A recent revival in Currys (CURY) shares has petered out in spectacular fashion as a previously reliable part of the business
has become more and more of a problem.

A tough consumer environment in the Nordics region which had initially been flagged as a short-term issue linked to competitors selling off excess stock at a discount now looks more troubling.On Currys said that its Nordics business performance ‘remains very challenging,’ so much so that they have recently appointed a new CEO for the region; Frederik Tonnesen.

Tonnesen’s appointment is an attempt by Currys to restore healthy levels of profit and cash generation.

Since the start of the year, the Nordics business has worked hard to reduce marketing spend, remove spend on contractors and there are further cost savings actions planned.

However, this ‘Nordic drag’ has meant the company forecasting pre-tax profit for the current financial year to 30 April at the lower end of the previously guided range of £100-£124 million with net debt materially higher at up to £150 million compared with a previous steer of less than £100 million.

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