The better the leader, the less clear

Currys - better than lead, the idea is not clear

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Currys reported full annual revenue of £ 10.1bn, the same as last year when it did not look at the impact on inflation. International business growth was halted by the expected decline in the UK and Ireland, as the company continued to cut its telecommunications business.

The pre -tax value before the lead was £ 155m, coming in at £ 186m. Most of the beat shows that the money owed to the business has not been revalued, it is not intended to be repeated.

The idea of ​​how to convert customers and make more money is challenging. The pre-tax value in 2022/23 is estimated at £ 130- £ 150m. The lead for the current earnings limit was lowered, from 4.0% to 3.0%.

The company posted a final quarter of 2.15p, taking the full 5% annual salary higher at 3.15p.

Shares rose 8.6% after the announcement.

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Our opinion

Markets have had good year -round results, despite the advice that margin growth will be lower in the medium term than expected. Showing the nature of the tentative markets per minute, the growth of each type will be improved.

The rise in the risk of online shopping is slowly opening up, even though it is recovering better than pre-pandemic levels. The supply in Currys ’strong store meant that customers didn’t lose out from the site and store sales saw a huge increase as a result.

The return on store sales for Currys is important, which is better than online. The store has declined significantly in recent years, as the company closed its independent Carphone Warehouse stores. That is, they reduce rental costs and increase profitability.

One of the main features of the company is its modeling. You can walk into a store and have access to the entire online store or talk to a specialist in the store in the comfort of your own home. These services help Currys attract and retain a customer when they are in trouble and help the company gain access to the market.

Low rental costs have another advantage. With the decline of the pencil case, the stock market is much better than it was in previous years. It gives the company confidence to start the division again this year, and there is a resale. Return of the claimant is not guaranteed.

The increase is well managed now. The combination of inflation and higher inflation is the result of an increase over the past year, a trend that is expected to continue. That’s not to say there’s no problem. The buyer with the least amount of money is the one who spends the idea under pressure. The company’s large Nordic index is an advantage here, as domestic customers are showing fewer signs of weakness than their UK counterparts.

We’re really impressed with how the Currys have managed over the past two years and the coaches have been strong enough to improve in the middle. But performance limits are much lower, at a rate above 2%, so there’s not much room to wiggle if conditions are better where inflation falls. Below the long -term average a company’s review reporting short -term problems can signal a good entry point for investors willing to accept immediate problems.

Currys are great

  • Initial price and earnings ratio: 5.6
  • Ten -year average cost/earnings: 10.9
  • Earnings Divorce (next 12 months): 5.6%

All ratios are available from Refinitiv. Please keep in mind that results are different and are not a reliable indicator of future income. Remember big pictures don’t have to look at themselves – it’s important to understand the big picture.

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Full year results (fixed income)

UK & Ireland Revenue of £ 5.5bn fell 3%, with equity-for-sale (LFL) sales down 4%. Due to declining phone revenue, Carphone Warehouse stores closed at the end of last financial year. Opening the holdings, store sales grew 61%, leading to a decline in online business from 65%to 45%. Net sales share remained at 13 per cent year -on -year 2. Net income (EBITDA) was 3% lower at £ 280m.

In the Nordics, revenue grew 2% to £ 4.1bn and LFL sales fell 2%. Online sales fell by 14% but remained 50% higher on a 2-year basis and accounted for 25% of total sales. Home builders and the VR game are powerful players. Revenue increased by less than 1% to £ 264m.

Available in Greek up 13% to £ 554m, with LFL sales up 4%. In -store sales rose 47%, more than ending a 51% drop in online sales. 2 new stores have been opened in Cyprus with good performance so far. All things work well, it’s best to buy air-con in the summer. Revenue increased by just under 18% to £ 44m.

Free cash flow of £ 72m is down from £ 438m last year. The decline was due to increased investment and the first year benefiting from the first repayment of a debt. The season ended with a net worth of £ 44m, down from £ 169m.

Find out more about Currys pieces and how to invest

This article is an original Hargreaves Lansdown article, published by Hargreaves Lansdown. If no other ideas are stated, including future results, they are in agreement with the evaluation predictions provided by Refinitiv. These estimates are not a reliable indicator of future action. Results are modified and not verified. Wealth rises and falls so that investors can incur losses.

This article does not constitute advice or advice on buying, selling or holding any publications. No estimates are given of the current or future value or value of an investment, and investors are required to form their own estimates for a particular investment. This article is not prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a commercial conversation. The independent research did not apply to FCA rules prohibiting the practice prior to the research, however, HL did put powers (including detention, physical protections and knowledge) for care. Dealing with the conflicts of interest expressed by that action. Please see our independent research for more information.

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