Sales, earnings spark at Currys

(Sharecast News) - Electricals retailer Currys posted a jump in full-year earnings on Thursday, despite cost headwinds and a "subdued" consumer backdrop in the UK. Group revenues in the year to 2 May rose 6% to £9.2bn, or by 4% on a like-for-like basis, while adjusted earnings before interest and tax were 13% stronger at £220m. Adjusted pre-tax profits jumped 18% at £191m.

Within that, revenues in the UK and Ireland came in at £5.4bn, a 3% rise on an underlying basis. Currys said that the consumer backdrop remained "subdued" but that it had benefited from strong performances in new categories and in business-to-business. Adjusted EBIT rose £5m to £158m, as higher operating and staff costs were offset by gross margin improvements and operating leverage.

In the Nordics, revenues were £3.8bn, up 6% on a like-for-like basis, while EBIT rocketed 26% to £97m.

Outgoing chief executive Alex Baldock said: "Our performance continues to strengthen; profits and cashflow are healthily up, supported by a balance sheet that has never been stronger.

"The outside world remains uncertain and we are not counting on it to do us any favours. Still, there is much more in the tank here. Growth opportunities such as B2B have almost trebled the market accessible to us, are driving topline today and have much further to go."

Looking to the current year, Currys flagged that trading had been "very solid" since the period end. It continued: "The group will update the market on full-year profit expectations after the peak trading period, but at this early stage in the year, it is comfortable with market expectations."

Baldock, who is widely recognised as reviving Currys' fortunes, is leaving at the end of August after eight years to take up the top job at health and beauty retailer Boots. He is being replaced by Fredik Tonneson, the current head of the Nordics business.

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