Currys posts rise in profit but warns of ‘uncertain’ outlook

Currys has posted an increase in full-year earnings but cautioned that “the outlook for consumer spending is uncertain” as the cost-of-living crisis mounts.

The electricals giant registered a 19% uplift in adjusted pre-tax profit to £186m in the year to April 30. Adjusted EBIT climbed 5% to £274m in what it called “a year of significant change, uncertainty and disruption”.

Currys’ core UK and Ireland business delivered a 21% improvement in adjusted EBIT to £111m, while earnings from its international operations contracted 4% to £163mAlex Baldock, Group Chief Executive
“These strong results show the vital role that technology plays in millions of lives, and that more and more
customers are turning to Currys to help them enjoy that technology to the full.
We owe this performance to our thousands of capable and committed colleagues, who’ve built a stronger Currys.
They’ve loved seeing customers returning to our stores in droves, and helping them with face-to-face expert advice
and the full range of our services that ensure customers stick with us. Stores, in tandem with online, give our
customers the omnichannel best of both worlds they clearly prefer.
A stronger business allows us to help customers through the cost of living crisis. Our well-established price promise
means customers “won’t get it cheaper. Full stop” on all products and today we’re going even further with “2021
Price Lock”, our new price freeze on dozens of great products. We’re investing in our energy-efficient “Go Greener”
range. We’re doing more to help customers spread the cost, announcing “12 month Pay Delay” on every purchase
over £99. And we’re doubling down on giving longer life to the technology customers already have; as leaders in
protection, repair, trade-in and recycling, we’re uniquely placed to do so.
Our scale as an international market leader, our grip on costs and our strong relationships with suppliers will allow
us to manage inflationary headwinds and keep amazing technology within reach of everyone, even now. That’s
what Currys exists to do, and it’s never mattered more.”
Key Highlights
 Strong operational and financial performance; adjusted EBIT margins improved to 2.7% (2020/21: 2.5%)
 Record highs in colleague engagement and customer satisfaction
 Group store sales up +24% (UK&I +61%), higher than expected as customers rediscovered the benefits of stores
 International: Generated 46% of sales and 59% of adjusted profits; entered new market with two stores in Cyprus
 UK&I: Returned to market share growth; sustainable in-year cost savings of £69m
 Repaired over 1.7m pieces of tech during the year
 Ended year with good availability and prudent stock levels
Financial Performance
 Group LFL (3)% (Yo2Y +10%); Revenue (2)% (Yo2Y flat)
 Group adjusted PBT £186m included a level of unexpected network debtor revaluations and settlements (2020/21:
 Group Profit before tax £126m (2020/21: £33m)
 Free cash flow £72m inc £(88)m working capital outflow (2020/21: £438m inc £454m working capital inflow)
 Year-end net cash £44m (2020/21: £169m) with average net cash £290m, compared to average borrowings of over
£350m two years ago
 IAS 19 Pension liability reduced to £(257)m (2020/21: £(482)m)
 £78m returned to shareholders in dividends and buybacks, proposed final dividend of 2.15p to take full year
dividend to 3.15p, +5% YoY and remainder of buyback to be executed
All figures are year-on-year unless stated. There are a number of non-GAAP measures and alternative profit measures “APMs” discussed within this announcement.
Adjusted results are consistent with how business performance is measured internally and presented to aid comparability of performance. Refer to the glossary and
definitions section set out at the end of this report for further details on definition, purpose, and reconciliation to nearest statutory measure

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