Currys plc Annual Report & Accounts 2022/23
We help
everyone
enjoy
amazing
technology
Annual Report & Accounts 2022/23
Currys
What we do
We are a leading omnichannel
retailer of technology
has a powerful social purpose at its heart.
We believe in the power of technology to
improve lives and help people stay connected,
productive, healthy, and entertained.
We’re here to help everyone enjoy those benefits
and, with our scale and expertise, we are
uniquely placed to do so.
www.currysplc.com/investors
For the latest news visit our website.
Our Markets
4
Our Business
6
Our Strategy
16
1Strategic Report Governance Financial Statements Investor Information
2022/23 Highlights
Non-Financial Information Statement
We aim to comply with the Non-Financial
Reporting requirements contained in sections
414CA and 414CB of the Companies Act 2006.
The requirements of this disclosure are
addressed within this section by means of cross
reference in order to avoid duplication and to
help stakeholders understand our position on
key non-financial matters:
Environmental matters (including impact
of business on the environment) pages 44-56
TCFD Report page 56
Colleagues pages 18-23
Social matters pages 57-63
Respect for human rights page 62
Anti-corruption and anti-bribery
matters page 62
Description of our business model pages 8-9
Details of the principal risks relating
to non-financial matters pages 64-72
Non-financial KPIs pages 74-75
Contents
Strategic Report
1 2022/23 Highlights
2 Our Vision
4 Our Markets
6 Our Business
10 Chair’s statement
12 Chief executive’s statement
16 Our Strategy
36 Our Stakeholders
40 Sustainable business
64 Risk management
66 Principal risks and uncertainties
73 Going concern and viability statement
74 Key performance indicators
76 Performance Review
Governance
90 Governance at a glance
92 Board of Directors
94 Directors’ Report
97 Corporate Governance Report
110 Audit Committee report
119 Disclosure Committee report
120 Nominations Committee report
123 Environmental, Social and Governance (ESG)
Committee report
125 Remuneration Report
141 Remuneration Committee report
143 Remuneration details for 2022/23
158 Statement of directors’ responsibilities
Financial Statements
159 Independent Auditor’s Report
169 Consolidated Income Statement
170 Consolidated Statement of
Comprehensive Income
171 Consolidated Balance Sheet
172 Consolidated Statement of Changes in Equity
173 Consolidated Cash Flow Statement
174 Notes to the Group Financial Statements
222 Company Balance Sheet
223 Company Statement of Changes in Equity
224 Notes to the Company Financial Statements
230 Five Period Record (unaudited)
Investor Information
231 Glossary and Definitions
245 Shareholder and Corporate Information
Financial highlights
Revenue
£10,344m
£10,144m
£9,511m
2022/23
2021/22
2020/21
Adjusted profit before tax*
(1)
£156m
£192m restated
£119m
2022/23
2021/22
2020/21
Adjusted EPS*
(1)
10.7p
12.4p
8.3p
2022/23
2021/22
2020/21
Free cash flow*
£438m
£72m
£(74 )m
2022/23
2021/22
2020/21
Statutory profit/(loss) before tax
£33m
£126m
£(450)m
2022/23
2021/22
2020/21
Statutory EPS
1.0p
6.3p
(43.6)p
2022/23
2021/22
2020/21
Operational highlights
Group
• Fredrik Tønnesen appointed as Chief Executive Officer for the Nordics.
• Launched a Global Business Services and a strategic partnership
with Infosys.
• Currys placed 8th in the Financial Times’ ‘Europe’s Climate Leaders
2023’, 2nd amongst UK companies.
UK&I
• Opened new warehouse facility in the UK.
• iD Mobile grew to 1.3m subscribers and renewed its multi-year deal
with Three.
• Agreed extension of exclusive multi-year partnership with Vodafone.
• Credit adoption grew +440bps to 17.7% with 1.9m active customers.
• Launched award winning RepairLive service, an on demand speedy
repair service, available via video call.
International
• Next generation retail platform launched in Nordics.
• K-Retail platforms launched in Greece.
See our Key Performance Indicators on pages 74 to 75.
* Alternative performance measure (APM). In the reporting of financial information throughout the Annual Report
and Accounts, the Group uses certain APMs that are not required under IFRS. We consider these to provide
additional useful information on the performance of the business and trends to shareholders, consistent with
those used internally and are disclosed in order to provide parity and transparency for readers of the Annual
Report. Definitions, purpose and reconciliations to the closest statutory equivalent for our APMs are provided
within the Glossary and definitions on pages 231 to 244.
(1) These figures have been restated. More information in Key Performance Indicators on page 74 to 75.
2 Currys plc Annual Report & Accounts 2022/23
Choose
Enjoy
for life
Afford
Our Vision
Our business model
We help customers choose, afford and enjoy amazing technology.
As a market leading technology products
and services retailer, our vision drives
everything we do.
Many customers find technology exciting,
but also confusing and expensive. We exist
to help every customer choose, afford and
enjoy technology to the full.
The assets, colleagues, capabilities and
scale that we have means that no one
is better placed than Currys to help
customers do all this.
We help everyone enjoy
amazing technology
We help customers choose the right technology,
across a wide range of products, through stores or
online. Our capable and committed colleagues
provide expert advice to help customers make
the right choice. We inspire customers to discover
technology, through demo in stores and online.
We listen to our customers.
We help our customers.
We deliver on our
customer promises.
We keep our eyes on the prize.
We win by working together.
We get the best out
of everyone.
We play our part.
We learn and we adapt.
We make things better.
We put our customers first We win together We own it
We help everyone afford the technology
they want. We won’t be beaten on price and,
we can spread the cost of tech through the
responsible use of credit.
We help customers make the most of their
amazing tech through our services. We help
get customers started, help them give their tech
a longer life and help them make the most out
of their products. We are uniquely positioned to
help customers throughout the life of their tech,
building relationships that are long-lasting and
more valuable to our customers and to us.
Our values
Our values bind us together in the pursuit of our vision.
Read more about our Values on page 19.
Read more about our Business model
on page 8.
3Strategic Report Governance Financial Statements Investor Information
Our strategy
Sustainability priorities
Read more about our sustainable business on pages 40 to 63.
Capable and Committed Colleagues
Capable and Committed Colleagues are our greatest
advantage. Happy colleagues make happy customers and
happy shareholders, and none of our competitors can match
our thousands of expert colleagues, or their engagement.
Read more about Our Colleagues on page 18.
Easy to Shop
For our customers, we will continue to be ever more easy to shop.
We’re strongest when we offer the best of both online and stores
to customers; an omnichannel shopping experience.
Read more about Easy to Shop on page 24.
Customers for Life
We are building customers for life. We want to be more
valuable to customers: this means doing more than selling
them a box. It’s helping them to afford and enjoy (as well as
choose) their technology, for life. Our Credit and other Services,
fuelled by data, help us build longer-lasting and more valuable
customer relationships.
Read about Customers for Life on page 28.
Grow profits
Our progress for colleagues and customers must (and now can)
be reflected in healthy returns for shareholders. We’ll now protect
our #1 share, while continuing to improve gross margins, reducing
costs and improving cash conversion.
Read about Grow Profits on page 32.
Net zero
by 2040
Help
eradicate
digital
poverty
Grow our
Circular
Business
Model
4 Currys plc Annual Report & Accounts 2022/23
2022
Our Markets
and trends
Technology plays a more important role in our lives today than ever.
We believe in the power of technology to improve lives, help people stay connected, productive, fed, clean, healthy and entertained.
We are here to help everyone enjoy these benefits and with our scale and expertise we are uniquely placed to do so.
Video doorbell
CCTV camera
LSTV
Home
phone
Games
console
Smart
speaker
Smart
hub
Smart
lighting
Fridge
Freezer
CookerKettle Air fryer
Soundbar
Microwave
Smart thermostat
Steam iron
Washing machine
Tumble dryer
Vacuum cleaner
Laptop
Monitor
Printer
Gaming Chair
Headphones
Mobile phone
Smart
speaker
SSTV
TV
Hairdryer
Smart hub
Tablet
Electric toothbrush
Smart scale
5Strategic Report Governance Financial Statements Investor Information
£20.6bn
£21.2bn
£22.5bn
£18.6bn
£19.0bn
2022/23
2021/22
2020/21
2019/20
2018/19
NOK157.8bn
NOK164.4bn
NOK166.3bn
NOK141.7bn
NOK133.9vn
2022/23
2021/22
2020/21
2019/20
2018/19
Continuing growth drivers
Many of the trends that accelerated during the pandemic are enduring trends. Hybrid
working is here to stay, with around 30% of the UK workforce based at home for at least
some of their work, double the amount there were three years ago
(1)
. In the same way,
online learning and home entertainment continue to grow fast
(2)(3)
. As a result, there are
more products in people’s homes, and this drives more familiarity, reliance and greater
use of tech. This growth is further underpinned by amazing supplier innovation, and we
have several of the world’s largest companies as trusted suppliers. We believe these
trends provide long term upside for our markets and will make tech spend less susceptible
to cyclical downturns.
UK electricals market size (£bn) Nordics electricals market size (bnNOK)
2022/23 Trends
2022/23 saw tech spend decline globally after the rapid increases during the pandemic. In our markets, a combination of inflation
and interest rate rises have resulted in consumer spending being squeezed.
Given the cost of living pressures and a sustained shift to more sustainable consumer behaviours, we have seen a higher demand for
energy-efficient products such as air fryers, heat pump tumble dryers, microwaves and large capacity washing machines.
Innovation and premium products, such as foldable and flip phones or OLED and QLED TVs, continued to drive demand. Gaming
continues to be strong driven by better console supply and new launches. “Sold with” bundling, such as selling accessories with
computers, has also grown significantly.
Gaming is the largest
category inthe UK’s
home entertainment
sector, with revenues
that exceed £4.6bn.
It sets the pace for
innovation across
the entire industry.”
Ed Connolly
Chief Commercial Officer
2022/2023 Nordics UK
Number of households
(I, II)
13m 28m
Annual tech spend per household
(III, IV)
£907 £732
Online share of tech market
(IV)
30% 62%
1/5
UK consumers
bought a new digital
device as a result of
spending more time
at home during the
pandemic
(4)
7/10
top global R&D
spend companies
are suppliers
to us
(5)
1. UK ONS; UK Parliament
2. Coursera.
3. Digital Entertainment and Retail Association (ERA)
4. Deloitte UK
5. European Commission
(I) Sweden, Norway, Denmark and Finland respective Offices of National Statistics.
2022 data.
(II) UK Office for National Statistics.
(III) The Annual tech spend per household for the Nordics has been converted to NOK
using the exchange rate as at 29/04/2023 of 13.38 NOK per GBP.
(IV) Gfk, both for Nordics and UK data.
Group resilience is underpinned by diversification
Group Revenue by ChannelGroup Revenue by Product
6 Currys plc Annual Report & Accounts 2022/23
£9.5bn
Group Revenue
2022/23
53%
UK&I
40%
Nordics
7%
Greece
Our Business
UK&I
£5.1bn
Read more about our performance review
on page 76.
International
£4.4bn
Read more about our performance review
on page 76.
Key Stats
8
Countries
28,000
Colleagues
823
Stores
662m
Website visits
Currys plc is a leading omnichannel retailer of
technology products and services, operating
online and through 823 stores in 8 countries.
We help everyone enjoy amazing technology,
however they choose to shop with us.
In the UK&I we trade as Currys, in the Nordics under the Elkjøp brand
and as Kotsovolos in Greece and Cyprus.
In each of these markets we are the market
leader, employing 28,000 capable and
committed colleagues. Our full range of
services and support makes it easy for
our customers to discover, choose, afford
and enjoy the right technology for them,
throughout their lives. The Group’s
operations are supported by a sourcing
office in Hong Kong, state-of-the-art repair
facilities and an extensive distribution
network, enabling fast and efficient
delivery to stores and homes.
Our vision, We help everyone enjoy
amazing technology, has a powerful social
purpose at its heart. We believe in the
power of technology to improve lives, to
help people stay connected, productive,
healthy, and entertained. We’re here to
help everyone enjoy these benefits and,
with our scale and expertise, we are
uniquely placed to do so.
We’re a leader in giving technology a longer
life through protection, repair, recycling and
reuse. We’re reducing our impact on the
environment in our operations and our
wider value chain and will achieve net zero
emissions by 2040. We offer customers
products that help them save energy,
reduce waste and save water, and we
partner with charitable organisations to
bring the benefits of amazing technology
to those who might otherwise be excluded.
26%
34%
21%
32%
17%
66%
4%
Computing
Consumer Electronics
White Goods
Mobile
Services
Online
Stores
7Strategic Report Governance Financial Statements Investor Information
Our Footprint
14,850
Colleagues (21/22: 16,763)
10,100
Colleagues (21/22: 10,966)
3,032
Colleagues (21/22: 3,011)
335m
Website visits (21/22: 391m)
290m
Website visits (21/22: 322m)
37m
Website visits (21/22: 37m)
301
Stores (21/22: 309)
426
(2)
Stores (21/22: 427)
96
Stores (21/22: 94)
5.5m
Store area sq ft (21/22: 5.5m)
4.8m
Store area sqft (21/22: 4.8m)
1.2m
Store area sq ft (21/22: 1.1m)
We are leaders
in the markets
we operate in.”
UK&I Market share
(1)
24.1%
2022/23
Nordic Market share
(1)
27.6%
2022/23
Greek Market
(1) Gfk.
(2) The Group operates
franchise stores in
Iceland, Greenland
and the Faroe
Islands.
8 Currys plc Annual Report & Accounts 2022/23
C
h
o
o
s
e
A
f
f
o
r
d
E
n
j
o
y
f
o
r
l
i
f
e
Our Business continued
Competitive
strengths
Our business model is to help everyone to choose,
afford and enjoy technology.
Modern omnichannel
network
Our network of 823 stores are well
located and well invested to provide
an excellent customer experience,
and together with our online channel
we increasingly provide a true
omnichannel experience.
Read more on page 24.
Large and flexible
infrastructure
Our extensive infrastructure can be
flexed to support sales and provide
services in any channel and wherever
is most convenient for our customers.
Read more on page 26.
Established and
well loved brands
Each of our brands has a long history
as the customers’ preferred brand.
Read more on page 7.
Strong supplier
relationships
Our strong relationships with suppliers
enable us to provide the best range
and availability of relevant products
at competitive prices.
Read more on page 38.
Capable and
committed colleagues
Our colleagues are our greatest
advantage in helping customers choose,
afford and enjoy the technology that
is right for them.
Read more on colleagues and culture
on page 18.
Customers are at the heart of everything we do. We work constantly to
improve the customer experience and deliver value for all stakeholders.
