Currys Plc (LON:CURY) has announced its Audited Financial Results for the Year Ended 2 May 2026.
Summary
· Group adjusted profit before tax £191m, +18% YoY
· Group free cash flow £157m, +5% YoY
· Group year-end net cash £176m, after £74m of shareholder returns and £82m of pension contributions
· Group colleague engagement score +2pts to 84, amongst top global companies1
· Customer satisfaction rising with UK&I NPS of 56, +1pt YoY, and Nordics NPS of 65, +2pts YoY
· Final dividend of 2.25p proposed, bringing full year dividend to 3.0p, +100% YoY, at 4.5x cover
· New £50m share buyback to commence today
· Fredrik Tønnesen, Nordics CEO, appointed Group Chief Executive Officer from 3 August, succeeding Alex Baldock
Financial performance
· Group revenue £9,254m, +6% YoY, driven by like-for-like growth of +4%
· UK&I like-for-like revenue +3% and adjusted EBIT £158m, +3% YoY
o Growth driven by market share gains2 in both channels and strategic initiatives, including recurring Services revenue3 +7%, credit sales +10% to £1.2bn and iD Mobile subscribers +18% to 2.6m
o Sales growth in both channels and gross margin expansion more than offset cost increases
o Segmental free cash flow £105m, +11% YoY, with disciplined capital expenditure and working capital management
· Nordics like-for-like revenue +6% and adjusted EBIT £97m, +26% currency neutral
o Nordics delivering strong profit growth and margin expansion, driven by operating leverage and tight cost control
o Segmental free cash flow +6% YoY to £73m, +7% currency neutral, after planned increases in investment spend
· Adjusted EPS 13.4p, +19% YoY
· Statutory profit before tax of £153m, +£29m YoY
Outlook
· Group trading in early part of the new financial year has been very solid
· Although there continues to be macro uncertainty, the Group is comfortable with current market consensus4
· Targeting continued growth in higher margin, recurring Services revenue, including reaching at least 2.8m iD Mobile subscribers before year end
· Total cash shareholder returns of c.£85m planned in 2026/27 with the Board targeting a further reduction to 4.0x dividend cover for 2026/27
Alex Baldock, Group Chief Executive
“Our performance continues to strengthen. Profits and cash flow are healthily up, supported by a balance sheet that has never been stronger, even after growing shareholder returns.
“Currys is trending in the right direction on every dimension that matters. Colleague engagement is among the top 10% of global businesses, customers are saying they’re happier (with record satisfaction) and showing they are, as we grew share and extended our lead as market #1. Top line and bottom line, products and Services, the UK&I and the Nordics: all are in growth.
“The outside world remains uncertain, and we are not counting on it to do us any favours. Still, there is much more in the tank here. Growth opportunities such as B2B have almost trebled the market accessible to us, are driving the topline today, and have much further to go. And, though we’ve significantly increased the adoption of the solutions that delight customers and boost margins, the prize here remains larger still.
“In Fredrik, the business has an outstanding leader to continue and accelerate this progress. I’ll be a loyal Currys customer, advocate and shareholder all my life, and will be cheering on Fredrik and his world class team. As ever, my heartfelt thanks and admiration go to the thousands of capable and committed colleagues who are building this ever-stronger Currys.”
Performance Summary
Group like-for-like sales growth was +4%, with the UK&I +3% and the Nordics +6%. In the UK&I, we delivered good growth against a subdued consumer backdrop. The Nordics consumer environment gradually improved through the year, supported by easing inflation and lower interest rates across most of the region.
| Year-on-year | |||||
| Revenue | 2025/26 £m | 2024/25 £m | Reported% change | Currency neutral% change | Like-for-Like% change |
| UK & Ireland | 5,438 | 5,286 | +3% | +3% | +3% |
| Nordics | 3,816 | 3,420 | +12% | +6% | +6% |
| Group | 9,254 | 8,706 | +6% | +4% | +4% |
| Like-for-like Sales - YoY | H1 | Peak | Post-Peak | H2 | Full year |
| UK & Ireland | +4% | +3% | +4% | +3% | +3% |
| Nordics | +4% | +12% | +4% | +8% | +6% |
| Group | +4% | +6% | +4% | +5% | +4% |
In the UK&I, we outperformed the market, gaining +60bps of share in a market2 that declined (1.3)%. Like-for-like sales grew +3%, driven by strong performance in strategic initiatives including new categories and B2B. Adjusted EBIT increased £5m to £158m as increases in colleague and operating costs were offset by gross margin improvements and operating leverage.
Nordics delivered very good results with adjusted EBIT up +26% (currency neutral) to £97m. Sales grew +6% (currency neutral) as most product categories contributed to growth, supported by improving consumer sentiment. Market share2 grew in the second half after declining in the first half. Gross margins declined (60)bps YoY driven by the devaluation of forward purchase contracts as local currencies strengthened against the Euro. Excluding these impacts, the gross margin was broadly flat as we balanced sales growth and margin in a recovering consumer environment.
