3rd Jul 2025 08:54
(Alliance News) - Currys PLC shares climbed on Thursday as it resumed dividend payments and reported increased earnings for the 2025 financial year.
Shares in Currys were up 9.0% at 129.00 pence in London on Thursday morning.
The London-based electronics retailer reported pretax profit of GBP124 million for the year that ended May 3, multiplied from GBP28 million the year before.
Revenue grew 2.7% to GBP8.71 billion from GBP8.48 billion the prior year. UK & Ireland revenue rose 6%, while revenue in the Nordics declined 2%. Nordic revenue was flat at constant currency rates.
Basic earnings per share multiplied to 10.0p from 2.4p in financial 2024.
The electronics retailer resumed the payment of a dividend, declared a final dividend of 1.5p per share.
Going forward, it said it expects to set its interim dividend at one-third of the prior full year dividend. Between the final dividend for financial 2025 and the expected interim dividend for financial 2026, Currys expects to return GBP25 million to shareholders.
Currys said the UK consumer environment was "resilient" as cost inflation softened and interest rates started to fall.
"Currys' performance continues to strengthen and the business has real momentum. A stronger Currys is good for colleagues, customers, shareholders and society, and we're doing a better job for all of them," said Chief Executive Alex Baldock.
"Our brands - Currys in the UK&I and Elkjop in the Nordics - are stronger than ever. A new generation of customers is discovering Currys, thanks to brilliant social campaigns which have delivered industry-leading levels of engagement."
Currys said it is facing "several headwinds" this year, including cost increases from the UK government's budget, cost inflation and the weaker Norwegian kroner.
It said it is pursuing cost saving measures to counteract these affects.
The company continues to target an adjusted earnings before interest and tax margin of at least 3% in both the UK & Ireland and the Nordics. It also expects to keep annual capital expenditure below GBP100 million.
The firm said it is "comfortable" with a company-compiled market consensus for GBP167 million in adjusted pretax profit for financial 2026, which would be up 3.1% from GBP162 million in financial 2025. This in turn was up 37% from GBP118 million in financial 2024.
Currys is targeting continued growth in higher margin, recurring revenue services, it said.
"Customers are increasingly adopting our credit, setup, installation, repair and connectivity services, building valuable recurring revenues for Currys," said CEO Baldock.
"We're now seen as the home of AI-enabled tech and our investments in new product categories and serving business-to-business customers are showing early signs of success...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."
Adjusted operating cash flow improved 5.7% to GBP260 million in financial 2025 from GBP246 million in financial 2024. Free cash flow was GBP149 million, up from GBP82 million.
By Michael Hennessey, Alliance News reporter
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