Currys has enjoyed some pre-Christmas cheer as the stock was revived yesterday after signs of a turn-around.
The electrical goods giant’s shares climbed 10.4 per cent, or 4.72p, to 50p, after chief executive Alex Baldock welcomed ‘a really good self-help job’.
Shares had been languishing at their lowest levels since 2009 after a slew of profit warnings and increasing competition from the likes of Amazon that continue to run heavy discounts.
But yesterday the group maintained profit guidance for the year as it hopes to return more value to shareholders.
This came despite Currys revealing that group sales had declined to £4.2billion over the six months to October, down 4pc compared with the same time last year.
Revival: Currys’ shares climbed 10.4% after chief executive Alex Baldock welcomed ‘a really good self-help job’
But there were signs of recovery for Currys’ Nordic business, which has been a problem area for the company after it was hit by rivals offering heavy discounts.
Profit margins for this region returned to levels of two years ago, although sales did drop 6 per cent during the half-year.
There was also a boost from Currys agreeing to jettison its Greek and Cypriot business for £172million as part of its scheme to focus solely on the larger UK and Ireland, and Nordics markets.
The proceeds will be used to cut debt and reduce its pension fund’s deficit.
‘The company will also examine the potential to return any surplus capital to shareholders,’ Currys added.
Although it was able to narrow losses to £16million, down from £17million last year, Currys has suffered in the face of persistently high inflation and interest rates, which has put consumers off splashing out on new gadgets.
Baldock said: ‘On the one hand, the consumer is hard-pressed and confidence is pretty bumpy. Interest rates have been rising… and consumers are cautious about their spending.
‘But on the other hand, real wages have continued to climb, employment has stayed high, people have retained savings and customers are treating themselves.’
Nonetheless, the first half of the year is traditionally much weaker for Currys, as it ends in October before the run-in to Black Friday and Christmas.
And ahead of the festive season, bosses revealed that products such as air fryers, coffee machines and hair styling tools had been flying off the shelves.
This was due to consumers cutting back on spending on restaurants, pricey coffees, and hair salons, Baldock said.
He added: ‘Our priorities this year are simple: to get the Nordics back on track, to keep up the UK and Ireland’s encouraging momentum, while strengthening our balance sheet.’