We are uniquely positioned to
help customers enjoy their tech
throughout their life, and by doing
so we drive relationships that are
long-lasting and more valuable
to our customers and to us.
We help customers choose the right technology across a huge
range of products, through our stores or online. Our capable
and committed colleagues provide expert face-to-face advice
to help customers make the right choices.
Right Products
Large and relevant range of products including more sustainable
products in every market
Expert Advice
Our 28,000 colleagues who help customers make the right and
most sustainable choice
Omnichannel
We help customers choose the right technology, from the best
range of products in stores or online
Demonstration
We inspire customers to discover technology, through demo
in stores and online
Easy
When customers know what they want, we make it easy for
them to get it
We help
get you started
Delivery | Installation | Set up
Customers
We help you give your
tech longer life
Protection | Repair | Refurbish
Trade in | Recycle
9Strategic Report Governance Financial Statements Investor Information
A
f
f
o
r
d
E
n
j
o
y
f
o
r
l
i
f
e
e-waste collected across our
group for reuse or recycling
102,576Tns
Reduction in scope 1, 2 & 3
emissions against a 2019/20
baseline
43%
Contributions to charities and
communities through key
programmes & initiatives
£550,000
Value creation
for stakeholders
Value created
during the year
Customers find technology exciting
but expensive. We help everyone
afford the technology they need.
We can spread the cost of tech
through the responsible use of credit.
Dividend per Share paid
3.15p
Group NPS
+1.0pt
Group eSat
78 +1.0pts
Revenue growth
(like-for-like)
(7)%
Customers
Delivering returns
for our shareholders
Our business is cash generative and
we ensure sustainability of this cash
generation through considered capital
deployment.
Read more on grow profits on page 32.
Satisfying our customers
Customers need the amazing technology
we sell to keep connected, healthy,
productive and entertained. Helping
them choose from the vast range of
products and making sure they can
get the most out of it is at the heart
of what we do.
Read more on customers for life
on page 28.
Engaging our colleagues
We can only keep our customers
happy if we have happy colleagues.
Paying colleagues fairly and building
skills for life are essential to our
long term success.
Read more on colleague engagement
on page 18.
Generating growth
for our suppliers
Our scale and our stores provide an
omnichannel customer experience that
our suppliers can find nowhere else,
and because of that we have strong
relationships with all the major
manufacturers.
Read more on our markets on page 4.
Environment &
Communities
We care for the world around us.
We are proud to be a leading retail
repairer and recycler of tech in all
our markets. We will reduce our impact
on the globe while investing in our
communities and good causes.
Read more on sustainable business
on page 40.
We help you give your
tech longer life
Protection | Repair | Refurbish
Trade in | Recycle
We help you get the
most out of your tech
Connectivity | Help and Support
Tutorials | Subscriptions
10 Currys plc Annual Report & Accounts 2022/23
Chair’s statement
Currys exists to
help everyone enjoy
amazing technology
Introduction
I joined Currys in September 2022, excited
by the opportunity to work with such a
great business. We are number one in every
market we operate in, have scale and
capabilities that our competitors can’t
match, and provide products and services
that are increasingly essential to our
customers lives.
Review of Performance
While the medium to long term prospects
for Currys remain strong, we are currently
facing challenges from an inflationary
environment which is impacting consumer
confidence, particularly in our two main
markets of the UK&I and the Nordics.
This backdrop made 2022/23 a very
challenging year for the Group, with
revenues down 6% and a fall of 38%
in Adjusted PBT YoY.
Our performance in the UK&I was
very encouraging and shows that our
transformation is working. Adjusted EBIT
was up 45% YoY driven by increasing gross
margins, not least through record Services
adoption, and strong cost discipline. We’re
delighted with our growing momentum and
believe we are well positioned to navigate
the business through the current market
environment. The success of our
transformation can also be seen by our
growing customer satisfaction scores and
record levels of colleague engagement
which put the UK&I business in the top 10%
of all businesses.
We had a very difficult year in the
Nordics. Margins were sharply down due to
depressed demand, high cost inflation and
unrelenting competitive intensity leading to
Adjusted EBIT of £26m, 82% lower than the
previous year. We have taken decisive
action to address these issues in order to
protect our number one market share and
to rebuild our profitability. In March, we
appointed Fredrik Tønnesen as Nordics
Chief Executive Officer, to take over from
Erik Sønsterud and believe that his strong
commercial and operational experience
position him well to get the business back
on track.
Our Greek business, Kotsovolos, again
performed strongly and is an excellent
business with a bright future. In June, we
announced we are conducting a strategic
review to assess how best to take
Kotsovolos forward to maximise value
for our shareholders.
Looking ahead, the economic environment
in our two main markets is expected to
remain challenging for some time. We are
managing our business accordingly with
11Strategic Report Governance Financial Statements Investor Information
Our scale means we can make a real difference when it
comes to giving tech longer life and we remain focussed
on making the recycling, repairing and rehoming of
unwanted tech easier for our customers.”
Ian Dyson
Chair of the Board
a focus on margins, costs and cash flow
generation. We have also taken action to
build the resilience of our balance sheet
through the renegotiation of our bank
covenants and through the reduction in
pension contributions following the latest
triennial review. In line with this approach,
the Board has also taken the difficult
decision not to declare a final dividend for
this financial year.
Communities
We’re staying true to our vision of helping
everyone enjoy amazing technology and
the strong social purpose that’s embedded
within it. Our colleagues across the Group
are keen to be seen as a force for good
and this can be seen in many ways, such
as our determination to play a leading role
in eradicating digital poverty through our
work with the Digital Poverty Alliance in the
UK, the Elkjøp Foundation in the Nordics,
and the Second Home initiative in Greece.
Environment
Our scale means we can make a real
difference when it comes to giving tech
longer life and we remain focussed on
making the repair, re-use and recycling of
tech easier for our customers. Iam very
encouraged by the progress we are making
against our target of net zero emissions by
2040. We have reduced our Scope 1 and 2
emissions by 43% between 2019/20 and
2022/23. We have also reduced our
Scope 3 emissions, that account for over
99% of our total GHG emissions, by 43%
since 2019/20. In the Financial Times’
annual ‘Climate Leaders Rankings’, Currys
rose to 8th place in this year’s scores,
becoming the highest ranked UK retailer
in a list of 500 European companies.
Board
I would like to thank my predecessor, Ian
Livingston, for his support and ensuring such
a smooth transition. He chaired the Board
with great professionalism and commercial
acumen. We also say goodbye to Andrea
Gisle Joosen who steps down as a
Non-Executive Director after nine years on
the Board. I would like to thank Andrea for
her invaluable contribution.
I am delighted to welcome Magdalena
Gerger and Adam Walker to the Board as
Non-Executive Directors. Magdalena brings
a strong consumer and retail background
together with a deep knowledge and
experience of the Nordic markets and
Adam is an experienced finance executive
with broad experience of UK public
companies.
Looking ahead
I believe we have set ourselves up well
to navigate through the current challenging
market conditions. We will continue to build
on our successful transformation in the UK&I
and the actions we are taking in the Nordics
give us confidence that profits will recover
robustly when market conditions normalise.
By focusing on the things we can control,
and staying committed to our strategy,
I’mconfident in our ability to deliver
sustainable long-term returns to our
shareholders.
Finally, I would like to take this opportunity
to thank our shareholders, colleagues,
customers and suppliers for all your
support this year.
Ian Dyson
Chair of the Board
6 July 2023
12 Currys plc Annual Report & Accounts 2022/23
Chief executive’s statement
We Help Everyone Enjoy
Amazing Technology
The year has been mixed. We’ve shown,
through our strengthening UK&I results,
that our long-term strategy is working
and is now delivering improved financial
results as well as happier colleagues
and customers. In the Nordics, our long
track record of sales and profit growth
was brought to an abrupt halt, but,
as previously announced, we have
taken decisive action and expect to
see profits start to recover. Meanwhile
Greece has delivered another solid year
of performance in a prospering economy.
The UK&I’s performance strengthened
again, in the face of challenging
circumstances. We maintained our #1
market share position and profits were up
again despite like-for-like sales falling
(7)%. Gross margins improved significantly
as services growth, our increasing ability
to charge for an improving customer
experience, improved promotional
understanding and discipline, and strong
cost efficiency in our supply chain and
service operations, have all contributed
to improvements. Overall, we reduced
costs by £120m during the year, more than
offsetting inflationary and tax headwinds.
We’ve been able to achieve this because
our long-term strategy in the UK&I is working.
We have supported colleagues with tools,
training and rewards and now have world
class colleague engagement scores to
show for it. Customers tell us they’re
happier with another year of increased
customer satisfaction scores. This reflects
a strong year of progress in systematically
taking pain out of the customer’s experience,
in purchase, delivery, installation, collection
and returns, online and in-store. I’m proud
of the team’s work here. Years of necessary
improvements in customer experience
are increasingly allowing us to solve for
improved profit and cash as well as
customer satisfaction: the right range,
at better availability, at the right price,
for us as well as the customer; and an
easier customer experience, increasingly
right first time, is lower cost to us and more
satisfactory to the customer.
Our ambition is to turn all these more
satisfied customers into customers for life.
This year has seen increases in services
adoption, and healthy growth in our
Perks and iD Mobile customer bases.
Credit has never been more important for
customers than during a cost of living crisis,
as they’ve shown by adopting our credit
in record numbers. Growing our credit
customer base by +12%, and credit sales
to up to 17.7% of total sales, as we did
last year, has been important for society,
as well as for our economics. Credit sales
are partly incremental, tend towards higher
priced products, attract higher levels of
supplier support, carry a higher adoption
rate of other services, and build stickier
customers with a +52% higher likelihood
to return to shop with us.
13Strategic Report Governance Financial Statements Investor Information
Likewise, Care & Repair is good for
customers, society and for the business.
In the current environment, customers can’t
afford for their (sometimes expensive)
technology to go wrong, and value the
peace of mind our protection offers.
With 14 million protection plans, Europe’s
largest technology repair centre, and
performing over 600,000 repairs last
year, we can offer this protection better
than any competitor. In giving longer life
to customers’ technology, we’re a force
for sustainability as well as affordability.
These are powerful reasons for the
customers to prefer shopping with us,
as well as making a substantial economic
contribution in their own right – purpose
and profit going hand-in-hand, as we
believe they must. So our success last
year in returning our care and repair book
to growth was important all round.
And iD, our own Mobile Virtual Network
Operator, grew again to 1.3m subscribers.
This is up +13% year-on-year, and up +24%
year on three years. This growth reflects
a mobile category back into profitable
growth for us, and shows the competitive
advantage iD Mobile enjoys from our
much-improved deal with Three. This faster
growth has continued into the current
financial year and has clear value; mobile
subscriptions produce more predictable,
recurring revenues, reflected in £221 million
of mobile receivables on the balance sheet.
So, between our large and growing
books of credit customers, Care & Repair
customers, and iD Mobile subscribers,
we’re building millions of stickier and more
valuable customer relationships.
In the Nordics, the markets we operate
across have been experiencing a painful
period with softer demand coupled with
cost of goods sold inflation, exacerbated
by excess stock and some competitors
pursuing strategies focussed on growth
at the expense of profit or cashflow. This
combination has eroded the market profit
pool. We maintained our leading market
share, but have not been immune from
these pressures. We don’t see anything
structural or permanent in these pressures,
intense though they are. The Nordics remain
healthy, wealthy markets. Consumer
confidence and disposable income will
recover from current multi-decade lows,
just as inflation and market stock levels
will normalise. Competitors will need to
generate cashflow, just as we do. However,
we’re too cautious to put a time on this
market recovery, and cannot merely wait
for it. We have taken decisive actions on
gross margin and costs, including making
operational changes that will deliver at
least £25m of annual saving and we have
installed new local leadership who are
bringing new clarity, grip and energy to
this strategic plan.
In Greece, the combination of a strong
economy and government subsidies has
seen sales grow strongly, but the market has
not been immune from inflation in cost of
goods and operating costs, which have not
been fully offset by the increased sales.
Altogether, this has delivered a financial
performance that we are not happy with.
The improvement in the UK&I have not
offset the hole created by the Nordics
profit decline. Furthermore, the fall in sales
has driven a working capital outflow and
our balance sheet has moved from net
cash to net debt during the year.
Looking forward, our job is clear. We need
to keep the UK&I on its current upwards
trajectory and get the Nordics business
back on track. We are doing this against
an unfriendly and uncertain economic
backdrop in our principal markets. So we
are planning cautiously, expecting sales
to decline, whilst setting the business to
be resilient in the case of a downturn
but ready to capitalise if the macro
picture improves.
Our liquidity is strong, as the relaxed
fixed charge covenant with our supportive
lending group gives us plenty of headroom
on our revolving credit facilities. Our
balance sheet is robust, and certainly
much stronger than three years ago, but
we are planning to strengthen it further,
even if trading stays weak, to make sure
that we are prepared for a worst case
scenario. This starts with maximising our
operating cashflow even in a difficult
environment. We are cutting costs in UK&I
and Nordics and while this doesn’t come
for free, we target fast payback periods
on any exceptional cash spend. We are
also lowering capital expenditure
significantly, and can do so without
jeopardising the business because the
majority of the transformation spend is now
behind us and we are better at controlling
the expenditure we do have. As well as
Strategic progress
In the following sections you
will find further detail on
progress made and intended
next steps under the four major
pillars of our strategy; Capable
& Committed Colleagues,
Easy to Shop, Customers for
Life and Grow Profits.
Read more on our strategy on page 3.
operational actions, we have lowered
our pension contributions, with most of the
benefit in the next two years. As a final sign
of prudency, the Board has decided not
to recommend a full-year dividend.
We believe that these actions will set us
up for long-term success, achieving at least
a 3.0% adjusted EBIT margin with a solid
balance sheet that enables healthy returns
to shareholders.
Grow Profits
We’ve recently added “Grow Profits” to turn
our “big three” into the “big four” priorities
internally. This is more than merely symbolic.
We know that our improvements for the
colleague and customer experience,
substantial and essential though they have
been, have yet to translate into improved
cash generation. They must, and such has
been their progress, that they now can. We
believe we can now build on our progress
on gross margins and cost while being
confident in maintaining our top-line market
leadership.
• Gross margin increased by +160bps in
the UK&I as we saw improvement across
all levers of gross margin (higher
adoption of credit and services, better
monetisation of improved proposition,
not chasing less profitable sales and
supply chain and service operation cost
savings), alongside some benefit from
mobile revaluation.
• In November 2021, we announced a plan
to save £300m of annual costs in the
UK&I by the end of 2023/24. We are
progressing well with those initiatives
and have saved almost £190m on
a cumulative basis as at the end of
2022/23. We are on track to save
over £300m by the end of 2023/24.
