Dixons Carphone beat forecasts with a 23 per cent rise in first half profit, helped by a strong performance in the UK and Ireland.

The group, which trades as Currys, PC World and Carphone Warehouse in the UK and Ireland, Elkjop and El Giganten in Nordic countries and Kotsovolos in Greece, said it made an underlying pre-tax profit of £121 million (€166.5 million) in the 26 weeks to October 31.

That compares to analysts’ average forecast of £111 million, according to a company compiled consensus, and £98 million made in the same period last year.

Revenue in the UK and Ireland increased by 2 per cent to £2.8 billion, with notable growth in the sale of white goods (refrigerators and washing machines) offsetting a fall in demand for tablets and PCs.

Overall group sales at stores open over a year rose 5 per cent, driven by a 7 per cent rise in the UK & Ireland division. However, group revenue down 3 per cent to £4.3 billion due to the stronger Pound, in particular relative to the Norwegian Krone.

Dixons Carphone was formed through a merger last year of Dixons Retail and Carphone Warehouse and although investors initially reacted coolly to the plan, they have since been won over, with the shares up 37 per cent.

Dixons Carphone Ireland managing director Mark Slator said the Irish business is performing well and is contributing to the group’s success, with strong sales across our 125 Currys, PC World and Carphone Warehouse stores nationwide.

He said this is driven partly by economic recovery in Ireland but more significantly by our focus on being the destination for new technology and connectivity.

“We experienced very strong retail sales in mid-November which have intensified since Black Friday - our biggest ever trading day in Ireland,” he added.

Shares in the firm, up 12 per cent over the last year, closed Tuesday at 476.7 pence, valuing the business at £5.53 billion.

The Board has declared an interim dividend of 3.25p per share, up from 2.50p per share last year.

Additional reporting: Reuters