Dixons Carphone PLC (LON:DC.) said it will close permanently its travel business, which will be included in £130mln exceptional charges forecast for the year to April 2022.
The retailer said it does not expect passenger numbers to recover enough to compensate for the removal of airside tax-free shopping by the UK Government from 1 January.
The brand, which historically made an annual profit contribution of over £20mln, has a presence across several UK airports as well as in Dublin and Oslo.
Capital expenditure in the year ending April 2022 is expected to be £190mln, while profit will be £30mln lower due to revenue recognition in the MVNO, iD Mobile, due to new contractual terms and the expensing of certain IT expenditures.
Since January, trading across the wider group has remained strong after positive performance in the key Christmas period.
In the 25 weeks to 24 April, group electricals sales rose 12%, with UK & Ireland up 11%, Nordics up 15% and Greece up 7%. Online sales more than doubled to over £4.5bn for the year.
The FTSE 250 company has repaid £73mln of furlough provided by the UK government, alongside £144mln of deferred VAT, so it expects adjusted profit before tax to be in line with current consensus of £151mln.
Meanwhile, EE has paid the outstanding network receivable of £189mln which was expected to be paid over the course of two years. Year-end net cash is forecast at £150mln.
Existing Group debt has been refinanced with new Revolving Credit Facilities, which total £550mln and will expire in 2025. All other facilities have been cancelled.