighted to report another robust performance across the group. We have achieved strong connections growth despite exceptional trading in the comparative period. We anticipate that full year profits will be at the upper end of market forecasts, and are excited about the investment and growth opportunities in the coming year.”
Gildersleeve, currently a non-executive director, will take up the chairman’s role when Snook steps down from the Carphone Warehouse board at the annual meeting in July. David Goldie, currently chief operating officer, telecoms, will become an executive director at the same time.
Snook said: ‘When I became Chairman of Carphone Warehouse, I undertook to do the job for two years. It will be three years come this May, and it is time for me to do new things. I’ve enjoyed every minute of Carphone. It’s a great business. It’s come a long way and it has enormous potential.
“I will leave knowing I played a part and that the business has all the strength of board, management and market position to continue its momentum, and I know that John will make a great successor. Part of our strength of management is also shown by David’s appointment to the board, reflecting the first class job he is doing in leading our fixed line services, both in the business market with Opal and in the residential market with TalkTalk.”
[img r]Carphonewarehousedunstone2copy.jpg[/img]Dunstone said: “It’s been a terrific relationship. As well as bringing his unique insight and experience, Hans has helped ensure Carphone Warehouse has fully transitioned to operating as a quoted plc and has cemented its distinctive and innovative position in the rapidly changing European telecoms market.
“Like Hans, I also believe John will make an excellent successor, and I am delighted that he has agreed to become chairman. We also welcome David to the board, recognising the increasing importance of our fixed line businesses and his considerable expertise in this field.”
Gildersleeve said: “Carphone Warehouse is one of those rare companies that combines real entrepreneurial flair with serious strength of management, energy, quality of execution and financial discipline.
“I’ve seen first hand the job Hans has done in developing the board and giving his insight and wisdom. He’s leaving a very strong platform, and I look forward to playing my part in helping the whole team continue to build on it.”
