Currys raises profit forecast as period for considering takeover bids ends
Currys has said trading since its peak period has been stronger than expected as it announced that it had officially ended the period for considering takeover bids without securing any offers.
The electricals retailer said it had noted that Elliott Advisors and JD.com do not intend to make an offer for its business.
Giving an update on current trading, it stated that like-for-like sales in its UK and Ireland, and Nordic regions have been “positive” and gross margins “robust”
The retailer has also seen continued strong growth in its services offering, which supports stronger margins.
As a result, Currys now expects adjusted pre-tax profit to be at least £115 million compared to a previous guidance of £105 million to £115 million,
The retailer also confirmed that the disposal of its Kotsovolos business in Greece is on track to be completed in the first half of April.
Alex Baldock, Currys group chief executive, said: “We’ve been working to get the Nordics back on track, while keeping up the UK and Ireland’s encouraging momentum. Both are progressing well, despite still-challenging markets, and we now feel confident to raise this year’s profit expectations to at least the top of our previous guidance.
“Stronger trading, selling more of the solutions and services that boost margins and build customers for life, and strong cost discipline have all been important.
“We expect to finish the year in a net cash position, with our already healthy balance sheet and liquidity further strengthened by the sale of Kotsovolos.”
