Currys, a prominent electrical goods retailer and one-time subject of takeover attempts, anticipates another year of profits bolstered by AI-driven devices following a steady commercial increase that brought a 10% profit growth in 2023-24. The corporation trades in a wide array of consumer electronics, including televisions, fridges, computers, and laundry appliances. Its trade performance in the early months of the new financial year aligns with its prior projections.
Currys operates 16 stores in the Republic and is charting careful yet ambitious plans for the forthcoming year, with aims to elevate profits and cash inflow while gradually returning to normal investment levels, according to CEO Alex Baldock. Baldock expressed great enthusiasm for AI-empowered technology, designating it as the most riveting new product wave since 2010’s tablets, with Currys poised to reap the maximum benefits.
In the year leading up to April 27, Currys reported an adjusted pre-tax profit of £118 million (€139 million), an upswing from the £107 million recorded in 2022-23, and congruent with revised guidance from the previous month. This summation was realised despite a 4% drop in revenue amounts to £8.48 billion. Like-for-like sales reduced by 2% in the UK and Ireland, and 3% in the Nordics, but displayed improvements over the course of the year. Both divisions saw a rise in their gross margin, thereby compensating for the sales slump.
The UK market was hampered by diminishing demand for non-essential items due to climbing inflation and interest rates. Nonetheless, average UK earnings are currently escalating faster than inflation, and consumer confidence in June rebounded to its loftiest since November 2021, as per the country’s longest-standing consumer trust survey that was released last week.
Shares in Currys, 11% of which lie with Mike Ashley’s Frasers Group, have appreciated by 44% annually. Earlier in the year, Currys averted acquisition overtures from US investor Elliott Advisors and China’s e-commerce giant JD.com, both lured by Currys’ expansive distribution network.
In April, Currys finalised the sale of its Greek operation, turning a profit of £156 million. Concurrently, competitor AO World expressed optimism for profit expansion in the currently ongoing financial year. This information is sourced from Reuters and is copyrighted by Thomson Reuters 2024.