By Yadarisa Shabong
(Reuters) -British electricals retailer Currys raised its annual profit forecast for the third time this year as rising sales countered growing costs, it said on Wednesday.
The seller of consumer appliances, such as computers, washing machines and TVs, expects adjusted pretax profit to be around 162 million pounds ($217.7 million).
In early April, it raised its annual adjusted pretax profit forecast to around 160 million pounds for the 2024/25 year after an upgrade in January.
“The raft of upgrades being delivered means full-year PBT has beaten initial consensus from 12 months ago by over 30%, making Currys a standout performer in the general retail sector,” Berenberg analyst Adam Tomlinson said in a note.
Shares in Currys, which have gained more than 70% in the past year, hit their highest level since December 2021 in early deals before trading marginally down.
Like-for-like sales rose 4% for the 17-weeks since early January, driven by its UK and Ireland division and a sales recovery in the Nordics business .
Rising sales and improving profit margins were more than offsetting cost increases, it said.
British businesses have been battling higher employment costs from April, raising the prospect of higher prices for consumers.
Inflation in Britain surged by more than expected in April, according to figures published on Wednesday that are likely to keep the Bank of England on its path of gradual interest rate cuts.
Lower interest costs and tight management of working capital helped Currys amass more cash. It finished the year with net cash of more than 180 million pounds, ahead of analysts’ estimates of 163 million pounds in a company-compiled poll.
“Cashflow was very healthy. This further strengthening of our balance sheet ensures our resilience and allows the resumption of dividends,” CEO Alex Baldock said in a statement.
($1 = 0.7443 pounds)
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Mrigank Dhaniwala and Sharon Singleton)
