Almost a continuation from yesterdays news that Carphone Warehouse are thinking of removing TalkTalk from their business plan, CEO Charles Dunstone has release what he calls a “formal review of the groups corporate structure”, which to the outsider sounds like he could begin dismantling the company sooner than expected.

Dunstone made it clear that a split could be on the cards as interim results showed that they are having massive money problems across all arms of their business.

The last six months have been tough for the company with revenue down by 2 percent to just £697 million. This is mainly due to the competitive nature of the broadband market and the recent acquisition of AOL.

The company reported a pre-tax loss of £11 million, compared to last years loss of £38 million. The company said “headline” post tax profit was £39m compared to £44m last year.

The business said the revue from its Best Buy Europe Venture, which the company has a 50 percent share went up by £1,617 million, but earnings before interest and tax were down by 20 percent to just £37 million.

When Carphone Warehouse was just a mobile phone shop, things were easier, but the move to selling laptops and the formation of the ‘Geek Squad’ has got them in a bit of a mess. They shut down 100 store last year, at a cost of £26 million. Things faired better on the Best Buy side of things, with £50 million spend on opening new stores in Europe.

When Carphone Warehouse took over AOL and its customer base, 93,000 of tem bailed out, with 48,000 of then getting moved on to TalkTalk asap. TalkTalk is getting a new service added: myTalkTalk, which allows customers to spend £4 for a months worth of extra bandwidth, voice calls or security software, with no contract.

The company’s are still likely to be separated, as a “formal review” is on the way next spring.

“We recognise, however, that the structure of the Group may now no longer be appropriate for the optimal development of the two businesses,” said Dunstone.

“The Board has therefore initiated a formal review of the Group’s corporate structure and capital requirements, which may lead to a separation of the two businesses. In this instance I would remain closely involved with both companies.”

With the global economy having a hissy fit at the moment, perhaps Carphone Warehouse should sit tight and weather the storm. The company believes its balance sheets can handle the economic downturn, and they say they will be able to get back on the horse when the crisis is over.

Dunstone said: “The next 12 months are likely to represent the most challenging economic climate we have ever operated in. With little debt and £900m of facilities, the Group is very well positioned to withstand the financial turmoil.”