Shares in electricals retailer Currys rose strongly after it said “resilient” consumer spending in the UK helped it beat profit forecasts for the last financial year.
At 129.3p per share, the FTSE 250 stock was last 9.4% higher in Thursday business.
Group revenues rose 3% during the financial year ending 3 May, to £8.7 billion. On a like-for-like basis sales were up 2%, driven by strength at the company’s core UK and Ireland unit.
Adjusted earnings before interest and tax (EBIT) increased 11% to £225 million, while adjusted profit before tax improved 37% to £162 million, as strict cost-cutting also boosted the bottom line.
Free cash flow increased 82% year on year to £149 million. Currys ended the year with net cash of £184 million, a rise of £88 million year on year.
UK Impresses
In the UK and Ireland, revenues increased 6% over the year, to £5.3 billion. This represented growth of 4% on a like-for-like basis.
Adjusted EBIT, meanwhile, improved 8% to £153m. Currys said that “sales growth in both channels and gross margin expansion more than offset planned and inflationary cost increases.”
The business said its closer-to-home operations benefitted from “market share gains and strategic initiatives,” with Services revenues and Credit sales increasing 12% and 14% respectively.
The number of subscribers to its iD Mobile service rose 26% year on year, to 2.2 million. The retailer said it aims to raise this level to “at least” 2.5 million before the end of the current financial year.
In the Nordics, revenues dropped 2% on a headline basis, to £3.4 billion, but were flat at the like-for-like level. Adjusted EBIT improved 18% year on year.
Dividends Return
Chief executive Alex Baldock commented that “Currys’ performance continues to strengthen and the business has real momentum,” adding that “customers are increasingly adopting our credit, setup, installation, repair and connectivity services, building valuable recurring revenues.”
He noted that “I’m pleased that thanks to all this hard work we can resume the dividend. We aim to return more of our growing free cash flow to shareholders.”
Currys paid a final dividend of 1.5p per share, the first cash reward since 2023. It plans to set future dividends at a level that is covered around five times by adjusted earnings per share.
The retailer said trading so far in financial 2026 had been in line with expectations, though it said that it “is facing into several headwinds this year.” These include rising labour costs in the UK, general cost inflation, and the impact of a weaker Norwegian Kroner.
Adjusted pre-tax profit for the full year is expected to rise to around £167 million.
Robust Recovery
Analyst Mark Crouch of eToro noted that “Currys has delivered a turnaround few expected,” with the business continuing to beat profit forecasts.
He commented that the retailer has “decisively reshaped itself over the past 18 months,” and that “by pivoting toward services, repairs, and mobile, and reducing its reliance on pure hardware sales, Currys is building a more resilient, higher-margin business model.
Crouch added, however, that “while the recovery so far has been impressive, the next chapter may be tougher,” amid growing signs of consumer spending weakness in the UK.