British electricals retailer Currys (CURY.L) stuck to its annual financial guidance as it reported a first-half loss in line with last year and said its balance sheet and liquidity had strengthened, sending its shares higher.
The stock was up 10.5% in Thursday morning trade, paring 2023 losses to 6.5%, after the group also said trading since the end of October had been consistent with its expectations.
The seller of cookers, fridges, washing machines, TVs, computers and mobile phones had already warned that the outlook for its 2023/24 year would be tough as consumers across Europe grapple with persistent inflation and high borrowing costs.
The first half is seasonally much weaker for Currys, as it ends in October before the run in to Black Friday and Christmas.
The group reported an adjusted pretax loss of 16 million pounds ($20.2 million) for the six months to Oct. 28, versus a loss of 17 million pounds in the same period last year, on revenue down 7% to 4.2 billion pounds.
Like-for-like sales fell 4%, with the UK & Ireland business down 3% and the Nordics down 6%.
"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," CEO Alex Baldock said.
"We're making good progress on all these in a still challenging economic environment."
Prior to the update, analysts were on average forecasting a full-year adjusted pretax profit of 103 million pounds, down from the 119 million pounds made in 2022/23.
Currys said it was keeping its full-year guidance, which covers areas such as capital spending, cash flows and debt, but does not include a specific profit estimate.
It ended the half year with net debt of 129 million pounds, with a first half cash outflow of 32 million pounds, down from 149 million pounds in the prior year.
Last month, Currys sold its Greek business and will use the proceeds of about 156 million pounds to cut debt and reduce its pension fund's deficit.
Mike Ashley's Frasers Group (FRAS.L) has amassed a 12.7% stake in Currys, mostly through financial instruments. Frasers has said the holding is "supportive" and it wants to collaborate with Currys.
($1 = 0.7915 pounds)
