Currys CEO Alex Baldock addresses upcoming financial challenges, maintaining a focus on growth.
- Currys forecasts a £32 million increase in tax bills, effective from April next year.
- Strategies are in place to counteract new costs from National Insurance and wage hikes.
- The retailer’s pre-tax losses have significantly improved, dropping to £10 million.
- Price increases are considered a final measure amidst budget constraints.
Currys CEO Alex Baldock has reaffirmed the company’s commitment to growth despite impending financial challenges. The retailer is bracing for a £32 million increase in its tax obligations starting April of the following year. These concerns stem from changes in employers’ National Insurance contributions, rising National Living Wage, and inflation-driven business rate hikes.
Baldock stated, “We’ve already got plans to deal with about half of these headwinds, and we’re working hard to address the remainder, which will inevitably mean further cost reduction.” His comments emphasise the proactive measures Currys is taking to manage these pressures and sustain its momentum.
In a recent announcement, Currys revealed it had reduced its pre-tax losses from £44 million to £10 million for the half-year up to 26 October. Alongside this financial improvement, sales have inched up by 1% to reach £3.9 billion. Despite these gains, Baldock has cautioned that the additional financial burdens might necessitate “inevitable” price increases, though he clarifies this would be a “last resort”.
Expressing his views on the recent budget, Baldock described it as “unhelpful for jobs, prices, investment, and growth.” However, he acknowledged the government’s position, stating, “I also understand that the government have difficult decisions to make, and my job is to ensure that Currys remains successful regardless of who is in power.”
Currys remains steadfast in its growth trajectory despite fiscal challenges and changing economic policies.
