Electricals retailer Currys has today added its voice to a chorus of corporate criticism of the new UK government's tax rises, saying price rises were inevitable, but it kept its forecast for annual profit growth.
The group, which sells consumer electricals from computers to washing machines, reported a return to first half profit that exceeded expectations, with robust sales in its home market more than offsetting subdued trading in its Nordics business.
Its shares were up 13% today, extending 2024 gains to 77%.
Currys said that trading since the end of its first half has been in line with its expectations, reporting strong demand for AI laptops and mobile phones, supersized TVs, air fryers, noise cancelling headphones and drones.
"Looking ahead, we're confident of continuing our progress, and expect to grow profits and cashflow as promised this year," CEO Alex Baldock said.
This was despite what he called "new and unwelcome headwinds from UK government policy" - a reference to measures in October's budget.
"These will add cost quickly and materially, depress investment and hiring, boost automation and offshoring, and make some price rises inevitable," he said, echoing comments from a raft of other retailers.
Currys said measures, including hikes in employer National Insurance contributions and the minimum wage, would cost the group an extra £32m a year.
"We've already got plans to deal with about half of these headwinds and we're working hard to get after the rest," Baldock told reporters.
Currys, a takeover target earlier this year, makes most of its profit in its second half, which includes the key Black Friday and Christmas trading periods.
For the six months to October 26, it made an adjusted profit before tax, its preferred profit measure, of £9m compared to a loss of £16m the same time last year.
Revenue rose 2% at constant exchange rates to £3.9 billion, with like-for-like sales up 2% - up 5% in the UK and Ireland division but down 2% in the Nordics.
