Good luck with your negative view.
You'll need it.
😀 |
They’ll need to sell an awful lot of laptops and drones to make up for the huge extra costs.
The wage rise and extra NIC costs amount to about 50% of last years profit, which was only achieved through cost cuts. |
Unfortunately for would be shorters AI laptops are flying out the window this Christmas:
As are drones - the new must have gadget for amateur movie makers |
“growth of around 10% in eps is currently forecast”
By who? Certainly not me.
And how would they achieve that given the continual declining sales and now the £50 odd million in extra wages and NIC costs? |
I see where you're coming from.Consensus growth of around 10% in eps is currently forecast over 25 and 26 financial years.It seems inevitable after Xmas that jobs will be shed.Oh well,just answer the clarion call and join the public sector! |
My assumption isn’t that all staff are on the minimum wage, my assumption is that £52m will be the minimum cost of the budget to CURY.
Staff on more than the minimum wage will cost even more in employer NIC as it’s the same percentage of a higher wage. Further assuming no discrimination, all staff will be given a 6.7% pay rise inline with the minimum wage rise, if so, the cost to CURY will be far higher than the £52m I estimated.
Revenue and sales have been declining for many years here, the 1% profit last year came from cost cuts. Costs will rise going forward. I suggest CURY will be a loss making company again in 2025. |
The forward PE multiple is under ten,the current price isn't asking much.Just prepare yourself to be shown round the store by an automaton in the years ahead. |
Well price going up so thats good |
Interesting.Your assumption is that Curry shop assistants are all on the minimum wage but this might not be the case.It could be that a good percentage are paid more and thus won’t necessarily benefit from this mandatory Labour minimum wage increase.Yet,your NI calculation is not in question so i’m looking for some modicum of solace.The electorate has just leapt out of the frying pan into the fire.When the consequences of this budget unfold,tax revenues will suffer with the reduction in business profitability and Reeves will be back for more.This is a truly dreadful budget for business,a callous assault upon private enterprise combined with a mistaken belief that a the public sector per se promotes GNP growth..Rachel’s hubby is a senior civll servant of course.It will take more than some inflation busting pay rises for public sector workers to stimulate our consumer driven economy. |
Nice breakdown trader, unfortunately netty still won't understand. |
Buy now pay later needs to be watched closely.
This might be a future area of review and potential compensation in my view. |
Currently: minimum wage £11.44 per hour, assume 40 hours per week = £23,795.20
13.8% employer NIC after £9100 threshold = £2029.53.
Total cost per full time employee £25,842.73
After the budget: new minimum wage £12.21 per hour, assume 40 hours per week = £25,396.80
15% employer NIC after £5000 threshold = £3059.52
Total cost per full time employee = £28,456.32
Therefore, with increased NIC rate, reduced threshold, and higher hourly rate the cost per employee rises by £2,631.59
If CURY has 20,000 full-time equivalent hourly paid staff. The total cost of the increase in the hourly rate and employer NIC is £52,611,800
A drop in the ocean? Half the ocean has drained away! |
What you forget netcurtains is the threshold when NI starts to be paid by employers has dropped to £5000.which adds to the expense of NI |
Nice to see Labour have pulled the wool over someones eyes at least... |
It’s fine - stop whinging Tory pomming - drop in ocean…. Their teacher and nurse customers will be loaded - going to fly |
Indeed and it's almost impossible to simply pass these rises on to customers.Currys operates in an incredibly competitive environment where nearly all customers check prices on line before buying if they put them up they lose sales to the competition it's as simple as that.As with most things it's not all doom and gloom they still have made decent progress in the last few years but make no mistake having a huge amount of employees and operating on tiny margins the budget just made things a lot tougher imo. |
Nettygirl
The 1.2% increase in NI is not the main issue, its the lowering of the threshold from £9,100 to £5,000... So an extra £4,100 payable @ 15% = £615 PA.
Any employer already paying NI on employees will be hit with an extra £615 per employee, per year, bill straight from the bottom line.
30,000+ curry's employees = At least £18,450,000 extra on the NI bill. Plus the 1.2% on anyone already over the £9,100 threshold. Depending on margins a lot more goods need to be sold to cover this.
Sprinkle in Minimum wage going up to £12.21 paid by the employer.
There will be massive Job cuts to save on these costs, try and make employees more efficient. No pay rises. etc.
It is at the point where to actually do business in the UK is too expensive.
Please don't invest in shares if you can't wrap your head around basic financials. |
I doubt a 1.2% inscrease in NI is going to be neither here nor there. Its miles less than inflation...
You Tories are totally stark raving bonkers...
Your mind works like this "if its not tory its the end of the world, no ifs buts or exceptions"...
Take a chill pill. |
Yes, all small margin businesses with a large number of employees will be hit hard. My guess is CURY and Spoons will go back to the lows over the next 12-18 months |
Everything will get more expensive, jobs will be cut, businesses will close. |
And for a company that operates on tiny margins that's a tough pill to swallow. |
The higher minimum wage, higher NIC percentage and lower threshold will cost Currys about £50m |
Not if they supply the government with PCs.... |
New tax rates will hurt all retailers |
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