Challenging economic conditions and competition from rivals dragged on revenues and profits at electrical retailer Currys’ Irish arm last year despite a decline in sales and staffing costs at the business.
New accounts filed in Dublin covering the 12-month period to the end of April 2023 show revenues at Currys Ireland, which operates roughly a dozen stores in the Republic, sank by more than 10 per cent from €213.9 million in the previous year to €192.3 million in its most recent financial year.
Like-for-like sales were down 10.1 per cent compared with a drop of 15.5 per cent in the previous trading year, it said.
The company swung to a €289,000 loss after tax over the period from €5.2 million profit in its previous financial year despite an 8 per cent decline in sales costs to €180.9 million and falling distribution and administration expenses.
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Currys Ireland’s wages and salaries bill also shrank in the year from more than €18 million to just over €17 million in line with a fall in the number of people employed in the business from 403 to 377 in the year.
In a report attached to the account the directors said: “The economic climate and competitive environment in Ireland remains challenging, and the directors are continually driving measures to maximise shareholder value and shareholders’ funds.”
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They said the accounts were prepared on a going concern basis with consideration given to the risks and uncertainties facing the business in the Republic. “This includes consideration of the uncertainty caused by high inflation and the cost-of-living crisis.”
The company is part of the wider Currys group, which operated some 823 stores in eight countries in 2022, according to its annual report for the year.
In 2023 the UK parent warned that the outlook for its 2023/24 year would be tough as consumers grapple with less disposable income. In March, however, it raised its profit guidance for its current financial year, citing improved like-for-like sales since January 6th in both its UK, Ireland and its Nordics divisions.
Shares in the London-listed retailer are up more than 25 per cent so far this year but plunged last month after it was reported that private equity group Elliott Investment Management was walking away from a potential takeover of the group.
Elliott had made two approaches at 62 pence and 67 pence a share, valuing the chain at as much as £760 million (€892m), but both were turned down by Currys which has said the company is worth substantially more.
The retailer’s rejection of Elliott’s approaches was backed by its shareholder Redwheel, which also said Currys was worth “substantially more”.
China’s JD.com also subsequently walked away from a potential bid for the business.
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