Shares at electrical retailer Currys surged after it reinstated a dividend, saying it expects a higher profit this year as it keeps a tight lid on costs.

The British company, which operates about 16 stores in the Republic, said on Wednesday it expects adjusted pretax profit of at least £145 million (€172 million) this year, higher than a year earlier and in line with analyst expectations.

The company will reinstate a dividend – the first since 2022 – of about 1.3 pence in July, when it announces it full-year results.

Shares rose as much as 13 per cent in morning trade and were up almost 75 per cent in the past 12 months to Tuesday’s close.

Currys’ performance comes amid a weak outlook for consumer spending. British retailers are warning the Labour government’s tax hikes will force them to raise prices.

The changes will mean more automation and bringing operations offshore, as well as “some price rises”, chief executive Alex Baldock said on a call with reporters. “We’re going to mitigate as much as we can through cost reductions of our own,” he added.

Like-for-like revenue increased 2 per cent in the UK and Ireland in the 10 weeks to January 4th, buoyed by strong sales in mobile and gaming, helping to offset weak TV sales, the company said. Sales in the Nordics, where it has struggled to compete with discounters, rose 1 per cent.

Currys fended off takeover interest from US investment firm Elliott Investment Management. At the time the retailer said Elliott’s offers undervalued the company. Currys’ shares have since traded higher than the firm’s final offer of 67 pence. – Bloomberg