9/4/2008 11:11:00 AM
Carphone Warehouse poised for FTSE relegation
Carphone Warehouse looks set to fall out of the FTSE100, in what could be a symbolic blow to how the company is perceived in the City.
The retailer’s share price dropped to as low as £1.85 in June this year – its lowest level since 2005.
Carphone has had a tough time through the declining mobile market, but has now split the company into a retail business consisting of the Best Buy plans as well as the existing 800 Carphone stores, and there is a separate telecom division.
The share price has also been affected by competition in the fixed-line broadband market, which has resulted in CEO Charles Dunstone warning that it had to re-evaluate its targets.
The launch of TalkTalk and free broadband was the major catalyst that propelled Carphone into the FTSE100 in May 2006.
A spokesman for Carphone is reported to have said: ‘It would be disappointing, but it doesn’t make any difference to how the business is run.’