Currys has upped its full-year profit guidance after it confirmed reports that both JD.com and Elliott Advisors had walked away from making potential bids to buy the retailer.
In a statement to the City today, Currys said it “noted” the respective announcements made by private equity firm Elliott Advisors and Chinese ecommerce giant JD.com on March 11 and March 15 that neither intended to make an offer for the business.
The board of the UK-based electricals retailer also confirmed it had not received any proposal from JD.com and reminded both businesses of their obligations under rule 2.8 of the City Code of Takeovers and Mergers, which requires those statements to be made “clear and unambiguous as possible” and for those companies to not subsequently announce an offer for more than 30% of the business for at least six months.
Currys also issued a trading statement in which it upped its full-year profit guidance to “at least” £115m and said current trading was ahead of expectations.
In the UK and Ireland and the Nordics, Currys said like-for-like sales were positive and gross margins remained “robust”.
The retailer added that the disposal of its Greek business Kotsovolos is on track to be completed in the first half of next month, which will result in Currys finishing its financial year in a net cash position.
In terms of longer-term guidance, Currys said it continues to target at least a 3% adjusted EBIT margin, with exceptional cash costs expected to fall significantly from 2024/2025 onwards.
Chief executive Alex Baldock said: “We’ve been working to get the Nordics back on track while keeping up the UK and Ireland’s encouraging momentum. Both are progressing well, despite still-challenging markets, and we now feel confident to raise this year’s profit expectations to at least the top of our previous guidance. Stronger trading, selling more of the solutions and services that boost margins and build customers for life, and strong cost discipline have all been important.
“We expect to finish the year in a net cash position, with our already healthy balance sheet and liquidity further strengthened by the sale of Kotsovolos.
“Thank you to all my colleagues who are making this possible − you’re building an ever-stronger Currys that helps everyone enjoy amazing technology.”
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