Curry's PLC (CURY)

[daveh]

Currys examining future of (Strategic Review of) its Greek business:

https://www.investegate.co.uk/announcem ... os/7578107

Currys today announces that it is commencing a strategic review of its market-leading Greek business Kotsovolos, which could lead to a sale of the operations. Kotsovolos, which also has an emerging presence in Cyprus, is a strong-performing and profitable business, with high brand awareness, a unified ecommerce platform and a diverse mix of products and services.


The Board regularly reviews the Group structure through the lens of driving shareholder value and believes that the strength of the Kotsovolos brand, the long-term track record of profitable delivery and leading market position are not currently reflected in the Group's valuation. Given the robust economic outlook for Greece and future growth opportunities for the business, the Board believes that now is the right time to explore all options for Kotsovolos.

[daveh]

Full year results:
https://www.investegate.co.uk/announcem ... cs/7615627

good in Uk, poor in nordics, no final dividend, share price down 10% today

Strengthening UK&I offset by poor Nordics performance

We Help Everyone Enjoy Amazing Technology

Summary

· Group full year profits at top end of guided range

· Transformation in UK&I delivering improved colleague and customer experience, and better profits

· Very challenging year for Nordics business, but decisive action on margins and cost underway from new leadership

· Growing recurring revenue generated from credit, services and iD Mobile

· Prudent and proactive actions taken to improve cash flow and further strengthen balance sheet

Financial performance

· Group LFL (7)%; Revenue (6)%

· Group adjusted profit before tax £119m, at top end of guidance, down £(73)m YoY due to lower Nordic profits

· UK&I adjusted EBIT £170m, +45% YoY - gross margin improvement and costs savings offset sales decline

· Nordic adjusted EBIT £26m, (82)% YoY - impacted by market challenges; taking action to improve performance

· Greece adjusted EBIT £18m, (14)% YoY - delivering another year of robust profits

· Statutory loss before tax of £(450)m, driven by previously announced non-cash goodwill impairment of £(511)m

· Year-end net debt of £(97)m, from £44m net cash in prior year

Outlook

· Trading at the start of the year has been consistent with the Board's expectations

· Nevertheless, the economic outlook remains uncertain in our main markets

· Accordingly, the business has been prudent in its planning, and has taken actions to maximise operating cashflow through continuous margin improvement, delivering cost savings and reducing capital expenditure

· Further actions to mitigate risk include agreeing the previously announced temporary covenant relaxation, and lowering cash contributions to the pension scheme

· Consistent with this cautious approach, the Board has decided not to declare a final dividend

· We expect these measures to strengthen our balance sheet and leave us well positioned if our market forecasts prove to be too prudent

[daveh]

AGM Trading statement:

https://www.investegate.co.uk/announcem ... nt/7740241

Trading update for 17 weeks ended 26 August 2023

Solid start to year's trading
We Help Everyone Enjoy Amazing Technology



· All guidance for the year remains unchanged


· UK & Ireland like-for-like revenue (2)%

o Revenue trends better in July & August than May & June

o Robust sales in domestic appliances and mobile, offset by weakness in other categories, especially computing

o Maintained gross margin improvements and delivery of cost saving targets

o Continued positive momentum in Services with credit adoption and protection services growing above expectations

o iD Mobile performing strongly


· Nordics like-for-like revenue (8)%

o Nordics revenue trends have improved slightly throughout period, although trading environment remains challenging

o Gross margin has improved due to actions taken including higher customer adoption of services

o Actions taken to deliver cost saving targets include: central headcount reduction, offshoring & contractor removal, IT procurement synergies, store lease & operating cost reductions, marketing expense rationalisation and goods-not-for-resale supplier consolidation.



· Greece like-for-like revenue +3%

o Trading continues to be robust despite short term impact from wildfires on customer footfall during August

o The strategic review of the Kotsovolos business is progressing in line with plan, a fuller update will be given in due course

[daveh]

Offers made for Greek business:
https://www.investegate.co.uk/announcem ... os/7806835

Currys announced on 16 June 2023 that it was commencing a strategic review to evaluate all options in relation to its market-leading business in Greece and Cyprus, Kotsovolos.

Further to speculation in local media and subsequent announcements by public companies, Currys confirms that the strategic review has elicited interest from several potential buyers of Kotsovolos, who have in turn submitted non-binding offers which the Board and its advisers are currently evaluating.

The strategic review remains ongoing, and Currys will provide a further update when appropriate. At this stage there can be no certainty as to the outcome of the review.

[idpickering]

Proposed Disposal of Kotsovolos.

Currys plc is pleased to announce that it has entered into an agreement for 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 ("Kotsovolos"), to Public Power Corporation S.A. ("PPC" or the "Purchaser") ("Disposal") for an enterprise value of €200 million (£175 million) on a debt free, cash free basis and excluding lease liabilities.

