Currys PLC on Thursday reported a decline in annual revenue but growth in profit, and it said the new year has started strongly.
Revenue in the year ended April 27 fell 4.5% to £8.48 billion from £8.87 billion.
It swung to a pretax profit of £28 million, from a loss of £462 million.
Its bottom line was aided by the non-repeat of a £511 million non-cash impairment charge booked last year in its UK & Ireland operating segment.
This time around, UK & Ireland revenue declined 1.9% to £4.97 billion. Nordics revenue was down 7.9% to £3.51 billion.
‘Our performance continues to strengthen. We’ve kept up our encouraging momentum in the UK&I, our Nordics business is getting back on track, and we’re stronger financially,’ CEO Alex Baldock said.
‘Encouraged as we are by our progress, we know we can go further. For one thing, we expect AI-powered technology to be the most exciting new product cycle since the tablet in 2010. With our partnerships, scale and expert colleagues to demystify AI, we’re best-placed to benefit.’
Like last year, it decided against a final dividend.
Currys added: ‘Currently, the group continues to benefit from the relaxed bank covenants and lower pension contributions that were negotiated in spring 2023, although pension contributions will increase to £50 million this year, and capital expenditure will rise back towards normalised levels. In this context, the board has taken a prudent decision not to declare a dividend at this year-end. Providing trading is in line with expectations, it is the board’s intention to announce a recommencement of shareholder returns during the next twelve months.’ Currys said trading in the early weeks of the new financial year ‘has been in line with expectations’.
Looking ahead, the company said trading at the start of the new financial year has been in line with expectations, as it anticipates profit and free cash flow growth. Further, it targets continued growth in high margin and recurring revenue services, aiming for at least two million iD Mobile subscribers before year end.
Currys shares fell 5.3% to 72.00 pence each on Thursday morning in London.
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