Currys raises profit outlook despite cost pressures

Currys said it expected to end the year with net debt of about £100m, versus previous guidance of up to £150m. Pic: Thomas Ash

Electricals retailer Currys boosts hopes for pick-up, as UK and Ireland sales bear expectations, the company said in update.

Shares jumped more than 6% in early trading but remain down 33% over the last year, as consumers grappling with a cost-of-living crisis have avoided some so-called big-ticket items such as televisions and computers.

Currys CEO Alex Baldock said while consumers were “still pretty hard pressed”, there had been a rise in spending in the past couple of months.

“We’re often first in and first out of a downturn and we flagged particularly strong trading for the last two or three months of the financial year in the UK,” said Mr Baldock.

The British retailer lowered its guidance in March due to the weak performance of its Nordics business, but said it now expected to report adjusted pretax profit of £110m (€126m) to £120m in the year to April 29.

That is ahead of the March guidance of about £104m, but down from the £186m made in 2021-22.

While the company reported strong sales in the UK, Currys has been hit in the Nordics, where rivals have slashed prices to sell off excess stock. Currys has responded by installing a new chief executive for the region and cutting costs, including jobs.

Currys, which also trades in Greece, said full-year profit in its international division would be "materially lower" because of the Nordics performance.

It noted new management put into the Nordics business in March had made progress and was removing £25m of annual costs.

Currys said it expected to end the year with net debt of about £100m, versus previous guidance of up to £150m.

• Reuters, Bloomberg