Currys Shares Surge as ‘Performance Continues to Strengthen’

Currys (LON: CURY) reported its results for the half-year ending 26 October 2024 on Thursday, resulting in its shares price surging 10% as the company demonstrated robust performance across key metrics.

The electronics retailer said adjusted EBIT climbed 52% year-on-year to £41 million, with free cash flow surging to £50 million, a £46 million improvement.

In the UK and Ireland, revenue rose by 6%, boosted by strategic initiatives, including a 32% increase in iD Mobile subscribers to 2 million and strong B2B performance. Group revenue came in at £3.918 billion, rising 1% year-on-year, driven by a like-for-like revenue increase of 2%.

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Adjusted EBIT in the region grew 53% year-on-year to £23 million, driven by improved gross margins and market share gains.

Despite challenging market conditions, the Nordics also showed resilience, with adjusted EBIT increasing 50% year-on-year to £18 million.

The company pointed to tight cost control and an 80 basis-point improvement in gross margins for the results.

Group Chief Executive Alex Baldock highlighted significant progress in profitability and cash flow. “Currys’ performance continues to strengthen, with profits and cashflow growing significantly, and the Group’s balance sheet is strong,” he said, noting rising customer satisfaction and colleague engagement as key drivers.

Baldock also showed optimism regarding future growth, despite potential challenges from UK government policies increasing costs.

Currys’ focus on technological advancements remains strong, with the company holding a 75% market share in AI laptops in the UK.

The retailer reaffirmed its guidance for the full year, expecting continued growth in profits and cash flow. It also stated that trading during the six weeks since the H1 period ended has remained in line with expectations.