Currys maintains FY guidance despite half-year loss
The profit decline was as anticipated as the company improved its gross margin and cost savings of £53m were more than offset by inflationary pressures and non-repeat of £11m of mobile revaluation
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Currys has maintained its full-year guidance despite reporting a pre-tax loss of £16m in its half-year results, which was in line with the £17m loss in the same period last year.
In the half year ended 28 October 2023, group like-for-like revenues dropped by 4%, while currency neutral revenue dropped 4% and reported revenue dropped 7%.
UK and Ireland like-for-like revenues fell by 3% and the company’s adjusted EBIT was £15m, down 40% year-on-year.
The company said profit decline was as anticipated as it improved its gross margin, whilst cost savings of £53m were “more than offset” by inflationary pressures and a non-repeat of £11m of mobile revaluation.
Alex Baldock, chief executive, said: “Our priorities this year are simple: to get the Nordics back on track, to keep up the UK&I’s encouraging momentum, while strengthening our balance sheet and liquidity. We’re making good progress on all these in a still challenging economic environment.
“In the UK&I, profits are in line with expectations, as we focus on more profitable sales and growing the services that drive margins and customer lifetime value. Credit, Care & Repair and iD Mobile are all performing strongly, while colleague engagement and customer satisfaction continue to rise.”
He added: “We’ve already substantially strengthened our balance sheet and liquidity this year. The proceeds of the planned sale of Kotsovolos, at a price that represents a very good outcome for shareholders, will strengthen us further. We’re confident we’re building a business that’s resilient today and fit to prosper long term.”