Group adjusted EBIT increased +13% to £255m and operating cash flow grew +13% to £294m. Free cash inflow reached £157m, +£8m higher than last year, driven by the stronger operating performance, controlled capital expenditure and working capital management. Cash deployment included £82m of pension contributions, £24m of dividends, and £50m of share buybacks. After these outflows, the Group ended the period with net cash of £176m, £(8)m YoY.
| Profit and Cash Flow Summary | 2025/26£m | 2024/25£m | 2025/26Adjusted £m | 2024/25Adjusted£m | Reported% change | Currency neutral% change |
| Segmental EBIT | ||||||
| UK & Ireland | 134 | 145 | 158 | 153 | +3% | +3% |
| Nordics | 86 | 53 | 97 | 72 | +35% | +26% |
| EBIT | 220 | 198 | 255 | 225 | +13% | +11% |
| EBIT Margin | 2.4% | 2.3% | 2.8% | 2.6% | +20 bps | +20 bps |
| Net interest expense on leases | (53) | (56) | (53) | (56) | ||
| Other net finance costs | (14) | (18) | (11) | (7) | ||
| Profit before tax | 153 | 124 | 191 | 162 | +18% | +15% |
| Tax | 12 | (16) | (48) | (40) | ||
| Profit after tax | 165 | 108 | 143 | 122 | +17% | +14% |
| Earnings per share | 15.5p | 10.0p | 13.4p | 11.3p | +19% | +16% |
| Dividend per share | 3.0p | 1.5p | 3.0p | 1.5p | +100% | +100% |
| Operating cash flow | 294 | 260 | +13% | +11% | ||
| Operating cash flow margin | 3.2% | 3.0% | +20 bps | +20 bps | ||
| Cash generated from continuing operations | 514 | 507 | ||||
| Free cash flow | 157 | 149 | +5% | +7% | ||
| Net cash | 176 | 184 | (4)% | (10)% |
Outlook and guidance
Current year guidance
Group trading since the year end has been very solid.
In line with usual practice, the Group will update the market on full year profit expectations after the Peak trading period, but at this early stage in the year it is comfortable with market expectations.
Guidance on known and controllable financial items is listed below.
· The Group expects total interest expense of around £60-65m
· Capital expenditure of around £95m
· Exceptional cash outflow of around £15m
· Scheduled pension contributions of £13m and matching contributions of £5m
· Cash dividend payments of £35m across the proposed 2025/26 final and expected 2026/27 interim dividend
· New share buyback of £50m
Other technical cash flow items:
· Depreciation & amortisation around £280m
· Other non-cash items in EBIT of around £25m
· Cash payments of leasing costs around £265m
· Cash tax around £15m
· Cash interest of around £15m
· Share purchases to cover colleague share awards of £40m
Longer term guidance
The Group is continuing to target at least 3% adjusted EBIT margin in both the UK&I and the Nordics.
Alongside this, the Group will remain focused on free cash flow generation. The Group expects to keep annual capital expenditure below £100m, for exceptional cash costs to keep reducing, and to keep working capital at least neutral despite continued outflow from the expected growth of the iD Mobile business.
The Group will aim to distribute consistent and growing cash to shareholders as outlined in the capital allocation framework which is set out below.
Capital allocation
The Group’s continued focus on free cash flow resulted in year-end net cash of £176m and a pension deficit of £(6)m, a net position of £170m, further strengthening the Group’s capital structure.
On this strong foundation, the Group has a clear capital allocation framework:
1. Maintain a prudent balance sheet – The Group will look to maintain a year-end net cash balance of at least £100m for the foreseeable future. This level of cash allows us to efficiently manage the working capital cycle of the business and protect the balance sheet in the event of unexpected market downturns. The Board is comfortable maintaining a strong cash buffer above this level.
2. Pay required pension cash contributions – The Group is scheduled to pay £13m a year into the historic defined benefit pension scheme for five years, from 2026/27 to 2030/31. At the end of that period the scheme should be fully funded on a prudent basis and these contributions will cease.
The Group is also required to make shareholder matching contributions. These are triggered when shareholder returns (dividends and buybacks) exceed £80m in a year, with the excess matched by an additional contribution to the scheme. The threshold drops to £40m in any year where year-end net cash falls below £50m. Matching contributions do not increase what the Group ultimately owes the scheme, they accelerate the funding plan by reducing the payments still due, starting with the latest years. With shareholder returns this year expected to be around £85m, the Group anticipates a matching contribution of £5m.
3. Invest to grow business/profits/cashflow – The Group has set an annual capital expenditure target of not more than £100m, which reflects the well-invested nature of the Group’s assets and that an increasing proportion of investment spend is expensed through the P&L. The Group continues to prioritise high returning projects and the efficient use of capital and is comfortable that this level of expenditure provides sufficient bandwidth to achieve our objectives. In addition, the Group’s strong capital structure provides the flexibility to explore other growth initiatives and small bolt-on acquisitions adjacent to the core business where attractive returns are available.
4. Pay and grow an ordinary dividend – The Board is committed to paying and growing ordinary dividends. The Board has proposed a final dividend of 2.25p, bringing the full year dividend to 3.0p, which represents +100% growth YoY and will drive total cash dividends of around £35m in FY 2026/27. At this level, dividend cover is 4.5x, from 5.0x last year, and the Board expects to bring cover down further to around 4.0x in the year ahead, with scope to reduce cover further over time.
5. Surplus capital available for share buybacks – The Group is committed to returning excess cash to shareholders through a share buyback programme. The Group is commencing a new £50m share buyback programme today.