14 Currys plc Annual Report & Accounts 2022/23
Chief executive’s statement continued
• In UK&I, our programmes drove £120m of
savings with the largest areas of saving
including supply chain efficiencies of
£42m, store payroll of £36m, and central,
IT and procurement savings of £26m.
• In Nordics, savings were spread across
several areas including marketing, store
and head office payroll, IT expenditure
and consultant fees. These actions will
see around £25m of costs permanently
removed from the business.
• Infosys is a global leader in
next-generation digital services and
consulting. Our partnership with them
commenced in July 2022, since then we
have engaged Infosys to deliver a large
range of activities across our business
functions including IT, Data & Analytics,
E-Commerce, Finance and Commercial,
for our UK&I and Nordics businesses.
This has involved moving 800 roles to
Infosys so far, with significant potential
to extend the partnership in the future.
In time, we expect these actions to result
in an annualised cost saving of over £15m,
with £5m saving realised in 2022/23.
Capable and Committed
Colleagues
Expert face-to-face help is at the heart of
why customers shop with us, and that takes
skilled and dedicated colleagues. We
know that happy colleagues make for
happy customers, so we go above and
beyond in making sure that our colleagues
are rewarded for their hard work.
• Our colleagues are our strongest
advantage. Our Group eSat (how happy
you are to work at Currys) increased
+1 to 78 and puts Currys in the top 25%
of all businesses. In the UK&I eSat has
increased to 81, putting the UK business
in the top 10% of all businesses.
• All UK store colleagues moved on to a
single contract, driving greater efficiency
in store while allowing colleagues to
retain expertise in chosen areas. This has
enabled a +10% increase in customer
facing hours while reducing store payroll
costs by (14)%. At the same time we saw
a +3ppt improvement in store colleague
engagement and a +2ppt improvement
in store customer satisfaction.
• In the UK&I our frontline colleague pay
has increased by +14% in the last year
and +37% over the past five years with
12,000 colleagues benefitting from
these increases.
Easy To Shop
Omnichannel is the preferred model for customers in technology retail: two-thirds of customers prefer to shop using stores, underlined by
the slight increase in our store share of business. We’re continuing to build on this advantaged business model.
Online Share of Business 2022/23 2021/22 2019/20 Year-on-Year Year-on-3-Year
UK & Ireland 45% 45% 32% -pt 13pt
International 22% 23% 18% (1)pt 4pt
- Nordics 25% 25% 19% -pt 6pt
- Greece 7% 9% 8% (2)pt (1)pt
Group 34% 35% 27% (1)pt 7pt
• We have reinvigorated our ‘sold with’
solution selling offer in the UK&I, which
provides customers great value bundles
when buying tech. It helps customers get
more out of tech and provides additional
revenue at good margins. Over the
second half of the year we saw in-store
adoption on relevant products increase
+1180bps YoY driven by simplifying the
bundles, colleague training and better
in-store displays.
• We are continuously trying to find ways
to reduce tasks in stores so we can
spend more time selling and serving
our customers to further improve NPS
and Colleague engagement scores.
A key change this year has been the
introduction of digital pricing across
laptops and TVs.
• Lease costs continue to fall, as we have
closed another eight UK&I stores at the
lease expiry, bringing net closures to 24
over three years, and also negotiated an
average effective net rent reduction of
more than 25% on the 23 leases renewed
during the year.
• We maintain a flexible store portfolio
and have average lease lengths of 4
years in the UK&I, less than 3.5 years in the
Nordics and less than 2.5 years in Greece.
• During the year we have made significant
improvements to our UK&I website,
Colleague Hub, ShopLive and Store
Mode, which means that we now have
a website that is fast, future proof,
and provides a richer, seamless,
more personalised experience. It also
enables better upsell, cross-sell credit
and other service adoption online, all of
which increase gross margins and “level
up” profitability between channels. By
introducing the new Colleague Hub, and
improving Store Mode and ShopLive,
we’re arming our colleagues in store with
the tools, technology and information
they need to have more meaningful
conversations with customers.
• We started work on a new 870,000
sq ft warehouse in Jönköping, Sweden,
increasing the total capacity at the
Nordic Distribution Centre to 1,940,000
sq ft. This will facilitate the move of
our Nordic kitchen distribution from
Brno to Jönköping, as well as providing
increased flexibility, faster deliveries
and improved logistics. It is due to be
operational during 2024/25.
15Strategic Report Governance Financial Statements Investor Information
Customers For Life
We help customers afford amazing
technology:
• UK credit adoption increased +440bps
to 17.7%, well ahead of the 16%
adoption we have targeted for 2023/24
as active credit accounts rose +12.5% to
1.93m. Online credit adoption increased
+700bps to 19.7% and store credit
adoption +220bps to 15.9%. The largest
increases in adoption were from repeat
customers, particularly online, as our
easier to access accounts and targeted
marketing have stimulated repeat spend.
We take no risk on credit.
• Nordics launched integrated financing
services in the online channel together
with our consumer financing bank
partners in Norway, Sweden and Finland.
This has been a successful change,
contributing to +17% growth in financed
sales. We are aiming to increase
financing sales even further by optimising
the sales processes in stores.
Our Services help customers get
tech started:
• During the year, we introduced charging
for all two-person deliveries in the UK.
The average delivery, installation and
recycling revenue on the 3m big box
deliveries we do each year is now
more than £10 higher than before we
introduced this charge. We have been
pleased to see that it has not had a
detrimental impact on sales, customer
satisfaction or adoption rate of
our services.
• Our installation services are becoming
ever more valued by customers, and
one-quarter of UK big box deliveries
now include installation. Our in-home
customer satisfaction is amongst the
highest of all activities we carry out,
highlighting how much customers value
the service we provide.
We help give tech a longer life through
protection, repair, trade-in and
recycling services:
• Protection products performed well
across the Group and we have 14m
Protection (warranty and insurance)
agreements in the Group.
• In the UK, our Care & Repair adoption
climbed +310bps compared to last year,
with improvements in-store and online
as customers look to benefit from our
improved propositions, which we are
doing a better job of highlighting.
• In Nordics, we launched insurance for
devices with monthly payment in all our
markets, initially on phones and tablets.
Customers have welcomed this, and a
high share choose this option over
up-front payment. The recurring revenue
this generates is growing month by month.
• In Greece, customers adopt care & repair
on over one-third of eligible products.
• In Nordics, our trade-in business is still
nascent, but growing rapidly, having more
than doubled during the year, and
quadrupling in Norway.
• In the UK, we collected over 1.6m items
for recycling, up +51% YoY driven by our
well-received “Cash for Trash” initiative.
As customers become more aware of the
environmental consequences of their
actions, we are there to help them.
We help customers make the most out
of their tech with connectivity and
subscriptions:
• iD Mobile, our award winning MVNO,
grew to 1.3m subscribers, +13% YoY and
+24% Yo3Y, demonstrating the great
value, flexibility and control it offers to
our customers. iD Mobile is a growing
source of recurring, predictable revenue
and cashflow, so although accelerated
growth in subscribers does negatively
impact near term margins and cashflows,
we will continue to drive growth.
We will collect, protect, and use data
to build more valuable customer
relationships:
• Our 11m Currys Perks members
represented over half of UK sales,
Perks customers are happier, shop more
frequently, have higher average order
values and greater adoption rate of
credit and other services than non-Perks
customers.
• Nordic customer club grew +13% YoY to
7.6m customers. Club members spend
more with us at better margins as
increased shopping frequency outweighs
lower average order values.
Alex Baldock
Group Chief Executive
6 July 2023
Years of necessary improvements in
customer experience are increasingly
allowing us to solve for improved profit
and cash as well as customer satisfaction.”
Alex Baldock
Group Chief Executive
16 Currys plc Annual Report & Accounts 2022/23
Our Strategy
We help everyone enjoy amazing technology. That’s because customers find
tech exciting, but also confusing and expensive. We’re uniquely positioned as
a market leading omnichannel retailer to help customers discover and choose
the right technology online and in-store, help them afford it through Credit,
and get the most out of it, for life, through our Services.
Our Strategy is working. It was severely tested during the Covid-19 pandemic, and it
passed that test. If one thing is clear it’s that our vision matters more now than ever.
Technology has been critical to keeping customers connected, productive, healthy
and entertained. And we’ve been there for our customers when they’ve needed us most,
helping them afford, enjoy and get the most out of amazing technology.
Our Strategy
We’ve done, and will continue to do this by focusing on four strategic priorities:
Capable and Committed Colleagues
Capable and committed colleagues are our greatest
advantage. Happy colleagues make happy customers and
happy shareholders, and none of our competitors can match
our thousands of expert colleagues, or their engagement.
Read more about Our Colleagues on page 18.
Easy to Shop
For our customers, we will continue to be ever more easy to shop.
We’re strongest when we offer the best of both online and stores
to customers, an omnichannel shopping experience.
Read more about Easy to Shop on page 24.
Customers for Life
We are building customers for life. We want to be more
valuable to customers: this means doing more than selling
them a box. It’s helping them to afford and enjoy (as well as
choose) their technology, for life. Our Credit and other Services,
fuelled by data, help us build longer-lasting and more valuable
customer relationships.
Read about Customers for Life on page 28.
Grow Profits
Our progress for colleagues and customers must (and now can)
be reflected in healthy returns for shareholders. We’ll now protect
our #1 share, while continuing to improve gross margins, reducing
costs and improving cash conversion.
Read about Grow Profits on page 32.
17Strategic Report Governance Financial Statements Investor Information
Our focus on the four pillars of the strategy
will ensure we deliver more value to all our key
stakeholders, and most importantly generate
healthy cash flows for our shareholders.
Our scale is an advantage, and we intend to stay
number one in all our markets. We can see many
growth opportunities within our reach, which we’ll
go after, offering new products and services that our
customers want from us. But our major focus is on
generating revenues that are increasingly recurring
and predictable from our existing customers.
We do this first by focussing on making sure our
Capable and Committed Colleagues are engaged
and motivated. Doing this helps us to provide
customers with an enjoyable and Easy to Shop
experience. Coupling this improving customer
experience with our growing range of credit and
services will drive more Customers for Life.
Gross margins will improve as we deliver products
and services that enhance customers lives and
become better at optimising our business to focus
on those areas that drive most value-add. Equally,
we must continue to reduce our costs, and always
look for ways to be leaner. Doing this frees up
money we can judiciously invest in colleagues,
customers and infrastructure, to increase our
already significant advantages.
Above all else, we will ensure that increased
profits drive increased and sustained free cash
flow by staying disciplined on capital expenditure,
removing exceptional cash costs and tightly
controlling working capital. Our balance sheet is
strong, but we will aim to remove the historic pension
liability as a source of uncertainty. If we achieve
all this, our cash flow will be unencumbered for
investment in high return projects or to significantly
increase our cash returns to shareholders.
18 Currys plc Annual Report & Accounts 2022/23
Our Strategy
Capable and committed colleagues
Capable and
committed
colleagues
Our vision is to help everyone enjoy amazing technology.
We know that our customers find technology exciting, but
they also find it confusing and expensive. Our capable and
committed colleagues provide the magic ingredient in helping
our customers discover, choose and enjoy amazing technology.
Expert face-to-face help is at the heart of why customers
shop with us, and that takes skilled and dedicated
colleagues. We know that happy colleagues make for
happy customers, so we go above and beyond in making
sure that our colleagues are rewarded for their hard work.
Through investing in our colleagues, we provide a better
customer experience which ultimately drives market share
gains and lower customer acquisition and retention costs.
Italso allows us to run the business more efficiently, with
fewer, better trained, tooled and rewarded colleagues
who we retain for longer.
Our capable and committed colleagues – our greatest advantage
We deliver results for our people by focussing on our strategy:
Great Place to Work
Ready for the Future
Home for the Best Talent
19Strategic Report Governance Financial Statements Investor Information
+78
+77
+68
2022/23
2021/22
2020/21
+10pts
+67
+66
+65
2022/23
2021/22
2020/21
+2pts
Happy colleagues…
Group Employee Satisfaction
…create happy customers
Group NPS
We embed these values into our business.
We have created our values in
collaboration with our thousands of
colleagues. We have communicated them
throughout our business and clearly
defined expectations for everyone
including our leaders. We shared these
expectations at our UK&I 2022 Peak
conference, alongside a series of leaders/
managers workshops which was followed
by a communications campaign for all
colleagues in 2023, and recognised
individuals and teams living our values
through events such as the annual Currys
Amazing People Awards (formerly
Chairman’s Shield).
Our On the Pulse surveys show colleagues
living our values has increased incrementally
and is 3 points above global benchmarks,
according to Glint.
In the Nordics Elkjøp’s company values
are embedded in the majority of internal
training material. In Leadership programs,
we empower our leaders to create a
culture in their teams based on company
values and mindset.
We have embedded our values into our
hiring and selection processes and ensured
that our new colleagues are immersed in
them. Through our All on board onboarding
portal, colleagues in all business units are
able to read and learn about what we
as a company stands for. We believe in
having our company values visible for our
colleagues throughout the Nordics and we
proudly present these in our stores, back
offices and headquarters.
In Greece we revised our values in 2022.
We trained Values Ambassadors to hold
sessions with their teams and diffuse
the new values. In addition, we deliver
an 8-hour session as part of our
onboarding journey.
Great place to work
Our values
We put our
customers first:
• Technology’s amazing. And we’re
here to help everyone enjoy it.
So we don’t just sell products to
people, we make sure they have
the knowledge and confidence
to get everything they can out
of them.
• We know that our advice, our
enthusiasm, our commitment to
do what’s right for customers
brings them joy.
• And it’s through this energy and
determination that we’ll keep
more customers for life.
We win together:
• While there are thousands
of us, in hundreds of roles and
positions, we’re all united by the
same love for technology and
helping people enjoy it.
• We value our differences and
the difference we make because
that’s what makes us unique.
When we come together amazing
things happen and we win
together as one.
We own it:
• We all take charge of our future
and we are not afraid of change.
It’s how we succeed. So, we find
what works well and we make it
work better. We share ideas to
help make our customers’ lives
easier and we go above and
beyond to help others out.
• As individuals and as a business,
we’re committed to learning,
growing and taking responsibility
for making things happen.
20 Currys plc Annual Report & Accounts 2022/23
Our Strategy
Capable and committed colleagues continued
On the Pulse colleague
engagement 2023 proof points
We use On the Pulse surveys to measure
engagement bi-annually, covering over
28,000 group colleagues.
Our latest On the Pulse results show that
we’re continuing to go from strength to
strength. Our eSat score (how happy you
are to work at Currys) has gone up by
another two points – to 81 from 79 last time,
in the UK and Ireland. This is outstanding
and puts us in the top 10% of Global
businesses
(1)
. Group eSat score was 78,
+1pts higher than previous year, with
increases across all regions and response
rate trending up +4pts.
