Currys PLC (LSE:CURY) has raised its profit guidance for the year to 29 April 2023 thanks to a better-than-expected performance in the UK and Ireland, particularly over the last two months.
Adjusted profit before tax is forecast to be between £110mln to £120mln, compared to previous guidance of £104mln, the company said in a statement, although sales were down 7% across the group.
The performance was driven by the UK and Ireland, where full-year adjusted underlying earnings (EBIT) are expected to increase by 40% compared to last year.
However, international full-year EBIT is expected to be “materially lower” than last year, driven by a “challenging” Nordics environment, although the company believes it is making progress on margins and costs.
Under new management in the Nordics, structural changes are underway to remove £25mln in costs, although the one-off action associated with these will cost around £15mln to £20mln.
The electrical goods retailer said it expects to finish the year towards the lower end of guided net debt of £100mln.
Currys also said it has agreed to amend the fixed charge covenant for its £500mln revolving credit facility to 1.50x from 1.75x for the periods between 28 October 2023 and 26 October 2024.