Currys begins strategic review of Greek business

Currys has launched a strategic review of its Greek operations, with its sale considered one of the possible outcomes.

The electricals retailer said Kotsovolos’s brand strength, dominant market position, and long-term record of profitability are not demonstrated in the firm’s valuation.

It added that the division’s opportunities for further growth and the Greek economy’s upbeat outlook meant it was ‘the right time to explore all options’.

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Founded in Athens in 1950, Kotsovolos has over 90 stores across Greece and Cyprus selling electrical goods but also providing repair and installation services.

The company struck a strategic partnership in 2000 with Dixons Group, which eventually acquired a majority stake four years later.

Dixons Group subsequently merged with Carphone Warehouse to create Dixons Carphone in 2014 before rebranding as Currys two years ago.

Alex Baldock, chief executive of Currys, said the firm’s ‘performance is robust in UK&I, where our transformation is working, and we’ve taken action to drive a profitable recovery in the Nordics’.

He added: ‘Kotsovolos is an excellent business with a bright future, and now is the right time to assess how best to take Kotsovolos forward to maximise value for our shareholders.’

Last month, Currys revealed the business saw a 12 per cent growth in like-for-like revenues for the year ending 29 April, while sales across the British Isles and Nordics region fell by 7 per cent and 10 per cent, respectively.

Trading across Scandinavia has been weighed down by inflationary pressures and the accumulation of excess stock after holding prices steady even as demand slowed and competitors resorted to susbtantial discounting.

Consequently, the company’s total turnover dropped by 7 per cent last year, although better-than-forecast sales across the UK and Ireland led to an uplift in its annual earnings guidance.

The group now expects to report adjusted pre-tax profits of between £110million and £120million for the period, compared to a prior forecast of around £104million.

Currys shares were 0.9 per cent higher at 52.05p on Friday morning, although they have declined by around a quarter in the past 12 months and approximately 60 per cent in the last two years.