*
Expects 2022-23 profit of 110 mln-120 mln stg
*
Nordics sales performance worsens
*
Year-end net debt to be around 100 mln stg
*
Lenders amend covenant on credit facility
*
Shares up 7%
(Adds detail on sales, outlook, shares)
By James Davey
LONDON, May 15 (Reuters) - British electricals retailer
Currys raised the profit outlook for its 2022-23 year
after better-than-expected trading in its home market in its
final two months, sending the group's shares higher.
The stock was up 7% in early trading but remains down 33%
over the last year, as consumers grappling with a cost-of-living
crisis have avoided some so-called big-ticket items such as
televisions and computers.
Currys lowered its guidance in March due to the weak
performance of its Nordics business, but said on Monday it now
expected to report adjusted pretax profit of 110 million-120
million pounds ($139 million-$151 million) in the year to April
29.
That is ahead of the March guidance of around 104 million
pounds, but down from the 186 million pounds made in 2021-22.
The group said like-for-like sales in its UK and Ireland
division fell 4% in its second half, having slid 10% in the
first.
It forecast full-year profit in the division would be more
than 40% higher, driven by improvement in its gross margin and
cost savings.
However in the Nordics business, like-for-like sales were
down 12% in the second half, deteriorating from a 7% fall in the
first, with the market described as "challenging".
Currys, which also trades in Greece, said full-year profit
in its international division would be "materially lower"
because of the Nordics performance.
It noted that new management put into the Nordics business
in March had made progress and was removing 25 million pounds of
annual costs.
Currys said it expected to end the year with net debt of
around 100 million pounds, versus previous guidance of up to 150
million pounds.
It also said its lenders had amended the fixed charge cover
covenant on its 500 million pound revolving credit facility,
providing increased financial headroom.
"These positive surprises reassure that there is good
downside protection to forecasts and that balance sheet risk has
been removed," said analysts at Liberum.
($1 = 0.7923 pounds)
(Reporting by James Davey; Editing by Sarah Young and Jan
Harvey)
