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Currys Shares Surge as H1 Losses Shrink
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Currys Shares Surge as H1 Losses Shrink

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The UK-based electrical retailer Currys PLC released its half-yearly results for the Fiscal Year 2024/25.

Shares of the FTSE 250-listed Currys PLC (GB:CURY) surged nearly 13% as of writing after the company’s H1 pre-tax losses for FY24/25 shrunk to £10 million from a £44 million loss a year ago. Moreover, the company posted a profit of £9 million on an adjusted basis, marking a significant improvement from the £16 million loss reported previously. Moving ahead, Currys expressed confidence in maintaining its progress but cautioned that the U.K. budget will significantly raise its costs.

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Currys is a tech retailer and after-sales service provider, operating around 300 stores across the UK.

Currys Confirms Full-Year Guidance after H1 Growth

Backed by its strong performance in H1, Currys confirmed its full-year guidance, with continued growth in profits and free cash flow. The company stated that its trading has been in line in the first six weeks of the second half. Meanwhile, the company reduced its forecast for capital expenditure to around £80 million, down from the earlier estimate of £90 million.

In the first half, revenue increased 1% year-over-year to £3.92 billion, fueled by robust performance in the U.K. and Ireland. Comparable revenue in this region climbed 5%, supported by higher sales and improved margins. Furthermore, adjusted EBIT (earnings before interest and taxes) surged over 50% to £41 million, while free cash flow increased to £50 million from £4 million last year.

Currys Signals Price Hikes

Along with its H1 numbers, Currys signalled price hikes next year due to the changes in National Insurance contributions and higher minimum wages announced in the October budget. As a result, the company expects an annual cost increase of £32 million.

Nonetheless, the company aims to offset higher costs through its cost-saving initiatives like process automation, outsourcing, etc.

Is Currys a Good Stock to Buy?

According to TipRanks, CURY stock has a Moderate Buy rating, backed by two Holds and one Buy recommendation. The Currys share price target is 97.67p, which implies a change of 9% from the current trading level.

See more CURY analyst ratings

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