Currys PLC (LSE:CURY) may not be the most glamorous name in British retail, but investors have taken notice after a strong set of full-year figures.
In its financial year 2025 results, the electronics and technology retailer reported a 37% jump in adjusted pre-tax profit to £162 million.
Free cash flow rose 82% to £149 million, while the company posted its strongest balance sheet in over a decade. These are eye-catching numbers in a sector still under pressure.
Currys also ranks among the top-rated shares in the UK according to Stockopedia’s StockRanks system. This quantitative model scores companies based on three key investment metrics: quality, value and momentum.
Currys’ overall score is 96 out of 100, putting it in the “Super Stock” category. That signals strong financial health, attractive valuation and positive investor sentiment.
Profits up, costs down
Revenue increased just 3% to £8.7 billion, but operational performance was the real driver of the profit surge. Adjusted earnings before interest and tax (EBIT) in the UK and Ireland rose 8% to £153 million, supported by market share gains, higher margins and tight cost control.
In the Nordics, where many rivals have struggled, Currys held flat like-for-like sales and lifted EBIT 24% to £72 million on a currency-neutral basis. That reflects disciplined margin management in a subdued economic climate.
The full-year dividend has been reinstated at 1.5p, with share buybacks under consideration pending the outcome of the company’s triennial pension review.
Focus on services and recurring revenue
Currys has shifted focus beyond simply selling televisions and laptops. The group is pushing into services, subscription models and higher-margin customer support.
Credit sales rose to £1.1 billion, with customer uptake more than doubling in four years to 21.9%. Subscriptions to its iD Mobile network jumped 26% to 2.2 million, with a target of 2.5 million for the coming year. It also completed 1.6 million in-house repairs — unmatched by any other British tech retailer.
Together, these services now account for a growing share of both revenue and profit. Grouped as “recurring and solution sales”, they grew 9% to £814 million.
Such income is more stable, less seasonal and typically more profitable. It forms a key plank in the turnaround story. Rolls-Royce has shown how a shift towards service-based revenue can reshape a business.
A textbook recovery play
Currys’ high-value rank of 86 reflects its forward price-to-earnings ratio of 11.3 and a 9% free cash flow yield. Momentum is also strong, with forecast upgrades in January and April after trading beat expectations.
Historically, UK shares with a StockRank over 90 have delivered annualised returns above 12%, comfortably outperforming the FTSE All-Share index. Currys is shaping up as a classic recovery play, with a strong balance sheet, rising profits and a commitment to returning capital to shareholders.
Outlook: AI, business sales and new product lines
Management has set out three areas for growth in the year ahead:
Artificial Intelligence computing: Currys already holds a 75% share of Windows AI-compatible PCs in the UK. With Windows 10 support ending, an upgrade cycle is expected to follow.
Business-to-business sales: It aims to double UK sales to small and medium-sized firms over three years and has already built out the required infrastructure.
New product categories: Currys is branching into health, beauty, pet technology and outdoor living, using its stores, website and supplier relationships to gain ground with minimal new investment.
Customer engagement is also improving. Marketing campaigns have won awards, driven social media interest and boosted brand loyalty.
Currys has delivered a well-executed turnaround, with rising cash flow, a reinstated dividend and fresh growth plans. With momentum behind the business and a StockRank of 96, it offers a compelling case for investors looking for a disciplined route to recovery.
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