Colleague conference events
Each year we hold Peak and Campus
events in the UK and Nordics which bring a
large number of colleagues together in one
location for communication and training:
In the UK, we brought together 12,000
colleagues and 120 suppliers. Our
peak event saw engaging campaigns,
collaboration between colleagues,
speaker sessions from ExCo, breakout
zones and more. Our Amazing Technology
exhibition returned post Covid for
colleagues to learn about the latest
tech for Peak from 41 of our suppliers.
In the Nordics, we hosted our annual
Campus gathering at Gardermoen. Over
3weeks, approximately 4,000 employees
visited Campus, where they were offered
training sessions from 123 unique suppliers.
Creating a culture of
well-being
At Currys we take colleague health and
well-being very seriously and are creating an
environment where all colleagues feel fully
supported to be at their best, including during
difficult times. Well-being has continued
to be a priority area for the past year.
In UK and Ireland, our longer-term well-
being strategy, which aims to drive a culture
of keeping our colleagues safe, happy
and well has landed across all parts of
the business.
We have launched our Well-being
partnership with Champion Health, a leading
well-being provider offering colleagues
support across all areas of Well-being,
tailored to their own individual needs.
Colleagues have access to this platform
along with being able to share with up to
three family and friends.
Well-being Corner, our dedicated
well-being site for colleagues, remains an
integral part of our well-being agenda.
Since it launched in 2018 it has been
accessed over 500,000 times
by colleagues.
We’ve continued to invest in mental health
training by upskilling over 1,500 people
managers and colleagues as mental
health champions. This complements our
300+ colleagues across the business
acting as Mental Health First Aiders.
In Nordics, we have performed several
surveys to monitor engagement and
well-being including ‘On the Pulse’ in
April and October and ‘Safe at Work’
in August/September.
We continue to offer colleagues the
possibility to get treatment and keep
active as part of our well-being program.
In Greece, we are committed to creating a
workplace that allows people to perform
and develop in a safe and healthy
environment. Therefore, we introduced
a comprehensive framework of wellness
programs under the brand ‘Better Me Better
Team’, which focuses on safety, physical
health, mental fitness and physical fitness.
Forums
We remain committed to ensuring our
colleagues have a voice.
In UK and Ireland, we have 11 colleague
forums representing colleagues from
across the organisation which have played
a key role across a number of business
priorities throughout the year.
Working with our Colleague Forums this year
we have introduced five new policies and
manager guides to support our colleagues
with significant life events such as Premature
Birth and Pregnancy Loss. This means
the Company has a comprehensive suite
of policies in place, which includes
our UK&I Dignity at Work and Group
Inclusion and Diversity Commitment
and Principles policies.
Creating a culture of diversity
and inclusion
We exist to help everyone enjoy amazing
technology, and we mean everyone. But we
can only do that if we embrace and reflect
the society and communities we live and
work in, regardless of gender, what we look
like, where we come from, or who we love.
Recognising the strength we gain from
being a diverse business, where everyone
feels they belong, is fundamental to our
future success.
In the UK, we built on the learnings from our
2021 Inclusion and Belonging survey, and
saw improvements in all 17 questions –
seeing significant improvements in leadership
commitment, working in a harassment free
environment, and colleagues feeling free
to speak up without fear of negative
consequences. The headline measure (I feel
a sense of belonging at Currys) increased
by 4points year on year (from 64 to 68).
Scores across all 17 questions increased
by at least 2 points.
We launched an internal diversity census,
allowing colleagues to update their HR
record with ethnic background, religion,
disability status and sexual orientation
details. To date 46% of colleagues have
submitted this information.
We have worked with external partners
including everywoman, Business in the
Community, Business Disability Forum, and
Diversity in Retail.
After successfully trialing a new Quiet
Hour across 21 stores to help neurodiverse
colleagues and customers, we then
launched the programme across all
UK stores.
In the Nordics, we believe that Elkjøp is
strongest when we embrace the full
spectrum of society. That means we’re
striving to build a more diverse and inclusive
workplace and promote engagement in our
company and the communities we serve.
In Greece, to communicate our D&I policy
to colleagues, we placed diversity walls
and logos in all of our offices and stores,
as well as hosting webinars and sharing
leadership statements. We will continue
this momentum through training programs
for managers.
(1) Source: Glint
21Strategic Report Governance Financial Statements Investor Information
Ready for the future
Investment in learning
A focus on learning and development
is key to success and essential to be
a successful business. Our leaders
have a key role in providing learning
and development opportunities for our
colleagues, nevertheless, we are all
responsible for our own development,
as individuals, as part of a team and
as part of an organisation.
In the UK and Ireland, over 5,000 of our
store colleagues have been multi-skilled
as part of our new ‘One Team’ operating
model, to further support our assisted
selling journey. These include valuable
and transferable life skills (e.g. listening,
communication and influencing). We have
designed and deployed learning to
support our retail colleagues in digital
selling and the omnichannel customer
journey. Our Colleague Hub and On-
Screen Tech learning highlights the benefits
of using digital selling tools and provides
guidance on seamlessly and compliantly
integrating our digital selling tools into their
customer conversations.
In the Nordics, our leaders have a key
role in facilitating growth, both in business,
teams and individuals. We invest in
leadership development, and we have
relevant programs whether our colleagues
are already a leader, want to become
a leader, or in general want to develop
their leadership skills.
Through the Academy Learning Portal,
over 600 training programmes were
offered through more than 100 suppliers
and in-house training programs. In total,
over 21,740 training hours have been
completed from e-learning alone. Over
2,100 colleagues participated in some
form of digital or physical training session
hosted by the local or Nordic people
development department.
In Greece, we revised our manager
training programme around the two pillars
of Leadership skills and Process, tools
and systems. In 2022/23 45 participants
completed over 3,500 hours of training.
Hybrid working
In 2022/23 we launched our UK&I Hybrid
Working Framework and Principles to help
us get the very best out of in person and
remote working, enabled by our new
Currys London Campus at Waterloo, our
partnership with WeWork providing access
to locations across the UK and several
refurbished meeting spaces in our stores
and Customer Service Centres. This has
been enormously successful with 92%
of colleagues feeling positive about
this change.
In the Nordics, a remote working policy
has been established to meet colleagues’
expectations for flexibility to work from
home, based on an internal survey. The
policy states that colleagues can work
40% from home, while office attendance
should be 60%.
Learning Consumption – Currys UK&I 2022/23:
130,080
hours
Classroom (virtual &
face to face)
23,088
Total number of Colleagues trained
(2022/23)
180,857
hours
Online
(eLearning)
13
hours & 25 minutes
Total hours per
colleague (23,088)
310,937
hours
Combined Learning
(classroom & online)
22 Currys plc Annual Report & Accounts 2022/23
Our Strategy
Capable and committed colleagues continued
Home for the best talent
Attracting and developing
colleagues
Our colleagues are the reason customers
keep returning to shop with Currys, so it’s
vital we are not only an attractive place to
work, but also a place where the best
talent can grow and progress.
In the UK and Ireland we’ve seen a positive
internal trend over the last 12 months in the
way our colleagues think about careers at
Currys. This is the result of our ‘Take charge
of your career’ campaign, which sets out
to provide our colleagues with all the
information and resources they need for
their ongoing development and career
progression.
In May 2022 we launched a new careers
site, ‘Currys Career Fitness Hub’, which is
easy to access (with over 10,000 page
views) and full of fantastic career resources.
In the past year, we have delivered more
than 15 careers skills workshops and
careers fairs that have supported cross
functional moves and internal mobility.
The workshops and fairs have reached over
3,000 colleagues across multiple business
areas and as a result, we have filled
18% of our corporate vacancies with
colleagues from Retail and Supply Chain.
Investment in graduates
and apprenticeships
2022/23 saw a broadening of emerging
talent initiatives in the UK&I by placing
apprentices across more business areas
than ever before, supporting young people
into employment, creating skills for life and
applying increased focus on developing
our existing talent.
New graduate trainees were hired across
our Technology and Supply Chain
functions, and we saw graduates moved
into permanent roles across the business.
We also increased our investment in this
area by building new relationships with
key universities to support and enhance
the number of diverse applicants to
our programmes with specific focus on
‘women in tech’.
Investment in apprenticeships continued
with the development of 20 new
programmes across more business
areas than ever before including new
programmes in project management,
finance, buying and merchandising,
Happy colleagues make
forhappy customers. Our
people are at the centre
ofwho we are because
theymake us what we are.”
Paula Coughlan
Chief People, Communications and Sustainability Officer
80%
of UK&I customers say
our colleagues are the
main reason for a
‘great experience’
23Strategic Report Governance Financial Statements Investor Information
urban driving and AI data, as well as
continuing to develop skills across the
business in existing core programmes.
123 new apprentices started on various
programmes throughout the business in
2022/23 with a further 316 colleagues
participating in existing programmes.
In the Nordics 3,700 new colleagues joined
our business in the last year, using ‘structured
competency-based recruiting’. Our
onboarding solution, ‘All On Board’
provides new hires and leaders with a
bespoke process, tasks and communication
to support the onboarding process.
In July 2022, Kotsovolos was certified as
a “Great Place to Work” by Great Place
to Work Institute Inc. Throughout the year,
we hired approximately 1,000 employees,
many of whom were hired during peak
periods. In an effort to enhance our
employer branding, we participated in
university career days, national career
days, and assessment centres of NGOs
aimed at supporting candidates’
employability.
Pay – Rewarding our
colleagues
In the UK&I our frontline colleague pay
has increased by 14% in the last year and
37% over the past five years with 12,000
colleagues benefiting from these increases.
From 1 April 2023, we introduced a two tier
hourly pay framework for store colleagues
to differentiate between new starters
(£10.50 an hour) and skilled colleagues
(£10.80 an hour) as a first move in a ‘pay
for skills’ framework. A lower entry rate
recognises that new starters need time to
learn how to sell, serve and support in
the Currys way. The higher rate recognises
skilled colleagues that are already working
at Currys, have been multi-skilled to sell,
serve and support customers in our ‘One
Team’ model and are performing well in
their role.
For the first time, our annual Gender Pay
Report reflects our one Currys brand, with
all UK colleagues paid on one payroll. It is
also the first year since 2020 where results
have not been impacted by furlough or the
pandemic. Our 4.5% median Gender Pay
Gap continues to track well below the
ONS national average (14.9%) and has
improved for the third consecutive year.
Similarly, our median Gender Bonus Gap
decreased from 20.1% last year to 17.3%.
In the Nordics, all colleagues are included
in our competitive bonus schemes. Store
employees have a monthly bonus plan
which has been reviewed and relaunched
in FY 21/22 to better support our
customer needs and increase employee
engagement. The new store bonus relaunch
is accompanied by a brand-new bonus
app, developed in-house which offers our
store colleagues the possibility to follow
their bonus achievement in real time.
In Greece, we have focused on a Pay
for Performance philosophy, designed
to give incentives to our high-performers.
This year we have also evaluated Being
the Best Schemes for different areas of
responsibility. We have validated and
updated the respective criteria, elements
& KPIs for existing areas, and have
designed and implemented new ones.
Share ownership
We believe every colleague should be a
shareholder and invested in our success.
Awards granted in 2019 and 2020 have
continued to vest and over 1,950
participants in 9 countries received their
shares. In 2022/23 we also continued to
offer our UK&I colleagues the opportunity
to build a personal stake in the business
through our annual Sharesave Scheme.
Number of employees as at 29/04/2023 Total Female Male
PLC Board 8 3 38% 5 63%
Executive Committee 8 2 25% 6 75%
Direct Report of Executive Committee 65 25 38% 40 62%
All Employees 28 ,174 8.672 31% 19,502 69%
24 Currys plc Annual Report & Accounts 2022/23
+4pts
+13pts
+50%
YoY
YoY
Our Strategy
Easy to shop
Omnichannel is our way of bringing the strengths of stores
and online to all our customers, however they want to shop
We put the customer first in everything we do. We are clear
on our promises to customers, including our commitments
to play our part in society and to protect our environment.
We are committed to our stores because we’re strongest
when we offer the best of both online and stores to
customers. But we are digital first – joining up all of our
channels and touchpoints and making us easier to deal
with. We are proud that we exist to sell to customers,
to help each of them discover and choose the amazing
technology that’s right for them, however they shop with us.
We work relentlessly to remove, one by one, all of the pain
points that our customers experience. There is huge value
in getting this right and we have made progress. However,
we are determined to keep working hard to take customer
experience to the next level.
Improving the ease of shopping in both channels will help us
grow market share, while delivering the best of both stores
and online in a seamless omnichannel experience will help
us grow sales and improve gross margins.
Customers prefer omnichannel
(1)
(1) Source: Company information – Customer survey
of 1,264 UK&I customers in April 2023. Question:
Which of the following best describes how you
have browsed/shopped for electricals in the last
12 months?
31%
Online
only
18%
In-store
only
18,000
12,000
2022/23
2022/2023
2019/20
2022/23
51%
Both online
and
in-store
Easy to shop
UK&I Nordics
2022/23
2022/23
2018/19
2021/22
Easy to shop starts
with better retail basics
Easy to shop means we offer the best
customer experience, both online and
in stores. This starts by getting retail
fundamentals right. We make continuous
progress on increasing range and
availability of products, keep our
price promise and work hard to create
an easy customer experience.
Rightsizing our product range
# SKUs
Deliver an easier experience
Delivery CSAT Home Delivery
HappyorNot
UK&I
2022/23
2022/23
2018/19
2021/22
25Strategic Report Governance Financial Statements Investor Information
Customers prefer our
omnichannel model
Tech customers prefer our omnichannel
model as it offers them the best of both
worlds. Store customers cite the ability
to see, touch and feel products before
buying, the expert advice and in-store
services as main reasons to shop in store.
Online customers cite convenience and
availability as main reasons for using that
channel. Providing both allows us to serve
all customers across our markets, and also,
to offer them the best experience.
Even in the depths of the pandemic, only
a third of customers wanted to shop online
only. And during the cost of living squeeze,
stores have become even more important
to customers as they need to give greater
consideration to purchases that are
increasingly essential but expensive.
Omnichannel continues to prove itself
the winning model for customers, with store
share of business increasing on last year.
Country Market leader Market share Online SoB
24%
28%
40%
41%
25%
n /a
17%
43%
Omnichannel is the winning model. International
peers show us that the clear market leader in every
market is omnichannel.
