Electrical giant Currys upgrades profit outlook as sales outperform
Currys has reported a surge in sales, prompting the electronics retailer to raise its full-year profit forecast. The firm informed investors today that it now anticipates an adjusted pre-tax profit of about £160m, up from the previously projected range of £145m to £155m, as reported by City AM. Currys described 2025's sales performance as "robust," with sustained positive like-for-like sales growth in both the UK and Ireland, and the Nordics. With a presence across six countries through 715 stores, Currys experienced a rebound in sales growth in 2024, benefiting from an extensive multi-year turnaround strategy. For the year ending April 2024, Currys posted a pre-tax profit of £28m, a significant recovery from a pre-tax loss of £462m in the prior year. A pre-tax profit of £160m for the year to April 2025 would represent an almost sixfold increase on the previous year's figures. Panmure Liberum has named Currys as its top stock pick for 2025, citing its standout performance in a consumer market hampered by low growth. Analyst Wayne Brown highlighted the "potential for lower pension contributions, cash exceptionals and interest costs," along with improved margins in the Nordic regions, which had previously been underperforming, as factors that could draw new investment. During the pandemic, Curry's Nordic operations faced severe challenges, including aggressive discounting by competitors, leading to a nosedive in profits and the suspension of its dividend. However, since 2023, the Nordic division has been showing signs of a robust recovery. Following the release of these new figures, analysts at Panmure have revised their target price for Currys shares upwards from 170p to 180p. As of market close on April 2, the stock was valued at 88.95p. Panmure analysts commented: "Not only is positive earnings momentum a key theme, but there are so many FCF catalysts over the next few years, we are surprised the shares are not higher."
Evoke shares plummet as William Hill owner's losses triple on restructuring costs
Evoke shares plummeted by 17.3 per cent to 59.05p on Wednesday following the William Hill owner's announcement of an annual loss totalling £191.4m, a figure that significantly expanded from the previous year's figures, nearly tripling the loss reported for 2023 due to escalating restructuring and financial costs. Despite a revenue boost of three per cent reaching £1.75bn, and an uptick in adjusted EBITDA by four per cent, exceptional costs, particularly those linked to its withdrawal from the US customer market, pushed the group further into losses, as reported by City AM. The betting conglomerate cautioned that revenue growth for the first quarter would likely hover in the low single digits, not meeting its full-year goal of five to nine per cent. It pointed to strengthened responsible gambling regulations and diminished promotional impact as key reasons for this subdued increase. On a brighter note, Evoke has projected an adjusted EBITDA rise of £18-28m in the first fiscal quarter as a consequence of stringent cost control measures. Amidst adapting to regulatory cost inflations from employer national insurance and national living wage increases, Evoke disclosed plans to save an extra £25m for the current year as part of its strategic overhaul. Per Wilderström, the CEO, characterised 2024 as a "pivotal year" given the headway made in sustaining revenue growth against the backdrop of looming hurdles. He emphasized the necessity of honing new operational strategies and the reliance on a revitalized, dedicated leadership team to enact them, admitting: "We are under no illusions: this is a complete reset of this business." Despite the decline in share price, analysts at Peel Hunt pointed out that while first quarter revenue fell short of expectations, "EBITDA continues to make progress... comfortably on track of our FY25 forecast of £359m."
B&Q owner Kingfisher faces sales dip amid tough French consumer market but remains optimistic
Kingfisher, the parent company of B&Q and Screwfix, has announced a decline in sales, largely driven by a weak consumer market in France. The company reported a 1.5 per cent drop in sales to £12.78bn for the year ending January 31, as reported by City AM. This decrease was primarily due to a 6.2 per cent fall in sales in France, while the UK and Poland remained steady. The operating profit of the B&Q owner fell by 29.7 per cent to £407m, and pre-tax profit saw a decrease of 35.4 per cent to £307m. Basic earnings per share nearly halved from 18.2p to 10.1p, with the company's total dividend remaining unchanged at 12.4p. Despite making cost savings of £120m during the year, Kingfisher faces an annual cost inflation of £90m. This is due to the combined impact of higher wages, increased employers national insurance contributions and their French equivalent, as well as the UK government's packaging fees regulations (the Extended Producer Responsibility scheme). Despite these challenges, Chief Executive Thierry Garnier remains optimistic, stating that the company is "in its best operational shape for years." He added: "For the first time in over six years, we grew our market share in all key regions." He also noted that the company delivered profit and free cash flow in line with or ahead of initial guidance, demonstrating strong delivery against strategic objectives. Kingfisher has reported that 'big-ticket' categories finally saw sales growth in the fourth quarter in both the UK and Poland, after years of Brits avoiding home renovations. Wickes echoed this trend in its annual results. "Looking to the year ahead, the recent government budgets in the UK and France have raised costs for retailers and impacted consumer sentiment in the near term.
