On September 4, 2025, Currys plc stunned investors with a trading update that turned a quiet AGM into a market-moving event. The UK’s largest electronics retailer reported a 3% like-for-like revenue gain across its UK and Ireland operations for the 17 weeks ending August 30 — a strong start to the fiscal year, especially after last year’s sluggish holiday season. But it wasn’t just the numbers. The real story was the cash return: a £50 million share buyback, added to a £25 million dividend, delivering £75 million straight back to shareholders. And then there was the pension bombshell — the deficit slashed from £403 million to just £134 million in just three years. Investors didn’t wait. Shares jumped 15% by market close.
A Turnaround in Action
It’s easy to forget how far Currys plc has come. Just three years ago, the company was wrestling with a £403 million pension shortfall, a weight dragging down investor confidence. Now, thanks to a rigorous triennial review completed in March 2025, the liability has been cut by 67%. The Group plans to pay £82 million in contributions this year — a hefty sum, yes — but then it drops to a manageable £13 million annually through March 2031. That’s down from the previous commitment of £78 million per year until 2028. For a retailer still rebuilding trust after years of supply chain chaos and margin pressure, this isn’t just accounting — it’s a statement of stability.
Behind the numbers, the sales engine is firing. Growth came from gaming hardware, AI-powered PCs, large appliances like refrigerators and washing machines, and even coffee machines — categories where Currys has quietly built expertise. Sales of TVs and tablets? Still falling. Air fryers? A bust. But that’s not the story anymore. The company’s pivot toward high-margin, tech-integrated appliances and B2B contracts — think office printers, smart kitchen systems for landlords — is paying off. Alex Baldock, Group Chief Executive, called it "strategic focus," not luck.
Cash Returns and Confidence
Shareholders got more than just growth. They got certainty. The £50 million buyback, announced immediately after the AGM, signals that Currys plc believes its stock is undervalued. It’s also a sign of confidence in cash flow. The company expects £170 million in adjusted pre-tax profit for 2025/26 — up from £160 million forecast just five months ago. Depreciation and amortisation will hit £265 million, leasing costs £260 million, and tax around £20 million. That’s tight, but workable. Crucially, Currys is targeting at least a 3% adjusted EBIT margin in both the UK&I and Nordic markets — a benchmark that, if hit, would mark a return to profitability after years of erosion.
And they’re doing it lean. Capital spending will stay under £100 million. Exceptional cash costs — think store closures, restructuring — are aimed at falling below £10 million by 2026/27. Even with the growth of its iD Mobile business, working capital is expected to stay neutral. That’s rare in retail, where growth often means cash drains. Currys isn’t just growing — it’s growing smart.
Behind the Scenes: Risk and Resilience
The 2024/25 Annual Report, submitted to the National Storage Mechanism in ESEF format, listed 12 principal risks — down from 13. One new addition? Competition. That’s telling. It’s no longer enough to say "Amazon" or "Argos" — Currys now sees a fragmented, fast-moving retail landscape where every tech brand, from Apple to Samsung, is selling direct. The company also flagged financial services regulation and sustainability pressures as growing concerns. And then there’s cybersecurity. Following recent UK retail breaches, Currys is working with the National Cyber Security Centre to reassess its business continuity plans. Not because they’ve been hit — but because they know it’s only a matter of time.
What’s Next? The Clock Is Ticking
Currys won’t give full-year guidance until after the holiday rush. But they’re comfortable with current forecasts. The next major milestone? Interim results for the 26 weeks ending November 1, 2025 — due December 18, 2025. That’s when investors will see if the momentum holds through Black Friday and Christmas. If the trend continues, Currys could be looking at its best year in a decade.
For now, the message is clear: this isn’t a temporary spike. It’s a structural shift. The pension fix? Done. The cash return? Confirmed. The sales mix? Improving. The leadership? Calm, focused, and unafraid to cut costs where needed. And for a company that once seemed stuck in a downward spiral, that’s the most encouraging sign of all.
Frequently Asked Questions
How did Currys reduce its pension deficit so dramatically?
Currys completed a triennial actuarial review in March 2025, renegotiating assumptions around life expectancy, investment returns, and contribution rates. The company also increased its pension contributions in the short term — paying £82 million this year — while locking in a long-term commitment of just £13 million annually through 2031. This shift, combined with stronger asset performance, slashed the deficit from £403 million in 2022 to £134 million.
Why did Currys’ shares jump 15% after the AGM?
Investors reacted to three key signals: strong sales momentum in high-margin categories, a £50 million buyback proving management believes the stock is undervalued, and the dramatic pension deficit reduction. Combined with a stable profit forecast of £170 million, these factors erased lingering doubts about Currys’ financial health — triggering a wave of buying.
What’s driving Currys’ sales growth?
Growth is concentrated in gaming hardware, AI-powered PCs, large appliances like refrigerators and washing machines, and premium coffee machines. Sales in TVs, tablets, and air fryers are declining, but these are lower-margin categories. Currys has shifted focus to B2B contracts and tech-integrated home products, where margins are higher and competition is less intense than in consumer electronics.
Is Currys’ 3% EBIT margin target realistic?
Yes — and it’s already being achieved in some regions. Currys’ UK&I division posted a 2.8% EBIT margin in Q1 2025, and Nordic operations are slightly ahead. With cost controls tightening, digital sales rising, and fewer store closures, hitting 3% is achievable. The real test will be sustaining it through inflation and wage pressures, but the current trajectory suggests they’re on track.
What does the new £50 million buyback mean for shareholders?
It means direct value. The buyback reduces the number of shares outstanding, increasing earnings per share and potentially boosting the stock price. Combined with the £25 million dividend, shareholders are receiving £75 million in cash returns this year — a clear signal that Currys has moved from survival mode to shareholder return mode. It also signals confidence that future cash flows will cover these payouts without compromising operations.
When will we know if Currys’ growth is sustainable?
The interim results for the 26 weeks ending November 1, 2025, due December 18, 2025, will be the real test. That period includes the critical Black Friday and Christmas sales window. If Currys maintains its 3% growth and doesn’t see a sales drop-off in key categories, it will confirm the turnaround is structural — not seasonal.
