Currys has said that it "continues to strengthen" financially as its profit before tax jumped by 10% to £118m in the year to 27 April.

The electrical goods retailer also saw its net funds increase by £193m, after the successful disposal of its Greece business for a valuation premium, with a free cash flow of £96m, which is a £193m year-on-year increase.

However, the group’s like-for-like revenue decreased by 2%, while its adjusted EBIT dropped by 16% year-on-year to £142m.

Group chief executive at Currys, Alex Baldock, said: "Our performance continues to strengthen. We've kept up our encouraging momentum in the UK&I, our Nordics business is getting back on track, and we're stronger financially.

"We can see our progress in ever-more engaged colleagues, more satisfied customers and better financial performance. Continued growth in sales of solutions and services were particular highlights: they're good for customers, margins and recurring revenues, and they lean on Currys' competitive strengths.

"Encouraged as we are by our progress, we know we can go further. For one thing, we expect AI-powered technology to be the most exciting new product cycle since the tablet in 2010. With our partnerships, scale and expert colleagues to demystify AI, we're best-placed to benefit."

Looking forward, Currys said that early trading in the early part of the new financial year has been in line with expectations, adding that it is confident going forward.

The firm added that it is continuing to target at 3% adjusted EBIT margin, adding that with a maintained market share, tight discipline on capital expenditure, controllable cash costs and working capital, it expects to deliver "improving free cash flow".

Head of markets at interactive investor, Richard Hunter, added: "The company has also reiterated its previous stance on the huge potential in the development of AI powered technology, where it is in the early stages of trialling improvements and demystifying the potential for customers, in conjunction with partners such as Microsoft and Accenture. Alongside the group’s unique offering of face-to-face advice, such progress could both strengthen and complement the overall offering as Currys strives to create 'customers for life'.

"The share price has risen by 44% over the last year, as compared to a gain of 12.4% for the wider FTSE 250. While much of this outperformance relates to the bid approaches earlier this year which eventually came to nothing, the scale of the turnaround at Currys should not be underestimated.

"The initial market reaction suggests some profit taking after a six-month run which has seen a rise of 49%, but the group is nonetheless clearly on track towards a return to form. In the meantime, the valuation is not stretched on a historical basis even at these levels, with the share price remaining down by 38% over the last three years despite the recent spike in performance. Even so, the market consensus has recently strengthened, recognising the strides Currys is making and now comes in at a buy."

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