Investors hope for positive news to boost under-pressure Currys shares

The first-half results are traditionally far less important for the company as they cut out in October, before people start shopping for Christmas.

But shareholders will be keen to learn of progress on the sale of Currys’ Greek unit. The sale of Kotsovolos will let the business focus on larger markets in the UK, Ireland and the Nordics.

It also raises £156m after costs for the business, which might prove important as analysts start eyeing its balance sheet.

The sale came after a trading statement in September which showed that Kotsovolos was the only part of the business which was growing, as total revenue was down 4 per cent year-on-year.

“Mr Baldock and the board responded by putting the Greek unit up for sale, not least because analysts had begun to fret about the balance sheet,” said Russ Mould and Danni Hewson at AJ Bell.

Earlier in the year Currys warned that its Scandinavian business was struggling and the business stopped its dividend.

“The problem this time was brutal competition on the Nordic markets, where profits collapsed, although the ongoing normalisation in consumer spending on technology and gadgets in the wake of the pandemic posed a further challenge,” Mr Mould and Ms Hewson said.

“Profits in the UK and Ireland rose and held relatively firm in Greece.”

Analysts expect revenue to fall from £9.5bn to £9.0bn in the full financial year.

Pre-tax profit will fall from £119m last year to £103m this year if their forecasts are right.

Any sign that the retailer might beat these levels could help its share price.

Shares are trading at their lowest point since early 2009 and are down by around 35 per cent in the last year alone.

Hargreaves Lansdown equity analyst Aarin Chiekrie said: “There’s no magic wand here, consumers are struggling to justify as much discretionary spending on TVs and gadgets amidst a cost-of-living crisis.

“Markets are expecting another weak performance in this week’s results. Like-for-like sales in the UK and Ireland look set to drop around 3.5 per cent in the first half, causing underlying operating profits to roughly halve to £13m.

“Analysts will also be keeping an eye out for any early signs of improvement in the struggling Nordics region, which will be key to a recovery in sentiment and profitability.”

Last week, the boss of luxury retailer Watches of Switzerland said he was braced for UK consumer confidence to remain under pressure throughout 2024 as higher interest rates take their toll.

Chief executive Brian Duffy said while there were some “encouraging” signs, consumers are continuing to rein in their spending on luxury and jewellery after being battered by a barrage of interest rate hikes, high inflation and falling house prices