Currys swings to annual profit while shoppers turn to credit to fund tech

The electricals retailer ended the year on a stronger financial footing after getting its loss-making Nordics business ‘back on track’.

Currys has hailed a return to an annual profit after shedding business costs (Currys/PA) (PA Media)

Currys has hailed a return to an annual profit after shedding business costs, and revealed it saw more customers turn to credit to fund their tech purchases.

The electricals retailer ended the year on a stronger financial footing after getting its loss-making Nordics business “back on track” and offloading its Greek arm.

It reported a pre-tax profit of £28 million, a significant improvement from the £462 million loss reported the year before.

The company, which has 719 stores around the world, said it had saved hundreds of millions of pounds over the past few years by trimming costs across its UK and Ireland operations.

It had also focused on improving the performance of its second biggest market in Nordic countries including Norway, Sweden, Finland and Denmark.

But Currys reported slower sales compared with the previous year as consumers continued to rein in budgets as they felt the bite from higher living costs.

It reported revenues of £8.5 billion in the year to April 27, down 2% at constant currency from the previous year.

Phones and mobile services sold well but demand for domestic appliances weakened and electronics and computer sales fell more steeply.

The retailer said the use of credit climbed in the UK and Ireland to make up a fifth of purchases.

Currys offers buy now, pay later credit plans for shoppers, and makes money from interest payments if consumers do not pay back in full within an agreed timeframe.

Chief executive Alex Baldock said: “Our performance continues to strengthen. We’ve kept up our encouraging momentum in the UK and Ireland, our Nordics business is getting back on track, and we’re stronger financially.

“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.”