Following the Group's strategic review which was announced on 16 June 2023 and having now agreed the terms of a sale, the Currys board of directors ("Board") believes the proposed Disposal has strong strategic rationale and represents an attractive outcome for the Company's shareholders ("Shareholders"). The Disposal will simplify the Group's structure enabling it to focus on its larger markets of the UK & Ireland and Nordics, while simultaneously strengthening Currys' balance sheet, increasing flexibility to invest and grow the business and improve shareholder returns.

https://www.investegate.co.uk/announcem ... os/7857892

Ian (No holding).

[idpickering]

Solid performance in a tough environment.

https://www.investegate.co.uk/announcem ... nt/7941088

Ian.

[daveh]

To put a bit of meat on the bone:

Summary

· Group adjusted EBIT +7% YoY

· Further progress in UK&I, with strong momentum in Services: Credit adoption +330bps to 20.3%, Care & Repair adoption +340bps, iD Mobile subscriptions > 1.5m, +24% YoY

· Nordics profitability improved despite difficult consumer environment, with gross margins back up to the levels of two years ago

· First-half free cash outflow limited to £(10)m (H1 2022/23: £(86)m)

· After period closed, agreed sale of Greece for an enterprise value of £175m and net proceeds of £156m, representing an attractive return for shareholders. Greece will be included in continuing operations until transaction completes

Financial performance

· Group LFL revenue (4)%; Currency neutral revenue (4)%; Reported revenue (7)%

· Group adjusted loss before tax £(16)m, in line with last year

· UK&I LFL revenue (3)%, adjusted EBIT £15m, (40)% YoY - profit decline as anticipated as improved gross margin and costs savings of £53m were more than offset by inflationary pressures and non-repeat of £11m of mobile revaluations

· Nordics LFL revenue (6)%, adjusted EBIT £12m, +300% YoY - significant gross margin recovery of +190bps and cost actions offset continued market driven sales decline

· Greece LFL revenue (4)%, adjusted EBIT £4m, +300% YoY - delivering another period of robust profits

· Group statutory loss before tax of £(46)m, from £(548)m in prior year

· Period end net debt of £(129)m - first-half cash outflow of £(32)m, compared to £(149)m outflow in prior year

· Period end IAS 19 pension deficit £(190)m, from £(249)m at year end

Outlook

· Trading since the period end has been consistent with the Board's expectations

· No change to previous guidance

· Greece disposal expected to receive final approvals and to complete in first quarter of 2024

· Group expected to finish year in net cash position if disposal completes before year end

No interim dividend (after no final last year) and the proceeds of the sale of the Greek business will be used to pay down debt and pay into the pension fund.

Unfortunately I hold, fortunately in a taxable account so I will hold on to use the losses if needed to set against CGT sometime in the future.

[idpickering]

Strengthening performance in a tough environment

https://www.investegate.co.uk/announcem ... nt/7994804

Ian.

[daveh]

1/5 of shareholders (who voted) voted against the remuneration report:
https://www.investegate.co.uk/announcem ... nt/8019901

The Board of Currys plc ('the Company') welcomed the 78.9% vote in favour of our Directors' Remuneration Report ("the Report") at the Annual General Meeting ("AGM") held on 7 September 2023. The vote in favour included the support from the majority of our shareholders, however the Board acknowledged that a significant minority of shareholders did not support this resolution.

Since the AGM, the Company has sought further engagement with our shareholders to discuss the specific rationale for the votes against our report. This engagement included the Chair of the Board meeting with several shareholders and the Company writing to other shareholders who voted against the Report inviting them to meet with the Chair of the Remuneration Committee and/or provide feedback.

The concerns expressed by those shareholders that have provided feedback related to:

· the level of bonus payments for 2022/23 given the assessment of business performance; and

· the choice of measures included in both the short and long-term incentives.

[idpickering]

Statement re Possible Offer

Elliott Advisors (UK) Limited, acting on behalf of the funds it advises ("Elliott"), notes the recent press speculation regarding its intentions in relation to Currys plc ("Currys"). Elliott confirms that it is considering a possible cash offer for Currys. There can be no certainty that an offer will be made for Currys nor as to the terms on which any offer might be made.

A further announcement will be made as and when appropriate.

https://www.investegate.co.uk/announcem ... er/8043304

Ian (No holding).

[idpickering]

Response to announcement by Elliott Advisors (UK) Limited ("Elliott")

Currys notes the announcement made by Elliott regarding a proposal to acquire Currys.

The Board of Currys confirms that it received an unsolicited, preliminary and conditional proposal from Elliott regarding a possible cash offer for the entire issued and to be issued share capital of the Company at 62 pence per share (the "Proposal").

The Board of Currys considered the Proposal, together with its financial advisers, and concluded that it significantly undervalued the Company and its future prospects. Accordingly on 16 February 2024, the Board of Currys unanimously rejected the Proposal.

There can be no certainty that an offer will be made for Currys nor as to the terms on which any offer might be made.

https://www.investegate.co.uk/announcem ... d-/8043371

Ian (No holding).

[daveh]

BBC are also mentioning a Chinese takeover as well as Elliot's

https://www.bbc.co.uk/news/business-68335829

Price up 25-30% this morning. Still a long way to go for me to break even. I was only holding on as they are not sheltered so the loss could prove useful in the future.

