Latest news with #AlexBaldock
Yahoo
04-07-2025
- Business
- Yahoo
Currys FY2024/25 profits soar 37% with UK&I LFL up 4%
UK electricals retailer Currys Group has recorded an adjusted profit before tax of £162m ($221.07m) in the fiscal year 2024/25 (FY2024/25) - a 37% jump from the previous year. It reported 3% year-on-year (YoY) growth in group revenue, reaching £8.7bn. The rise is attributed to a like-for-like growth of 2%, with the UK and Ireland (UK&I) segment experiencing a 4% increase in like-for-like revenue and an adjusted EBIT [earnings before interest and taxation] of £153m, up 8% YoY. Currys chief executive Alex Baldock stated: 'Currys' performance continues to strengthen and the business has real momentum.' The retailer stated that sales growth across various channels and an expansion in gross margin have successfully offset planned and inflationary cost increases. This has resulted in a segmental free cash flow of £95m - a 14% YoY improvement. The group's free cash flow has seen an 82% YoY rise to £149m. The company's year-end net cash stood at £184m, an increase of £88m from the previous year, leading to the strongest balance sheet Currys Group has had in more than a decade. Despite challenging market conditions and currency headwinds, the Nordics region reported an improvement in profit. Nordics like-for-like revenue remained flat, but adjusted EBIT reached £72m, a 24% currency neutral growth YoY. The gross margin increased by 60 basis points YoY, returning towards historic highs. Currys' continuing operations reported a statutory profit before tax of £124m, a £96m improvement from the previous year. Trading in the early part of the new financial year has been in line with expectations. The company is targeting continued growth in higher margin recurring revenue services, including reaching at least 2.5 million iD Mobile subscribers before the end of 2025. Baldock added: 'We're uniquely placed not just to sell customers amazing technology, but to help them enjoy it to the full. Customers are increasingly adopting our credit, setup, installation, repair and connectivity services, building valuable recurring revenues for Currys. We're now seen as the home of AI-enabled tech and our investments in new product categories and serving B2B customers are showing early signs of success. 'Our brands – Currys in the UK&I and Elkjøp in the Nordics – are stronger than ever. A new generation of customers is discovering Currys, thanks to brilliant social campaigns which have delivered industry-leading levels of engagement.' In the long term, Currys continues to target at least a 3% adjusted EBIT margin in both the UK&I and the Nordics. In May 2025, it partnered retail communications specialist VoCoVo to roll out Series 5 Pro headset technology across all its stores in the UK and Ireland. "Currys FY2024/25 profits soar 37% with UK&I LFL up 4%" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Telegraph
04-07-2025
- Business
- Telegraph
This high street giant is leading the fight against foreign raiders
Britain has long been crying out for a corporate chief with the courage to fly the flag for independence when an opportunistic foreign raider swoops in. The overwhelming tendency of the vast majority of PLC boards is to wave a white flag the minute a takeover attempt lands. Hiding behind feeble claims that they have a 'fiduciary duty' to recommend any offer pitched at a mild premium, these handsomely paid custodians of Britain's brightest and best companies nearly always take the money and run. Presented with a rare opportunity to cash in shares and stock options – often running into the many millions of pounds – that might take years to vest, pure greed all too often quickly takes over. The hollowing out of the stock market is undoubtedly a bona fide national crisis, and the reasons for it are many. But if the UK wasn't possessed with a bizarre predilection for allowing overseas predators and private equity barons to pick off the jewels of British business at will, not to mention nearly always on the cheap, the problem wouldn't be nearly so pronounced. It is the elephant in the room that nobody in power seems remotely prepared to even acknowledge, never mind tackle, for fear of being branded anti-foreign investment. Yet the idea that this long-standing habit is even remotely in the national interest really is one of the great lies of our time. Three cheers then for Alex Baldock, boss of electricals chain Currys, for demonstrating that there is a genuine alternative to all those lily-livered surrender monkeys out there, which is, of course, to have faith in your standalone prospects and to send the vultures packing. In fact, Baldock has done it with such aplomb that it should really pave the way for a bold new era in which corporate Britain is prepared to stand up and fight for its future. After spurning not one but two takeover attempts from activist investor Elliott just last year, Currys is riding high. Share prices often crash when suitors walk away, but not at this high street giant. Having slumped to an all-time low of just 43p in late 2023, its shares are currently trading at a three and half-year high of 126p. What's more, that's more than double the 67p-a-share that Elliott was dangling in front of the Currys board as a final offer. This is money in the pockets of shareholders, many of them pension funds managing the retirement savings of people up and down the country, not to mention staff whose hard work behind the tills and in the aisles has helped to drive its impressive revival. More than 30,000 Currys employees have been awarded stock through the company's 'colleague shareholder scheme' since it was introduced in 2019. It's a stark reminder of what can be achieved in a relatively short period of time by managers who are prepared to take risks. Annual profits are up 37pc to £162m, beating expectations again, despite raising targets three times this year. The chain is also sitting on a hefty cash pile of nearly £200m – a sharp turnaround for an outfit that not too long ago looked to be carrying too much debt. 'The balance sheet has not been this strong in a decade,' analysts at Panmure Liberum said.
