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(Sharecast News) - Shares in Currys surged on Thursday after the UK retailer held annual guidance and reported a surge in half-year profit, with recent trading in line with expectations.
The company, which sells whitegoods, televisions and computers among other products, more than doubled adjusted pre-tax profit for the six months to November 1 to 22m from 9m a year ago.
Group revenue rose 8% to 4.23bn as like-for-like sales in both the UK and Ireland division and the Nordics up by 4%.
In the UK, operating profit was down 17% to 19m as new taxes and wages rises came into effect, but market share rose and recurring service revenue grew 11%. Profit in the group's Nordics market increased by 94% to 35m as online sales rose 20% and store sales improved. Shares in the firm rose by 10% at one stage in London trade.
"We entered peak well prepared, with strong stock availability and market-leading deals that reflect our unmatched importance to our partners. Trading is in line with expectations," said chief executive Alex Baldock.
Consensus forecasts ahead of the interim results were for annual pre-tax profits of 172m, an increase on the 162m Currys made in 2024/25.
"In the Nordics, being the clear leader in an improving market, combined with strong execution, has driven another notable step forward in profits. It's pleasing that strong top-line growth is translating into improved profitability," Baldock said.
"In the UK&I, the consumer environment is more muted, and cost headwinds are unhelpful. Still, we're the growing market leader, gaining share, and our margin and cost discipline is going a long way to mitigate headwinds and protect profits."
Interactive investor head of markets Richard Hunter said despite the share price drifting over the last few months, Currys stock had risen by 37% over the last year, compared to a gain of 7.6% for the wider FTSE 250, and by 153% over the last two years.
"Such gains have not resulted in the valuation becoming stretched, and with this reassuring update now in the bag, the market consensus of the shares as a strong buy on prospects will almost certainly remain intact," he said.
Reporting by Frank Prenesti for Sharecast.com