Curry’s 17-week update: steady growth, slimmer pension, and a £50m buyback
Curry’s has kicked off the new financial year with tidy momentum on both sides of the North Sea and a clear plan for cash. Like-for-like revenue rose 3% at Group level over the 17 weeks to 30 August 2025, with the UK & Ireland at +3% and the Nordics at +2%. Alongside that, the triennial pension review trims future cash outflows, and the Board has lit the fuse on a new £50 million share buyback, taking total cash returns this year to around £75 million.
Management says trading is in line with expectations and they are comfortable with market consensus for 2025/26, which the company compiles at £170 million adjusted PBT. They also expect to finish the year with at least £100 million of net cash, even after pension contributions and capital returns. That is a confident stance.
UK & Ireland: services doing the heavy lifting, gaming and AI driving demand
Like-for-like sales rose 3% in the UK & Ireland, helped by market share gains, double-digit growth in newer categories and B2B, and strong contributions from gaming, AI computing, large appliances, coffee machines and cooling products. Offsetting that, TVs, tablets and air fryers declined.
Services are the star of the show. Recurring Services revenue is growing strongly, with credit adoption up 190 basis points to 23.3% and iD Mobile now over 2.3 million subscribers, up 22% year-on-year. Gross margin was stable, and higher sales delivered operating leverage to offset expected cost increases.
- Like-for-like (LFL) revenue: sales growth adjusted for store closures/openings and acquisitions, to give a cleaner underlying view.
- Basis points (bps): 100 bps = 1 percentage point. So +190 bps is +1.90 percentage points.
Why it matters: higher-margin, recurring services like credit and mobile are stickier and typically more profitable than one-off hardware sales. The mix shift here is going in the right direction.
Nordics: recovery gathers pace with profitable growth
Nordics like-for-like revenue rose 2%, led by AI computing and newer categories including robotic lawnmowers and vacuums. Elkjøp’s own-brand kitchens, Epoq, also saw very strong momentum.
Crucially, gross profit grew in every country as the team focused on more profitable sales, and tight cost control offset inflation. Management is confident profit margins will step forward again this year.
Why it matters: after a tougher period in the region, the message is that the recovery is broad-based, margin-led and cost-disciplined. That is the right sequence.
Pension review: big step-down in future payments boosts medium-term cash
The triennial pension valuation is a clear positive. The actuarial deficit at 31 March 2025 is £134 million, down from £403 million at 31 March 2022. The Group will pay £82 million this year as planned, then contributions drop to £13 million per year for five years to March 2031 (previously £78 million per year until December 2028).
Following this year’s £82 million payment, the actuarial deficit is estimated to be around £(55) million. The scheme should be fully funded on a very prudent basis by the end of the new plan, after which contributions cease.
There is a “matching” mechanism: if shareholder returns (dividends plus buybacks) exceed £80 million per year – or £40 million if year-end net cash is below £50 million – Curry’s will make additional pension contributions. Any such payments reduce future scheduled amounts.
Why it matters: cutting contributions from £78 million per year to £13 million per year from 2026/27 unlocks meaningful free cash flow for investment and shareholder returns.
Shareholder returns: £50m buyback starts now, dividend reinstated
The Board has authorised a new £50 million share buyback commencing immediately. Together with the previously announced cash dividend of around £25 million, total cash returns this year are expected to be about £75 million. The plan sits within a broader capital allocation framework that targets a year-end net cash balance of at least £100 million for the foreseeable future.
Why it matters: buybacks concentrate future earnings per share when done from a position of balance-sheet strength. Curry’s finished 2024/25 with £184 million net cash, and still expects at least £100 million net cash at this year-end after pension and returns. That is a solid cushion for a retailer with a working capital cycle to manage.
Guidance and targets: costs, capex and margin ambitions
Current-year guidance is unchanged on most items and underlines a disciplined approach to cash:
- Total interest expense: around £65 million
- Capital expenditure: around £95 million
- Exceptional cash outflow: around £30 million
- Pension contributions: £82 million
- Cash dividend payments: circa £25 million
Other technical cash flow items: depreciation and amortisation around £265 million, lease payments around £260 million, cash tax around £20 million, cash interest around £15 million, and £15-20 million of share purchases to cover colleague share awards.
Longer term, Curry’s is targeting at least a 3% adjusted EBIT margin in both the UK & Ireland and the Nordics, keeping annual capex below £100 million, bringing exceptional cash below £10 million by 2026/27, and holding working capital at least neutral despite iD Mobile growth. Cash tax is expected to remain below adjusted P&L tax due to pension-related deductions and carried-forward losses.
The company will update full-year profit expectations after Peak trading, but for now says it is comfortable with market consensus. You can find the company-compiled consensus on its site: consensus and analyst coverage.
What I like, and what I’m watching
Positives jumping out
- Both regions growing LFL, with gross margin stable in the UK & Ireland and gross profit up in every Nordic country.
- Services flywheel gaining speed: credit adoption at 23.3% and iD Mobile at over 2.3 million subscribers (+22% YoY), with a target of at least 2.5 million by year-end.
- Pension de-risked and de-cashed in the medium term, freeing up tens of millions per year from 2026/27.
- £50 million buyback launched while maintaining an at least £100 million year-end net cash target.
Things to keep an eye on
- Category mix: strength in gaming and AI computing offsets weaker TVs, tablets and air fryers. Sustaining growth as the cycle shifts will be key.
- Macro and Peak: as ever, Q4 Peak trading will drive the full-year outcome. Management will guide after that period.
- Interest expense at around £65 million is not trivial; ongoing cash discipline remains essential.
- Pension “matching” could divert some excess cash in years when returns are very high, though it reduces later payments.
Key numbers at a glance
| Measure | Figure |
|---|---|
| Period covered | 17 weeks to 30 August 2025 |
| Group like-for-like revenue | +3% |
| UK & Ireland like-for-like revenue | +3% |
| Nordics like-for-like revenue | +2% |
| iD Mobile subscribers | Over 2.3 million (+22% YoY) |
| Credit adoption | 23.3% (+190 bps) |
| Share buyback | £50 million (commencing immediately) |
| Cash dividend (this year) | c.£25 million |
| Total cash returns (this year) | c.£75 million |
| Year-end net cash (guidance) | At least £100 million |
| Pension actuarial deficit | £134 million at 31 March 2025 |
| Future pension contributions | £13 million p.a. for five years to March 2031 |
| Total interest expense (guidance) | Around £65 million |
| Capital expenditure (guidance) | Around £95 million |
Dates and next steps
The 2025 AGM is being held today at 11.00am at BFI Southbank, London. Interim results for the 26 weeks to 1 November 2025 are scheduled for 18 December 2025. Expect a fuller view on Peak and full-year profit after that.
Bottom line
This is a tidy update: both geographies growing, services compounding, the pension load lightening, and cash being shared with owners. There are the usual retail watch-outs, but the direction of travel is positive. If Curry’s executes through Peak and hits its services targets – notably at least 2.5 million iD Mobile subscribers by year-end – the 3% margin ambition in both regions looks a sensible medium-term waypoint.
