Currys profits to exceed expectations despite revenue dip

Currys expects full-year profits to be above expectations despite UK&I revenues dipping 3% during the 10 weeks ended 6 January. 

During the quarter, the electronics retailer also recorded a 6% drop in like-for-like sales in the Nordic region and a 4% drop in Greece. 

Despite this, the company said it maintained “robust profits” delivered through “stable gross margins” and cost savings. 

In UK&I Currys reported strong sales in mobile devices, which grew 29% but were offset by weaker trends in TV and computing. In the Nordics region, the company reported good sales in domestic appliances. 

The company now expects adjusted profit before tax to be £105-115m.

Alex Baldock, group chief executive, said:  “We’ve had a successful Peak trading period, for customers who are more satisfied than ever, and for profits and cash flow. Our markets may be no easier, but we now expect full-year profits to be above consensus expectations. 

“In the UK&I, we’ve kept up our encouraging momentum, in particular selling more of the Services that boost margins and build customers for life. We’re also getting the Nordics back on track, after a disciplined Peak on margins and costs. In all markets, we’ve taken big strides in customer satisfaction, through the hard work and expertise of our more engaged colleagues.”

In November, Currys sold its Greek business and now expects to receive cash proceeds of approximately £156m which will put the company in a net cash position by the end of the financial year. 

Baldock added: “We’re in a healthy financial position, and our strategy is delivering a consistently improving customer proposition. As consumer confidence improves, we’ll be well placed to build on  these strong foundations, to benefit shareholders as well as colleagues and customers.”