Currys has raised its earnings guidance for the last financial year, expecting a smaller dip in profit compared to the previous year as it enjoyed a return to sales growth in 2024.
The electrical retailer said in a trading update on Tuesday that it expected its adjusted pretax profit for the year ending on 27 April to come in at between £115m and £120m, up from a previously guided range of £105m to £115m.
This figure would still be down from the £119m profit Currys reported in the previous year. Its earnings have been weighed down by lacklustre sales for much of its last financial year, especially its Nordics division – which saw a six per cent drop in like-for-like sales during the first half.
Last month, Currys completed the sale of its Greek arm to domestic power generation and supply giant Public Power Corporation for £175m as part of efforts to strengthen its balance sheet.
The firm said on Tuesday that its like-for-like sales dropped two per cent over the year but returned to growth, at two per cent, during the 16-week period after its 10-week peak trading season ended on 6 January.
Currys added that, despite a “challenging market”, its Nordics arm’s earnings before tax (EBIT) were expected to more than double compared to the previous year, ahead of consensus estimates.
The firm was in sharp focus earlier this year when it looked to be at the centre of a bidding battle between Waterstones owner Elliott Advisors and Chinese online shopping giant JD.com, but both walked away from a potential takeover in March.
Currys chief executive Alex Baldock said on Tuesday: “Our performance is strengthening, with good momentum in the UK and Ireland, and with the Nordics getting back on track.
“Sales are now growing again, margins are benefiting from higher customer adoption of solutions and services, and cost discipline is good. All this means improved profits and, with our strong cash position, we’re well set up for the year ahead.”