Currys has reported a strong first-half performance, driving its shares up 8% today.
Group adjusted profit before tax surged 144% year-on-year to £22 million, while free cash flow rose 68% to £84m.
Revenue increased 8% to £4.23bn, with like-for-like sales up 4%, supported by growth in both the UK & Ireland and the Nordics.
In the UK & Ireland, revenues grew 6%, boosted by market share gains, strong growth in recurring service revenues, rising credit adoption and a 16% increase in B2B sales.
The retailer also continued to scale its mobile offering, with iD Mobile subscribers climbing 21% year-on-year to 2.4m, tracking ahead of its 2.5m year-end target.
While UK profitability was impacted by government-driven increases in wage and national insurance costs, management said cost discipline and operating leverage helped to offset part of the pressure.
The Nordics delivered a standout recovery, with currency-neutral revenue up 7% and adjusted EBIT almost doubling to £35m.
“We’re pleased with the momentum we’ve built, with healthy growth in sales, profits and cash flow,” said Alex Baldock, chief executive of Currys.
“In the Nordics, being the clear leader in an improving market, combined with strong execution, has driven another notable step forward in profits. It’s pleasing that strong top-line growth is translating into improved profitability.
“In the UK&I, the consumer environment is more muted, and cost headwinds are unhelpful. Still, we’re the growing market leader, gaining share, and our margin and cost discipline is going a long way to mitigate headwinds and protect profits.
“In all markets, our big growth initiatives are paying off, our omnichannel model continues to win, and our growing services and solutions are great for customers and valuable to us.
“The business now has firm foundations and is focused on sustainable growth and cash flow generation.
“My thanks go, as always, to our skilful and dedicated colleagues whose efforts are crucial to our progress. Their hard work is building an ever stronger Currys, and allows us to look ahead with confidence.”
The London-headquartered retail giant ended the period with net cash of £133m, up £26m year-on-year, despite making £82m in pension contributions and returning £46m to shareholders.
A £50m share buyback programme is underway, with £30m completed so far.
The business maintained its full-year guidance, expecting further growth in profits and free cash flow.
Its share price has risen to 137.9p today and it has a market cap of £1.15bn.