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Gloucestershire Business News

BREAKING: Currys plugs in to better times amid hiring fears

Changes to national insurance requirements for employers have prompted electrical retailing giant Currys PLC to warn of a "depressed period of hiring" on the horizon as it turns to increasing automation to preserve margins.

In a trading update for the the peak season of the 10 weeks ending on January 4, strong trading and improved profit outlook were noted, with the UK and Ireland seeing a rise in like-for-like revenue of 2%, underpinned by a "disciplined trading performance with robust sales".

The electrical giant, which has superstores in both Cheltenham and Gloucester, has indicated that it will pay dividends to shareholders for the first time in two years. Against the backdrop of the update, shares surged by 9% to near 90p today (January 15).

Robust sales in mobile, gaming and premium computing were also seen, albeit offset by weaker trends in demand for televisions.

Group adjusted profit before tax is now expected to be £145m to £155m, up 23-31% YoY and ahead of consensus expectations, the firm said.

Alex Baldock, Group Chief Executive, said: "We're pleased by our strong Peak trading. We grew in both markets, continuing the trend of Currys' strengthening performance, and we believe this year's profits will be ahead of market expectations.

"With our ever-stronger cash generation and much improved balance sheet, the Board now expects to pay a dividend at the year-end. This Peak, customers took advantage of our market-beating deals and best-ever availability."

With a 75% share in the AI laptops sector enjoyed by Curry's the brand also saw rising popularity for premium mobiles.

Mr Baldock added: "Customers showed they preferred shopping both online and in-store, and our investments in both channels paid off. In the UK and Ireland, we've continued to grow sales and keep margins stable, offsetting current cost headwinds. iD Mobile and B2B performed especially strongly, as did sales of the services and solutions that are so valuable to customers and to us."

Further afield, Currys Nordics zone was back into growth, continuing its improving trajectory, outperforming competitors while improving margins and reducing costs. The update stated: "In a still-weak market, the evident strength of our Nordics business bodes well for the future."

Mr Baldock added: "We start 2025 confident that our strategy is working, and determined to keep building this ever-stronger Currys to the benefit of colleagues, customers, shareholders and society."

He also warned that Currys faces £30m in extra costs from changes to the national insurance rules introduced in October's budget. With contingencies already in place to tackle the change, half of that impact was already being offset, he said, but "some price rises are inevitable" as the company searched for ways to mitigate the change. The NI rise, he added, "depresses hiring and boosts automation and offshoring".

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