Currys skips dividend after swinging to loss in fiscal 2023

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Written on Jul 6, 2023

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Currys PLC reports £450 million of pre-tax loss for its fiscal 2023.
The electrical and telecom retailer did not declare a final dividend.
Currys stock is currently down 40% versus its year-to-date high.

Currys PLC (LON: CURY) ended nearly 10% down on Thursday after reporting a pre-tax loss for its full financial year.

Currys 2023 financial highlights

The British multinational swung to £450 million ($571.7 million) of loss before tax in its fiscal 2023 on a non-cash impairment of £511 million and weakness in Nordics.

Currys had £126 million of pre-tax profit a year ago. Still, CEO Alex Baldock said today in a press release:

Our focus is on continuing a very encouraging trajectory in the UK&I while we get the Nordics back on track, and being attentive to mitigating any downside risk.

On an adjusted basis, the electrical and telecommunications retailer had £119 million of profit – down significantly from £186 million in fiscal 2022. At writing, Currys stock is down about 40% for the year.

Currys passes over a final dividend

On Thursday, Currys PLC also decided against declaring a final dividend as economic outlook in its main markets remains uncertain. According to CEO Baldock:

We may be cautious in our promises for the short-term but our confidence is undimmed as we build a stronger and more resilient business that is fit to prosper in the longer term.

The London-based company ended its recent year with £9.51 billion in revenue – down about 6.0% due to inflation and higher interest rates. Last month, Frasers revealed a sizable stake in Currys PLC (find out more).

Wall Street currently has a consensus “hold” rating on this retail stock.