Currys PLC Surprises With Full-Year Profits That Beat Forecasts – Shares Jump 8%
UK electronics giant Currys PLC (LON:CURY) has reported better-than-expected results for the year ended 3 May. Adjusted pre-tax profit came in at £162m, beating consensus forecasts of £159m, helped by solid revenue, strong cost control and strong cash flow.
The news sent CURY shares up 8% on the London Stock Exchange following the report.
Revenue growth, strong cash flow
Currys reported a 3% rise in consolidated revenue to £8.71bn, with like-for-like sales up 2%. Notably, free cash flow rose 82% to £149m, reflecting strong financial management amid rising input and wage costs.
The board also recommended a final dividend of 1.5p per share, up from the 1.3p forecast, underscoring its long-term commitment to delivering consistent shareholder value.
Analysts' view
Currys' results were rated as "comprehensively consistent" by analysts at RBC Capital Markets, and suggest the potential for a dividend increase or share buyback in the future.
However, analysts also warned of risks from trade tensions – such as US tariffs that could push up import costs from Asia, forcing big brands to adjust their prices or seek alternative markets such as Europe.
However, “Currys is showing solid momentum and positive cash flow potential to continue to grow,” RBC wrote.
UK & Ireland growth leads global results
In its core UK & Ireland market, Currys recorded a 6% increase in revenue, driven by market share expansion and a number of effective growth initiatives. Meanwhile:
Services revenue up 12%
Credit sales up 14% to £1.1bn
iD Mobile subscribers up 26% to 2.2m
Future outlook & financial plan
Currys has announced a number of specific guidance items for the next financial year:
Interest expense: expected to be £65m
Capital expenditure: held at £95m
Extraordinary cash: reduced to £30m
Pension contribution expense: around £78m
Cash dividend: £25m
Over the longer term, the company is targeting adjusted EBIT of at least 3% for both the UK/Ireland and Nordic regions. Capital expenditure is expected to remain below £100m per annum, with the expectation of reducing exceptional cash expenditure to below £10m by 2026/27.
Strategic objectives include maintaining neutral working capital and optimizing free cash flow to support shareholders through growing dividends and potential share buybacks.
CURY: Investment Opportunity or Potential Risk?
With solid results, strong cash flows and an attractive dividend commitment, Currys is emerging as a stock to watch in a volatile market. Long-term investors may see this as a golden time to accumulate, especially as the company has demonstrated its ability to weather macro pressures and rising input costs.
ProPicks AI has seen some stocks rise by more than 150% over the past year. Could CURY be the next name on the list?