Currys (LON:CURY) shares surged at the open on Thursday after the company released a trading update for the 17 weeks ended August 30, 2025, showcasing a strong start to the year and the commencement of a new £50 million share buyback program.
The electronics retailer's stock is up by more than 23% following the update, trading at around 134.1p per share, its highest level since November 2021.
The group reported a like-for-like revenue increase of 3%, driven by robust sales in the UK & Ireland and steady growth in the Nordics.
This growth comes despite a challenging macroeconomic backdrop, suggesting Currys is effectively navigating market headwinds. The share buyback is consistent with the company's capital allocation framework. Alongside the previously announced cash dividend of c.£25m, cash returns to shareholders will total c.£75m this year.
Headline Numbers:
- Group Like-for-Like Revenue: +3%
- UK & Ireland Like-for-Like Revenue: +3%
- Nordics Like-for-Like Revenue: +2%
- Share Buyback: £50 million
The UK & Ireland segment experienced robust sales, fueled by market share gains and double-digit growth in new categories and B2B. Strong performers included gaming, AI computing, large appliances, coffee machines, and cooling products.
However, declines were noted in TVs, tablets, and air fryers, highlighting shifting consumer preferences. Recurring Services revenue also demonstrated strong growth, with credit adoption increasing by 190 basis points to 23.3% and iD Mobile reaching over 2.3 million subscribers, a 22% year-over-year increase.
In the Nordics, sales growth was driven by AI computing and success in emerging categories like robotic lawnmowers and vacuums.
Elkjøp's kitchen brand, Epoq, also experienced strong momentum. Gross profit growth was achieved across all Nordic countries, attributed to a strategic focus on more profitable sales. Operating costs were tightly controlled, effectively offsetting inflation and contributing to improved profitability.
The company added that its triennial pension review revealed a significant reduction in the actuarial deficit, decreasing to £134 million as of March 31, 2025, from £403 million as of March 31, 2022. The group will contribute £82 million this year as planned, with future contributions set at £13 million per annum over five years to March 2031, a reduction from the previous £78 million per annum until December 2028.
The new £50 million share buyback program is set to commence immediately.
CEO Alex Baldock stated, “It's been a good start to the year, with encouraging performance across the Group.”
“We're working to deliver an ever-improving experience for colleagues, for customers and for shareholders, as reintroducing the dividend and now starting share buybacks shows.”
Currys' solid trading update and shareholder-friendly capital allocation policy present a potentially attractive opportunity for investors, but careful monitoring of market conditions and company performance is warranted.
Currys said trading in the first four months of the financial year has been in line with expectations and it is planning confidently for the year ahead and is comfortable with market consensus.
It is targeting continued growth in higher margin, recurring revenue Services, including reaching at least 2.5m iD Mobile subscribers before year-end. In addition, the company expects net cash to total at least £100 million post pension contributions and capital returns.
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