Currys’ gross sales slip amid strain from ‘depressed demand and high inflation’
E
lectronics retailer Currys has revealed a dip in gross sales and income because it cautioned the financial backdrop stays unsure.
Chief govt of the enterprise Alex Baldock mentioned it’s buying and selling in a troublesome surroundings because it battles “depressed demand, high inflation and unforgiving competition”.
The London-listed firm revealed that adjusted pre-tax income dropped by 38% to £119 million for the 12 months to April 29, because of decrease income in its Nordic enterprise.
It instructed shareholders the efficiency was “at the top end of the guided range”.
Currys additionally reported a £450 million statutory pre-tax loss for the 12 months, however mentioned this was pushed by a £511 million non-cash impairment in its UK enterprise linked to the merger of Dixons and Carphone in 2014.
UK income rose by 45% 12 months on 12 months, the corporate mentioned, because it was boosted by important value financial savings to offset decrease gross sales.
The retailer mentioned gross sales fell by 6% to £9.5 billion over the 12 months to April, with an 8% decline in its UK and Ireland operation.
It added that buying and selling over the beginning of the brand new monetary 12 months has been “consistent” with the board’s expectations.
“Nevertheless, the economic outlook remains uncertain in our main markets,” it added.
The group mentioned it could not declare a closing dividend fee to shareholders on account of the unsure backdrop.
Mr Baldock mentioned: “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.”