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Highlights

  • Analysts at Berenberg and Panmure Liberum assign BUY ratings with price targets of GBp 175 and GBp 180, forecasting 40.79% and 44.81% upside, respectively.

  • Currys delivers £162 million adjusted profit before tax, up 37% YoY; free cash flow jumps 82%.

  • The company posts its maximum balance sheet in over a decade with £184 million in net cash.

Currys PLC (LSE:CURY), the UK-based omnichannel electronics and technology retailer, has garnered renewed optimism from market analysts. Berenberg’s Adam Tomlinson and Panmure Liberum’s Wayne Brown have reaffirmed their BUY recommendations, setting price targets of GBp 175 and GBp 180, respectively. These valuations reflect upside potential of up to 44.81% from the current share price of GBp 124.3 as of 4 July 2025.

The bullish stance is likely to be supported by recent financial performance for the year ended 3 May 2025 and management’s continued focus on high-margin, recurring revenue streams.

Profitability and Cash Flow Hit Multi-Year Highs

Currys reported a 37% year-on-year increase in adjusted profit before tax to £162 million, and an 82% surge in free cash flow to £149 million, driven by disciplined capital expenditure and improved margin performance across its regions.

The company ended the year with £184 million in net cash, its strongest balance sheet in over a decade. The final dividend of 1.5 pence per share was proposed in line with its goal to deliver consistent and growing shareholder returns.

UK & Nordics Fuel Operational Momentum

In the UK and Ireland, revenue grew 6%, supported by strategic gains such as a 12% increase in recurring Services revenue, a 14% rise in credit sales to £1.1 billion, and a 26% growth in iD Mobile subscribers to 2.2 million. Like-for-like revenue in the region rose 4%, and adjusted EBIT improved 8% year-on-year to £153 million.

In the Nordics, profits recovered despite challenging market and currency conditions. Segmental EBIT rose 24% in constant currency terms, with gross margins climbing by 60 basis points and segmental free cash flow more than doubling to £69 million.

Customer & Employee Metrics Show Upward Trajectory

Customer satisfaction is rising, with Net Promoter Scores improving in both key markets: UK&I at 55 (+6pts YoY) and Nordics at 63. The company also reported a colleague engagement score of 82, placing it among the top 5% of global companies.

Outlook

Currys management indicated that early trading in the new fiscal year has been in line with expectations. The company is targeting further growth in higher-margin, recurring revenue services, aiming to expand iD Mobile’s subscriber base to at least 2.5 million by year-end.