Shares in electronics retailer Currys PLC (LSE:CURY) dropped 15% in early trading following the cancellation of the company's dividend in the face of tough trading.
The pre-tax profit fell 38% to £119mln, primarily hindered by the weaker performance in its Nordics business, although the UK and Ireland branches remained stable.
Currys indicated that the removal of the full-year dividend was an act of prudence. Amidst the cost-of-living crisis and high inflation, the company noted a surge in customers utilising credit services, leading to a 12% increase in its credit customer base and credit sales accounting for 17.7% of total sales.
CEO Alex Baldock described the past year as "very mixed", highlighting the challenges of "depressed demand, high inflation and unforgiving competition".
The stock fell 7.72p to 45.73p in the first hour of trade. But while the mood on the market was gloomy, there were bargain hunters out there.
Liberum reckons the stock is a 'buy' up to 135p.
"The shares sit around 15% below March 2020 levels, when Covid first hit and fears around companies’ survivability were at their peak," the broker told investors.
It also said that on a price-to-earnings basis, Currys is trading at a 40% discount to the 10-year average.