Currys Upgrades FY Profit Outlook After Strong Peak Trading, Revenue Jumps 8% to £4.2B

Currys (LON:CURY) reported what executives described as a “strong peak period” and said it is now able to provide full-year profit expectations following trading over the key holiday season. Management pointed to accelerating sales momentum, market share gains, stronger cash generation, and continued investment in service-led initiatives such as credit, repairs, and mobile connectivity.

Half-year results and peak trading performance

Finance chief Bruce explained that the group’s first-half performance showed “growth across the board.” Group revenue rose 8% year on year to £4.2 billion, while adjusted EBIT increased 32% to £54 million, producing adjusted EPS of £0.06. Free cash flow rose 68% to £84 million, and closing net cash was £133 million.

On peak like-for-like sales, Currys reported growth in both operating segments:

• UK & Ireland: peak like-for-like sales were up 3%, following 4% like-for-like growth in the first half, leaving year-to-date like-for-like growth at 3%.
• Nordics: peak like-for-like sales grew 12%, bringing the year-to-date trend to 7%.

Management highlighted several product categories that performed strongly during peak. Mobile was described as “the star of the show,” with UK mobile up 10.6% and Currys’ iD mobile virtual network operator (MVNO) adding a million customers over the past two years. Other cited growth areas included coffee machines (up 31%), robot floor care (up 65%), and smart glasses (up 270%), alongside “success” in toys, health and beauty tech, and wearables.

Guidance upgraded as company exits peak period

With peak trading completed, Currys provided its full-year expectations, guiding to group profit before tax of £180 million to £190 million, which it said would represent an 11% to 17% year-on-year increase. Bruce noted that the top end of the range was 5% above consensus of £180 million and 10% above the consensus level prior to the company’s interim results.

Within that outlook, Currys expects UK adjusted EBIT to be “broadly stable” year on year despite “government’s inflationary headwinds,” while Nordic adjusted EBIT is expected to grow significantly. Interest expense is expected to be between $60 million and $65 million.

Given the recent trading, Currys said it expects year-end net cash to finish above its £100 million target, despite planned £82 million of pension contributions and £75 million of returns to shareholders.

Margin, cost, and capital allocation priorities

In Q&A, Bruce discussed gross margin dynamics, noting that in the first half gross margin percentage fell by 40 basis points due to “government-imposed inflationary headwinds” such as the living wage and national insurance. He said underlying gross margin stepped forward in the first half, and during peak the benefits of solution selling and services exceeded inflationary pressures, leading to a net improvement in gross margin.

Management also reiterated its capital allocation priorities and shareholder returns. In the first half, shareholder returns totaled £46 million, comprising £16 million of dividends and £30 million of buyback. Bruce said the company declared a £0.75 interim dividend in December and will restart a £50 million buyback, of which £30 million was completed in the first half.

On costs, executives pointed to initiatives in the UK that they said add up to nearly £40 million of “mature annual cost savings,” though they said these would not be fully realized in the current year. Asked about inflationary headwinds into next year, Bruce said the company expects a high single-digit negative impact from the living wage, offset by a mid-single-digit upside from rates reform, leaving a smaller net negative inflation impact than in the current financial year.

Strategy updates: services, omnichannel, and expanding the market

CEO Alex said Currys’ strategy is centered on helping customers “discover, choose, afford, and enjoy” technology, with emphasis on colleague engagement, customer satisfaction, and omnichannel execution. He reported group engagement at 82, with the UK at 84 and the Nordics at 79. Currys also cited customer satisfaction gains, including UK NPS at 56, described as a record, and Nordics NPS at 64.

Alex highlighted investments intended to improve the shopping experience and efficiency, including electronic shelf edge labels and headsets in UK stores, and multiple online enhancements such as site speed and checkout improvements. Omnichannel behaviors such as click-and-collect were described as delivering double-digit growth in both the UK and the Nordics, and the company said “omnichannel sales” that touch both online and stores are growing fastest.

Services were repeatedly positioned as a driver of profitability and recurring revenue. Currys said services with recurring revenue rose 11% and represented 30% of sales. The company emphasized credit as a growth lever, saying 24% of UK sales are now on its own credit product year to date, rising to 25% over peak, with 2.9 million credit customers. Management said it is now the number three provider in retail credit, behind Next and Very, after overtaking Argos.

Executives also pointed to installation services (over one-third of UK big box sales; 46% in the Nordics) and repair as key differentiators. Alex highlighted Currys’ repair infrastructure, including Newark, described as “Europe’s number one biggest repair center for technology” with 1,200 colleagues and three million devices annually, plus three additional centers in the Nordics.

Nordics momentum and B2B expansion

Management said the Nordics saw a strong market rebound, with inflation and interest rates “under 2%” across the markets except Norway, alongside improved consumer confidence. Alex said Currys maintained “hard-won” margin and cost disciplines during the prior downturn and is now applying them in a more buoyant environment.

On market share, Alex said UK share was up 60 basis points over peak. He said Nordics share also grew over peak, though final numbers were still pending.

The company also emphasized small and medium-sized business (SMB) customers as a major adjacent opportunity. Alex said SMBs currently account for 8% of sales and that B2B grew 21% in the UK and 25% in the Nordics over peak. He described the “bull’s eye” target as 1-to-50 employee businesses and said Currys has built capabilities such as leadership, store specialisms, online presence, and account management to support growth, including “over 50” (nearer 60) B2B hubs in UK stores.

Closing the call, Alex summarized the period as “strong peak trading and an upgraded profit outlook,” saying the company is on a “good trajectory” but “not yet with the score,” adding that Currys believes it has “plenty more in the tank.”

About Currys (LON:CURY)

Currys plc is a leading omnichannel retailer of technology products and services, operating online and through over 800
stores in 8 countries. We Help Everyone Enjoy Amazing Technology, however they choose to shop with us.

In the UK & Ireland we trade as Currys; in the Nordics under the Elkjøp brand and as Kotsovolos in Greece. In each of
these markets we are the market leader, employing 28,000 capable and committed colleagues. Our full range of services
and support makes it easy for our customers to discover, choose, afford and enjoy the right technology for them,
throughout their lives.