Currys cheers profits boost

Just days after fending off foreign bidders . . .

CURRYS has hiked its profit forecasts just days after fighting off takeover interest from US and Chinese suitors.

The electricals retailer expects profits to hit at least £115m for the year to the end of April having previously pencilled in between £105m and £115m.

The update came days after US activist investor elliott Advisors and Chinese online retail giant JD. com abandoned separate plans to bid for Currys.

elliott, which owns bookshop Waterstones, initially made an offer that valued Currys at £700m or 62p a share before raising it to £757m or 67p a share. but Currys rejected both bids.

elliott abandoned its pursuit before JD.com also threw in the towel.

in yesterday’s update, Currys said sales since January 6 ‘have been stronger than the group’s expectations’.

And a £156m sale of its greek business will also help its bottom line. 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.’

Shares gained 6pc, or 3.4p, to 60p yesterday.

Susannah Streeter, head of money and markets at hargreaves Lansdown, said: ‘The board was steadfast in its view that the offers priced the company too low, given that it’s partly the current economic climate which is to blame for its lacklustre performance.’

She added that the improved outlook ‘gives a little more weight to their opinion’.

AJ bell investment director Russ Mould said: ‘Fortunately for Alex baldock, he’s been able to stump up the goods to show that Currys is doing perfectly fine on its own and doesn’t need to be swallowed up by a third party.’ but he said baldock’s remark that trading was ‘still challenging’ was a sign it is not out of the woods yet as high interest rates dent demand among cash-strapped customers.

Analysts at investec said signs that Currys is ‘set for recovery’ could lead to takeover interest from other bidders.

A host of british companies have been targeted by foreign predators in recent months.

it has fuelled fears that overseas firms are trying to snap up London-listed groups on the cheap.

haulier Wincanton, Fleabag maker All3Media and insurer Direct Line are among those to have been approached.

earlier this month, top Currys shareholder Jo hambro Capital Management said lowball bids for the retailer showed the ‘absurdity’ of low UK stock market valuations.

Richard bernstein, boss of activist investor Crystal Amber, said british firms were being picked off ‘one by one’.