Carphone mulls splitting business in two

CARPHONE Warehouse has confirmed it is looking at splitting its shops and telecoms service.

Chief executive Charles Dunstone said he had faced questions from investors over the merit of keeping the company together. "It is a valid question and one that we think we should answer," he said, adding that the company has not committed to a split and no action is expected within the next year.

Meanwhile, Dunstone said the retail business was likely to face continued pressure on the high street.

Plans to begin a roll-out of Best Buy Europe, the firm's new joint-venture with Best Buy, the US company that bought half of Carphone's retail business this year, were continuing "full steam ahead".

Carphone shares slumped 9.4 per cent to 118p as it announced an 11 per cent fall in after-tax profits to £39 million for the six months to 27 September.