Currys has upped its profit outlook after posting stronger-than-expected sales since Christmas, after investor hopes of a takeover were dashed last week.
The electricals retailer said pre-tax profit was now expected to be “at least” £115m, versus its previous guidance of £105 to £115m as like-for-likes were “positive” and gross margins “robust”.
It also said its services arm had “continued strong growth”, which boosted margins.
Currys 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.”
The news come as the two firms interested in taking over Currys, JD.com and Elliott Advisors both walked away from a potential deal last week.
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The electricals retailer turned down a £700m bid from Elliott Advisors back in February on the grounds that it undervalued the company before rejecting a second £750m takeover from the activist investor a few days later.
Stakeholders in the business were looking for a minimum of £1bn for the group.
Currys said it expected to end the year in a net cash position, further bolstered by the recent sale of its Greek business, Kotsovolos, which is set to be completed in the first half of April.
On a longer term, the group said it was targetting an adjusted EBIT margin of at least 3% as it focused on “sustainable free cash flow generation”. It pointed out that its exceptional cash costs are expected to “fall significantly” from its next financial year.
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