Currys upgrades profit outlook after better-than-expected trading

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

Cost savings have boosted profits, with the firm previously saying it was on track to save £300m 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 £100m, from previous expectations of up to £150m.

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

Furthermore, Currys revealed its full year sales were 7 per cent 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.