Currys maintains guidance despite first half loss
Currys has reported a decline in first half sales and a loss in line with last year following “tough” trading conditions.
In the six months to 28 October, the group’s like-for-like revenue fell by 4% to £4.16 billion after sales in the UK and Ireland dropped by 3%. Sales in its Nordic region were also down with a decline of 6%, although profitability improved despite a difficult trading environment.
The group said the UK and Ireland performance was driven by a market reduction and a (100)bps share loss as it prioritised profits over sales.
Currys posted an adjusted pre-tax loss of £16 million in the period compared to a loss of £17 million a year earlier.
Alex Baldock, Currys group chief executive, “Our priorities this year are simple: to get the Nordics back on track, to keep up the UK&I’s encouraging momentum, while strengthening our balance sheet and liquidity. We’re making good progress on all these in a still challenging economic environment.”
Currys said trading during the six weeks since the period end has remained in line with expectations which means it is maintaining its current full year guidance.
The group has recently announced plans to sell its Kotsovolos business in Greece to Public Power Corporation for £175 million. The move followed a strategic review of the retailer earlier this year.
Baldock added: “We’ve already substantially strengthened our balance sheet and liquidity this year. The proceeds of the planned sale of Kotsovolos, at a price that represents a very good outcome for shareholders, will strengthen us further. We’re confident we’re building a business that’s resilient today and fit to prosper long term.”