The results for the year to end April from electrical goods retailer Currys (LON:CURY) may well be pleasing for new shareholder Mike Ashley’s Frasers Group.
Currys is a leading omnichannel retailer of technology products and services, operating online and through 823 stores in 8 countries.
After earlier guidance given by the group, there were no surprises in the showing of the group’s figures.
Sales were £9.51bn, while pre-tax profits were £119m, with earnings of 8.3p per share and paying a 1.0p dividend.
Despite a challenging year for its Nordics business, the group has been able to enact cost reductions while improving its margins.
The very mixed year has shown strength in the group’s UK operations while suffering at its Nordic division.
Chief Executive Alex Baldock noted that the market had been tough everywhere for the group, hit by depressed demand coupled with high inflation and ‘unforgiving’ competition.
He stated that:
“Looking ahead, we're wary of optimism about consumer spending power.
Accordingly, we're being prudent in our planning, and in further strengthening our balance sheet.
Our focus is on continuing a very encouraging trajectory in the UK&I while we get the Nordics back on track, and being attentive to mitigating any downside risk.
We may be cautious in our promises for the short-term, but our confidence is undimmed as we build a stronger and more resilient business that is fit to prosper in the longer term."
Analyst Adam Tomlinson at Liberum Capital rates the group’s shares as a Buy, looking for 135p in due course.
His current year estimates are for £9.42bn sales, £111m profits, 7.3p earnings and no dividend.
He does see recovery into 2025 to £9.72bn sales, £140m profits and 9.2p earnings, with nil dividend.
The shares this morning are off 9% at 48.5p, before Mike wades in again.
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