Currys has reported that its profits increased in the first half of the year, despite net debt also rising to £129m.

The electronics retailer’s underlying operating profit jumped from £29m in H1 2023 to £31m in the same period in the 2024 financial year.

However, the group’s currency neutral revenue in the first half of the financial year dropped by 4% to £4.2bn, with reported revenue falling by 7%.

Currys reported progress in its UK and Ireland (UK&I) market, with revenue increasingly slightly by 3%.

There was also strong momentum in services in the UK&I, with credit adoption increasing 330 bps to 20.3%, care and repair adoption jumping by 340 bps, with iD mobile subscriptions now sitting over 1.5 million, almost an increase of a quarter (24%) year-on-year.

The brand saw a 300% increase in its Nordic adjusted EBIT, now at £12m, with its gross margin recovery of 190 bps and cost actions offset continued market driven sales decline.

The Greek market also saw a 300% increased in EBIT to £4m, with like-for-like revenue rising by 4%. This follows on from the proposed sale of its Greek firm, Kotsovolos, for £175m, which Currys said "represents a very good outcome for shareholders".

This deal is expected to receive final approval and complete in the first quarter of 2024.

Group chief executive at Currys, Alex Baldock, said: "In the Nordics, our trusted brands have delivered substantial gross margin gains, which combined with strong cost discipline have resulted in significantly improved profits. There's still a long way back to healthy Nordics performance, but we're on the way.

"In the UK&I, profits are in line with expectations, as we focus on more profitable sales and growing the services that drive margins and customer lifetime value. Credit, Care & Repair and iD Mobile are all performing strongly, while colleague engagement and customer satisfaction continue to rise."

As part of the statement, Currys said that its trading since the period end has been consistent with the board’s expectations, with no change to previous guidance for the rest of the financial year.

The group is also expected to finish the financial year in net cash position if the disposal of Kotsovolos completes before the end of the year.

Equity analyst at Hargreaves Lansdown, Aarin Chiekrie, added: "There’s no getting around it, Currys finds itself in a sticky spot. Consumers are simply struggling to justify as much discretionary spending on TVs and gadgets amidst a cost-of-living crisis, despite Christmas being just around the corner.

"That’s led to a small decline on the top line, with like-for-like sales falling 4% in the first half. And in the Nordics region, the group’s second-largest segment, the market remains extremely tough. Almost all categories saw sales declines and inflationary cost pressures remain a force to be reckoned with.

"While there’s no magic wand to fix all the headwinds, finding a new home for its Greek electronics retailer, Kotsovolos, should ease some of the pressure in the short term. The £156m of net cash Currys expects from this sale will provide a welcome boost to the group’s balance sheet, as well as allow management to sharpen its focus on the remaining regions."

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