- AI has a 75% market share in the laptop market, the official said
A Currys price rise is ‘inevitable’ ahead of a £32million charge from changes announced in the Autumn Budget, the retailer told shareholders on Thursday.
Currys said ‘some’ pay rises are ongoing as it reveals £12 million of national insurance contributions and £9 million of new staff wages linked to National Living Wage rises .
The retailer is the latest business to protest the changes, which have warned of higher prices, store closures and job cuts when they start in April next year.
Currys chief executive, Alex Baldock, criticized the ‘new and unwelcome reforms from government policy’, which he said would ‘add costs and assets more quickly, and reduce investment and costs, increase automation and outsourcing, and prevent cost increases’.
As well as the financial impact from changes to national insurance contributions and the national minimum wage, Currys said it would see a £9million impact from ‘passing these costs from some of our colleagues.
It is also facing a £2million increase from an increase in business rate tax, Currys said.
Currys say they will face a £32m cost hit in changes to the Autumn Fund
But additional price headwinds failed to dampen investor enthusiasm Currys distributes it rose 12.2 per cent to 88.65p, bringing one-year gains to 95 per cent.
However, shares are down 40 percent over the past five years.
It came as the group reported a 2 percent like-for-like half-year revenue growth to £3.9 billion, while 6 percent growth in the UK and Ireland continue to slow down in the Nordics.
Adjusted profits rose 55 per cent to £41million, as Currys reported strong UK and Ireland growth in store and online.
Mark Crouch, market analyst at eToro, said: The results of the ‘Currys’ season suggest that the home electronics retailer has turned a corner.
‘After the decline in profits and the weakness of the patent recently, today the position of the company is stronger.’
Currys boss Baldock also highlighted the UK retailer’s 75 per cent market share in the emerging market for smart laptops, which he said is driving demand for the group.
‘AI seems to have more flow,’ he added.
Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said: ‘The introduction of Artificial Intelligence into consumer electronics will mark the beginning of an innovation cycle.
‘So far, it’s doing well, but the numbers for the first half will not be available until the end of October. The real litmus test is the next set of results, which show interest in the crucial Christmas period.’
DIY PLATFORMS Investing
AJ Bell
AJ Bell
Flexible and ready-made accounts
Hargreaves Lansdowne
Hargreaves Lansdowne
Free money making and investment ideas
interactive entrepreneur
interactive entrepreneur
Investment costs from £4.99 per month
Saxo
Saxo
Get £200 back on shopping fees
Trade 212
Trade 212
Free work and no deposit
Affiliate link: If you download a product This is Money you will receive a commission. These prices are selected by our editorial team, because we think they are worth celebrating. This does not affect our independence.