Daily Mail
03-07-2025
- Business
- Daily Mail
Don't hike tax again, pleads Currys boss: Alex Baldock warns Chancellor another raid will hurt jobs and lead to higher prices
The boss of Currys has warned Chancellor Rachel Reeves that further tax hikes will hurt growth and jobs as retailers are still reeling from her last Budget. Chief executive Alex Baldock said the Government should 'think very carefully before they make the situation any worse'. But shares in Currys soared as he insisted the UK's biggest electronics retailer could 'swim against the tide'. Baldock's warning came as experts poured cold water on Labour's claims to have fixed the economy since coming to power. Leading economists warned of the inevitability of tax rises after Keir Starmer's welfare bill humiliation blew a £5billion hole in the public finances. 'Recent policy decisions mean that in the absence of tax hikes or alternative spending cuts, fiscal rules would be broken in the autumn,' Bruna Skarica, chief UK economist at Morgan Stanley, said.'We think tax hikes look most likely.' But Baldock warned that would result in fewer jobs, less investment and higher prices for consumers. He said Currys cut back on hiring after Reeves raised employer national insurance contributions and the minimum wage. Baldock said: 'We want to be helping to grow the economy and bring investment into the UK.... retailers would like to do it and would be able to do more of it with a more helpful policy environment. 'The tax burden retailers already suffer is dampening the contribution we could make, any further tax burden would further dampen growth, investment and employment and increase prices.' The National Institute of Economic and Social Research (NIESR) spelled out the Chancellor's predicament, saying she had sowed uncertainty with a prolonged gap between the election and her first Budget and an 'erosion of confidence'. As public finance figures worsened, firms worried about further tax rises, making them reluctant to invest and hire. And with U-turns, from winter fuel payments to welfare, as well as plans to hike defence spending, Reeves must find money from somewhere. Ben Caswell, economist at NIESR, said it was likely to mean 'significant tax rises' with current policies 'not sustainable'. Currys yesterday reported annual profits of £162million, 37 per cent up on a year earlier. Group revenue rose 3 per cent to £8.7billion in the 12 months to May 3. UK sales were driven by demand for Currys' mobile phone and computing businesses. It also reported that health and beauty products were growing fast. The recent heatwave has boosted sales of fans, air conditioning units and barbecues. The balance sheet is the strongest in a decade, with net cash of £184million. Currys reinstated its dividend for the first time in two years as it proposed a payout of 1.5p per share. Shares closed 7.1 per cent, or 8.4p, higher at 126.9p.
The Herald Scotland
03-07-2025
- Business
- The Herald Scotland
Currys vindicated after last year's takeover attempts
Against such a performance it is rather odd to recall that only last year the electrical retailer was fending off unwanted suitors. Read more: Activist investor Elliott, headquartered in the US, finally withdrew its interest in March 2024 after a final offer that valued Currys at £757m was dismissed by its board of directors. Chinese online retailer followed suit the following day, saying it would not make an offer for the electricals retailer. The board, led by chief executive Alex Baldock, have been vindicated in their decision to stand firm. Shares in Currys have risen by almost 70% during the past year, giving the company a market valuation in the region of £1.45bn. "Currys' performance continues to strengthen and the business has real momentum," Mr Baldock said of today's annual results. "A stronger Currys is good for colleagues, customers, shareholders and society, and we're doing a better job for all of them. "We're uniquely placed not just to sell customers amazing technology, but to help them enjoy it to the full. Customers are increasingly adopting our credit, setup, installation, repair and connectivity services, building valuable recurring revenues for Currys." Read more: The success of that distinctive brand proposition is clear to see in what Zoe Gillespie, wealth manager at RBC Brewin Dolphin, described as an "amazing" customer experience across its UK network of 281 UK stores, 27 of which are in Scotland. Chris Beauchamp, chief market analyst at IG said the "very solid" update from Currys should help support further share price gains following the 25% uplift so far this year. "The dividend has made a return, and performance looks good across the broad range of the business," Mr Beauchamp added. "At seven times earnings, the shares look cheap compared to the more positive outlook, which is rare thing to say in UK stocks right now." Read more: Nevertheless, challenges remain. Premium mobiles and AI laptops have been areas where Currys is a market leader, but some industry experts question whether the product innovation from manufacturers is sufficient to support growth forecasts for these categories. Currys is also working hard to mitigate the impact of rising costs such as higher national insurance contributions, and there are ongoing issues in its smaller Nordics division. Still, the group appears to have built a solid foundation from which to overcome these issues. In the here and now, Currys is a rare and much-needed good news story in the UK retail sector.
Reuters
03-07-2025
- Business
- Reuters
Currys beats profit estimates on strong demand for mobile and computing products
July 3 (Reuters) - British electricals retailer Currys (CURY.L), opens new tab beat market expectations for annual adjusted pre-tax profit on Thursday, having raised its guidance three times over the year as it navigated cost pressures, driving its shares up nearly 10%. Currys said its mobile business - which includes smartphones, gaming, computing and related services - remained one of its top-performing categories, with consumers rapidly adopting AI-powered products as prices decline. "We're coming up to the COVID era replacement cycle for laptops. Five years in, people are replacing their laptops," CEO Alex Baldock said on a media call, noting that rising demand for AI and gaming was also fuelling growth for computing. The retailer has also been expanding into grooming and pet care products, where it sees opportunities to gain market share. Currys shares, which have risen nearly 25% this year, hit their highest level in over 3-1/2 years on Thursday. "Every part of the business is heading in the right direction, the balance sheet has not been this strong in a decade", analysts at Panmure Liberum said in a note. Last month, peer AO World posted record annual profit helped by a growing customer base. Currys has been ramping up automation and moving more business processes to cheaper overseas locations, in addition to price hikes, to save almost 10 million pounds ($13.7 million) in annual costs. Increases in employer social security contributions and minimum wages under the UK's Labour government, along with rising economic uncertainties, have prompted British companies to step up cost-saving measures to shore up profits. Early trading in the current financial year has been in line with expectations, Currys said, adding that it remained comfortable with market consensus for the year ahead. It posted adjusted pre-tax profit of 162 million pounds for the year ended May 3, above analysts' estimate of 159 million pounds, according to a company poll. ($1 = 0.7332 pounds)