Edit to add that there is an RNS on the JD.com offer:
https://www.investegate.co.uk/announcem ... n-/8044095

[stevensfo]

Statement re Possible Offer

Elliott Advisors (UK) Limited, acting on behalf of the funds it advises ("Elliott"), notes the recent press speculation regarding its intentions in relation to Currys plc ("Currys"). Elliott confirms that it is considering a possible cash offer for Currys. There can be no certainty that an offer will be made for Currys nor as to the terms on which any offer might be made.

A further announcement will be made as and when appropriate.

https://www.investegate.co.uk/announcem ... er/8043304

Ian (No holding).

I have to admit that it's many years since I saw a Currys, but I always thought they were owned by Dixons/PC World. Certainly Dixons and Currys always seemed to be the same. Lots of spotty youths desperate to sell extended warranties for everything I bought.

Steve

[idpickering]

STATEMENT FROM JD.COM ("JD.COM")

RESPONSE TO RECENT PRESS SPECULATION REGARDING CURRYS PLC ("CURRYS")

In response to the recent press speculation regarding Currys, JD.com confirms that it is in the very preliminary stages of evaluating a possible transaction that may include a cash offer for the entire issued share capital of Currys.

There can be no certainty that any offer will ultimately be made for Currys, nor as to the terms on which any offer might be made. A further announcement will be made if and when appropriate.

https://www.investegate.co.uk/announcem ... n-/8044095

Ian.

[daveh]

Have turned down an improved offer from Elliot:
https://www.investegate.co.uk/announcem ... on/8059003

Further to our announcement dated 17 February 2024, the Board of Currys notes the recent media speculation and confirms it has received a further preliminary and conditional proposal from Elliott Advisors (UK) Limited ("Elliott") regarding a possible cash offer for the entire issued and to be issued share capital of the Company at 67 pence per share (the "Second Elliott Proposal"). This follows the prior unsolicited proposal from Elliott at 62 pence per share (the "First Elliott Proposal") which was unanimously rejected by the Board of Currys on the basis that it significantly undervalued the Company and its future prospects.

So it mentioned in the press yesterday evening - just noticed the RNS

[idpickering]

Approval received for disposal of Kotsovolos

Currys plc is pleased to announce that Public Power Corporation S.A. has received unconditional approval from the Hellenic Competition Commission for the purchase of Dixons South East Europe A.E.V.E., the holding company of Currys' entire Greece and Cyprus retail business, trading as Kotsovolos.

The enterprise value of €200 million (£175 million), adjusted to include lease liabilities of €97 million (£85 million), implies a multiple of 6x adjusted EBITDA of €49 million (£43 million) and 14x adjusted EBIT of €21 million (£18 million) for the 52 weeks ended 29 April 2023.

The transaction is expected to complete in the first half of April. Net cash proceeds of the disposal, after taking into account transaction and separation costs, intercompany balances and cash in the business, are expected to be approximately £156 million (€179 million).

In the near term, it is the Board's intention to use proceeds to reduce net debt and the Group expects to finish the year with a healthy net cash balance.

https://www.investegate.co.uk/announcem ... os/8077554

Ian (No holding).

[idpickering]

Statement of intention not to make an offer

Elliott Advisors (UK) Limited, acting on behalf of the funds it advises ("Elliott") confirms that, following multiple attempts to engage with Currys' Board, all of which were rejected, it is not in an informed position to make an improved offer for Currys on the basis of the public information available to it. Elliott therefore confirms it does not intend to make an offer for Currys.

https://www.investegate.co.uk/announcem ... r-/8079728

Ian (No holding in either share).

[idpickering]

End of offer period and trading update

End of offer period

Currys plc ("Currys") notes the announcement by Elliott Advisors (UK) Limited ("Elliott") on 11 March 2024, and the announcement by JD.com on 15 March 2024, stating that each of Elliott and JD.com, respectively, do not intend to make an offer for Currys, and that they are consequently bound by the restrictions under Rule 2.8 of the City Code of Takeovers and Mergers.

The Board of Currys also confirms that no proposal has been received from JD.com.

Trading update

In the period since Peak1 trading, sales have been stronger than the Group's expectations.

In UK & Ireland and Nordics, like-for-like sales are positive and gross margins remain robust. Combined with continued strong growth in Services which support both stronger margins and Customers for Life, Group adjusted profit before tax is now expected to be at least £115m.

The disposal of Greece is on track to complete in the first half of April, resulting in the Group finishing the financial year in a net cash position.

https://www.investegate.co.uk/announcem ... te/8091514

Ian (No holding).

[idpickering]

Investor seminar.

Currys plc is pleased to announce that Dan Homan, Director of Investor Relations, will provide a live presentation via the Yellowstone Advisory platform on Tuesday 23rd April at 12.30pm.

The presentation is aimed at those less familiar with Currys and is open to all existing and potential shareholders. Questions can be submitted pre-event by emailing info@yellowstoneadvisory.com or at any time during the live presentation.

https://www.investegate.co.uk/announcem ... ar/8146046

Ian (No holding).