Electricals retailer Currys has cut its annual profit outlook after diving into the red during the first half of its financial year.

The UK-based group, which has more than 800 stores alongside its online operation, reported an adjusted pre-tax loss of £17m for the six months to 29 October compared to a profit of £48m a year earlier.

It blamed the performance on its international business, mainly located on the continent, where it said that fierce discounting by rivals had hammered margins and revenues.

A fall in sales within its UK and Ireland (UK&I) division, on the other hand, was offset by cost-cutting and higher gross margins.

Business was harmed across the group by the cost of living crisis with like for like sales down 8% on the same period last year.

Currys chief executive, Alex Baldock, said in a statement that the international business was particularly hurt by heavy promotional activity among domestic competitors with excess stocks.

“It’s a tough environment, and we are planning for that to continue.

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“Still, we expect to maintain the trajectory of improving UK&I profitability and a robust recovery in International profits.

“Our ever-improving customer experience and strong Services give us confidence in improving margins. And we will continue our excellent progress on cost efficiency.”

Currys said it now expected full year profit before tax to be between £100m-£125m – down from the previously guided £130m-£150m range.

Shares, down by more than 40% ahead of the trading update, fell 7% at the open.

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