Technology retailer Currys has reported annual profits of £162mn, as it benefits from recurring services revenue – which increased by 12% – and a 14% jump in credit sales to £1.1bn.
The group, which operates across the UK and Nordics, stressed it has faced “tough market” conditions in both regions but still maintained growth. UK&I revenue grew by 6% while Nordic revenue remained flat.
Currys explained that the UK consumer environment was “resilient”, as cost inflation softened and interest rates started to fall. The Nordics consumer environment, though subdued, slowly improved throughout the year, as interest rates started to fall in most countries.
Sales growth and gross margin improvements helped Currys’ adjusted EBIT in the UK and Ireland increase by 8% to £153mn. The company also gained 50 basis points of market share in key categories, driven by strong performance in gaming, TVs, laundry, and computing.
Alex Baldock, group chief executive, Currys, said: “Customers are increasingly adopting our credit, setup, installation, repair and connectivity services, building valuable recurring revenues for Currys.
“We’re now seen as the home of AI-enabled tech and our investments in new product categories and serving B2B customers are showing early signs of success.
“A new generation of customers is discovering Currys, thanks to brilliant social campaigns which have delivered industry-leading levels of engagement.
“As ever, my heartfelt thanks go to the thousands of capable and committed colleagues who are building an ever-stronger Currys. We’re pleased with our progress, but even more excited about the opportunities ahead of us.”
Looking ahead, Currys is targeting at least 3% adjusted EBIT margin in both the UK&I and the Nordics.
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