Currys today acknowledged statements in recent days from Elliott Advisors and JD.com that they do not intend to make offers for the UK’s leading electricals retailer.
Early last week, US investor Elliott said it did not intend to make another offer for Currys after “multiple” attempts to engage with the retailer’s board were rebuffed. Then, on Friday, China-based online retailer JD.com stated that it would not make an offer, having evaluated Currys as a potential target for growing its business in the UK and Europe.
In a brief trading update issued today, Currys stated that like-for-like sales in its UK & Ireland and Nordic regions have been “positive” and gross margins “robust”
The retailer noted that it has also seen continued strong growth in its services offering, which supports stronger margins.
As a result, Currys now expects adjusted annual pre-tax profit to be at least £115m compared with previous guidance of £105m to £115m.
The retailer also confirmed that the disposal of its Kotsovolos business in Greece was on track to be completed in the first half of April, resulting in the group finishing its financial year in a net cash position.
Chief Executive Alex Baldock said: “We’ve been working to get the Nordics back on track while keeping up the UK and Ireland’s encouraging momentum. Both are progressing well, despite still-challenging markets, and we now feel confident to raise this year’s profit expectations to at least the top of our previous guidance.
“Stronger trading, selling more of the solutions and services that boost margins and build customers for life, and strong cost discipline have all been important.
“We expect to finish the year in a net cash position, with our already healthy balance sheet and liquidity further strengthened by the sale of Kotsovolos.”
NAM Implications:
- “Stronger trading, selling more of the solutions and services that boost margins and build customers for life, and strong cost discipline have all been important”
- Patently not enough to satisfy potential suitors…
- (A drop in price, perhaps?)
