Currys has reported an uplift in profits during its first half and insisted it will “ride out” ongoing supply chain challenges and “bumpy demand” heading into 2022.  

Currys exterior

The electricals giant said pre-tax profits increased 6.6% to £48m in the six months to October 30. On an adjusted basis, excluding one-off costs, pre-tax profit jumped 20% to £48m.

Currys’ group revenue slipped 2% to £4.78bn during the period. Total sales in its core UK and Ireland business fell 4% to £2.55bn, while like-for-likes were down 3%. Electrical sales in the UK and Ireland division dropped 1%.

The retailer’s international division posted a 1% uplift in revenue to £2.24bn, driven by a 9% improvement in sales in its Greek business.

Currys said it had tackled supply chain turbulence by leveraging the strength of its existing supplier relationships. However, the business cautioned that it had incurred increased sourcing costs and said there had been “some impact” on product availability and sales of in-demand products.

The retailer added that the ongoing supply chain challenges, the spread of the omicron coronavirus variant and “softer” demand had combined to create a “more uncertain” outlook going into 2022.

Currys insisted that, despite these factors, it remains on track to achieve a full-year adjusted pre-tax profit of £160m – the target it mapped out to the City at a capital markets day last month.

Chief executive Alex Baldock said: “We’re showing that in technology retail omnichannel wins. Yes, more customers are shopping online, and our hard work to build a strong online business has seen us thrive here. But most customers buy tech through both online and stores, our sweet spot, where we’ve worked hard to build on our strengths. That’s paying off.

“Our market has been softer over recent weeks, and we may face into further headwinds from Omicron and associated restrictions, but the stronger business we’ve built can ride out both the industry-wide disruption to supply chains and bumpy demand.”