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• Total Group Revenue: Up by 1% year-on-year to GBP3.9 billion.

• Adjusted EBIT: Increased by 52% to GBP41 million.

• Adjusted EPS: Improved from minus 1.1p to plus 0.6p.

• Free Cash Flow: Increased by GBP4 million to GBP50 million.

• Net Cash Position: Improved from net debt of GBP129 million to a net cash position of GBP107 million.

• Pension Deficit: Reduced by GBP47 million to GBP143 million.

• UK & Ireland Revenue: Up by 5% on a like-for-like basis.

• UK & Ireland Adjusted EBIT: Increased by 53% from GBP15 million to GBP23 million.

• UK & Ireland EBIT Margin: Increased by 0.3%.

• Nordics Revenue: Like-for-like down by 2%.

• Nordics Adjusted EBIT: Increased by GBP6 million to GBP18 million.

• Nordics Adjusted EBIT Margin: Increased by 0.4%.

• Online Share of Business: UK & Ireland at 45%, Nordics at 25.5%.

• Operating Cash Flow: UK & Ireland increased by GBP6 million.

• Segmental Free Cash Flow: UK & Ireland moved from an outflow of GBP15 million to an inflow of GBP64 million.

• Gross Margin UK & Ireland: Increased by 10 basis points.

• Gross Margin Nordics: Increased by 80 basis points.

• Capital Expenditure Guidance: Expected to be around GBP80 million.

• Total Interest Expense Guidance: Expected to be around GBP70 million.

• iD Mobile Customers: Over 2 million, with 32% growth in the period.

• Warning! GuruFocus has detected 9 Warning Signs with DSITF.

Release Date: December 12, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Currys PLC (DSITF) reported a 1% year-on-year increase in total group sales, reaching GBP3.9 billion.

• Adjusted EBIT rose by 52% to GBP41 million, indicating strong profitability improvements.

• The company achieved a significant increase in free cash flow, up GBP4 million from last year to GBP50 million.

• The UK and Ireland segment showed strong performance with a 5% revenue increase on a like-for-like basis and a 53% rise in adjusted EBIT.

• Currys PLC (DSITF) successfully reduced its pension deficit by GBP47 million year-on-year to GBP143 million, strengthening its financial position.

Negative Points

• The Nordics market faced a challenging environment with a market decline of over 3%, resulting in a 2% drop in like-for-like revenue.

• Operating cash flow in the Nordics remained flat, and segmental free cash flow experienced an outflow of GBP4 million due to negative working capital.

• The company anticipates a GBP30 million year-on-year impact from the UK government budget changes, including national living wage and national insurance increases.

• Currys PLC (DSITF) faces unwelcome headwinds, including inflationary pressures that may lead to inevitable price rises across the retail sector.

• Despite improvements, the company still needs to mitigate half of the anticipated cost impacts from the recent budget changes.