Proactive Investors - Currys PLC (LON:CURY) posted final results with underlying profit in line with forecasts and trading in the first few weeks of its new year has continued on a similar track.
With its cash position improving, the electrical goods retailer said it intends to reinstate its dividend or share buybacks during the next 12 months.
reported an adjusted profit before tax of £118 million in the year to 27 April, up 10% on the prior year.
It had said in a year-end trading update that profit, excluding recently exited Greek operations, was expected to come in between £115 million and £120 million, with analyst forecasts converging around the £118 million mark.
Sales from continuing operations were down 2% on a like-for-like basis to £8.5 billion, falling 3% in the Nordics and 2% in the UK and Ireland.
Free cash flow gushed to £82 million an £174 million improvement from the outflow last time, leaving year-end net cash of £96 million compared to a net debt position of £97 million a year earlier.
With pension contributions set to increase this year and capital expenditure to rise back towards “normalised” levels, the board said it was taking the “prudent decision not to declare a dividend at this year-end” but providing trading is in line with expectations shareholder returns will be reinstated in the coming year.
With solid trading continuing in the new financial year, guidance is for more profit growth and free cash flow, though a more precise level of growth was not suggested.
CEO Alex Baldock said: “Our performance continues to strengthen. We've kept up our encouraging momentum in the UK&I, our Nordics business is getting back on track, and we're stronger financially.”
Encouraged by the progress so far, he said, “we know we can go further. For one thing, we expect AI-powered technology to be the most exciting new product cycle since the tablet in 2010. With our partnerships, scale and expert colleagues to demystify AI, we're best-placed to benefit.”
Longer term guidance is that the FTSE 250 group is continuing to target at least 3% adjusted EBIT margin and to maintain a leading market share, tight discipline on capital expenditure and other expenses to improve free cash flow.