Currys has released its latest half year results, showing that group revenue increased by one per cent to £3.9 billion and UK and Ireland revenue rose by five per cent.
In the six months to 26 October 2024, UK&I adjusted EBIT increased +53 per cent year-on-year thanks to “stabilised” market share and strong performance from the retailer’s Mobile and B2B business that further boosted growth.
In addition, operating costs reduced as a proportion of sales as cost increases were more than offset by operating leverage, the company reported.
“We are very encouraged by our progress,” said Alex Baldock, Group Chief Executive. “Currys’ performance continues to strengthen, with profits and cashflow growing significantly, and the Group’s balance sheet is strong.
“We were well prepared for our Peak trading period, with healthy stock and market-beating deals that show our unmatched importance to suppliers. One highlight is the rising demand for AI laptops, where we enjoy over 75 per cent market share in the UK.”
Mr Baldock (pictured left) added: “AI is a trend with a lot further to run.”
Looking ahead, the Currys boss said he is confident of “continuing progress”, and the company expects to grow profits and cashflow this year. This is despite “new and unwelcome headwinds” from UK government policy, he added…
“These will add cost quickly and materially, depress investment and hiring, boost automation and offshoring, and make some price rises inevitable.”
The retailer’s report suggested that the Government’s recent Budget measures could impact its business by as much as £32 million from next year. It said this will include a £9 million rise in wages due to National Living Wage increases, as well as a £12 million uplift in National Insurance contributions and a £2 million rise from the inflation-based increase in business rate taxes.
“Despite this, we remain confident,” Mr Baldock added. “Our aim is to continue growing sources of higher margin, recurring revenue such as credit, protection plans and connectivity so that over time our business mixes away from single product purchases to the more predictable, recurring and higher margin revenue streams of solution sales.”
Within the past six months, Currys “re-engineered” more than 80 of its UK stores to dedicate more space to more profitable categories, and to allow room for further expansion. It also added electronic shelf labelling to 60 UK stores.
As well as this, the retailer reported that its installation services continue to be popular; 32 per cent of its UK “big box” deliveries now include installation, which is a rise of +410bps year-on-year.
