Currys' latest financial results have sparked a £50m share buyback plan and a proposed increased dividend for shareholders, reflecting the company's confidence in its strong performance. Notably, pre-tax profits reached £153m, a significant figure considering the challenging retail environment, with restructuring costs of £16m factored into this total. Revenue in the UK and Ireland segment grew by 3%, reaching £5.4bn, as the company outperformed the market.
The growth was attributed to successful introductions of new gaming devices and computing products, despite a 'soft' television market affecting consumer electronics sales. Currys' strategy of diversifying beyond traditional product sales is yielding results, with services, mobile, repairs, and business-to-business revenues contributing to its resilience. Repair offerings reached 1.6m in the financial year, while 11.6m warranty plans were secured and credit sales increased by 10% to £1.2bn.
The group's omnichannel strategy, combining physical stores with online presence, accounted for 33% of total revenue in the UK. Furthermore, Currys dominates the AI-enabled laptop market, holding 75% of UK market share, and these devices now comprise nearly a quarter of all laptop sales. The company is also poised to capitalise on emerging technologies.
Currys has confirmed that its £50m share buyback programme will be completed within the current financial year. An additional £40m worth of purchased shares will be distributed directly to staff as part of their remuneration or bonuses. Outgoing CEO Alex Baldock highlighted AI's potential, stating it represents the most exciting product cycle since the tablet in 2010 and is expected to influence all product categories.