Currys ups profit guidance after takeover bid fails

Currys has revealed that it expects its full-year pre-tax profit to be “at least £115m” after predicting it would land between £105m and £115m earlier in the period.

The company stated that this was due to positive like-for-likes and robust gross margins.

Furthermore, the company’s disposal of its Greek business is set to close in April allowing Curry to finish the year in a net cash position.

Alex Baldock, group chief executive, said: “We’ve been working to get the Nordics back on track, while keeping up the UK&I’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. Thank you to all my colleagues who are making this possible – you’re building an ever-stronger Currys that helps everyone enjoy amazing technology.”

The news comes after JD.com and Elliot Advisors both walked away from discussions to acquire the company.

The US investment group initially offered to buy Currys for 62p per share before raising the offer to 67p last month. However, the deal collapsed after Currys said the proposals “significantly” undervalued the group.