Currys says full-year profit to exceed guidance

(Sharecast News) - Electricals retailer Currys said on Tuesday that full-year profit was set to be ahead of guidance as it hailed strong performances in the UK & Ireland and the Nordics.

The company said in a trading update that group like-for-like sales growth was strong at 4% for both the 16 weeks to 2 May and the full year.

LFL sales in the UK & Ireland were up 3% in the year to 2 May, while sales in the Nordics were 6% higher.

Currys now expects full-year adjusted pre-tax profit of around £191m, up 18% on the previous year and just above guidance for between £180m and 190m.

The group hailed continued robust trading in the UK & Ireland, with adjusted earnings before interest and tax expected to growth "slightly", driven by market share gains and strong growth in services, B2B and new categories.

Currys said sales growth and stable gross margin more than offset cost headwinds, and iD mobile subscribers rose 18% year-on-year to 2.6m.

In the Nordics, adjusted EBIT is expected to show strong growth on the year, it said, with recent growth driven by market share gains and a very strong performance in kitchens and new categories such as computing components.

Chief executive Alex Baldock said: "We finished a good year well, with strong performance in the UK&I and the Nordics, a region that represents 40% of group sales and that grew especially strongly.

"Profits grew 18% and free cash flow increased again, from a strategy that is delivering ever-stronger results for colleagues, customers, shareholders and society.

"Recent trading has been very solid; we've not yet seen an impact from the Middle East conflict, and our energy costs are well hedged for the coming year.

"This performance, combined with our strong balance sheet, means we are well positioned to navigate any market volatility ahead, tap into exciting growth opportunities and continue returning capital to shareholders."

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