Currys blames ‘depressed demand, high inflation’ for poor performance

Currys has announced that its revenue for its latest financial year has decreased by six per cent, with group like-for-like sales down by seven per cent.

The retailer also reported that profits before tax stood at £119m, at top end of guidance, down £73m year-on-year due to lower profits in the Nordics.

Following the release of the report, the retailer’s stock price fell from £49 to £45, this is an 8.5 per cent decrease, as it fails to provide any dividends to shareholders.

Alex Baldock, Group Chief Executive, said: “We have had a very mixed year. Our strengthening UK&I performance shows our strategy is working well.

“Looking ahead, we are wary of optimism about consumer spending power. Accordingly, we are being prudent in our planning, and in further strengthening our balance sheet. Our focus is on continuing a very encouraging trajectory in the UK&I while we get the Nordics back on track, and being attentive to mitigating any downside risk.”

Currys has also outlined its plans to decrease future spending by 25 per cent, compared to the previous year.

However, the retailer announced that its members of staff felt increasingly positive within their stores. The Group eSat, which helps evaluate how happy employees are, increased +1 to 78 and puts Currys in the top 25 per cent of all businesses. In the UK&I eSat has increased to 81, putting the UK business in the top 10 per cent of all businesses.

“Our market has been tough everywhere, with depressed demand, high inflation and unforgiving competition,” said Mr Baldock. “I am proud of how our colleagues rose to this challenge, continuing to bring the benefits of technology within easy reach of millions of customers – to you all, thank you.”

In the report, Currys outlined its intention of increasing its store share of the business as it predicts that this is the area of the business that will increase profits.

Mr Baldock said: “The year has been mixed. We’ve shown, through our strengthening UK&I results, that our long-term strategy is working and is now delivering improved financial results as well as happier colleagues and customers.”