4th Nov 2021 09:54
(Alliance News) - Currys PLC on Thursday said it plans to launch a GBP75 million share buyback over the next twelve months amid "robust" trading and cash generation.
Currys said the repurchase programme will commence after its current close period ends. The company noted that, over the last three years, its balance sheet position has strengthened significantly.
Currys noted it already has delivered GBP547 million of its target by financial 2024 of more than GBP1 billion in cumulative free cash flow. At the same time, it has reduced total average indebtedness to GBP1.5 billion from GBP2.5 billion in financial 2019.
The electrical and telecommunications retailer said sales in the first half of 2021 were up 15% on a like-for-like basis compared to two years ago, though fell 1% year-on-year.
In UK & Ireland, like-for-like sales were up 11% compared to two years ago, with strong growth in Electricals. When compared to last year, like-for-like sales were down 3%.
In Nordics, like-for-like sales were up 19% compared to two years ago and declined 1% year-on-year, with healthy trading throughout the period. The online share of business has increased by around 2 percentage points compared to last year, Currys said.
In Greece, like-for-like sales also were up 19% compared to two years ago, with sales at the start of the period particularly strong due to the government's digital care initiative, it said. When compared to last year, like-for-like sales were up 8%.
Going forward, Currys said it is on track to meet consensus expectations for full year, as it put in place measures to mitigate supply chain disruption and labour shortages.
"Currys' ability to look forward with confidence to the peak Christmas trading season is testament to its ability to manage supply chain challenges and labour shortages," said Russ Mould, investment director at AJ Bell.
However, the analyst noted that there are two other big challenges facing the business.
"One is that demand for computer equipment from people working from home for the first time and those who got seriously into their gaming during lockdown will gradually evaporate as we return to a 'new normal'," said Mould. "The other is that consumers are set to start feeling the pinch in a bigger way as the cost of energy, food, fuel and mortgages goes up."
FTSE 250-listed Currys shares were trading 5.2% higher in London on Thursday at 128.50 pence each.
By Evelina Grecenko; [email protected]
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