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Currys PLC on Thursday launched a new £50 million share buyback as it reported an encouraging start to the financial year. In addition, the company announced the completion of the pension triennial review which will see contributions fall in future years. In response, shares in the London-based electricals retailer leapt 19% to 130.08 pence each in London on Thursday morning. Currys said group like-for-like sales rose 3% in the 17 weeks to August 30. UK & Ireland LFL revenue increased by 3% with ‘robust’ sales driven by market share gains and double-digit growth in new categories and business-to-business. Recurring services revenue grew strongly with credit adoption up 190 basis points to 23.3% and iD Mobile reaching over 2.3 million subscribers, up 22% year-on-year. Currys said gross margin was stable and expected cost increases offset by operating leverage from higher sales. Nordics LFL revenue rose 2% with sales growth driven by AI computing and success in new categories such as robotic lawnmowers and vacuums. Gross profit growth was seen in every country in the region, driven by a strategy of focusing on more profitable sales. Operating costs were tightly controlled, offsetting inflation and driving improved profitability. Currys said it remains ‘comfortable’ with market consensus for full-year group adjusted pretax profit of £170 million, which would be up 3.1% from £162 million in financial 2025. Year-end net cash is expected to total at least £100 million post pension contributions and capital returns. Longer-term, Currys continues to target at least 3% adjusted earnings before interest and tax margin in both the UK&I and the Nordics. Alongside this, the group will remain focused on free cash flow generation. Currys expects to keep annual capital expenditure below £100 million. Currys said it is targeting continued growth in higher margin, recurring revenue Services, including reaching at least 2.5 million iD Mobile subscribers before year end. ‘It’s been a good start to the year, with encouraging performance across the group,’ said Chief Executive Alex Baldock. Baldock said: ‘Our Nordics recovery continues to pick up pace. We continue to grow, improve margins and control costs well. We’re confident that profit margins will step forward again this year.’ In addition, Currys said the triennial pension review had been completed with the actuarial deficit as of March 31 reduced to £134 million from £403 million as of March 31 2022. Currys will pay £82 million of contributions this year as planned with future contributions of £13 million per annum over five years to March 2031, reduced from £78 million per annum to December 2028. Panmure Liberum analyst Wayne Brown said the completion of the review is ‘not only earlier than expected, but it is on much better terms than we had been expecting.’ Announcing a new £50 million buyback, Currys said it was an ‘appropriate and a value-enhancing use of cash.’ The programme, to be run by Panmure Liberum, will commence immediately, and is anticipated to end no later than April 30, 2026. Currys also announced the appointment of Rune Bjerke as an independent non-executive director with effect from September 8. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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