15th Jan 2025 08:55
(Alliance News) - Currys PLC on Wednesday announced plans to restore dividend payments as it guided annual profit to be above market expectations.
The London-based electricals retailer expects adjusted pretax profit between GBP145 million and GBP155 million for financial 2025, ahead of a company-compiled market consensus of GBP140 million. In the financial year that ended April 27, 2024, Currys reported adjusted pretax profit of GBP118 million.
Currys said it continues to expect growth in free cash flow for the year, with growing visibility of further increasing free cash flow generation in outer years.
Reflecting the strong cash flow performance and continued business momentum, Currys intends to resume dividend payments, with a final dividend of around 1.3 pence per share expected to be announced alongside full year results in July.
Currys expects payments to represent around 5 times adjusted earnings per share cover, with the final dividend representing two thirds of a full year payout.
In response, shares in Currys jumped 11% to 91.10 pence each in London on Wednesday morning.
UK revenue rose 2% in the 10 weeks to January 4, with strong sales in mobile, gaming and premium computing, offset by weaker trends in TV.
Nordics revenue grew 1% reflecting sales growth and market share gains in a "soft market", with gross margin improving to historically high levels, Currys said. Growth in domestic appliances and computing, was offset by weaker trends in TVs and mobile.
Chief Executive Alex Baldock said: "We're pleased by our strong peak trading. We grew in both markets, continuing the trend of Currys' strengthening performance, and we believe this year's profits will be ahead of market expectations. With our ever-stronger cash generation and much improved balance sheet, the board now expects to pay a dividend at the year-end."
"We start 2025 confident that our strategy is working, and determined to keep building this ever-stronger Currys to the benefit of colleagues, customers, shareholders and society."
By Jeremy Cutler, Alliance News reporter
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