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Currys PLC on Thursday said profit nearly quadrupled in its most recent financial year, but warned that the outlook is ‘uncertain’.
Shares in the London-based electrical retailer were up 7.0% to 71.20 pence each in London on Thursday morning.
Currys reported that revenue was down 2% to £10.12 billion in the year to April 30, from £10.33 billion last year.
It added that store sales increased by 24% as the company benefited from looser pandemic restrictions, although this was offset by online sales declining 29%.
Pretax profit almost quadrupled to £126 million, compared to £33 million in its financial year 2021. Adjusted pretax profit was also up, rising 19% to £186 million from £156 million year-on-year.
Currys also said that it will pay a full-year dividend of 3.15p per share, up 5% on the year before.
Looking forward, Currys warned that ‘the outlook for consumer spending is uncertain’. The company said that it is experiencing inflationary pressures which are being passed onto its customers. As well as prices of goods increasing due to the value of the sterling, operating costs are climbing ‘dramatically’ with the rise of energy and fuel costs, it said.
‘Inflation is very likely to create a headwind to consumer spending and impact sales, particularly in some of our more discretionary categories,’ Currys added.
Based on these trends, Currys said that it expects adjusted pretax profit to fall between £130 million and £150 million in financial year 2023.
Chief Executive Alex Baldock said: ‘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.’
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