14th Dec 2023 09:35
(Alliance News) - Currys PLC on Thursday hailed a "solid" performance in the half year ended October 28 as loss narrowed, but saw its revenue drop on lower sales.
Shares in Currys rose 11% to 50.14 pence each in London on Thursday morning.
The London-based consumer electronics retailer said revenue fell 6.9% to GBP4.16 billion from GBP4.47 billion the year before, and was down by 4% on a like-for-like basis. This was driven by a decline in sales across all product categories except small domestic appliances, Currys explained.
Pretax loss narrowed to GBP46 million from GBP568 million the year before, as there was no longer a goodwill impairment, compared to the GBP511 million impairment reported in the corresponding six month-period a year ago.
Since the period end, Currys said trading has been "consistent" with company expectations and left previous guidance unchanged. It said it continues to target an adjusted earnings before interest and tax margin of at least 3.0%. In the financial year ended April 29, adjusted Ebit margin was 3.6%.
In addition, Currys said it expects to end the financial year in a net cash position if its Kotsovolos disposal completes before the end of the year. Last month, Currys entered an agreement for the sale of Dixons South East Europe AEVE, the holding company of Currys' entire Greece and Cyprus retail business, trading as Kotsovolos, to Public Power Corporation SA.
It said the disposal is expected to take place in the first quarter of 2024, subject to merger control clearance from the European Commission or the Hellenic Competition Commission, and certain other conditions.
Chief Executive Officer Alex Baldock said: "Our priorities this year are simple: to get the Nordics back on track, to keep up the [UK & Ireland's] encouraging momentum, while strengthening our balance sheet and liquidity. We're making good progress on all these in a still challenging economic environment."
By Sabrina Penty, Alliance News reporter
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