The Carphone Warehouse has reported a 75% rise in pretax profit for the year to March, but has given a poor outlook for the year ahead.

"We remain cautious in our outlook for the year ahead, given the poor economic climate and inflationary pressures on European consumers", said chief executive Charles Dunstone.

"In our distribution business, we believe that new areas of growth in the market, and our own focus on evolving our retail proposition, will help us offset some of the risks to consumption presented by the tougher economic environment."

Carphone Warehouse, which is Europe's largest independent mobile phone retailer by sales, said pretax profit rose to £216 million compared with £123 million the previous year while net profit for the year was £117.6 million, up 75% from £67 million last year.

Carphone Warehouse shares have dropped as much as 19% on the back of the news.