Currys upgrades profit outlook after better-than-expected trading

It follows the electronics retailer cutting its profit outlook on two occasions after suffering sales troubles in Scandinavia.

Electronics retailer Currys has upgraded its profit expectations after revealing trading in the UK and Ireland was better than expected in recent months (Currys/PA) (PA Media)

Electronics retailer Currys has upgraded its profit expectations after revealing trading in the UK and Ireland was better than expected in recent months.

It follows the chain cutting its profit outlook on two occasions after suffering sales troubles in Scandinavia.

The retailer told investors it now anticipated a pre-tax profit of between £110 million and £120 million for the year to the end of April, having cut the guidance to around £104 million in March.

Cost savings have boosted profits, with the firm previously saying it was on track to save £300 million by 2023 to 2024 by making its supply chains and IT systems more efficient, and automating its back office.

It is also set to slim down debts on its balance sheet to around £100 million, from previous expectations of up to £150 million.

Nevertheless, its latest full-year profit would still be a significant decline from the 2021 to 2022 financial year, where it delivered £186 million in pre-tax profits.

Furthermore, Currys revealed its full year sales were 7% lower this year compared to last, driven by declines in the UK and Ireland and the Nordics and partially offset by strong sales in Greece.

The retailer was hit by disruption in its stores across the Nordic countries last year, leading to losses.

Low demand left its competitors with excess stock, leading rival stores to slash prices while Currys kept its prices the same, meaning it made virtually no money across the region.

Currys said on Monday the Nordics trading environment “remains challenging”, but it was making progress on margins and costs after hiring a new executive for the region.

It is aiming to slash £25 million of annual costs across the region, but led by changes that will have a one-off cost of between £15 million and £20 million.

Currys said the “strong finish to the year” had helped to slim down its net debt.