Currys PLC (LSE:CURY) put an extra spark into a first-quarter trading update as it announced a new £50 million share buyback programme alongside an improvement in like-for-like sales and profitability.
LFL sales grew 3% in the 17 weeks to 30 August, accelerating from the 2% seen in the past full year.
UK and Irish LFL sales rose 3%, supported by strong demand in gaming, AI computing, large appliances, coffee machines and cooling products, partly offset by declines in TVs, tablets and air fryers.
Recurring services continued to perform well, with credit adoption rising to 23.3% and iD Mobile subscribers up 22% year-on-year to 2.3 million.
Sales in the Nordics rose 2%, driven by AI computing and demand for robotic lawnmowers, vacuums and kitchens.
Profitability improved across all countries as the group focused on more profitable categories and kept costs under tight control.
Currys also reported a sharp improvement in its pension position, with the actuarial deficit reduced to £134 million, down from £403 million in 2022. Future contributions will fall to £13 million per year from 2026/27, compared with £78 million previously.
Chief executive Alex Baldock said it had been "a good start to the year" and highlighted growth in new categories, services and B2B sales, along with Nordics profitability "picking up pace".
He said the group remains confident in delivering consensus forecasts for the year, with LFLs and improving gross margins offseting cost inflation.
Currys said total cash returns to shareholders this year will reach around £75 million, including dividends of about £25 million and the new buyback.
After the past year finished with £184 million net cash, the strongest balance sheet in over a decade, year-end net cash this time is expected to be at least £100 million.