Never out
of stock
Get your product
right now
ShopLive
service
26 Currys plc Annual Report & Accounts 2022/23
2022/23
2021/22
2019/20
2022/23
2021/22
2019/20
2022/23
2021/22
2019/20
Our Strategy
Easy to shop continued
Online-in-store sales Order & Collect sales ShopLive UK
Omnichannel
Our omnichannel model provides better flexibility and benefits for customers. Customers in-store can access our full range of products
and have them delivered to home, meaning we are never out of stock for these customers; our online customers can pick up products
in-store shortly after ordering, providing an immediacy that online retailers cannot match, while ShopLive allows our customers to get
the trusted face-to-face advice of our expert colleagues from the comfort of their own homes.
Benefits of our omnichannel model
Customer rating
4.3/5
vs unassisted online
>4x
Conversion
>23%
AOV
UK&I NordicsUK&I
+99% +256% +76%
Strategy in Action: Ship-from-store
In the Nordics we have introduced Ship-from-store
this year. By utilizing our store network, we make
even more products and services available for
our customers.
In addition to increased availability, Ship-from-
store has also led to increased sales of outlet
products. Revenue from outlet is up 16.5% YoY
which is good for the environment, good for
customers and good for us.
In 2022/23 we shipped over 1 million parcels from
our stores.
As a result of this, almost half of Nordic online
sales are store supported either through Pickup-
in-store or Ship-from-store showing the strength
of our omnichannel offering.
Strategy in Action: UK&I Bundling
27Strategic Report Governance Financial Statements Investor Information
H2 2022/23
H2 2021/22
+1 . 2K
bps
In-store
Online
>2x
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Our progress
UK&I
• Made significant improvements to our
website, making it faster, future proof,
and able to provide a more
personalised experience. This improves
upselling, cross-selling into Credit and
other Services, all of which increase
gross margins and “level up” profitability
between channels.
• At the beginning of 2023 we moved to
a multiskilled colleague base whilst still
retaining specialisms. This involved all
store colleagues being upskilled to sell,
serve and support our customers. Our
store management teams leveraged
this multiskilled capability to create
a ‘One Team’ operating model using
a framework applied across all stores
to improve performance, customer
satisfaction and profitability.
• Opened a new 355,000 sq ft
warehouse facility in Harworth which
has helped increase availability on
domestic appliances, as well as serving
as a new base for delivery & installation
services in the surrounding area.
Nordics
• Next Generation retail project
completed resulting in improved
omnichannel experience for customers
and has enabled the implementation
of recurring revenue on insurance,
self-service for customers (reducing
customer contacts), flexibility in home
deliveries and improved availability.
• Commenced work on our Nordic
distribution centre expansion in
Jönköping.
Looking ahead
UK&I
• Further improve “right first time” through
better reporting and performance
tracking to identify issues. Success will
reduce direct costs to the business
and improve customer satisfaction.
• Optimise customer journeys to increase
bundling and higher margin products.
The additional kit that helps customers
enjoy tech
Improvements made
• Colleague are now trained to sell:
600hrs training for colleagues in 2021/22
£25m long-term investment in colleagues (2021/23)
• Simplified customer journeys
• Laptop + Softwear / Keyboard / Mice
• TV + Bracket / theatre kits / cables
• Gaming consoles + Game / memory card
In-store bundling is up
Bundling adoption rate
Big Opportunities
Channel adoption rate H2 2022/23
28 Currys plc Annual Report & Accounts 2022/23
Our Strategy
Customers for life
Making customers happy isn’t just about helping them
choose a product, it’s much more than that. It’s helping
them to afford and enjoy their technology, for life.
Credit and other Services help us build longer-lasting
and more valuable relationships with customers.
Good data helps better understand, measure, track, target,
and tailor our propositions to our most valuable customers
over time. We are making progress on building this
capability up to where it needs to be.
Services are profitable on their own, but more importantly
they help customers make more sustainable choices and
they drive increased customer loyalty. As the leading
technology retailer in all our markets, with the ability to
serve customers across both channels, we have a significant
opportunity to increase customer loyalty and share
of wallet.
But we only get a ~30%
share of their wallet
We don’t need to invest lots
in acquiring new customers…
30%
(1) Unique identifiable households who have shopped
for electricals with Currys in the past three years.
~80% of UK households shop
for electricals with us
(1)
80%
…and significant headroom remains to grow
share of wallet with our existing customers
Customers for life
Our credit and other services, fuelled by data, help us build
longer-term customer relationships
29Strategic Report Governance Financial Statements Investor Information
7.6
6.8
5.4
3.2
2021 /22
2020/21
2022/23
2019/20
11.1
11.1
9.6
3.5
2021 /22
2020/21
2022/23
2019/20
2018/19
Loyalty programs
We are building a large and useful dataset on customers through our growing loyalty programs – Customer Club in the Nordics and
Currys Perks in the UK.
Nordics customer club members (m) UK Currys Perks members (m)
Equivalent to more than 50% of Nordic households being
club member
Equivalent to 40% of UK households being club member
2022/23 – Group
We help you
afford the
amazing tech
We help you
get started
We help give your
tech longer life
We help you
get the most out
of your tech
We offer a wide range of services, including connectivity
Our services help everyone enjoy amazing technology
Services enable us to keep talking to customers. We are uniquely positioned within tech retail to help customers afford tech through
credit, help them get started with delivery, installation and set-up, help give tech a longer life through protection, repair, trade-in
and recycling, and get the most out of tech through connectivity, subscriptions and tutorials.
3.8m
+19% YoY
Credit customers
17.7%
+440bps YoY
UK&I Credit Adoption
11.7%
+220bps YoY
Nordics Credit Adoption
12.8m
(17)% YoY
Deliveries
2.0m
+5% YoY
Installations
750k
(5)% YoY
Added Value Services
4.7m
+4% YoY
Protection Plans sold
14m
+3% YoY
Total Active Protection Plans
1.3m
(12)% YoY
Repairs
103k
(0)% YoY
Tonnes/recycled
1.3m
+13% YoY
iD Mobile Subscribers
30 Currys plc Annual Report & Accounts 2022/23
NPS
+20%
higher than
non-credit
Repeat rate
+52%
vs non-credit
Average
basket value
+10%
vs non-credit
Services
adoption rate
+20%
vs non-credit
1.9
1.7
1.4
1.2
0.9
2021 /22
2020/21
2022/23
2019/20
201 8/19
17.7%
13.3%
10.8%
11.2%
9.0%
2021 /22
2020/21
2022/23
2019/20
201 8/19
Strategy in Action: UK&I Credit growth
Responsible credit plays a vital role in helping customers afford the (sometimes expensive) technology that’s so impactful to them.
This is especially true during a costs of living squeeze. Growing the number of customers who can afford better tech through credit
is the single most important way we can drive customer loyalty. Credit customers are happier, they spend more with us, they come
back to us more often and they’re more likely to buy our other services as well. And we take no risk on credit.
Our Strategy
Customers for life continued
In 2022/23 we saw another record for credit in the UK. Our active credit customers grew to 1.9m, a +12% increase YoY.
These customers used more of their existing balances and credit spend was up +24% YoY. This drove credit adoption to 17.7%,
significantly above the 16% target for 2023/24. Adoption was strong in stores and online, and across all categories.
Active Customers
Active Credit Accounts UK (#m)
Credit Penetration
31Strategic Report Governance Financial Statements Investor Information
1.31
1.16
1.08
1.05
2021/22
2020/21
2019/20
2022/23
+13%
Strategy in Action: Monthly insurance
In the Nordics, our customers have so far only had the opportunity of purchasing fixed-period insurances when insuring their
products (e.g. 12 or 24 months). As a first step in our ‘Journey to Usership’, we wanted to offer our customers the ability to buy
insurances for their devices on a monthly basis, with full flexibility to self-service their contract and payment methods. In May
2022, this flexible service was launched on mobile phones as the first use case, and as part of the Back-to-School campaign
the service was launched for other devices such as laptops and tablet. The flexible and recurring payment service has increased
the adoption rates for these services, by around 60%, and helps Elkjøp steadily build a portfolio of recurring revenue.
Connectivity is a key Service
iD Mobile is our award winning mobile virtual network operator in the UK&I. In partnership with Three, iD Mobile offers a rounded
proposition on customer value, flexibility and control. At the end of 2022, iD Mobile won two Trusted Review awards, for Best Value
Network and Best Network for Roaming, and in 2023, it was recognised by Which? as a Great Value Network for our SIM only plans.
This value has been recognised by consumers with subscriber numbers growing +13% to 1.3m active users, representing an important
source of growing, recurring and predictable revenue.
iD Mobile subscribers
(m)
UK&I
• Credit adoption increased +440bps to
17.7%, well ahead of the 16% adoption
we have targeted for 2023/24.
• ‘TreviPay’, our new B2B credit facility was
rolled out.
• Introduced charging for all two-person
deliveries. The average delivery,
installation and recycling revenue on the
3m big box deliveries we do each year
is now more than £10 higher than before
we introduced this charge. We have
been pleased to see that it has not had
a detrimental impact on sales, customer
satisfaction or adoption rate of our
services.
• Currys started selling refurbished
products through Currys website.
• Repair Live launch with CSAT trending
at 4.8/5.
• Currys announced the signing of a new
deal with Vodafone, extending their
exclusive multi-year partnership, with
a renewed focus on growing beyond
mobile to include Home Broadband
and the ever-expanding range of
connected devices for around the home.
• iD Mobile, Curry’s own mobile virtual
network operator (MVNO), agreed
a new multi-year extension deal to
continue its partnership with Three.
Nordics
• Launched integrated financing services
in the online channel together with our
consumer financing bank partners in
Norway, Sweden and Finland. This has
been a successful change, contributing
to +17% growth in financed sales.
• Also, we launched insurance for devices
with monthly payment in all our markets.
• Started selling refurbished products;
testing on big-box items as well.
• Introduced a new, high-quality
calibration service for TVs.
UK&I
• Look to increase adoption rate of
credit and other services, online
and instore, through optimization
of customer journeys.
• Continue to grow iD.
• Scale RepairLive and increase the
volume of repairs resolved through
this route, lowering costs of transporting
products and generating quicker
resolutions for customers. Extend to
include TVs and In-home TV repairs.
• Salesforce Fusion platform into the
CMC. Step forward in single view
of customer.
Nordics
• Aims to increase financing sales even
further by optimising the sales processes
in stores.
Our progress Looking ahead
32 Currys plc Annual Report & Accounts 2022/23
Our Strategy
Grow profits
We need to make more profit. More profit means we
can invest more in colleagues and customers and make
distributions to our shareholders. We have embedded
growing profits at the heart of our strategy. Under our vision
to help everyone enjoy amazing technology, we now have
a Big Four priorities Capable & Committed Colleagues,
Easy to Shop, Customers for Life and Grow Profits.
This reflects the need to raise margins and lower costs
to grow profits. But we also need to continue to grow
colleague engagement and customer satisfaction.
The best businesses have happy colleagues and happy
customers, which drives value for shareholders.
Grow profits
We’re doing a good job for colleagues and customers; we need to
do the same for shareholders
The SC&SO
Brilliant
Basics.
33Strategic Report Governance Financial Statements Investor Information
+86%
+13
+650
+310
H2 22/23
H2 21/22
Target
Realised
64
63
51
2022/23
2021/22
2018/19
17.7%
13.3%
11.2%
2021/22
2019/20
2022/23
2021/22
2019/20
2022/23
Gross margins
We’re confident in sustaining our UK gross margin improvement and we expect to reverse the recent decline in the Nordics.
We are focussed on four main areas to drive improved gross margins (the graphs below refer to UK&I):
End-to-end
profitability model
Improved marketing and
promotional efficiency
Credit adoption (%)
Monetising improved data & analytics
Care & Repair adoption (%)
1. Higher Services adoption 2. Monetising the improved customer experience
bps
pts
bps YoY
3. Not chasing less profitable sales 4. Reduced supply chain and service operation costs
Delivery CSAT
Significant increase in
Delivery, Installation &
Recycling revenue per order
34 Currys plc Annual Report & Accounts 2022/23
Our Strategy
Grow profits continued
Costs
We must take costs out of the business to reverse the impact of inflation and to increase our profits.
Through these actions we are targeting £300m of annualised cost savings in the UK&I by the end of 2023/24. We had delivered £189m
of this saving by the end of 2022/23.
£m Gross Margin
Combined
Operating Expense Total
Wages (26) (20} (46)
Energy (5) (18) (23)
Shipping costs (15) – (15)
Other (8) (1) (9)
Total Inflation (54) (39) (93)
Business rates tax – (54) (54)
Total cost headwinds (54) (93) (147)
Supply chain 54 – 54
Stores 3 52 55
GNFR 3 8 11
IT & Central – 56 56
Marketing – 13 13
Total cost savings 60 129 189
Supply chain Stores Goods not
for resale
IT & Central
Our efforts are concentrated on four areas:
Getting our supply chain
working as effectively as it
possibly can be and also
the outsourcing of our
warehousing and logistics.
Retendering contracts and
consolidating supply base.
Retraining and multiskilling
colleagues, removing tasks.
Simplify processes, remove
duplication and low value add,
moved IT to the cloud.
Cost programme on track with £189m of £300m delivered
24 months cumulative to 29/04/2023
35Strategic Report Governance Financial Statements Investor Information
Strategy in Action: Our partnership with Infosys
Infosys is a global leader in next-generation digital services and consulting. Our partnership with them commenced in July 2022,
since then we have engaged Infosys to deliver a large range of activities across our business functions including IT, Data &
Analytics, E-Commerce, Finance and Commercial, for our UK&I and Nordics businesses. This has involved moving 800 roles to
Infosys so far, with significant potential to extend the partnership in the future. In time, we expect these actions to result in an
annualised cost saving of over £15m, with £5m saving realised in 2022/23.
Group
• Launched Global Business Services and
strategic partnership with Infosys. The
initial transfer of over 700 colleagues
from the Brno office to Infosys took
place in October 2022, alongside
opening a new offshore delivery centre
with Infosys in Pune, India.
UK&I
• Achieved total costs reductions of £42m,
through Supply Chain efficiencies.
• Closed 8 UK stores at lease expiry
and negotiated an average effective
net rent reduction of more than 25% on
23 renewed leases.
• Focused on Right First Time to eliminate
duplicate costs while improving the
customer experience.
• Reduced store payroll costs by 14%
while increasing customer facing hours
by 10%.
Nordics
• In Nordics, our strong cost control,
particularly in IT expenditure, has
allowed us to offset inflationary
increases of £(28)m and a further £(16)m
of costs related to new stores. Savings
were spread across several areas
including marketing, store and head
office payroll, IT expenditure and
consultant fees. These actions will see
around £25m of costs permanently
removed from the business.
• Deepen relationship with Infosys
• Continue to focus on four major drivers
of gross margin:
– Adoption of credit and services.
– Monetisation of improved customer
experience.
– Better analytics.
– Supply chain and service operation
cost savings.
Group
• Deepen relationship with Infosys.
