Cardiff Oncology shares plunge after Q2 earnings miss
Investing.com -- Currys Plc (LON:CURY) raised its annual profit guidance on Wednesday, now expecting adjusted pretax profit of approximately £162 million for the fiscal year ended May 3. The retailer previously forecast £160 million. Visible Alpha consensus stood at £159 million.
The British electronics and appliance chain reported group like-for-like sales growth of 2% for the year, in line with consensus of 2.1%. The company said growth was driven by stronger-than-expected performance in the Nordics.
By region, UK and Ireland like-for-like sales rose 4%, ahead of the 3.9% consensus. Nordics sales were flat for the year, matching expectations. In the second half, UK and Ireland like-for-like sales rose 3% and Nordics sales grew 2%, ahead of consensus estimates of 2.3% and 1.3%, respectively.
In the 17-week period following peak trading, group like-for-like sales rose 4% year-over-year, above RBC’s forecast of 3.2%.
UK sales were up 4%, matching forecasts, while Nordics sales increased 3%, outperforming the 2% projection.
The company ended the fiscal year with more than £180 million in net cash. Currys said strong free cash flow, supported by working capital efficiency and lower interest payments, underpins the board’s intention to resume dividend payments. A final dividend is expected to be announced alongside full-year results on July 3.
Interest costs are now forecast to come in below previous guidance. Cash interest is expected to be under £20 million, with total interest costs, including leasing and debt service, around £70 million. Cash payments related to debt, interest, and leases total approximately £250 million.
Capital expenditure was below £80 million, in line with guidance due to the timing of project spend. Depreciation and amortization for the year came in at £270 million.
Currys has previously guided for an adjusted EBIT margin of 3% in the longer term. The company expects exceptional cash costs to decline from fiscal 2025 onward.
Pension contributions will rise to £50 million in fiscal 2025, then increase to £78 million annually through 2027–28 before falling to £43 million in 2028–29 under the current agreement.
Currys continues to benefit from growth in iD Mobile, which now has 2 million subscribers, as well as from B2B sales and higher-margin services.
RBC analysts noted the company is improving profitability in the Nordics and increasing its product offering in the UK.