Currys – latest results show emphasis on growth, shares at 128.50p have an undemanding rating, brokers TP 180p

03.07.2025

“The strategy we follow is simple.

We're here to help everyone enjoy amazing technology.

To do so, we want capable and committed colleagues, delivering an easy-to-shop customer experience, creating customers for life, and ultimately growing our profits and cash flows.”

The Corporate Strategy of Currys

This morning’s Finals Results from Currys (LON:CURY) for the year to 3^rd May 2025 declared that the electricals and technology products retailer had strengthened its performance and driven significant profit and cashflow growth.

The £1.38bn-capitalised group reported revenues were up 3% year-on-year at £8.7bn, with the UK and Ireland sales up 4% while the Nordics were flat.

Profit before tax on continuing operations were 41% better at £162.0m (£118.0m), lifting earnings 43% to 11.3p (7.9p) per share.

Management Comment

CEO Alex Baldock stated that:

"Currys' performance continues to strengthen and the business has real momentum.

A stronger Currys is good for colleagues, customers, shareholders and society, and we're doing a better job for all of them.

We're uniquely placed not just to sell customers amazing technology, but to help them enjoy it to the full.

Customers are increasingly adopting our credit, setup, installation, repair and connectivity services, building valuable recurring revenues for Currys.

We're now seen as the home of AI-enabled tech and our investments in new product categories and serving B2B customers are showing early signs of success.

Our brands - Currys in the UK&I and Elkjøp in the Nordics - are stronger than ever.

A new generation of customers is discovering Currys, thanks to brilliant social campaigns which have delivered industry-leading levels of engagement.

I'm pleased that thanks to all this hard work we can resume the dividend.

We aim to return more of our growing free cash flow to shareholders.”

Current Year Guidance

The group stated that it is facing into several headwinds this year, including cost increases driven by the UK government's recent budget, general cost inflation, and the weaker Norwegian Kroner reducing reported profits.

To counteract these, the group is pursuing cost-saving measures and is well-placed to take advantage of growth opportunities.

At this early stage in the year, it is comfortable with market expectations.

“Our ambition remains unchanged.

We aim to engage thousands of capable colleagues, delight millions of customers, and generate increasing amounts of free cash flow, with more of it being returned to our shareholders.

Now, more than ever, I am confident that we are on the right path to fulfilling these ambitions.”

The Business

Currys is a leading omnichannel retailer of technology products and services, operating online and through 708 stores in 6 countries. 

In the UK & Ireland, it trades as Currys and in the UK we operate our own mobile virtual network, iD Mobile.

In the Nordics it trades under the Elkjøp brand.

It is the market leader in all markets, able to serve all households and employing more than 24,000 capable and committed colleagues.

The group's operations include one of Europe's largest technology repair facilities, a sourcing office in Hong Kong and an extensive distribution network, centred on Newark in the UK and Jönköping in Sweden, enabling fast and efficient delivery to stores and homes.

Broker’s Views

Analysts Wayne Brown, Ben Hunt and Anubhav Malhotra, at Panmure Liberum, rate the group’s shares as a Buy, with a 180p Target Price.

They state that:

“Every part of the business is heading in the right direction, the balance sheet has not been this strong in a decade, dividends are back and the prospects for buybacks this year are very real.

Positive trading catalysts are building and there is a change in emphasis in the RNS towards growth.”

Their estimates for the current year to end-April 2026 show £8,812m (£8,706m) in sales, while pre-tax profits could see an advance to £164.5m (£162.0m), taking earnings up to 11.4p (11.3p) and paying an increased dividend of 2.2p (1.5p) per share.

For 2027 they see £9,022m revenues, £181.3m profits, with 12.6p earnings and a 2.4p dividend.

Into 2028, the analysts foresee the group reporting £9,203m of turnover, £191.8m profits, 13.3p earnings and paying a 2.5p per share dividend.

The analysts, who note that positive trading catalysts are building and that there is a change in emphasis towards growth, conclude their summary by commenting that:

“The shares have done well but valuation continues to be undemanding, so this remains a strong Buy.”

My View

My view about Currys is simple –

, they rose over 8% on the results some 10p better at 128.50p, they could still put on 25% in price and even then look undervalued.

(Profile 10.07.23 @ 49p set a Target Price of 61p*)

(Profile 18.12.23 @ 50.05p set a Target Price range of 61p-65p*)

Asterisks * denote that Target Prices have been achieved since Profile publication.