Currys has raised its profit outlook for 2022-23 after better-than-expected trading in the UK in the final two months of the year.
The electricals retailer had previously lowered its guidance in March due to the weak performance of its Nordics business, but said today it now expected to report a year to April 29 adjusted pre-tax profit of £110 to £120m.
This is ahead of previous guidance of around £104m, but down from the £186m made in 2021-22.
Currys has launched a ‘Quiet Hour’ in stores across the UK in a bid to create a more inclusive shopping experience for neurodiverse customers.
For the first hour of the day until 11am, the electrical retailer will reduce noise in-store, keeping lights low and making sure there are no flashing screens to ensure a calmer place to shop.
Currys was the fourth busiest website in the UK over Black Friday, with 8 million customers online. Currys has also appointed former Dyson exec Pamela Puncher as its new head of delivery.
Puncher spent four years at Dyson, holding roles such as director of programmes and project management, and owner experience programme manager, global IT.
Currys plc, the well-known electrical retailer in the UK, is using Emplifi Live Advisor to deliver live customer care on demand. Through Emplifi’s leading Live Advisor solution, which came through the acquisition of Go Instore in September 2021, Currys customers can connect to product experts not only for live demos and consultations, but also for post-purchase care.As the UK’s largest tech retailer, their mission is to help customers enjoy amazing technology. This means not only helping our customers choose shiny new kit, but also making sure they get the most out of it. We know that our customers find new tech exciting but also often confusing and need help when things don’t go to plan. Our new RepairLive service provides customers with expert advice to help them to identify the cause of a fault, undertake DIY fixes, as well as to assist with arranging a repair or return of their product,” said Gillian Geraghty, Ecommerce and Omnichannel Director. “By leveraging the LiveAdvisor technology for RepairLive, we’re able to provide our customers with access to fast, efficient support without them or their tech having to leave the house.”
Mindtree announced that it has enabled the UK’s leading retailer of technology products and services, Currys, to deliver a connected and highly personalised omnichannel shopping experience to its customers across multiple markets.
As part of the multi-year engagement, Mindtree has leveraged its extensive retail and digital expertise to design and implement a comprehensive omnichannel solution that provides a unified customer experience across rapidly converging online, mobile, and in-store shopping, while driving cross-channel fulfilment and inventory optimization for Currys. Through unified consoles, Mindtree has also empowered Currys’ more than 32,000 colleagues spread across the company’s retail stores, offices, contact centres, supply chain, and distribution centres to better support the omnichannel customer journey with enhanced speed and quality of service.
The solution, built using state-of-the-art Salesforce and Mulesoft technologies, has helped Currys become more data-driven. This supports its strategy to build customers for life by getting to know its customers better and driving meaningful engagement with them, while also making it easier for those customers to shop with Currys, thus maximizing cross-sell and upsell opportunities and post-sales lead generation. Mindtree and Currys are continuing to collaborate on further innovations in mnichannel retail to enhance productivity and flexibility.
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.”
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
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
Currys said sales in the UK and Ireland fell 4% to £2.5 billion for the six months to the end of October compared with last year.However, underlying profits in the UK and Ireland rose from £25 million to £33 million following cost-cutting across the business.
Currys, Britain’s biggest electricals retailer, is well stocked despite supply chain disruption and confident it will enjoy a strong Black Friday and Christmas trading period, its boss said on Thursday.
British retailers are grappling with delays in their international supply chains that are being compounded by labour shortages in the UK transport and warehousing networks.
Alex Baldock, CEO of Currys, which was previously called Dixons Carphone, said the firm had worked hard to mitigate the risks and as UK market leader had an advantage with suppliers, such as Samsung Electronics, Hewlett Packard and Arcelik, in having first call on scarce stock.
“It’s been incredibly hard work but we’re in quite good shape. We’ve got more stock in the business now than we had last year and we’re confident that we’re going to have a strong peak trading period,” he told reporters at Currys’ Staples Corner store in north west London, where he hosted a Capital Markets Day.
“Are we going to have every item in every sub-category that we would ideally like in every store, probably not,” he said.
Currys Plc announced new rapid delivery via Uber a three month trial in London starts November 16th
Currys the UK retailer, has today launched its first customer loyalty scheme to support customer retention
Currys Perks was developed for customers by customers. Research was undertaken to curate a loyalty club that shoppers would most value and want to be a part of. The three main benefits are:
Member discounts: Relevant and interesting offers and deals, exclusive to members
Monthly surprises: From new tech giveaways to a ‘win your basket’ and much more
Partner benefits: additional perks from some of the biggest brands – starting with free three-month Apple TV subscription