Completion of Kotsovolos
disposal
We help everyone enjoy
amazing technology
Currys plc (Currys) is pleased to announce that
it has completed the sale of Dixons South East Europe A.E.V.E., the
holding company of Currys' entire Greece and Cyprus retail
business, trading as Kotsovolos, to Public Power Corporation S.A.
for an enterprise value of €200 million (£175 million). As
anticipated, the cash proceeds received by Currys were £156 million
(€179 million) after taking into account transaction and separation
costs, intercompany balances and cash in the business.
With the disposal of Kotsovolos, the Group's
structure has been simplified and Currys will continue to focus on
its larger markets of the UK & Ireland and the Nordics, whilst
the strengthened balance sheet will increase flexibility to invest
in and grow the business, as well as improve shareholder
returns.
As previously announced, in the near term, it
is the Board's intention to use the net cash proceeds to reduce net
debt and the Group expects to finish the year in a net cash
position.
Current year
guidance
Group expectations for adjusted profit before
tax is unchanged and is expected to be at least £115m if Kotsovolos
was fully consolidated for the year.
Following the disposal, the Group will present
full year adjusted results on a continuing operations basis. On
this basis, adjusted profit before tax is expected to be at least
£105m. Please see below for full cashflow guidance on a continuing
operations basis.
Alex Baldock,
Group Chief Executive
"The sale of Kotsovolos is an excellent outcome
for Currys' shareholders. It further strengthens the Group, while
we continue to get the Nordics back on track and keep up the
UK&I's encouraging momentum. We continue to progress well on
both.
Kotsovolos is a fine business that we've been
proud to own. I'd like to thank every one of our Greek colleagues
for everything they've done, and wish them every future
success."
Current year
guidance
Guidance below is based on Greece being fully
consolidated for the year. This basis is consistent with previous
guidance and excludes the cash proceeds from the disposal of
Kotsovolos.
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Group adjusted profit before tax is expected to
be at least £115m (unchanged)
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Capital expenditure of around £65m (previously
£70m)
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Net exceptional cash costs around £50m
(unchanged)
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Pension contributions of £36m
(unchanged)
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Depreciation & amortisation of around £310m
(unchanged)
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Cash payments of leasing costs, debt &
interest of around £270m (unchanged)
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Cash interest of around £25m (previously
£30m)
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Cash tax payments of around £10m
(unchanged)
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Group to finish the year with net debt slightly
worse than last year's closing position of £(97)m (previously
better than last year's closing position). The reduction from
previous guidance is due to the continued growth of iD Mobile,
which creates a short term drag on net cash, but is a growing
source of recurring, predictable revenue and cashflow
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Following the disposal of Kotsovolos, the Group
will report full year adjusted results on a continuing operations
basis (excluding Kotsovolos), the guidance below is presented on
this basis. Note this is not pro-forma guidance as certain cashflow
items, notably interest, will be impacted by the receipt of
proceeds.
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Group adjusted profit before tax is expected to
be at least £105m
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Capital expenditure of around £50m
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Net exceptional cash costs of around
£50m
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Pension contributions of £36m
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Depreciation & amortisation of around
£280m
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Cash payments of leasing costs, debt &
interest of around £250m
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Cash interest of around £20m
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Cash tax payments of around £10m
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Group to finish the year in a net cash
position
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Longer term
guidance
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Group continuing to target at least 3.0%
adjusted EBIT margin with focus on sustainable free cash flow
generation
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Exceptional cash costs expected to fall
significantly from 2024/25 onwards
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Scheduled pension contributions will rise to
£50m in 2024/25 and to £78m for the following three years before a
final payment of £43m in 2028/29 within the current agreement.
Pension contributions will cease when the actuarial deficit reaches
zero
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Next scheduled
announcement
The Group is scheduled to publish a pre-close
full year trading update on Tuesday 14 May 2024.
For further
enquiries
|
Dan
Homan
|
Investor Relations
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+44 (0)7401
400442
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Carla
Fabiano
|
Investor Relations
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+44 (0)7460
944523
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Toby
Bates
|
Corporate Communications
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+44 (0)7841
037946
|
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Tim Danaher,
Sofie Brewis
|
Brunswick Group
|
+44 (0)2074
045959
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Further
Information
Information on Currys plc is available
at www.currysplc.com
Follow us on X, formerly known as Twitter: @currysplc
About Currys
plc
Currys plc is a leading omnichannel retailer of
technology products and services, operating online and through 720
stores in 6 countries. We Help Everyone Enjoy Amazing Technology,
however they choose to shop with us. In the UK & Ireland we
trade as Currys and operate our own mobile virtual network, iD
Mobile. In the Nordics we trade under the Elkjøp brand. We are the
market leader in these markets, employing almost 25,000 capable and
committed colleagues.
Our full range of services and support makes it
easy for our customers to discover, choose, afford and enjoy the
right technology for them, throughout their lives. The Group's
operations include state-of-the-art repair facilities in Newark,
UK, a sourcing office in Hong Kong and an extensive distribution
network, enabling fast and efficient delivery to stores and homes.
Our vision, We Help Everyone Enjoy Amazing Technology, has a
powerful social purpose at its heart. We believe in the power of
technology to improve lives, help people stay connected,
productive, healthy, and entertained.
We're here to help everyone enjoy those
benefits and with our scale and expertise, we are uniquely placed
to do so. We're a leader in giving technology a longer life through
repair, recycling and reuse. We're reducing our impact on the
environment in our operations and our wider value chain and we will
achieve net zero emissions by 2040. We offer customers products
that help them save energy, reduce waste and save water, and we
partner with charitable organisations to bring the benefits of
amazing technology to those who might otherwise be
excluded.
Certain statements made in this announcement are
forward-looking. Such statements are based on current expectations
and are subject to a number of risks and uncertainties that could
cause actual results to differ materially from any expected future
events or results referred to in these forward-looking statements.
Unless otherwise required by applicable laws, regulations or
accounting standards, we do not undertake any obligation to update
or revise any forward-looking statements, whether as a result of
new information, future developments or otherwise. Information
contained on the Currys plc website or the X, formerly known as
Twitter, feed does not form part of this announcement and should
not be relied on as such.