• Continue to focus on four major drivers
of gross margin:
– Higher services adoption.
– Monetisation of improved customer
experience.
– Using data and analytics to reduce
mix of less profitable sales.
Nordics
• We will close unprofitable stores.
• Deliver cost savings through.
– Central: Headcount reduction,
offshoring and contractor removal.
– IT: Group CIO – procurement
and synergies.
– GNFR: Consolidation and
renegotiation with suppliers.
– Stores: Multiskilling colleagues
for efficiency, lease renewals,
store closures.
– Marketing: Reduction and
optimisation.
UK&I
• Deliver our £300m costs saving target.
Our progress Looking ahead
36 Currys plc Annual Report & Accounts 2022/23
Section 172 statement
This report sets out the Company’s approach to stakeholder management.
Section 172(1) of the Companies Act 2006
requires each director to act in the way he
or she considers, in good faith, would be
most likely to promote the success of the
Company for the benefit of its members
as a whole and in doing so have regard
(amongst other matters) to the:
• likely consequences of any decisions
in the long term;
• interests of the Company’s employees;
• need to foster the Company’s business
relationships with suppliers, customers
and others;
• impact of the Company’s operations
on the community and environment;
• desirability of the Company maintaining
a reputation for high standards of
business conduct; and
• need to act fairly as between members
of the Company.
This statement explains how the Board has
embedded stakeholder considerations
and the duties of each of the directors
under s172(1) into its decision-making more
broadly, includes two case studies and
details, for each of the Company’s key
stakeholder groups, the matters that the
Board considered during the year, including
how decisions were reached and those
stakeholder considerations which were
central to discussions and outcomes.
There are different processes across
the business to ensure stakeholder
considerations are embedded into the
Group’s decision-making. The Board has
identified its key stakeholder groups as
being: (1) customers, (2) colleagues, (3)
shareholders, (4) suppliers and partners,
and (5) communities and environment.
Our
Stakeholders
How the Board gain feedback on stakeholder views and consider stakeholder interests
in decision-making
Director context Understanding stakeholder interests Board decisions
The Group’s purpose is embodied in its
vision – We help everyone enjoy amazing
technology, setting the overall context
for the Company and the Board. The
Company’s values are embedded across
the business, set out in the Colleague
Code of Conduct and are described on
page 19. At the heart of these values is
a commitment to run a business which
complies with all applicable laws and
regulations while keeping colleagues and
customers safe, respecting the diversity
and dignity of everyone we interact with,
protecting the business assets and
reputation and delivering value for our
stakeholders.
A clear corporate governance structure is
in place which, together with the Group’s
Delegation of Authority Policy, ensures
that business decisions are made by
the appropriate people and in the
appropriate forum (in accordance with
the terms of reference of that forum).
The Board acknowledges that decisions
made will not necessarily result in a positive
outcome for every stakeholder group. By
considering the Group’s purpose, vision and
values together with its strategic priorities
and having a process in place for decision-
making, the Board does, however, aim to
make sure that all decisions are considered
and made following reflection across a
broader view of stakeholder considerations.
Non-executive directors receive stakeholder
feedback and insights both through their
direct access to the Group’s key stakeholder
groups and through regular reports from the
management team, including weekly updates
on customers including customer satisfaction
metrics and comments.
Directors meet colleagues from a range of
areas of the business during offsite Board
meetings and store visits and receive colleague
engagement survey results, and a non-
executive director attends the International
Colleague Forum, while another non-executive
director attends the Leadership Inclusion Forum.
All Board members are available to meet with
shareholders on request and several meetings
including non-executive directors have taken
place in the year. The Board receives an
update from the Investor Relations team
including shareholder feedback at every
meeting and periodically meets with the
Company’s brokers.
The Group Chief Executive’s report at each
Board meeting includes key updates on
suppliers and partners, and the Group Chief
Executive participates in key meetings with
the Group’s main suppliers.
The Board has received training on the
management of climate risks. Non-executive
directors meet with management to discuss
environment and communities topics at the new
Environment, Social and Governance (‘ESG’)
Committee.
Directors receive a briefing on
s172(1) duties as part of their
induction programme.
The pre-read for each Board
and committee meeting includes,
for reference, a summary of
section 172(1) responsibilities
immediately after the meeting
agenda.
To ensure that the impact on
stakeholders is duly considered,
Board and committee decision
paper templates include fields
for papers’ authors to include an
impact assessment on each
stakeholder group.
The Chair of the Board ensures
that stakeholder considerations
are sufficiently discussed during
Board decision-making in
meetings.
The Board challenges whether
any decision made is the ‘right
thing to do’ to ensure a fair
long-term outcome for all
stakeholders including
relationships the Company
has with external bodies and
the impact on the communities
the Group operates in.
37Strategic Report Governance Financial Statements Investor Information
CASE STUDY:
Strategic partnership decision
CASE STUDY:
ESG Governance
During the year, the Board approved entering into a strategic partnership with Infosys
for the design and delivery of a next-generation Global Business Services operational
capability for the UK & Ireland and Nordics.
The Board considered the impact on our
customers and the customer experience.
Customer contact roles were not involved
in this change but the collaboration
with Infosys gives the Group access to
world-class technology, systems, and
digital operations across the UK, Europe
and India which support colleagues in
meeting customer expectations.
The Board challenged the possible
impacts of this partnership on our
colleagues. The directors received
assurance that Group colleagues based in
Brno would be offered new roles in Infosys’
operations, including roles in which they
would continue to support the Currys and
Elkjøp operational teams. Colleagues
were supported through the changes
including townhall briefings, onboarding
sessions and other support.
The Board considered the impact of
the partnership on our shareholders. The
partnership would deliver cost efficiencies,
help accelerate profitable growth of their
business across key UK and European
markets and provide competitive
advantage for the Group.
The directors agreed that our suppliers
and partners would also benefit from
access to next-generation digital services,
enhanced operational capabilities
and efficiency improvements which the
Group would derive from the partnership
with Infosys.
The Board challenged the possible
impacts on our communities and
environment and sought assurance that
the partnership with Infosys would enable
the delivery the Group’s ESG commitments,
in particular the delivery of emissions
targets.
During the year, the Board decided to establish an ESG Committee of the Board to lead
the new governance framework for ESG in the Currys Group.
The remit of the ESG Committee includes
the approval of the Group’s ESG strategy,
oversight of the delivery of this strategy by
the Group Sustainability Leadership Team
(‘GSLT’) and oversight of the management
of ESG risks and opportunities.
The Board considered this change carefully
and in the context of the Company’s main
stakeholder groups.
The Board considered the needs and
expectations of our customers and in
particular the appetite customers have
for products and companies that have
a lower impact on the environment
and play a positive role in communities.
The establishment of a committee of
the Board would help elevate the profile
of the Company’s existing ESG agenda
and activities, including offering customers
products that help them save energy,
reduce waste and save water, and the
charitable partnerships in place to bring
the benefits of amazing technology to
those who might otherwise be excluded.
The Board agreed that increasing director
focus and involvement in ESG matters
would benefit our colleagues by
demonstrating the importance of ESG
to the Group’s business and supporting
the engagement and cross-Group
collaboration of colleagues throughout
our Supply Chain, Service Operations,
Commercial and other teams, to deliver
ESG goals.
The Board considered feedback from
our shareholders including the increased
interest in the ESG credentials of the
business and the external recognition
for climate-related efforts, including the
Company’s A- rating by CDP. The ESG
Committee members would have valuable
insights into shareholder perspectives and
expectations and the Committee would
help demonstrate the importance of
ESG matters to the Group and support
communication with investors on ESG topics.
The delivery of the ESG strategic priorities
– growing our circular business models,
achieving net zero emissions by 2040, and
helping eradicate digital poverty – requires
working closely with our suppliers and
partners to reduce the environmental
impact of products sold and the operation
of the supply chain. The independent
oversight and contribution of the ESG
Committee in challenging then sponsoring
the ESG strategy, goals and key performance
indicators would help suppliers and
partners have confidence in the Group’s
ESG commitments.
The Board considered the social purpose
at the centre of the vision – We help
everyone enjoy amazing technology –
and the important role for the Group
to play for our communities and
environment by providing technology to
help people stay connected, productive,
healthy, and entertained while giving
technology a longer life through repair,
recycling and reuse, and reducing the
Group’s impact on the environment
including achieving net zero emissions
by 2040.
Further information on the new
ESG Committee is on page 123.
The Sustainable Business report
is on pages 40 to 63.
38 Currys plc Annual Report & Accounts 2022/23
Our
stakeholders continued
How we engage Stakeholder focus How we engaged in 2022/23 How we engaged in 2022/23 Future priorities
Our customers
• In store
• Online
• ShopLive
• Customer app
• Customer centres
• Email
• Post-sales survey
• Social media
• Customer insight work including
focus groups
• Product availability
• Product range
• Product value and affordability
• Product sustainability and ethical sourcing
• Customer journey experience
• Services and Credit
• Advice and support
• Choice of how to purchase; online or
in store
• Seamless delivery experience
• UK stores introduced ‘Quiet Hour’ during the year to make
stores more accessible for neurodiverse customers.
Thischange was part of the Group’s commitment to
diversity and inclusion. Store colleagues have reported
very positive feedback from customers.
• In the Nordics we collaborated with Microsoft (who own
the video game, Minecraft) on an initiative that rewards
customers that are Minecraft players with in-game
currency, Minecoins, for returning their e-waste to their
nearest Elkjøp, Elgiganten or Gigantti store for recycling.
• The Board receives an update on customer satisfaction metrics each week. Root cause
analysis is carried out to understand and resolve any concerning trends. A Voice of the Customer
dashboard is in place for the UK & Ireland. Nordics and Greece have a separate ‘HappyorNot’
satisfaction measure.
• Key customer issues are included in the Group Chief Executive’s report at each Board meeting.
• Verbatim customer feedback is captured from thousands of customers each week to gain insights
and help the business better understand customer expectations and concerns. Machine learning
and AI solutions are used to quantify the sentiment of the comments. This information is reviewed
internally and used to generate improvements to the customer experience.
• Continue to improve the customer
experience and build more customers for
life by using data to build more valuable
relationships and by growing Services.
• Support customers through cost-of-living
pressures by competitive pricing and
giving them access to responsible credit.
• Respond to customers’ ever-increasing
concerns on sustainability.
Our colleagues
• Intranet
• Emails
• Executive Committee interactive
videocalls and site visits
• Team meetings
• Meetings with line manager
• Colleague surveys
• Events including annual Peak event
in the UK & Ireland and the Kampus
event in the Nordics
• Training at The Academy@Fort
Dunlop
• UK & Ireland and International
Colleague Forums
• Leadership Inclusion Forum
• Company culture and values
• Well-being
• Reward
• Benefits
• Flexible working
• Health and safety
• Training and development
• Inclusion and diversity
• Company social purpose and
sustainability
• New store-based colleagues who join the business in
the UK attend a training event at The Academy@Fort
Dunlop centre before they start work serving customers in
stores. Similar training is also provided in the Nordics and
Greece. Aseparate induction programme is in place for
corporate colleagues.
• Regular colleague surveys are used to seek feedback
which is then shared with the Board and used in
decision-making. Surveys seek feedback on a range
of issues and during the year topics included ways
of working, diversity and inclusion, environment and
communities. During the year, the Nordics and UK & Ireland
used the same engagement survey for the first time.
• Hourly paid store colleagues in the UK received pay
increases during the year. Minimum hourly rates increased
by 17% and this change benefited almost 10,000
colleagues.
• Directors visit stores and meet colleagues in person. The Board visited Stockholm for the October
2022 Board meeting and the Birmingham store for the March 2023 Board meeting. These visits
included meeting many colleagues and receiving deep dive updates on the Nordics business
and on the UK strategy for stores and Services.
• Colleagues that draft Board and committee papers include their contact details on papers
submitted to the directors and directors frequently contact them directly when they have queries
on papers or would like further detail.
• Colleagues have online access to all HR policies and guidance and a ‘Well-being Corner’
intranet site provides support and resources for mental, financial and physical well-being.
• The annual UK & Ireland Peak event was held in person during October 2022 to provide colleagues
with strategic updates from the Executive Committee members and training.
• A central International Colleague Forum is in place as a single listening and engagement forum
for all colleagues. Tony DeNunzio, the Deputy Chair and Senior Independent Director, attends
these meetings with the Chief People, Communications and Sustainability Officer, Paula Coughlan.
Non-executive directors met privately with representatives from the International Colleague
Forum in January 2023 to receive direct feedback on current topics of interest and priorities
for colleagues.
• Continue to build on high colleague
engagement scores.
• Continue to upgrade the tools and
information available to colleagues
(including on the Colleague Hub) to
enable even more effective conversations
with customers.
• Support colleagues through cost-of-living
pressures including guidance and tools
such as the rollout of Champion Health
support from the Company’s well-being
partner.
Our communities and environment
• Surveys, forums and web platforms
• Website
• Annual reports
• Social media
• Engagement meetings
• Charity and supplier partnerships
• Multi-stakeholder collaborations
• We help everyone enjoy amazing
technology
• Being a responsible contributor to society
• Being a good employer
• Having sustainable business practices
• Minimising impact to the environment and
addressing climate change
• An ESG Committee was established as a committee
of the Board during the year to increase the focus
and profile of ESG activities in the Group for internal
and external stakeholders and our communities.
More information is available on page 123.
• The Company has a Sustainable Business team which
oversees the Group’s charitable partnerships and
environment initiatives including engagement with these
external stakeholders.
• The Company has achieved external recognition for sustainability activities in our communities
including being awarded an A-, by global environmental non-profit CDP, for its leadership
in corporate sustainability in tackling climate change.
• The Company continued to work with suppliers, partners and industry bodies to help drive industry
action to improve its use of resources and create circular business models through design, repair,
recycling and reuse. The Company is a member of the Circular Electronics Partnership, who
maximise the value of components, products and materials throughout their lifecycle.
• As a founding member of the Digital Poverty Alliance (‘DPA’) including a £1m donation to fund the
first project, the Company has worked with the DPA during the year to lead sustainable action
against digital poverty in our communities.
• Continue to deliver under the three ESG
strategic priorities in our communities:
growing our circular business models,
achieving net zero emissions by 2040,
and helping eradicate digital poverty.
• Continue to partner with external bodies
to support the delivery of the strategic
objectives including the DPA in the UK,
partnerships in Nordics that fight digital
exclusion and the Second Home initiative
in Greece.
Our shareholders
• Results announcements and
presentations
• Annual report and accounts
• Annual general meeting
• Investor roadshows
• Shareholder meetings
• Company website
• Registrar contact
• Consultation with major
shareholders on key topics
• Ensuring the long-term sustainable future of
the business
• Financial and share price performance
• Dividend policy and capital allocation
• Current trading
• Business strategy and vision
• Director remuneration
• Shareholder communications and
engagement
• ESG issues
• The Chair met with many of the Group’s largest
shareholders as part of his induction to better
understand shareholder views and expectations,
and shared feedback with the Board.
