Currys shares surged on Thursday after the group released financial results that represent a dramatic turnaround for the company, which is now able to resume dividends after years of uncertainty.
Shares in the group were 8% higher at the time of writing.
Currys’ revenue rose 3% to £8.7bn and adjusted profit before tax increased 37% to £162m in the year to 3 May 2025.
The UK&I division performed particularly well with 6% revenue growth driven by market share gains, whilst services revenue grew 12% and credit sales expanded 14% to £1.1bn. These are all very respectable metrics.
The Nordics are still a problem. The division faced challenging market conditions but improved profitability with adjusted EBIT rising 24% on a currency-neutral basis, supported by gross margin expansion of 60 basis points.
Investors will be delighted to see that cash generation was exceptionally strong, with group free cash flow surging 82% to £149m, contributing to year-end net cash of £184m – the strongest balance sheet position in over a decade.
Underscoring the progress the company has made in recent years, the company proposed the resumption of dividends with a final dividend of 1.5p.
Currys said that early trading in the new financial year is meeting expectations, and management is comfortable with market consensus forecasts.
The company is targeting continued expansion in higher-margin recurring revenue services, including reaching at least 2.5m iD Mobile subscribers by year-end.
“In a sharp reversal of fortunes, Currys has delivered a turnaround few expected, and shareholders have reaped the rewards. The company has once again beaten profit expectations, having quietly but decisively reshaped itself over the past 18 months,” said Mark Crouch, market analyst for eToro.
“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. This renewed sense of strategic clarity has restored confidence in a business that once looked close to the brink.”
“But while the recovery so far has been impressive, the next chapter may be tougher. There are growing signs of consumer fatigue in the economy, and big-ticket electronics may struggle for share of wallet in a more cautious spending environment. Currys has proven it can adapt, but the turnaround story isn’t over, and while the next phase may prove more demanding, Currys is showing it’s better equipped to handle whatever comes next.”