Currys is considering selling Greek company Kotsovolos as the electronics retailer launches its strategic review
- Kotsovolos saw a 12% increase in like-for-like revenue for the year ended April 29
- The division sells electrical goods in more than 90 stores throughout Greece and Cyprus
- Currys CEO: ‘Kotsovolos is an excellent company with a bright future’
Currys has launched a strategic review of its Greek operations, considering the sale as one of the possible outcomes.
The electronics retailer said Kotsovolos’ brand strength, market dominance and long-term profitability are not demonstrated in the company’s valuation.
It added that the division’s potential for further growth and the optimistic outlook for the Greek economy meant that now was “the right time to explore all options.”
Troubles: Currys CEO blamed supply chain issues and ‘uneven customer demand’ for weakness in tech goods market
Founded in Athens in 1950, Kotsovolos has more than 90 stores in Greece and Cyprus selling electrical goods, as well as providing repair and installation services.
The company entered into a strategic partnership with Dixons Group in 2000, which eventually acquired a majority stake four years later.
Dixons Group then merged with Carphone Warehouse to create Dixons Carphone in 2014 before rebranding as Currys two years ago.
Currys chief executive Alex Baldock said the company’s “performance is robust in UK&I, where our transformation is working, and we have taken action to drive a profitable recovery in Scandinavia”.
He added, “Kotsovolos is an excellent company with a bright future, and now is the right time to assess how we can best move Kotsovolos forward to maximize shareholder value.”
Last month, Currys revealed that the company saw sales growth of 12 percent for the year ended April 29, while sales in the British Isles and the Nordic region fell 7 percent and 10 percent, respectively.
Trade across Scandinavia was squeezed by inflationary pressures and the accumulation of excess inventories after prices held steady, even as demand slowed and competitors resorted to heavy discounting.
As a result, the company’s total sales fell 7 percent last year, although better-than-expected sales in the UK and Ireland led to an increase in annual profit expectations.
The group now expects to report adjusted pre-tax profits of between £110m and £120m for the period, up from a previous forecast of around £104m.
Curry’s Stocks were up 0.9 percent Friday morning at 52.05 pence, though they’re down about a quarter over the past 12 months and about 60 percent over the past two years.