Mobile phone firm Carphone Warehouse has reaffirmed plans to demerge its TalkTalk broadband arm from the group’s retail business.
The telecoms company is set to create two separate listed companies and is proposing to install Carphone founder Charles Dunstone as executive chairman of both businesses.
But it said the timing of the demerger was unclear, as the move will depend on credit conditions.
Carphone now has 2.8 million subscribers to its TalkTalk broadband business, although it said revenue growth for the current year was expected to be “relatively” flat.
The group, which outlined a tougher climate for its retail business, said the decision to plough on with a demerger marks a natural progression for the two businesses, which effectively already operate separately.
Carphone has put 450 jobs at risk of redundancy across the company as part of an overhaul to keep costs under control. It is still consulting with staff and hopes to redeploy many in other roles.