- It now expects pre-tax profit for the year to April to be between £115m and £120m.
- This contrasts with a previous forecast of between £105m and £115m.
Currys shares soared on Tuesday after the electronics retailer raised its full-year profit guidance on the back of a return to sales growth in the first four months of 2024.
The group’s like-for-like sales rose 2 percent in the 16-week period thanks to 2 percent growth in both the UK and the Nordics, where the group expects pre-disaster profits to “double” compared to the same period last year. .
The FTSE 250 group told investors it now expects pre-tax profit in the year to the end of April to be £115m to £120m, up from a previous forecast of £105m to £115m.
The electrical goods retailer told investors on Tuesday that it now expects pre-tax profits in the year to the end of April to be between £115m and £120m.
curry stocks They rose 9.26 per cent to 71.40 pence in Tuesday morning trading.
Adjusted earnings before interest and tax (EBIT) for the UK and Ireland are expected to be in line with consensus.
Currys also said its cost-saving efforts “more than offset inflation” while margins “continue to rebuild.”
The results are a welcome boost for the group after the company experienced a 3 per cent drop in sales during the crucial Christmas period.
Alex Baldock, chief executive of Currys, said: “Sales are growing again, margins are benefiting from greater customer adoption of solutions and services, and cost discipline is good.
“This all means better earnings and, with our strong cash position, we are well prepared for next year.”
In February, Currys rejected plans to acquire Private equity giant Elliot Advisors.
The owner of the Waterstones bookstore chain has abandoned its pursuit of the retailer after Currys bosses rejected two takeover bids worth around £682m and £750m.
In March, less than a month after it said it was interested in Currys, Chinese online shopping giant JD.com declared it would not make any formal proposal.
Currys, whose history dates back 140 years to a bicycle repair company founded by Henry Curry, has 28,000 employees and more than 800 stores in eight countries selling electrical goods and mobile phones.
Guy Lawson-Johns, equity analyst at Hargreaves Lansdown, said: “Takeover speculation dominated the headlines in March, but with both sides pulling out of talks, business performance is firmly in the spotlight.
‘Their results have been disappointing in recent times. Consumers have simply struggled to justify discretionary spending on big-ticket items like televisions, computers and gadgets.
‘But slowing inflation, strong wage growth and the prospect of interest rate cuts in the UK give hope that these headwinds will ease.
‘The key to convincing markets that the recovery is now in full swing will be continued progress in the Nordic countries.
“While the balance between sales and margins continues to improve, it is essential that the encouraging momentum is maintained if we are to see the share price avoid returning to pre-offer levels.”
