Currys swings to annual profit as shoppers use credit to fund tech purchases

Currys has hailed a return to an annual profit after cutting business costs

Currys has returned to annual profit after reducing business costs, and disclosed an increase in customers using credit for their tech purchases.

The electronics retailer concluded the year on a more robust financial footing after steering its loss-making Nordics business "back on track" and selling off its Greek division. It declared a pre-tax profit of £28million, a substantial improvement from the £462million loss reported the previous year.

The company, which operates 719 stores globally, stated it had saved hundreds of millions of pounds over recent years by cutting costs across its UK and Ireland operations. It also concentrated on enhancing the performance of its second largest market in Nordic countries including Norway, Sweden, Finland and Denmark.

However, Currys reported slower sales compared with the prior year as consumers continued to tighten their budgets due to rising living costs. It announced revenues of £8.5billion in the year to April 27, down 2% at constant currency from the previous year.

Phones and mobile services sold well but demand for domestic appliances weakened and electronics and computer sales dropped more sharply. The retailer revealed that the use of credit increased in the UK and Ireland to account for a fifth of purchases.

Currys provides buy now, pay later credit plans for shoppers, and profits from interest payments if consumers do not repay in full within an agreed timeframe. Chief executive Alex Baldock stated: "Our performance continues to strengthen. We've kept up our encouraging momentum in the UK and Ireland, our Nordics business is getting back on track, and we're stronger financially."

"Encouraged as we are by our progress, we know we can go further. For one thing, we expect AI-powered technology to be the most exciting new product cycle since the tablet in 2010."