• Following the Remuneration Policy receiving less than
80% support at the Company’s annual general meeting
in 2022, the Chair of the Remuneration Committee
oversaw the process to consult with the shareholders
representing 67% of the Company’s issued share capital.
The post-employment shareholding requirement for
executive directors was amended following
consideration of shareholder feedback.
• The Board receives updates from the Investor Relations team at every Board meeting. These
include updates on any material changes to the composition of the shareholder register,
a summary of investor interactions that have taken place during the period including investor
questions and topics discussed.
• The Investor Relations team manages a programme of regular meetings with the top 15
shareholders and most of these meetings are also attended by at least one Board director. For
other shareholders, the primary point of contact is the Company’s registrar, although any matters
can be escalated to either the Investor Relations or Company Secretariat teams as appropriate.
• The Board receives updates from the Company’s Brokers periodically and these include
shareholder feedback and market sentiment. The Board last received an update from its Brokers
in January 2023.
• Continue regular engagement with
shareholders.
• Enhance disclosures in annual reports and
accounts and on the Company’s website
to provide more information on topics of
most interest to shareholders including
ESG matters.
Our suppliers and partners
• Formal engagement strategy
including regular visits and meetings
• Supplier relationship management
team
• Supplier questionnaires
• Due diligence process for new
suppliers
• Strong customer demand
• Good collaboration and communications
• Reliability
• Value
• Health and safety
• Compliance
• Sustainability and ethical sourcing
• The Board receives regular feedback on substantive
supplier and partner matters via the Group Chief
Executive and the Chief Commercial Officer including a
UK & Ireland Commercial deep dive in September 2022.
• The Group Chief Executive participates in regular
meetings with the Group’s largest suppliers and partners
and receives regular updates on all suppliers and
partners from the Chief Commercial Officer.
• The Commercial team put in place a formal engagement strategy with each large supplier and
partner. This strategy is customised in each case but includes regular meetings and calls between
the Group Chief Executive and his counterpart at the supplier company and between the Chief
Commercial Officer and his counterpart. This is supported by a team of colleagues engaging
regularly to assess progress against agreed business plans.
• A suite of policies and standards are in place to ensure that suppliers and partners adhere to
high ethical standards including prevention of modern slavery and anti-bribery. More information
on this is available in the Sustainable business report on page 62.
• Collaborate with suppliers and partners
to drive shared ESG goals including
minimising the Group’s impact on the
environment.
• Continue to maintain healthy reciprocal
relationships that benefit each of the
stakeholder groups.
39Strategic Report Governance Financial Statements Investor Information
How we engage Stakeholder focus How we engaged in 2022/23 How we engaged in 2022/23 Future priorities
Our customers
• In store
• Online
• ShopLive
• Customer app
• Customer centres
• Email
• Post-sales survey
• Social media
• Customer insight work including
focus groups
• Product availability
• Product range
• Product value and affordability
• Product sustainability and ethical sourcing
• Customer journey experience
• Services and Credit
• Advice and support
• Choice of how to purchase; online or
in store
• Seamless delivery experience
• UK stores introduced ‘Quiet Hour’ during the year to make
stores more accessible for neurodiverse customers.
Thischange was part of the Group’s commitment to
diversity and inclusion. Store colleagues have reported
very positive feedback from customers.
• In the Nordics we collaborated with Microsoft (who own
the video game, Minecraft) on an initiative that rewards
customers that are Minecraft players with in-game
currency, Minecoins, for returning their e-waste to their
nearest Elkjøp, Elgiganten or Gigantti store for recycling.
• The Board receives an update on customer satisfaction metrics each week. Root cause
analysis is carried out to understand and resolve any concerning trends. A Voice of the Customer
dashboard is in place for the UK & Ireland. Nordics and Greece have a separate ‘HappyorNot’
satisfaction measure.
• Key customer issues are included in the Group Chief Executive’s report at each Board meeting.
• Verbatim customer feedback is captured from thousands of customers each week to gain insights
and help the business better understand customer expectations and concerns. Machine learning
and AI solutions are used to quantify the sentiment of the comments. This information is reviewed
internally and used to generate improvements to the customer experience.
• Continue to improve the customer
experience and build more customers for
life by using data to build more valuable
relationships and by growing Services.
• Support customers through cost-of-living
pressures by competitive pricing and
giving them access to responsible credit.
• Respond to customers’ ever-increasing
concerns on sustainability.
Our colleagues
• Intranet
• Emails
• Executive Committee interactive
videocalls and site visits
• Team meetings
• Meetings with line manager
• Colleague surveys
• Events including annual Peak event
in the UK & Ireland and the Kampus
event in the Nordics
• Training at The Academy@Fort
Dunlop
• UK & Ireland and International
Colleague Forums
• Leadership Inclusion Forum
• Company culture and values
• Well-being
• Reward
• Benefits
• Flexible working
• Health and safety
• Training and development
• Inclusion and diversity
• Company social purpose and
sustainability
• New store-based colleagues who join the business in
the UK attend a training event at The Academy@Fort
Dunlop centre before they start work serving customers in
stores. Similar training is also provided in the Nordics and
Greece. Aseparate induction programme is in place for
corporate colleagues.
• Regular colleague surveys are used to seek feedback
which is then shared with the Board and used in
decision-making. Surveys seek feedback on a range
of issues and during the year topics included ways
of working, diversity and inclusion, environment and
communities. During the year, the Nordics and UK & Ireland
used the same engagement survey for the first time.
• Hourly paid store colleagues in the UK received pay
increases during the year. Minimum hourly rates increased
by 17% and this change benefited almost 10,000
colleagues.
• Directors visit stores and meet colleagues in person. The Board visited Stockholm for the October
2022 Board meeting and the Birmingham store for the March 2023 Board meeting. These visits
included meeting many colleagues and receiving deep dive updates on the Nordics business
and on the UK strategy for stores and Services.
• Colleagues that draft Board and committee papers include their contact details on papers
submitted to the directors and directors frequently contact them directly when they have queries
on papers or would like further detail.
• Colleagues have online access to all HR policies and guidance and a ‘Well-being Corner’
intranet site provides support and resources for mental, financial and physical well-being.
• The annual UK & Ireland Peak event was held in person during October 2022 to provide colleagues
with strategic updates from the Executive Committee members and training.
• A central International Colleague Forum is in place as a single listening and engagement forum
for all colleagues. Tony DeNunzio, the Deputy Chair and Senior Independent Director, attends
these meetings with the Chief People, Communications and Sustainability Officer, Paula Coughlan.
Non-executive directors met privately with representatives from the International Colleague
Forum in January 2023 to receive direct feedback on current topics of interest and priorities
for colleagues.
• Continue to build on high colleague
engagement scores.
• Continue to upgrade the tools and
information available to colleagues
(including on the Colleague Hub) to
enable even more effective conversations
with customers.
• Support colleagues through cost-of-living
pressures including guidance and tools
such as the rollout of Champion Health
support from the Company’s well-being
partner.
Our communities and environment
• Surveys, forums and web platforms
• Website
• Annual reports
• Social media
• Engagement meetings
• Charity and supplier partnerships
• Multi-stakeholder collaborations
• We help everyone enjoy amazing
technology
• Being a responsible contributor to society
• Being a good employer
• Having sustainable business practices
• Minimising impact to the environment and
addressing climate change
• An ESG Committee was established as a committee
of the Board during the year to increase the focus
and profile of ESG activities in the Group for internal
and external stakeholders and our communities.
More information is available on page 123.
• The Company has a Sustainable Business team which
oversees the Group’s charitable partnerships and
environment initiatives including engagement with these
external stakeholders.
• The Company has achieved external recognition for sustainability activities in our communities
including being awarded an A-, by global environmental non-profit CDP, for its leadership
in corporate sustainability in tackling climate change.
• The Company continued to work with suppliers, partners and industry bodies to help drive industry
action to improve its use of resources and create circular business models through design, repair,
recycling and reuse. The Company is a member of the Circular Electronics Partnership, who
maximise the value of components, products and materials throughout their lifecycle.
• As a founding member of the Digital Poverty Alliance (‘DPA’) including a £1m donation to fund the
first project, the Company has worked with the DPA during the year to lead sustainable action
against digital poverty in our communities.
• Continue to deliver under the three ESG
strategic priorities in our communities:
growing our circular business models,
achieving net zero emissions by 2040,
and helping eradicate digital poverty.
• Continue to partner with external bodies
to support the delivery of the strategic
objectives including the DPA in the UK,
partnerships in Nordics that fight digital
exclusion and the Second Home initiative
in Greece.
Our shareholders
• Results announcements and
presentations
• Annual report and accounts
• Annual general meeting
• Investor roadshows
• Shareholder meetings
• Company website
• Registrar contact
• Consultation with major
shareholders on key topics
• Ensuring the long-term sustainable future of
the business
• Financial and share price performance
• Dividend policy and capital allocation
• Current trading
• Business strategy and vision
• Director remuneration
• Shareholder communications and
engagement
• ESG issues
• The Chair met with many of the Group’s largest
shareholders as part of his induction to better
understand shareholder views and expectations,
and shared feedback with the Board.
• Following the Remuneration Policy receiving less than
80% support at the Company’s annual general meeting
in 2022, the Chair of the Remuneration Committee
oversaw the process to consult with the shareholders
representing 67% of the Company’s issued share capital.
The post-employment shareholding requirement for
executive directors was amended following
consideration of shareholder feedback.
• The Board receives updates from the Investor Relations team at every Board meeting. These
include updates on any material changes to the composition of the shareholder register,
a summary of investor interactions that have taken place during the period including investor
questions and topics discussed.
• The Investor Relations team manages a programme of regular meetings with the top 15
shareholders and most of these meetings are also attended by at least one Board director. For
other shareholders, the primary point of contact is the Company’s registrar, although any matters
can be escalated to either the Investor Relations or Company Secretariat teams as appropriate.
• The Board receives updates from the Company’s Brokers periodically and these include
shareholder feedback and market sentiment. The Board last received an update from its Brokers
in January 2023.
• Continue regular engagement with
shareholders.
• Enhance disclosures in annual reports and
accounts and on the Company’s website
to provide more information on topics of
most interest to shareholders including
ESG matters.
Our suppliers and partners
• Formal engagement strategy
including regular visits and meetings
• Supplier relationship management
team
• Supplier questionnaires
• Due diligence process for new
suppliers
• Strong customer demand
• Good collaboration and communications
• Reliability
• Value
• Health and safety
• Compliance
• Sustainability and ethical sourcing
• The Board receives regular feedback on substantive
supplier and partner matters via the Group Chief
Executive and the Chief Commercial Officer including a
UK & Ireland Commercial deep dive in September 2022.
• The Group Chief Executive participates in regular
meetings with the Group’s largest suppliers and partners
and receives regular updates on all suppliers and
partners from the Chief Commercial Officer.
• The Commercial team put in place a formal engagement strategy with each large supplier and
partner. This strategy is customised in each case but includes regular meetings and calls between
the Group Chief Executive and his counterpart at the supplier company and between the Chief
Commercial Officer and his counterpart. This is supported by a team of colleagues engaging
regularly to assess progress against agreed business plans.
• A suite of policies and standards are in place to ensure that suppliers and partners adhere to
high ethical standards including prevention of modern slavery and anti-bribery. More information
on this is available in the Sustainable business report on page 62.
• Collaborate with suppliers and partners
to drive shared ESG goals including
minimising the Group’s impact on the
environment.
• Continue to maintain healthy reciprocal
relationships that benefit each of the
stakeholder groups.
40 Currys plc Annual Report & Accounts 2022/23
Sustainable business
Our approach
Our vision, to help everyone enjoy amazing technology, has a powerful social purpose
at its heart. We believe in the power of technology to improve lives, help people stay
connected, productive, fed, clean, healthy and entertained. We’re here to help everyone
enjoy those benefits and with our scale and expertise we are uniquely placed to do so.
At Currys we’re fully committed to operating
a responsible business. We talk to our
stakeholders about their expectations,
we search out best practice and we reflect
these in the decisions we make.
Identifying our material issues
A wide range of sustainability issues can
create risks and opportunities for Currys.
Our Sustainability and Social Impact
strategy reflects those issues that are
most important for our business, our
stakeholders and our value chain.
Our stakeholder engagement activities
help us to identify the issues which are
most material. See pages 36–39.
In 2021/22 we reviewed our strategy
and the extent to which it remained fit
for purpose. This review included:
• Considering our performance on key
sustainability issues, the connection
between our strategy and our Group
vision and the capabilities of our
organisation.
• An analysis of questions asked by
investors, both through questionnaires
and direct engagement.
• Gauging colleague views on our
approach to sustainability and reviewing
customer insight.
• Benchmarking and competitor analysis
over both the strategy and specific
areas of focus.
• Conducting horizon scanning on the
external context for macro trends as
well as disruption and innovation
examples in the marketplace.
We determined our most material issues by
considering how important the issues that
emerged from this analysis were to our
stakeholders and how significant an
impact they could have on our business.
As a result of this review, we identified three
material issues and communicated three
strategic priorities for the Group in
November 2021:
• We will improve our use of resources
and create circular business models.
• We will help eradicate digital poverty.
• We will achieve net zero emissions
by 2040.
We will drive meaningful difference
through long-term objectives. Over the
last financial year, we have developed
the detailed plans that underpin each
objective. In particular, we have increased
our focus and embedded activity across
the Group to amplify and bring to market
new ways to help customers give their
technology a longer life through trade-in,
protection, repair, and recycling –
a proposition the Group is uniquely
positioned to offer. A proposition that is
attractive to customers and positions the
Group as a long-term sustainable business.
We report our progress against our
material issues alongside updates on
how our work is underpinned by a strong
foundation of responsible sourcing,
corporate governance and being
a good employer.
Our priorities
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Stakeholder input Stakeholder input
41Strategic Report Governance Financial Statements Investor Information
Read more about governance at Currys,
www.currysplc.com/about-us/
governance/
Read the terms of reference for the ESG
Committee, www.currysplc.com/media/
hn5iq3oz/esg-committee-tor-
october-2022.pdf
TCFD
Read our TCFD disclosures on pages
48-56.
Our priorities
Read more about our sustainability
priorities, achievements and next steps
onpages 42-43.
Policy
Details of our sustainability policies
andstandards, which are reviewed
regularly, can be viewed on our website,
www.currysplc.com
Tax
Read our Tax strategy on our website,
www.currysplc.com
Governance
During the financial year, the Board
established the Environment, Social and
Governance (‘ESG’) Committee of the
Board to approve the Group’s ESG strategy
and oversee the delivery of it and the
management of ESG risks and opportunities.
