Currys lifts FY guidance again as sales, cash flow surge

(Sharecast News) - Electrical retailer Currys raised its annual profit outlook again with "significant" free cash flow underpinning the board's plan to resume dividend payments after a 4% rise in like-for-like sales since January. Currys said it expected full year adjusted pre-tax profit to be around £162m, a rise of 37% and up from estimates of £160m. It finished the period with net cash of more than £180m after rising sales and improving profit margins more than offset cost increases in the UK and Ireland.

In January, Currys said it would declare a dividend of around 1.3p a share with full-year results in July - its first since an interim payout in 2022/23.

The increase in sales was driven by its UK and Ireland division and a rebound in the Nordics business. Currys raised its profit forecast in April to around £160m on the back of strong trading since early January after also lifting estimates in the new year.

UK & Ireland adjusted operating profit was expected to be in line with consensus estimates of £152m according to a company compiled poll, with like-for-like sales increasing 4% the new year.

In the Nordics, operating earnings were in-line with expectations of £77m on a currency neutral basis, although reported profits had been impacted by currency headwinds. Growth accelerated in the final period of the year "despite a still challenging consumer environment", the company added.

Reporting by Frank Prenesti for Sharecast.com