Currys (CURY) investor relations material

Executive summary

• Delivered a year of strengthening performance with three profit upgrades, strong profit and cash generation, and progress across sales, margins, and balance sheet in both UK & Ireland and Nordics.

• Market share increased in all operating regions, with UK & Nordics outperforming competitors in revenue and profit growth.

• Focused on colleague engagement and customer satisfaction, achieving top global rankings and improved NPS and Trustpilot scores.

• Strategy centers on building recurring revenues, expanding into new categories, and leveraging omnichannel strengths.

• Resumed dividends and prioritized free cash flow growth, strong balance sheet, and shareholder returns.

Financial highlights

• Group sales reached £8.7bn, up 2% like-for-like; adjusted profit before tax rose 37% to £162m; adjusted EPS up 43% to 11.3p.

• Free cash flow increased 82% to £149m; net cash position improved by £88m to £184m.

• Proposed final dividend of 1.5p, resuming shareholder returns.

• UK like-for-like sales up 4%, Nordics flat overall but positive in H2; UK adjusted EBIT up 8% to £153m, Nordics adjusted EBIT up 24% to £72m (constant currency), EBIT margin up 40bps to 2.1%.

• Gross margins improved for the fourth consecutive year, up 20bps in the UK and 60bps in the Nordics.

Outlook and guidance

• Trading in the current year is in line with expectations; confident in meeting market consensus for profit and cash.

• Facing significant headwinds: £32m in new government costs, inflationary pressures, and Nordic currency weakness.

• Net interest expense expected at £65m; CapEx to increase slightly, mainly in the Nordics, with total capex at £95m; exceptional cash outflow to reduce to £30m.

• Pension contributions to rise to £78m; cash dividend proposed at £25m.

• Medium-term goal remains at least 3% EBIT margin, with UK near target and Nordics progressing.