Currys warns of “inevitable” price rises after Budget impact
Currys has warned that the Government’s recent Budget measures could impact its business by as much as £32 million from next year.
In its half year results announcement, the electricals and computing retailer said this will include a £9 million rise in wages due to National Living Wage increases, as well as a £12 million uplift in National Insurance contributions.
It also highlighted a £9 million impact from the pass through of these costs from outsource partners and a £2 million rise from the inflation-based increase in business rate taxes.
While Currys will look to offset some of these costs through further cost saving measures, it said some price rises will be inevitable.
In the six months to 26 October 2024, Currys’ group revenue edged up 1% to £3.9 billion after like-for-like UK and Ireland revenue rose by 5%. The group said mobile was the strongest performing category in its home market, although consumer electronic sales also saw good growth.
However, like-for-like sales in the Nordics region declined by 2%, with all product categories except consumer electronics experiencing a decline in sales. Computing and domestic appliances were the worst performing categories, while mobile proved more resilient.
Meanwhile, the group posted an adjusted pre-tax profit of £9 million compared to a loss of £16 million in the prior year.
Alex Baldock, Currys group chief executive, said: “We’re very encouraged by our progress. Currys’ performance continues to strengthen, with profits and cashflow growing significantly, and the group’s balance sheet is strong.
“In the UK&I, we made big improvements to both online and stores channels, customers continued to take more of the solutions and services that are valuable to them and to us, and such growth drivers as B2B and iD Mobile performed well.
“Looking ahead, we’re confident of continuing our progress, and expect to grow profits and cashflow as promised this year.”
