Mobile phone retailer Carphone Warehouse unveiled plans today to ramp up new store launches as it said it expected full-year profits at the top end of forecasts.

London-based Carphone said it would open 200 shops in the next 18 months, compared to the 150 it had planned.

The group expanded its store network by 12 branches to 1,214 in the fourth quarter, with more than 700 stores expected in the UK by March 2006 against more than 500 currently.

The group expects to take on about 1,500 people in the next 12 months to work in the new shops and in its telecoms business.

Carphone, which manages customer accounts for mobile networks and sells mobile phone accessories and phone connections, said it expected the store roll-out and market growth to drive 15% growth in mobile connections in 2005.

It said the mobile market had remained buoyant and the group had strengthened its position in it.

The group saw 29.6% growth in overall mobile connections to 1.44 million in the fourth quarter, with 32.4% growth in the lucrative subscription connection business thanks to competition and more new handsets.

It said it also witnessed renewed activity in the pre-pay market, where connections increased by 45.5% to 690,000.

The group's fixed line Talktalk phone operation, which is provided by Opal - the telecoms group bought by Carphone Warehouse for £65 million a year ago - also saw continued growth.

It added 146,000 customers during the period, taking the customer base to 385,000.

Chief financial officer Roger Taylor said that was near the top end of the expected range of 350,000-390,000.

The group is increasing marketing investment to support the launch of a free calls offer to users of its fixed-line service, which takes effect today.

"It has been quite satisfying seeing the growth in that business," Mr Taylor said.

During the quarter, the group acquired fixed line businesses in Spain and Switzerland. It said it expected to use the Swiss acquisition, N Tel Com, as a base for organic growth into other markets, including Germany.

The group is expecting full-year pre-tax profits, excluding a £4 million expected charge for restructuring in Germany, to come in between £71 million and £76 million.

Thursday April 01, 2004