Currys PC World turns corner with €6.36m profit

High-tech chain Currys PC World’s business in the Republic is poised for a record 2018 after turning the corner last year, earning a profit of €6.36 million.

DSG Retail, which owns Currys PC World, increased revenues by 1.8 per cent in the 12 months to April 29th, 2017, to €158.4 million from €155.6 million during its previous financial year.

Accounts just lodged by the company show that it earned profits before tax of €6.365 million over the same period, compared with a loss of almost €25 million during the previous 12 months.

Currys PC World employed 421 people selling computers, laptops, tablets and other equipment in 18 stores across the Republic at the end of April last year.

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The company said that, following two years of streamlining its business, Currys is now on track for a record financial year in 2018.

Record sales in the period stretching from the pre-Christmas “Black Friday” promotion to the new year will aid this performance. Sales during those weeks rose 12 per cent year-on-year and were the highest in the company’s history.

Mark Delaney, managing director of the company’s parent, Dixons Carphone Ireland, which also owns Carphone Warehouse, noted that the 2017 results reflected careful management of the business over the past two years.

The company began introducing its three-in-one stores, which house Currys, PC World and Carphone Warehouse under one roof, in 2016.

Market share

Mr Delaney explained that these stores helped the business maintain and grow market share in key areas including computers, electronics and white goods such as washing machines and other household appliances.

“While turnover increased slightly, crucially, like-for-like sales were up 9.8 per cent in 2017,” he said.

“The outlook is positive for Currys PC World. We enjoyed a record-breaking sales period from Black Friday 2017 to the new year and footfall in our stores was up by 7 per cent year-on-year with sales up 12 per cent year-on-year for this crucial trading period.

“Consumer confidence remains high and in particular we see major growth potential in the restoration and redecoration sector of the housing market as consumers look to revamp their properties,” Mr Delaney added.

The balance sheet shows that net assets stood at €1.3 million on April 29th 2017 against a deficit of €6.4 million a year earlier.

Total liabilities were €26 million, €11.5 million of which was due to other group companies.