Currys shares rise 15% after trading update

Currys shares rise 15% after trading update

Currys plc's shares surged by 15% following the company's trading update for the 17 weeks ended on August 30, 2025. The update highlighted a robust start to the year, with notable growth in several key areas, including new categories and recurring services.

The UK and Ireland division reported a like-for-like revenue increase of 3%, driven by strong market share gains and double-digit growth in new categories such as gaming, AI computing, large appliances, coffee machines, and cooling products. However, there were declines in TVs, tablets, and air fryers. The Nordics division saw a 2% increase in like-for-like revenue, with growth fueled by AI computing and success in new categories like robotic lawnmowers and vacuums. The company's recurring services revenue grew strongly, with credit adoption up by 190 basis points to 23.3% and iD Mobile reaching over 2.3 million subscribers, a 22% year-over-year increase.

The trading update also revealed that the company's gross margin remained stable, with expected cost increases offset by operating leverage from higher sales. Operating costs were tightly controlled, offsetting inflation and driving improved profitability. The triennial pension review was completed, reducing the actuarial deficit from £403m as of March 31, 2022, to £134m as of March 31, 2025. The group will pay £82m of contributions this year, as planned, with future contributions of £13m per annum over five years to March 2031.

Currys also announced a new £50m share buyback program, commencing immediately, alongside a previously announced cash dividend of around £25m. This results in a total cash return to shareholders of approximately £75m for the year. The company is targeting continued growth in higher-margin, recurring revenue services, aiming to reach at least 2.5 million iD Mobile subscribers by year-end. The company expects year-end net cash to total at least £100m post pension contributions and capital returns.

The trading update was well-received by the market, with shares rising 15%. The company's chief executive, Alex Baldock, stated, "It’s been a good start to the year, with encouraging performance across the Group. We continue to grow, improve margins, and control costs well. We’re confident that profit margins will step forward again this year. We’re working to deliver an ever-improving experience for colleagues, for customers, and for shareholders."

References:
[1] https://www.currysplc.com/news-media/press-releases/2025/currys-agm-trading-update-2025-26/