Currys resumes dividend as sales, profits jump

(Sharecast News) - Electricals and tech retailer Currys resumed dividend payments on Thursday, following a spike in annual sales and profits. The FTSE 250 firm said group revenues rose 3% in the year to 3 May, to £8.7bn, or by 2% on a like-for-like basis.

Within that, sales in the UK and Ireland were 4% stronger on an underlying basis, and flat in the Nordics.

"The UK consumer environment was resilient, as cost inflation softened and interest rates started to fall," Currys noted. "The Nordics consumer environment, though subdued, slowly improved throughout the year."

Earnings on continuing operations were £198m, up on the previous year's £117m, after the margin strengthened to 2.3% from 1.4%. Group adjusted pre-tax profits jumped 37% to £162m.

The dividend was also resumed, at 1.5p. The group suspended the payout in 2023, because of problems at the then-struggling Nordic business.

Alex Baldock, chief executive, said: "Currys' performance continues to strengthen and the business has real momentum.

"Customers are increasingly adopting our credit, set up, installation, repair and connectivity services, building valuable recurring revenues.

"I am pleased that thanks to all this hard work we can resume the dividend."

Looking to the current year, Currys said trading was so far in line with expectations.

It acknowledged that the group was now facing "several headwinds" this year, including higher costs in the UK and a weaker Norwegian kroner.

It continued: "To counteract these, the group is pursuing cost saving measures and is well placed to take advantage of growth opportunities.

"At this early stage in the year, it is comfortable with market expectations."