Carphone Warehouse getting 'payback' for good service

Carphone Warehouse chairman Charles Dunstone says it's reaping the benefits of years of investing in customer service.

The company has posted a 20% rise in interim profits at a time when the mobile phone sector has been hit by a dramatic slowdown.

The group has focused on attracting high-value subscription customers, as they're more profitable than those on pay-as-you-go deals.

However, things have not been so positive since the US terror attacks. Retail gross profit rose by just 2% in the five weeks to November 5.

The interim profit figures were towards the lower end of market expectations.

But Mr Dunstone said: "Given the economic and market conditions, we are very proud of them. The last six months have been about a changing marketplace."

He says the group's good results have been achieved at a time when UK mobile phone sales are between 40% and 50% down on last year.

Apart from opening new stores, Mr Dunstone also plans to increase the size of existing stores.

He says the company is "getting the payback" from everything it has invested in, which includes taking care of the customer and offering an excellent service.

Mr Dunstone says the company is in "great shape" to gain market share over Christmas.