Susannah Streeter, chief investment strategist at Wealth Club, said: “Currys has kept the tills ringing despite geopolitical tensions and energy worries threatening to dent consumer confidence.
“While many other retailers are finding shoppers tightening their purse strings, Currys has demonstrated that much of the technology it sells has become less of a luxury and more of a household essential.
“Consumers may delay upgrading a television, but when a washing machine or laptop packs up, or a mobile contract comes up for renewal, those purchases are much harder to put on hold.
“That resilience is reflected in today’s numbers, with group revenues climbing six per cent to £9.25 billion and adjusted pre-tax profits surging 18 per cent to £191 million.
“Strong cash generation has given management the confidence to double the full-year dividend to 3p a share and launch another £50 million share buyback.
“Currys is also steadily building more engines of earnings through higher-margin recurring services, credit products and its fast-growing iD Mobile business.
“Services revenues rose seven per cent, credit sales increased 10 per cent to £1.2 billion and iD Mobile subscribers jumped 18 per cent to 2.6 million.
“Those recurring revenue streams act as valuable shock absorbers, helping smooth out the bumps in demand for other product lines.
“Despite the strong results, the shares have eased back, with investors perhaps disappointed guidance wasn’t upgraded and maybe taking the opportunity to bank profits after the recent recovery in the share price.
“The planned handover from CEO Alex Baldock to Fredrik Tønnesen, who has successfully run the fast-growing Nordics business, is also more of a baton pass than a change of direction, and with continuity expected, its unlikely to be a trigger for a share price fall.”
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