Currys full-year pre-tax profit jumped 10% year-on-year as its trading momentum improved throughout the year.
In the year to April 27, the electricals giant made an adjusted profit before tax of £118m, in line with its guidance which was upgraded last month and up from the £107m made in 2022/23.
Currys’ CEO Alex Baldock said: “Our performance continues to strengthen. We’ve kept up our encouraging momentum in the UK and Ireland, our Nordics business is getting back on track, and we’re stronger financially. ”
Despite the “encouraging momentum”, UK and Ireland like-for-like revenue slipped 2% over the year, with adjusted EBIT down 16% year-on-year to £14m, though Currys attributed the drop to high inflation and rising interest rates, which negatively impacted consumer confidence and demand.
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However, it achieved underlying gross margin improvement and cost savings, achieved through higher adoption of services and solutions, better monetisation of an enhanced customer experience and a focus on more profitable sales.
Meanwhile, Nordics like-for-like revenue also fell by 3%, but adjusted EBIT soared 135% year-on-year, driven by a disciplined focus on margins and costs.
Baldock added: “We can see our progress in ever-more engaged colleagues, more satisfied customers and better financial performance.”
“Continued growth in sales of solutions and services were particular highlights: they’re good for customers, margins and recurring revenues, and they lean on Currys’ competitive strengths. We’re planning prudently but confidently for the year ahead, on course to grow both profits and cashflow while carefully stepping back up to more normal investment levels.
“Encouraged as we are by our progress, we know we can go further. For one thing, we expect AI-powered technology to be the most exciting new product cycle since the tablet in 2010. With our partnerships, scale and expert colleagues to demystify AI, we’re best-placed to benefit.”
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