The boss of Currys has warned over the impact of the cost of living crisis as the electricals retailer announced a 19 per cent rise in pre-tax profits.

Announcing the company’s annual results for the year to April 2022, Alex Baldock, chief executive of Currys said that despite adjusted pre-tax profits rising to £186 million, compared to £156m the previous year, the retailer is expecting tough times to come as consumers tighten their belts to cope with rising inflation.

He warned that profits could stand to drop between £130 million and £150 million next year.

Sales at the retailer were down by 2 per cent to £10.1 billion, while in-store sales were up 24 per cent reflecting the return to the High Street after restrictions were lifted.

Online sales as a percentage of total business dropped to 45 per cent from 65 per cent in 2021, but were up 13 per cent compared to 2 years ago.

The results were bolstered by £69 million savings achieved through cost-cutting over the course of the year, which have been made in a bid to offset the £50 million jump in running the company’s store estate due to inflation in energy prices.

Commenting on the results, Baldock said: “These strong results show the vital role that technology plays in millions of lives, and that more and more customers are turning to Currys to help them enjoy that technology to the full.

He added:“Stores, in tandem with online, give our customers the omnichannel best of both worlds they clearly prefer. A stronger business allows us to help customers through the cost of living crisis.”

“Currys’ scale as an international market leader, our grip on costs and our strong relationships with suppliers will allow us to manage inflationary headwinds and keep amazing technology within reach of everyone, even now. That’s what Currys exists to do, and it’s never mattered more.”

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