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Currys PLC said its profit was offset by poor Nordic performances in its financial report, with revenue down and the company pulling its final dividend. Shares in the London-based electronics and electrical goods retailer, fell 13% to 46.70 pence in London on Thursday morning. Currys swung to a pretax loss in its year ended April 29 of £450 million from a profit of £126 million. The company said this loss was caused by a non-cash impairment of £511 million of UK and Ireland goodwill arising out of the Dixons Carphone merger in 2014. Currys noted that its adjusted pretax profit of £119 million was at the top end of guidance for its financial year, though it was down 38% from restated £192 million. Revenue decreased by 6.2% to £9.51 billion, down from £10.14 billion. Currys adjusted earnings before interest, tax, depreciation and amortization fell by 12% to £524 million from £594 million. This was driven by the drop in Nordic adjusted Ebitda which fell 41% to £156 million from £265 million in the year prior. ‘In the Nordics, the markets we operate across have been experiencing a painful period with softer demand coupled with cost of goods sold inflation, exacerbated by excess stock and some competitions pursuing strategies focussed on growth at expense of profit or cashflow,’ Chief Executive Alex Baldock said. Currys declared no final dividend for its financial year, down from 2.15p per share the prior year. ‘Cognisant of the uncertain economic outlook, the board has decided not to declare a final dividend for the 2023 financial year. Our capital allocation priorities remain unchanged,’ said Currys. The company said trading at the start of the year has been consistent with board expectations, but noted the remaining uncertainty of the economic outlook. Currys said it plans capital expenditure spending of £80 million in financial 2024, down 25% from the previous year due to tighter controls and lower transformational spend. The company also said it expects net exceptional cash costs of £50 million due to increased property costs and restructuring. In the long-term, the company will continue to target a minimum 3.0% adjusted earnings before interest and tax margin, and expects exceptional cash costs to fall significantly from financial 2025 onwards. Copyright 2023 Alliance News Ltd. All Rights Reserved
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