Currys CEO Alex Baldock remains determined in the face of new financial challenges, pledging that growth will not be hindered.
- The company plans to address £32m in rising taxes from next April, due to changes in financial regulations.
- Costs from increased National Insurance contributions, the National Living Wage, and inflation are being proactively tackled.
- Currys has successfully reduced pre-tax losses from £44m to £10m while slightly increasing its sales to £3.9bn.
- Despite inevitable cost pressures, price increases are a last resort, according to Baldock.
Currys CEO Alex Baldock is resolute in ensuring the retailer’s growth continues unabated despite impending financial obstacles. The company is preparing for a significant rise in tax liabilities, projected to increase by £32 million from April next year. These additional costs arise from changes in employers’ National Insurance contributions, a hike in the National Living Wage, and inflation-driven increases in business rates.
To counter these challenges, Currys has developed strategic plans to mitigate approximately half of the anticipated financial setbacks. Baldock acknowledged that further cost reductions are essential to manage the remaining pressures effectively. Highlighting the company’s proactive stance, he stated, “We are working hard to address these headwinds.”
In a sign of positive progress, the retailer announced a reduction in pre-tax losses from £44 million to £10 million for the half-year ending 26 October, alongside a modest sales growth of 1%, reaching a total of £3.9 billion. This financial performance underscores Currys’ ability to navigate economic hurdles while maintaining a focus on growth.
Despite the new costs, Baldock emphasised that price increases remain a last resort. He described the recent budget as challenging for jobs, prices, investment, and growth, recognising the government’s difficult decisions. However, his priority is to ensure Currys’ success regardless of the political landscape.
Baldock joins a growing chorus of industry leaders voicing concerns about the fiscal policies introduced by Chancellor Rachel Reeves. The broader sentiment in the retail sector reflects anxiety about how these measures impact business viability and growth opportunities.
Currys remains committed to navigating upcoming financial challenges without compromising its growth trajectory.
