Currys has reported stronger profits and in the year to 3 May sales grew by 3% to £8.7 billion, this was driven growth f 6% in the UK.
In the Nordics sales fell 2% due to tough market conditions.
Alex Baldock, group chief executive, said: “Currys’ performance continues to strengthen and the business has real momentum.
“A stronger Currys is good for colleagues, customers, shareholders and society, and we’re doing a better job for all of them.
“We’re pleased with our progress, but even more excited about the opportunities ahead of us.”
Robinhood UK lead analyst Dan Lane said, “What a year for Currys. Profits before tax are in rude health and net cash of £184m gives the balance sheet a solid basis to make even bigger strides this year. UK consumer confidence is growing and if it has bottomed, Currys could benefit even more from Britons feeling happier to spend on bigger electrical purchases. Inflation is subsiding and while wage growth is slowing, consumers are clearly considering the worst hits to their pockets to be behind them.
“Currys is right to focus on investing wisely and targeting high-returning projects, especially if it adds to an improving free cash flow picture. There will be a lot of attention on the dividend and possible buyback programme but, realistically, if the company can put that cash to good use internally, arguably it’s better to keep it and maintain a modest payout policy. The Nordics business is a good example here – it’s growing well so backing its winners could well be a more prudent use of that cash pile than simply giving it back to shareholders.”
