Electrical goods and mobile phone retailer Dixons Carphone said its yearly profit rose 21 per cent, beating forecasts.

The group, which trades as Carphone Warehouse, Currys and PC World in the UK and Ireland, Elkjop and El Giganten in Nordic countries and Kotsovolos in Greece, made an underlying pretax profit of £381 million (€546 million) in the year to May 2nd, helped by market share gains from rivals and stable gross margins.

That compared with analysts’ average forecast of £376 million and with £316 million in the 2013-14 year on a pro forma basis.

Group revenue rose 6 per cent to £9.9 billion.

The firm said it expected to deliver at least £80 million of synergy benefits by the 2016-17 financial year, a year ahead of plan.

Though investors initially reacted coolly to the plan to merge Dixons Retail and Carphone Warehouse they were quickly won over and the merged group’s share price has risen by nearly half since the deal was completed almost a year a go.

Dixons Carphone has benefited from cheaper prices, customer service initiatives such as free warranties and improved free delivery options, as well as growing demand for smart technology.

In the UK it has also been boosted by the demise of rival mobile phone retailer Phones4U, which collapsed into administration last September.

The firm said although Kotsovolos returned to profit during the year it was very mindful of the uncertain economic and political situation in the country and the effect this may have on a business, which contributes 2.5 per cent of group sales.

It said the team in Greece have been very active in planning for every contingency.

Dixons Carphone is paying a total dividend of 8.5 pence, up 42 per cent.

Shares in the firm closed Wednesday at 461.5 pence valuing the business at £5.3 billion.

Reuters