Currys announces fifty million pound share buyback amid sales growth and dividend revival

Currys has unveiled a fifty million pound share buyback following a robust summer trading period, driven largely by heightened demand for AIenabled computers and cooling products during the heatwave. The FTSE 250 electricals giant which operates more than seven hundred shops, enjoyed a three percent uplift in revenue in the UK and Ireland for the seventeen weeks to the thirtieth of August compared to the previous year. Shares in the retailer soared by fifteen percent on news of the update closing at one hundred and twenty six pence after already rising sixty percent over the last twelve months.

Growth was bolstered by strong double digit sales in categories including gaming technology AI computing and large household appliances. Coffee machines and air conditioners also contributed solidly. This offset softer sales in televisions tablets and air fryers. Notably the business reported a surge in customers using store credit accounting for over twenty three percent of transactions, and subscriptions for mobile service iD Mobile jumped twenty two percent year on year to reach two point three million. Chief executive Alex Baldock projected that iD Mobile will surpass its two point five million target ahead of the financial year end.

Margins remained steady despite ongoing cost pressures due to higher sales volumes. Currys also issued a cautionary message about escalating business rates, warning that such rises could trigger higher prices decreased investment job losses and increased vacancies on the high street.

In the struggling Nordics division, revenues crept up two percent aided by new product categories such as robotic lawnmowers and vacuum cleaners. Baldock confirmed that the recovery in this region is gathering pace which should lead to improved profit margins for the current year. The stronger group performance allowed Currys to resume dividend payments suspended in twenty twenty three now in combination with the share buyback programme delivering seventy five million pounds to shareholders this year.

Pension obligations have also been reduced significantly, with the group deficit dropping from four hundred and three million pounds two years ago to one hundred and thirty four million now. Lower contribution requirements should provide financial relief from next year.

Analysts at Panmure Liberum praised the buyback, expecting a four percent uplift to earnings per share in the year ending twenty twenty six and as much as nine percent by twenty twenty eight. Brokers at RBC cited Currys solid market position in the UK and Nordics, improved offerings and profitability, and the continued growth of iD Mobile and higher margin services. However, they cautioned that the business remains sensitive to changes in consumer confidence because of its discretionary focus and slim margins, and noted potential for increased capital expenditure if the company opts to expand or further enhance its service proposition.