Currys raises guidance after better-than-expected UK and Ireland performance
Currys has raised its full year profit guidance following better-than-expected trading in the UK and Ireland.
In a trading update, the electricals and technology retailer said its group full year adjusted pre-tax profit for the year to 29 April 2023 is anticipated to come in at £110 million to £120 million compared to a previously guided £104 million.
Across the group, sales were down by 7% in the period.
Meanwhile UK and Ireland full year adjusted EBIT is forecast to increase by more than 40% year-on-year after sales fell by 10% in the first half and by 4% in the second half. Currys said the improved profits were driven by continued gross margin improvements and a strong focus on cost efficiencies.
Looking at its international business, Currys said Greece has posted another year of “robust” performance with sales up 12% in the period. However, its Nordics business has faced a challenging trading environment which has resulted in sales being down 10%. As a result, Currys’ international full year adjusted EBIT is expected to be materially lower than last year.
The strong finish to the 12-month period means that Currys’ year-end net debt is around £100 million versus a previously expected £100 million to £150 million. The retailer said its lenders have amended a fixed charge cover covenant on its revolving credit facility which has provided increased financial resilience.
