James Davy
LONDON (Reuters) – British electronics retailer Currys, which was a takeover target earlier this year, saw AI-enabled machines contribute to a further rise in profits following a steadily improving 10 percent rise in performance in 2023-24.
The group, which sells refrigerators, washing machines, dryers, televisions, computers and other home appliances, said trading at the start of the new financial year was in line with expectations.
“We are planning carefully and confidently for the year ahead, to grow both profits and cash flow whilst cautiously returning to more normal investment levels,” CEO Alex Baldock said.
He said AI-enabled technology was “the most exciting new product cycle since the tablet in 2010” and that Currys was “best placed to benefit from it”.
Currys posted adjusted pre-tax profit of 118 million pounds ($149 million) in the year to April 27, in line with guidance revised upwards last month and up from 107 million pounds for the 2022-23 financial year.
This was achieved despite revenue falling 4% to £8.48 billion, with like-for-like sales in the UK and Ireland division down 2% and in the Nordics down 3%, despite improvements throughout the year.
Gross profits increased in both divisions, offsetting declines in sales.
The UK was held back by weak demand for discretionary products due to high inflation and rising interest rates.
However, the UK’s longest-running consumer confidence survey, published last week, showed that average wages in the UK are now rising faster than inflation and consumer sentiment recovered in June to its highest level since November 2021.
Currys shares, 11% owned by Mike Ashley’s Frasers Group, are up 44% year-on-year.
Earlier this year, Currys fended off takeover bids from U.S. investor Elliott Advisors and China-based online retailer JD.com, both of which were attracted by Currys’ extensive distribution network.
In April Currys completed the sale of its Greek business, raising proceeds of £156m.
Rival AO World also said on Wednesday it was confident of profit growth this financial year.
(1 dollar = 0.7915 pounds)
(Reporting by James Davey; Editing by Sarah Young and Mark Potter)