By James Davey
LONDON (Reuters) -British electricals retailer Currys, a takeover target earlier this year, forecast AI-powered gadgets would help to deliver another year of profit growth after a 10% rise in 2023-24 that reflected a steady improvement in trading.
The group, which sells fridges, washing machines, tumble driers, televisions, computers and other consumer electricals, said trading in the early part of its new financial year had been in line with its expectations.
“We’re planning prudently but confidently for the year ahead, on course to grow both profits and cashflow while carefully stepping back up to more normal investment levels,” CEO Alex Baldock said.
He said AI-powered technology was “the most exciting new product cycle since the tablet in 2010” and Currys was “best-placed to benefit”.
Currys made an adjusted profit before tax of 118 million pounds ($149 million) in the year to April 27 – in line with guidance upgraded last month and up from 107 million pounds made in 2022-23.
That was achieved despite a 4% fall in revenue to 8.48 billion pounds, with like-for-like sales down 2% in the UK and Ireland division and down 3% in the Nordics, but improving through the year.
Gross margin was up in both divisions, offsetting the sales decline.
The UK was held back by weakness in demand for discretionary items due to high inflation and rising interest rates.
Average UK wages are, however, now rising faster than inflation and consumer sentiment in June recovered to its…
