Currys PLC (LSE:CURY) pulled the final dividend, citing an uncertain outlook, as it reported lower profits hit by a poor performance in its Nordics business.
The electricals retailer said its markets had “been tough everywhere, with depressed demand, high inflation and unforgiving competition”.
Currys said adjusted pre-tax profit for the year to 29 April 2023 of £119mln was at the top end of guidance but was down from £192mln the year prior.
On a statutory basis, the fridge and computer retailer swung into the red with a pre-tax loss of £450mln compared to a £126mln profit, reflecting a £511mln non-cash impairment of goodwill arising out of the Dixons Carphone merger in 2014.
Revenue fell 6% to £9.51bn from £10.14bn while loss per share of 43.6p compared to EPS of 6.3p the previous year.
Chief executive Alex Baldock said: “We've had a very mixed year. Our strengthening UK&I performance shows our strategy is working well. But our long track record of success in the Nordics was brought to an abrupt halt.”
EBIT in the Nordic region fell 82% year-on-year to £26mln with falling consumer demand exacerbated by a general overstocking in the market.
Trading in the new financial year is in line with company expectations but Currys said it was “wary of optimism about consumer spending power”.
Baldock said: “Accordingly, we're being prudent in our planning, and in further strengthening our balance sheet.”
Consistent with this cautious approach, the firm decided not to declare a final dividend.