After bid interest ends, UK's Currys raises profit outlook

By James Davey

LONDON (Reuters) -British electricals retailer Currys, which has resisted bid interest from two suitors, on Monday edged up its profit outlook after stronger-than-expected recent sales.

On Friday, China-based online retailer JD.com said it would not make an offer for Currys, days after U.S. investor Elliott Advisors walked away.

Shares in Currys, which fell 5% on Friday, were up 4.2% in early trading Monday.

Currys, which sells fridges, washing machines, computers and other consumer electricals, said like-for-like sales since Jan. 6 in both its UK & Ireland and Nordics divisions had been positive, with gross margins remaining robust. The group had also seen continued strong growth from services.

"We've been working to get the Nordics back on track, while keeping up the UK&I's encouraging momentum. Both are progressing well, despite still-challenging markets," CEO Alex Baldock said.

The group said full year 2023/24 adjusted profit before tax was now expected to be "at least" 115 million pounds ($146.4 million) versus previously guidance of 105 to 115 million pounds and 119 million pounds made in 2022/23.

Currys also expects to end the year in a net cash position, thanks to the 156 million pounds proceeds from the sale of its Greek business.

The group rejected proposals from Elliott of 62 pence and 67 pence, while JD.com did not make a proposal.

Shares in Currys closed Friday at 56.6 pence, giving it a market capitalisation of 642 million pounds.

Analysts at Peel Hunt had said it would have taken an offer of over 80 pence per share for Currys' board to engage.

Analysts at RBC Europe said the group had a strong market position in both the UK & Ireland and the Nordics "which should serve it well with a more benign interest rate outlook."

($1 = 0.7853 pounds)

(Reporting by James Davey, Editing by Paul Sandle and Louise Heavens)