Currys Share Price Surged 11% on Its Half-Year Trading Statement

The Currys PLC (LON: CURY) share price surged 11.29% after releasing its unaudited half-year results for the six months to 28 October 2023. The group’s like-for-like (LFL) revenue decreased by 4%; on a constant-currency basis, revenue also decreased by 4%, with a reported revenue drop of 7%.

The group's adjusted loss before tax was £(16) million, consistent with the previous year. In the UK&I, LFL revenue fell by 3%, with an adjusted EBIT of £15 million, a 40% decrease year-over-year.

This was due to expected profit declines despite improved gross margins and cost savings of £53 million, which were outweighed by inflation and the absence of £11 million in mobile revaluations from the previous year.

In the Nordics, LFL revenue decreased by 6%. Still, its adjusted EBIT rose to £12 million, a 300% increase year-over-year, thanks to substantial gross margin improvements and cost-cutting measures that compensated for ongoing sales declines.

In Greece, LFL revenue dropped by 4%, but adjusted EBIT increased to £4 million, marking a 300% rise year-over-year, continuing a trend of solid profit performance.

The group's statutory loss before tax was £(46) million, significantly improving from £(548) million in the prior year. Net debt at the end of the period was £(129) million, with a first-half cash outflow of £(32) million, better than the £(149) million outflow in the previous year.

Trading following the period has aligned with the Board's expectations. There is no alteration to the prior guidance. The sale of the Greek operations is anticipated to receive final approvals and conclude in the first quarter of 2024.

The group is expected to end the year in a net cash position, assuming the Greek transaction is completed before year-end.

Alex Baldock, Currys Plc CEO, said: “Our priorities this year are simple: to get the Nordics back on track, to keep up the UK&I's encouraging momentum, while strengthening our balance sheet and liquidity. We're making good progress on all these in a still challenging economic environment. In the Nordics, our trusted brands have delivered substantial gross margin gains, which, combined with strong cost discipline, have resulted in significantly improved profits. There's still a long way back to healthy Nordics performance, but we're on the way.”

Currys share price. 

Currys share price surged 11.29% to trade at 50.38p from Wednesday’s closing price of 45.27p.