Co-op Live reveals new expansion plans
Co-op Live has proposed a new canalside development as part of the expanding Etihad Campus. The proposed space, located on the venue's south terrace, will feature a café, bar and kitchen, as well as a merchandise store. The plans unveiled today reveal that the area could also host around 600 people and function as an independent event space. Co-op Live's proposal includes daily access to the café and bar for residents and visitors, community and private hire use, and pre-event access for ticket holders. In line with the venue's commitment to accessibility, dedicated toilets, accessible and baby change areas, and an accessible lift are all included in the plans. Before submitting the planning application to Manchester City Council, Co-op Live is hosting an open exhibition on Thursday, 10 April 2025, to provide more information about the proposal. Visitors can access the venue's Co-op Backstage Club through Entrance G from 5pm until 8pm. The 23,500 capacity arena, located on the Etihad Campus in Manchester, represents a partnership between Oak View Group (OVG), City Football Group (CFG), Harry Styles, and Co-op. It opened to the public last May following several delays, reports the Manchester Evening News. Peter Kay was initially set to inaugurate the venue on April 23 of the previous year, but persistent issues with the space led to its opening being postponed until the next month. The venue's opening was further delayed due to an incident at a scheduled A Boogie Wit Da Hoodie concert when a part of the heating, ventilation and air conditioning (HVAC) system fell from the ceiling. The venue was eventually opened by Bury band Elbow on May 14, and has since hosted a series of high-profile gigs featuring artists such as Liam Gallagher, Eagles, Charli xcx, The Killers, and Sabrina Carpenter, among others. Currently, the venue hosts over 120 nights of entertainment annually in its arena space, which boasts an innovative 'Smart Bowl' design equipped with cutting-edge technology and top-notch acoustics.
Pets at Home says profit fell in line with expectations and warns of struggles ahead
Pets at Home has reported that its profit has fallen in line with expectations, according to its latest performance update. However, the company has also warned of potential challenges ahead, as reported by City AM. The group anticipates a pre-tax profit of £133m for the year, which aligns with previous forecasts. Despite a "challenging and volatile UK consumer backdrop", the company stated that trends in the final quarter of the year developed as expected across both its Retail and Vets divisions. The firm highlighted record numbers of Pets Club members and continued growth in its Vets business. It expects to conclude the full 2025 financial year in a net cash position, having returned approximately £85m to investors throughout the year. Over the past year, Pets at Home has completed its new digital platform and network optimisation. With the introduction of this new platform, the company now has two "major strategic programmes" aimed at facilitating business growth in the coming year. Looking ahead, the group expects current market conditions and consumer backdrop to persist into the new financial year. However, it predicts further profit growth following the "exceptional levels" achieved in the past two financial years. In its Retail division, the group expects to outperform the market as its investments in digital start to pay off. Nevertheless, the company anticipates an £18m hit due to increased employers' national insurance contributions. The firm has forecasted a dip in profit for the 2026 financial year to an estimated £115m to £125m, due to rising expenses. Shore Capital analyst David Hughes remarked: "The continued decline in the Retail arm is likely a cause for concern for investors, however the ongoing growth in the higher margin Vet business is encouraging and if the business does gain market share, it does have the potential to emerge stronger as and when the consumer does recover."
New name for WH Smith shops revealed as High Street chain sold
WH Smith has agreed to sell its UK high street chain to Hobbycraft owner Modella Capital in a deal valuing it at £76 million, and will be rebranded. The sale does not include the retailer’s travel locations, such as shops in airports and train stations – nor the WHSmith brand. All the approximately 480 stores and 5,000 staff working for the high street businesses will move under Modella Capital’s ownership as part of the deal. The estate – not including the travel locations – are set to rebrand as TGJones, the company revealed. Group chief executive Carl Cowling said: “As we continue to deliver on our strategic ambition to become the leading global travel retailer, this is a pivotal moment for WHSmith as we become a business exclusively focused on travel. As our travel business has grown, our UK high street business has become a much smaller part of the WHSmith Group. “High Street is a good business; it is profitable and cash generative with an experienced and high-performing management team. However, given our rapid international growth, now is the right time for a new owner to take the high street business forward and for the WHSmith leadership team to focus exclusively on our travel business. I wish the High Street team every success.” WHSmith was founded in 1792 by Henry Walton Smith and his wife Anna as a small news vendor in Little Grosvenor Street, London. After Henry's death, his son William Henry Smith took over, and the company became WHSmith & Son. By 1848, WHSmith opened its first railway bookstall at Euston Station, pioneering book retailing at train stations across the UK. The railway bookstalls made WHSmith a household name and expanded its presence nationwide. The company continued to grow, opening more high street stores and railway stalls. In 1929, WHSmith became a publicly traded company. WHSmith introduced the first-ever self-service bookshops in the 1970s. The company expanded internationally, opening stores in Europe, Canada, and the USA. In 2006, it split its high street and news distribution businesses, selling the wholesale division. The company acquired Funkypigeon.com, an online greeting card retailer, in 2010. It expanded internationally, opening stores in airports across the Middle East, Asia, and North America.