AI technology and gaming launches have helped drive higher sales for electronics retailer Currys, which also hailed a recovery of its Nordics arm.
The company said its financial performance was improving despite a “muted” consumer environment and “unhelpful” cost pressures.
It reported revenues totalling £4.2bn for the six months to November, up 4% when compared like-for-like with the same period last year. Adjusted pre-tax profits more than doubled to £22m year-on-year.
In the UK and Ireland, where Currys has almost 300 shops, computing was the strongest category for sales with AI technology and new games leading the charge.
It also highlighted surging demand for smaller categories like gaming accessories, emerging technology like health and beauty innovations, and a 12% jump in the sale of Windows laptops.
Mobile products sold well over the half-year, with its mobile network brand iD increasing its share of the wider market, the firm said.
But it reported a dip in the sale of consumer electronics, including TVs and speakers, which the retailer attributed to there being a spike in demand last year during the men’s Euro 2024 football tournament.
Chief executive Alex Baldock said it was “pleasing that strong top-line growth is translating into improved profitability”. He added:
Currys said profits in the UK were being weighed down by increases to the national minimum wage and employer national insurance contributions, from last year’s autumn budget.
These cost increases were not being fully offset by savings it has been striving to make across the business.
Nevertheless, Currys hailed an improved performance for its Nordics arm after launching a turnaround for the struggling business. Revenues increased by 4% on a like-for-like basis for the region, which has more than 400 stores both owned and franchised, and earnings grew.
Shares in Currys jumped by about a tenth in early trading on Thursday.