Dixons Carphone says consumers keep spending

Sales at mobile phone retailer Dixons Carphone rose 4% for the year to April despite what it calls "a lively political backdrop".

In a trading update ahead of its annual results, the Currys and PC World owner said total sales including those at newly opened stores jumped 9%.

It enjoyed strong growth in southern Europe, particularly at its Kotsovolos chain in Greece.

Dixons now expected annual pre-tax profits to be between £485m to £490m.

Chief executive Seb James said Brexit had not changed consumer behaviour.

"We're very vigilant because there's lots of chatter about how the UK consumer is gloomy or isn't gloomy ... so far it seems that customers continue to shop in our stores," he said on a conference call.

In the last three months of its financial year, UK sales were hit by the five-week delay for Samsung's new S8 smartphone. Revenues for that period fell 1%.

Mr James said: "We anticipate no let-up in [consumers'] very rational view that price and service are critical factors in deciding where to shop."

Shares in Dixons Carphone rose 3.6% in morning trading in London but have fallen by a quarter over the past 12 months.

Analysts at Liberum described the trading update as "solid" and that Dixons Carphone remained their top pick in the UK retail sector with a "buy" rating.