Currys’ sales slip amid pressure from ‘depressed demand and high inflation’
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Electronics retailer Currys has revealed a dip in sales and profits as it cautioned the economic backdrop remains uncertain.
Chief executive of the business Alex Baldock said it is trading in a tough environment as it battles “depressed demand, high inflation and unforgiving competition”.
The London-listed company revealed that adjusted pre-tax profits dropped by 38% to £119 million for the year to April 29, due to lower profits in its Nordic business.
It told shareholders the performance was “at the top end of the guided range”.
Currys also reported a £450 million statutory pre-tax loss for the year, but said this was driven by a £511 million non-cash impairment in its UK business linked to the merger of Dixons and Carphone in 2014.
UK profits rose by 45% year on year, the company said, as it was boosted by significant cost savings to offset lower sales.
The retailer said sales fell by 6% to £9.5 billion over the year to April, with an 8% decline in its UK and Ireland operation.
It added that trading over the start of the new financial year has been “consistent” with the board’s expectations.
“Nevertheless, the economic outlook remains uncertain in our main markets,” it added.
The group said it would not declare a final dividend payment to shareholders as a result of the uncertain backdrop.
Mr Baldock said: “We’ve had a very mixed year.
“Our strengthening UK and Ireland performance shows our strategy is working well. But our long track record of success in the Nordics was brought to an abrupt halt.
“Our market has been tough everywhere, with depressed demand, high inflation and unforgiving competition.”
