Highlights
- Reported a surge in first half profit to £22 m, up from £9 m.
- CEO warns increased tax burden from autumn budget will weigh on consumer spending.
- Company shares rise 10 per cent despite concerns over subdued UK consumer environment.
British electricals retailer Currys has warned that consumer confidence and spending remain muted heading into Christmas, with the government's autumn budget doing little to improve the situation, CEO Alex Baldock told Reuters on Thursday.
The company reported a surge in first half profit to £22 m, up from £9 m in the same period last year, while maintaining its full-year growth guidance. Group revenue rose 8 per cent to £4.23 bn in the six months to November (1).
"What we're concerned about is consumers' already high tax burden has increased further (in the budget) and that will weigh down on already muted consumer confidence and spending in the UK," Baldock told reporters after releasing the results.
The retailer, which sells computers, gaming products, televisions, fridges and washing machines, noted that trading during the crucial second half, including Black Friday, remained on track. Like-for-like revenue increased 4 per cent in both the UK and Ireland division and the Nordics.
Baldock described the consumer environment in the UK and Ireland as "more muted" compared to the Nordics, citing government-driven costs such as higher employer social security payments as "unhelpful."
However, he expressed confidence that Currys could still grow profit despite the challenging economic backdrop.
"We're not counting on any improvement in the UK consumer outlook, confidence or spending, looking forward," Baldock said, adding the company was planning for little change to the subdued consumer environment in 2026.
Despite the cautious outlook, he emphasised "Still, we're the growing market leader (in the UK and Ireland), gaining share, and our margin and cost discipline is going a long way to mitigate headwinds and protect profits."
Currys shares rose 10 per cent in early trading on Thursday, extending gains in 2025 to 46 per cent. Analysts are forecasting a full-year pretax profit of £172 m for the year ending April 2026.
