Currys has lifted its profit outlook for the full year after the electrical goods retailer reported a strong period of trading in the 10 weeks to 4 January.

The group is now expecting an adjusted profit before tax between £145m and £155m, ahead of previous guidance.

Currys said that a “disciplined” trading performance with robust sales and stable gross margin had seen the company grow its H1 revenue by 5% year-on-year in the UK and Ireland, and by 2% across the group including its Nordics business.

Chief executive, Alex Baldock, also confirmed that with a stronger balance sheet, the Currys board is expecting to pay a dividend at the end of its financial year – which would the first time that Currys has declared a dividend since its half-year results in December 2022.

“We’re pleased by our strong peak trading,” Baldock said. “We grew in both markets, continuing the trend of Currys’ strengthening performance, and we believe this year's profits will be ahead of market expectations.

“With our ever-stronger cash generation and much improved balance sheet, the board now expects to pay a dividend at the year-end.

“We start 2025 confident that our strategy is working and determined to keep building this ever-stronger Currys to the benefit of colleagues, customers, shareholders and society.”

Currys also noted that its latest profit guidance is also after taking into account the in-year impact of the Government’s Budget measures – notably the imminent changes to employers’ national insurance – which the retailer said would be effective for the last five weeks of the group’s financial year.

The company also expects growth in adjusted EBIT for both its UK and Ireland and Nordics markets and is expecting total interest expense of around £70m.

Head of markets at interactive investor, Richard Hunter, commented: “[Currys] estimates that free cash flow will rise further, and the upgraded profit estimate is another positive signal given the restrictions announced as a result of the Budget measures.

“The group previously estimated an additional £32m in annual costs, which will inevitably lead to some product price rises, while also increasing the possibility of lower investment and hiring, as well as increased automation and offshoring.

“In the meantime, the group’s improving revenues are doing some of the heavy lifting in mitigating those costs.

“On balance, Currys has an optimistic outlook and is taking firm measures to influence the factors within its control. The share price has once more reacted strongly to the news and the double-digit increase in opening trade adds to a hike of 74% over the last year, as compared to a rise of 2.9% for the wider FTSE 250.”

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