UK's Currys drops dividend on uncertain economic outlook

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British electricals retailer Currys said on Thursday it is not paying a final dividend and would be prudent in its planning as it is concerned about the economic outlook in its main markets.

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06 Jul 2023

The group also reported a 38% fall in full year profit, hurt by the weak performance of its Nordics business.

«Looking ahead, we're wary of optimism about consumer spending power. Accordingly, we're being prudent in our planning, and in further strengthening our balance sheet,» CEO Alex Baldock said.

Consumers in Europe have been hammered for over a year by high inflation, which has outstripped pay growth for almost all workers.

Baldock said Currys had taken actions to maximise operating cashflow through margin improvement, delivering cost savings and reducing capital expenditure.

Further actions to mitigate risk included agreeing a previously announced temporary covenant relaxation with lenders, and lowering cash contributions to its pension scheme.

Currys, whose shares have fallen 21% this year, reported adjusted pretax profit of 119 million pounds