Currys PLC shares surge 24% on 37% profit jump and £50m buyback
When Currys PLC released its financial results on 4 September 2025, investors didn’t just take notice—they raced to buy. The UK’s largest electricals retailer reported a 37% leap in adjusted pre-tax profit to £162 million for the year ending 3 May 2025, sending its share price soaring 24% to 126p in early trading. The rally wasn’t just about profits. Currys PLC also unveiled a £50 million share buyback and a final dividend of 1.5p, signaling a dramatic shift in how it’s returning value to shareholders. And here’s the thing: this wasn’t a one-off. It was the culmination of three profit upgrades in 2025, a stronger balance sheet than it’s had in over a decade, and a quiet transformation from a store selling fridges to a services-driven powerhouse.
Why profits jumped—and what’s really driving growth
Group revenue hit £8.7 billion, up 3% year-on-year, but the real story was in the margins. Adjusted EBIT in the UK & Ireland segment climbed 8% to £153 million, fueled by a 4% like-for-like sales gain. The Nordics, long a drag, posted a 2% like-for-like increase, suggesting its recovery is no longer a hope but a trend. What’s surprising? It wasn’t TVs or tablets. Those categories slumped. Instead, demand surged for gaming consoles, AI-powered computers, robotic lawnmowers, and premium coffee machines. People aren’t just replacing broken appliances—they’re upgrading to smarter, more connected ones. And Currys PLC is cashing in.But the real engine? Services. Currys PLC’s iD Mobile business hit 2.3 million subscribers—up 22% in a year—and is on track to surpass its 2.5 million target before the financial year ends. That’s not just a number. It’s recurring revenue, high-margin contracts, and customer lock-in. Gross margin improved by 20 basis points, thanks to better bundling, customer experience upgrades, and smarter pricing. Even as wages and inflation ate into operating costs, the company’s ability to monetize services kept profitability on the rise.
The balance sheet that surprised analysts
Free cash flow jumped 82% to £149 million. Net cash soared to £184 million—an £88 million improvement from the prior year. That’s not just healthy. That’s exceptional for a retailer still investing in stores, tech, and customer service. Analysts at Panmure Liberum called it "more than double the forecast a year ago." And they weren’t exaggerating. The company’s cash pile now exceeds its entire market cap just five years ago. This isn’t luck. It’s execution. Currys has cut exceptional costs, slowed capital spending, and focused on high-return investments. The result? A balance sheet that’s not just strong—it’s a weapon.
Buybacks, dividends, and a new shareholder strategy
The £50 million buyback is the clearest signal yet: Currys PLC believes its shares are undervalued. Combined with the £25 million dividend, total shareholder returns hit £75 million. That’s not a gesture. It’s a promise. CEO Alex Baldock told shareholders at the AGM that "none of this would be possible without our thousands of capable and committed colleagues." But behind the gratitude is a hard-nosed strategy: shift from volume to value. From selling appliances to selling ecosystems. From one-time purchases to long-term relationships. The dividend return—after a multi-year pause—wasn’t just about cash. It was about credibility.What’s next? Targets, margins, and the road to £170 million
The market consensus for next year’s adjusted pre-tax profit? £170 million—a 3.1% increase. Currys PLC says it’s "comfortable" with that. But here’s the twist: analysts at Webull expect profit to grow 23% over the next two years. Why? Because the replacement cycle in computing and gaming is just beginning. Because iD Mobile will hit 2.5 million. Because the Nordics are gaining momentum. The company has set hard targets: at least 3% EBIT margin in both UK & Ireland and Nordics, capital spending under £100 million annually, and working capital neutrality despite iD Mobile’s growth. If they hit even two of these, the share price could climb further.
Behind the numbers: The human story
It’s easy to get lost in the cash flow charts and margin percentages. But the real story is in the stores. In the technicians fixing fridges. In the sales staff explaining AI features to confused customers. In the call centers handling iD Mobile complaints. Currys PLC didn’t turn itself around with algorithms. It did it with people. And that’s why the 24% jump on 4 September didn’t feel like speculation—it felt like recognition.Frequently Asked Questions
How did Currys PLC manage to boost profits despite inflation?
Currys PLC boosted profits by shifting focus from low-margin appliance sales to high-margin services like iD Mobile subscriptions, extended warranties, and tech support. While inflation pushed up wages and operating costs, the company offset this with better pricing on bundled products, higher adoption of services, and tighter cost controls. Services now account for a growing share of revenue, with gross margin improving by 20 basis points despite inflationary pressures.
Why is the iD Mobile business so important to Currys’ future?
iD Mobile isn’t just a telecom arm—it’s a recurring revenue machine. With over 2.3 million subscribers and growing at 22% annually, it’s on track to hit 2.5 million by year-end. Unlike one-time appliance sales, mobile contracts generate steady monthly income with high customer retention. Analysts see it as a key driver of future profitability, helping Currys reduce reliance on volatile consumer electronics cycles and build long-term customer loyalty.
What does the £50 million share buyback mean for investors?
The £50 million buyback signals that Currys PLC believes its stock is undervalued and that returning cash to shareholders is a better use of funds than hoarding cash or risky acquisitions. By reducing the number of shares outstanding, earnings per share rise automatically, potentially lifting the stock price. Combined with the £25 million dividend, it’s the largest shareholder return in years—signaling confidence in future cash flow and a new era of capital discipline.
Is Currys PLC’s Nordics recovery sustainable?
Yes. The Nordics segment posted a 2% like-for-like revenue increase in the 17 weeks ended 30 August 2025, its strongest performance in years. Sales in large appliances, cooling products, and AI devices are picking up, and cost-cutting under new leadership is working. Elkjøp, its Nordic subsidiary, is no longer a loss-maker but a contributor to group margins. Analysts note early signs of a regional replacement cycle, suggesting growth could accelerate if consumer confidence holds.
How does Currys’ financial performance compare to competitors like John Lewis or AO.com?
Unlike John Lewis, which has struggled with debt and declining footfall, Currys has cut costs aggressively and grown services revenue. Compared to AO.com, which relies heavily on online delivery, Currys benefits from its physical stores as service hubs—repair centers, tech advice desks, and iD Mobile activation points. That hybrid model gives Currys an edge in customer retention and margin control. Its £184 million net cash position also dwarfs most rivals’, giving it flexibility competitors lack.
What risks could derail Currys’ momentum?
A sharp economic downturn could dampen demand for premium appliances and mobile contracts. Rising interest rates might slow credit sales, which were notably strong in 2025. Also, if iD Mobile’s growth stalls or competition from established telecoms intensifies, the services engine could falter. Lastly, any supply chain disruption in key categories like AI chips or semiconductors could hurt sales of high-margin computing products.
