Currys PLC (LSE:CURY) reported narrowed half-year losses although sales remained under pressure, reflecting persistent inflation and rising interest rates.
The electricals retailer said in the first half ended 28 October 2023, pre-tax loss narrowed to £46 million from £548 million the year prior on revenue which declined by 7% to £4.16 billion from £4.47 billion.
Currys said revenue declined in all markets as consumer spending remained under pressure from persistent inflation and rising interest rates, coupled with an increased focus on more profitable sales to maximise operating cashflow.
UK and Ireland (UK&I) like-for-like (LFL) revenue slipped 3%, with adjusted EBIT falling 40% to £15 million, as improved gross margin and costs savings of £53 million were more than offset by inflationary pressures and non-repeat of £11 million of mobile revaluations.
In the Nordics region, profitability improved despite a difficult consumer environment, with gross margins back up to the levels of two years ago, the company said.
Nordics LFL revenue fell 6%, with adjusted EBIT of £12 million, up 300%, reflecting a significant gross margin recovery of plus 190 basis points and cost actions which offset continued market-driven sales decline.
Currys said trading in the second half of the financial year has been consistent with expectations and left guidance unchanged.
It expects to finish the year in a net cash position if the disposal of its Greek business completes before the year end.