Currys lifts guidance after strong end to year

UK electricals retailer Currys on Monday lifted its full-year earnings guidance after trading in the final two months of its fiscal year were better-than-expected.

Adjusted pre-tax profit for the year to April 29 is now expected to come in at £110 – 120m compared with previous guidance of £104m, citing improved profits driven by continued gross margin improvements and management focus on cost efficiencies.

It added that an in-year benefit from non-repeating mobile debtor revaluation had been higher than prior year and forecast.

Curry’s said full-year adjusted earnings before interest and tax at its international business were expected to be materially lower than last year driven by the Nordics, where the trading environment “remains challenging”, but under new management it had made progress on margins and costs.

It added that structural changes had started at the division to remove at least £25m of early costs, which would result in a one-off cash charge of £15 - 20m.

The net debt forecast was also cut to around £100m from £100 - 150m.

Reporting by Frank Prenesti for Sharecast.com