Both Dixons and Carphone Warehouse have reported a rise in annual profits as their proposed merger was given the go-ahead by the European Commission.

In its full-year financial update, Carphone Warehouse said that like-for-like revenue grew 5.3%, pushing earnings to £151 million (2013: £132 million), in line with its previous estimates of £145 million- £155 million. Meanwhile, Dixons reported pre-tax profits of £133 million for the year, a 53% increase on the previous year.

The merger of the two companies was announced in May and will see the formation of a new consumer electricals giant, headed by the current chairman of Carphone, Sir Charles Dunstone and Sebastian James, currently CEO of Dixons, who will retain their roles in the new entity.