Curry’s on track to hit profit expectations despite warning of ‘further headwinds from Omicron’
Curry’s has said it expects to hit profit expectations despite any “bumpy demand” related to Covid uncertainty.
In unaudited results for the half year ended 30 October, the technology retailer reported group adjusted profit before tax of £48m, compared to £40m in the same period a year prior.
It marks a great leap from the £2m recorded in the first half of 2019/20.
The market had been “softer over recent weeks,” according to Alex Baldock, group chief executive, who cautioned over the impact of new Covid variant Omicron.
He added: “We may face into further headwinds from Omicron and associated restrictions, but the stronger business we’ve built can ride out both the industry-wide disruption to supply chains and bumpy demand.”
Shares fell nine per cent on Wednesday morning, in response to these warnings. They remained down by almost ten per cent by the evening.
Following a “strong” first half,” the retailer remains on track to hit expectations for full year adjusted profit before tax of around £160m.
Curry’s group total revenue was down two per cent compared to the year prior, but up two per cent on the 2019 pre-pandemic comparable period.
Its group profit before tax stood at £48m, up from £45m in the year prior. It lost £86m in the 2019/20 comparable first half.
The business was proof that an “omnichannel” approach was the way forward for technology retail, Curry’s CEO added.
“Yes, more customers are shopping online, and our hard work to build a strong online business has seen us thrive here. But most customers buy tech through both online and stores, our sweet spot, where we’ve worked hard to build on our strengths. That’s paying off,” Baldock said.
Russell Pointon, director at Edison Group, said: “In the short-term, the spread of the Omicron variant is reducing market demand, and creates uncertainty around an immediate outlook. However, the unveiling of a £75m share buyback programme set to commence in January 2022, suggests that they are positioned well for the rest of the financial year.”