Currys' Profit Surge
Currys Reports 18% Profit Growth Driven by Strong Nordic Performance and Strategic Initiatives
Key Points
Nordics delivered a 26% year-on-year rise in adjusted EBIT on a currency-neutral basis to £97m, indicating strong margin expansion despite market conditions.
Currys gained 60 basis points of market share in the UK & Ireland even though the market contracted, underscoring the division’s relative competitive strength.
iD Mobile subscriptions reached 2.6 million, up 18% year-on-year, with management targeting at least 2.8 million by year-end.
Outgoing chief executive Alex Baldock will leave in August to take the top job at Boots, with Nordics chief Fredrik Tønnesen appointed to take over as group CEO.
The final dividend was 2.25p, taking the total annual payout to 3.0p, retaining the doubled dividend theme while detailing the final-pay component.
Currys posted its strongest profit growth in years on Wednesday, with adjusted profit before tax climbing 18% to £191 million for the full year ended May 2026. Group revenue rose 6% to £9.25 billion, and the company doubled its final dividend and launched a £50 million share buyback, according to MarketScreener.
The standout driver was the Nordics, where adjusted EBIT jumped 26% on a currency-neutral basis to £97 million. That turnaround — after two bruising years of price wars across Norway and Sweden — has now triggered a leadership change. Nordics chief Fredrik Tønnesen will take over as group CEO in August, replacing Alex Baldock, who is heading to Boots.
Nordic Turnaround Drives Group Profit Higher
The Nordics were once the weak spot. In 2023 and 2024, rivals slashed prices in Norway and Sweden, crushing margins at Currys' Elkjøp brand. But the company held its nerve. By refusing to chase the "race to the bottom" on pricing, Elkjøp rebuilt profitability. The result: a 26% EBIT jump to £97 million in a single year, according to The Financial Times.
The UK and Ireland also performed well, with like-for-like revenue up 3%. Currys gained 60 basis points of market share — even as the overall UK market shrank. Shore Capital analysts called the 26% Nordic EBIT rise "the standout figure," adding that Tønnesen's pricing discipline had "finally broken the back of the regional price wars," per Shore Capital research.
iD Mobile and Services Push Margins Beyond Hardware
Currys is no longer just a shop that sells televisions. Its iD Mobile network — a virtual mobile operator — now has 2.6 million subscribers, up 18% year-on-year. Management is targeting at least 2.8 million by year-end. Services like repairs, protection plans, and credit products drove higher-margin recurring revenue, giving the company a steadier income stream than hardware alone, according to The Times.
Free cash flow improved to £157 million. Net cash at year-end stood at £176 million — well above the board's own target floor of £100 million. That financial cushion gave the board confidence to double the final dividend to 2.25p per share, bringing the full-year payout to 3.0p, and to launch the £50 million buyback, AskTraders reported.
Baldock Exits After Decade, Tønnesen Steps Up
Alex Baldock is leaving after nearly eight years at the helm. He steered Currys through the Carphone Warehouse merger and the COVID-19 pandemic. In the official press release, he said: "I leave Currys in its strongest financial position in a decade." He will take the top job at Boots. Shares initially jumped to a high of 163.6p on the results, then slipped about 1% once investors digested the CEO news, according to AskTraders.
His successor, Fredrik Tønnesen, built the Nordic recovery from the ground up. On the investor call, Tønnesen said: "By focusing on profitability over empty volume, we can thrive even in a stagnant market." Analysts at Shore Capital called the transition "a blow" but said Tønnesen is "a proven operator." Some observers flagged a risk: the UK market is more complex than Scandinavia, with different consumer habits and a more fragmented labor market, per The Telegraph.
Management Confident as New Financial Year Begins
Trading at the start of the new financial year was described as "solid," with management saying it is confident in meeting market expectations. The capital allocation plan sets a year-end net cash floor of at least £100 million, with any surplus returned to shareholders. The B2B division — selling tech services to small businesses — is also growing, reducing the company's reliance on consumer spending, according to Reuters.
Not everyone is fully convinced. Some consumer advocates have raised concerns about the growing reliance on credit and insurance products to drive profit, warning of potential scrutiny from the Financial Conduct Authority. But for now, the numbers speak clearly: higher cash, higher profits, a doubled dividend, and a new CEO ready to apply the Nordic playbook across the whole group.
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