The ESG Committee is comprised of three
non-executive directors of the Board. Read
more about the Committee on page 123.
Our strategy is driven and delivered by our
colleagues – subject matter experts that
are fully integrated across our business.
Their work is coordinated by the Director
of Group Sustainability and overseen by
the Group Sustainability Leadership Team
(‘GSLT’). Chaired by Executive Committee
member, Paula Coughlan, our Chief People,
Communications and Sustainability Officer,
the GSLT sets the Group’s Sustainability
and Social Impact strategy and
recommends it to the Board for approval.
The GSLT also set and oversee the delivery
of the Group’s sustainability objectives
and key performance indicators (‘KPIs’)
including oversight of the management of
ESG risks. They review and submit progress
to the Executive Committee and ESG
Committee.
Risk
The business has a systematic approach to
ESG risk management. Our approach has
been benchmarked against other leading
organisations. Details on our principal risk
relating to sustainability and our emerging
risk on climate change is available on
pages 70 and 72. These are monitored by
the ESG Committee and the Executive
Committee, with the aim of better managing
the broad spectrum of ESG risks.
The ESG Committee, supported by the
GSLT, regularly assess and quantify ESG
risks (including identifying any new and
emerging risks) and recommend to the
Board and Audit Committee any changes
required to those risks already identified.
We look to ensure our ESG risk assessment
and classification remains appropriate
and suitable for our business.
Our performance
We make it easy to understand our progress.
We set clear targets and commitments
and report on progress and performance.
We’re serious about our responsibilities and
want to inspire more engaged colleagues
and build a business investors feel good
about investing in. Environmental targets
continue to feature in our annual bonus
scorecard with metrics on e-waste
collection volumes (5%) and progress to
net zero emissions (Scope 1 and 2) (5%).
Read more about our remuneration on
page 143.
Our achievements
We’re proud of our achievements. Our performance has been recognised in a number of ratings and
assessments of our business, including:
• We continue to respond to the CDP questionnaire on Climate Change, demonstrating our continued
commitment to identifying, assessing and managing climate-related risks and opportunities across
the Group. In 2022, we achieved an ‘A-’ score.
• We rose to 8th place in the Financial Times (‘FT’) annual ‘Climate Leaders Rankings’, becoming the
highest ranked UK retailer in a list of 500 European companies.
• As of 21 March 2023, Currys performed in the top quartile in the RTS Retailing industry in the S&P Global
Corporate Sustainability Assessment with a score of 43 reflecting an improvement of 11 points over
the last year.
• During the financial year we maintained our score in the MSCI ESG Ratings assessment, having achieved
a BBB in July 2022.
• Currys received an ESG Risk Rating of 12.7 in April 2023 and was assessed by Sustainalytics to be at
low risk of experiencing material financial impacts from ESG factors. They assessed our management
of ESG Material Risk as ‘Strong’.
• In June 2023, our progress was recognised with our repeated inclusion in the FTSE4Good UK Index.
42 Currys plc Annual Report & Accounts 2022/23
Sustainable business
Our priorities and achievements
Our Sustainability and Social Impact strategy is proposed by our Group Chief Executive
and approved by our ESG Committee. Our strategy reflects those issues that are most
important for our business, our stakeholders and our value chain.
Our material issues What we do Link to UN Sustainable Development Goals What we did this year Achievements What we will do next
Circular economy
Objective: We will improve our use
of resources and create circular
business models.
Read about our focus on circular
economy on pages 44-47.
• We are a leader in extending the life of technology
through repair, recycling and reuse.
• We work together with manufacturers and suppliers
to offer customers more efficient and responsibly
sourced products.
• Improved our pre-loved offering, with Elkjøp
Norway selling refurbished white goods and
Currys in the UK trialling selling pre-owned
mobiles, laptops and Chromebooks.
• Expanded our e-waste collection services with
Cash for Trash and Currys Collects in the UK &
Ireland, Elkjøp and Microsoft’s award-winning
collaboration Urban Miner, and collections
increasing by 55% in Greece in part due to
a government subsidy programme.
• In the UK we introduced trade-in promotions
on a wider range of categories including
TV and small domestic appliances.
• Contributed to the Circular Electronics
Partnership’s (‘CEP’) Roadmap review and
action plans, and supported the design of a
pilot to increase the takeback of electronics.
103k*
tonnes e-waste collected across our Group
for reuse or recycling
1.3m
repairs across our Group to keep tech working
14m
active care services and tech insurance plans
across the Group
• Continue to build on our UK & Ireland Cash for
Trash plans and explore ways to make it even
easier for customers to recycle their tech
with us.
• Focus on our trade-in offer, improving our
capabilities, our offer and making the journey
even easier for customers – including further
proof of concepts.
• Review findings from our refurbished proof of
concept trial and explore options of scaling
this in the UK & Ireland.
• We will report e-waste as the number of units
collected across the Group.
Climate change
Objective: We will achieve
net zero
(1)
by 2040.
Read about our focus on climate change
on pages 48-56.
• We are reducing our impact on the environment not
only through the energy and resources used by our
operations, but also in our wider value chain.
• We report our energy and greenhouse gas (‘GHG’)
emissions publicly, respond to the CDP questionnaire
on Climate Change and support the Task Force on
Climate-related Financial Disclosures (‘TCFD’) and
its recommendations.
• Contributed to the Net Zero Review by Chris
Skidmore and the UK Department for Business,
Energy & Industrial Strategy.
• Prepared disclosures of the risks and
opportunities faced by Currys over the short,
medium and long-term.
• Continued to take steps to reduce emissions
by trialling electric and low carbon alternative
fuelled vehicles, replacing gas heating systems
and installing solar panels on vans.
• Introduced a new cross functional, Group-
wide working group to develop and enhance
our approach to reducing Scope 3 emissions.
A-
Currys’ score for climate change in CDP
8th
Currys’ position in the Financial Times annual
Climate Leaders Rankings
18%
year-on-year reduction in Scope 1, 2 and
3emissions
• Continue to increase our disclosure and publish
a net zero roadmap and climate transition plan.
• Formalise our current TCFD working group into
a TCFD Steering Committee.
• Assess the impact of key climate risks and
opportunities of our supply chains.
• Continue to fit solar panels on new vans being
delivered for use in the UK, learn from trials
and increase the proportion of electric or
alternative fuelled vehicles.
• Work with key suppliers to establish a best
practice model and approach to Scope 3
emissions, sharing this across our supply chain.
Our communities
Objective: We will help eradicate
digital poverty.
Read about our communities
on pages 57-61 .
• We bring technology to everyone everyday.
• We partner with charitable organisations to bring the
benefits of amazing technology to those who might
otherwise be excluded.
• Worked with the Digital Poverty Alliance (‘DPA’)
to launch Tech4Families to support vulnerable
families in need with life changing access to
technology.
• Raised awareness and understanding of digital
poverty through fundraising, surveys, in-store
displays and speaking at fringe events at the
party conferences in the UK in autumn 2022.
• Continued to support people to enjoy
amazing technology through our Good Deed
Day, relaunching our Kotsovolos Second Home
programme and The Elkjøp Foundation.
• Established Group Social Impact Principles.
• Provided humanitarian aid through the Red Cross.
1,600
Kotsovolos colleagues organised and
participated in 45 different projects for
Good Deed Day
2
On average, each day we raise enough
money in the UK to provide two families
with a much needed device through
Tech4Families
• Continue to raise awareness of digital poverty.
• Continue our work as a founding partner of
the DPA.
• Expand Tech4Families into Northern Ireland
and other areas identified by the DPA as
having high levels of digital poverty.
• Continue to identify opportunities to support
people to enjoy amazing technology through
our annual Techno Trouble survey and the work
of The Elkjøp Foundation.
Assurance
We engaged KPMG LLP to undertake independent limited assurance under ISAE (UK) 3000 and ISAE
3410 for selected energy consumption, e-waste and Scope 1 and 2 GHG emissions which have been
highlighted with an *. KPMG LLP’s assurance opinion is qualified in respect of Scope 2 Market and
Location Based emissions. KPMG LLP also assured selected data in 2021/22. For more details of the
scope of their work, please refer to their assurance opinion on our website, www.currysplc.com/
sustainable-business/policies-disclosures
(1) Net zero is defined in the Glossary and definitions
section on page 244.
43Strategic Report Governance Financial Statements Investor Information
Our material issues What we do Link to UN Sustainable Development Goals What we did this year Achievements What we will do next
Circular economy
Objective: We will improve our use
of resources and create circular
business models.
Read about our focus on circular
economy on pages 44-47.
• We are a leader in extending the life of technology
through repair, recycling and reuse.
• We work together with manufacturers and suppliers
to offer customers more efficient and responsibly
sourced products.
• Improved our pre-loved offering, with Elkjøp
Norway selling refurbished white goods and
Currys in the UK trialling selling pre-owned
mobiles, laptops and Chromebooks.
• Expanded our e-waste collection services with
Cash for Trash and Currys Collects in the UK &
Ireland, Elkjøp and Microsoft’s award-winning
collaboration Urban Miner, and collections
increasing by 55% in Greece in part due to
a government subsidy programme.
• In the UK we introduced trade-in promotions
on a wider range of categories including
TV and small domestic appliances.
• Contributed to the Circular Electronics
Partnership’s (‘CEP’) Roadmap review and
action plans, and supported the design of a
pilot to increase the takeback of electronics.
103k*
tonnes e-waste collected across our Group
for reuse or recycling
1.3m
repairs across our Group to keep tech working
14m
active care services and tech insurance plans
across the Group
• Continue to build on our UK & Ireland Cash for
Trash plans and explore ways to make it even
easier for customers to recycle their tech
with us.
• Focus on our trade-in offer, improving our
capabilities, our offer and making the journey
even easier for customers – including further
proof of concepts.
• Review findings from our refurbished proof of
concept trial and explore options of scaling
this in the UK & Ireland.
• We will report e-waste as the number of units
collected across the Group.
Climate change
Objective: We will achieve
net zero
(1)
by 2040.
Read about our focus on climate change
on pages 48-56.
• We are reducing our impact on the environment not
only through the energy and resources used by our
operations, but also in our wider value chain.
• We report our energy and greenhouse gas (‘GHG’)
emissions publicly, respond to the CDP questionnaire
on Climate Change and support the Task Force on
Climate-related Financial Disclosures (‘TCFD’) and
its recommendations.
• Contributed to the Net Zero Review by Chris
Skidmore and the UK Department for Business,
Energy & Industrial Strategy.
• Prepared disclosures of the risks and
opportunities faced by Currys over the short,
medium and long-term.
• Continued to take steps to reduce emissions
by trialling electric and low carbon alternative
fuelled vehicles, replacing gas heating systems
and installing solar panels on vans.
• Introduced a new cross functional, Group-
wide working group to develop and enhance
our approach to reducing Scope 3 emissions.
A-
Currys’ score for climate change in CDP
8th
Currys’ position in the Financial Times annual
Climate Leaders Rankings
18%
year-on-year reduction in Scope 1, 2 and
3emissions
• Continue to increase our disclosure and publish
a net zero roadmap and climate transition plan.
• Formalise our current TCFD working group into
a TCFD Steering Committee.
• Assess the impact of key climate risks and
opportunities of our supply chains.
• Continue to fit solar panels on new vans being
delivered for use in the UK, learn from trials
and increase the proportion of electric or
alternative fuelled vehicles.
• Work with key suppliers to establish a best
practice model and approach to Scope 3
emissions, sharing this across our supply chain.
Our communities
Objective: We will help eradicate
digital poverty.
Read about our communities
on pages 57-61 .
• We bring technology to everyone everyday.
• We partner with charitable organisations to bring the
benefits of amazing technology to those who might
otherwise be excluded.
• Worked with the Digital Poverty Alliance (‘DPA’)
to launch Tech4Families to support vulnerable
families in need with life changing access to
technology.
• Raised awareness and understanding of digital
poverty through fundraising, surveys, in-store
displays and speaking at fringe events at the
party conferences in the UK in autumn 2022.
• Continued to support people to enjoy
amazing technology through our Good Deed
Day, relaunching our Kotsovolos Second Home
programme and The Elkjøp Foundation.
• Established Group Social Impact Principles.
• Provided humanitarian aid through the Red Cross.
1,600
Kotsovolos colleagues organised and
participated in 45 different projects for
Good Deed Day
2
On average, each day we raise enough
money in the UK to provide two families
with a much needed device through
Tech4Families
• Continue to raise awareness of digital poverty.
• Continue our work as a founding partner of
the DPA.
• Expand Tech4Families into Northern Ireland
and other areas identified by the DPA as
having high levels of digital poverty.
• Continue to identify opportunities to support
people to enjoy amazing technology through
our annual Techno Trouble survey and the work
of The Elkjøp Foundation.
Approach
Read more about our approach on
pages 40-41.
UN Sustainable Development Goals
Read more about the 17 UN Sustainable
Development Goals at: www.undp.org/
sustainable-development-goals
44 Currys plc Annual Report & Accounts 2022/23
Sustainable business
Circular economy
We will improve our use of resources
and create circular business models
Our relationship with tech needs to change and as the #1 tech retailer in all the markets we
operate in, we’re uniquely placed to lead the way in changing this relationship. We believe
there’s a far better way – better for customers, better for us, better for communities and
better for the planet. And that better way is to give technology a longer life.
We all love new technology and want to
feel good about buying a new piece of kit.
But we also know that electronic waste is
the world’s fastest growing waste stream
and is expected to grow to nearly 75
million tonnes by 2030. We have to face
facts: we can’t keep throwing stuff away.
At Currys, we don’t just sell amazing
technology; we save it too. It’s not just
good for the planet, it’s also great for
your pocket. For example, our UK & Ireland
‘Cash for Trash’ campaign encourages
Brits to give Currys their unwanted tech
in return for a £5 voucher.
As the leading technology retailer in all our
markets, with the ability to serve customers
in-store and online, we are in a prime
position to make a difference and help
our customers extend the life of their tech.
So, here’s how we’re doing it at every stage
of the product’s life.
When you buy amazing
technology
Expert face-to-face help is at the
heart of why customers shop with us,
and our colleagues are passionate
about helping customers buy new
technology and make decisions that
are right for them. And for the planet.
We know our customers are looking to
reduce their impact on the environment,
and it’s our job to make that easier.
We help customers make more sustainable
buying decisions. From energy efficient
washing machines and ovens to water
efficient dishwashers, we’re working hard
with our customers and suppliers to help
everyone make better choices.
As part of our move towards circular
business models Currys and Elkjøp have
started selling refurbished tech through
their online platforms. Elkjøp Norway have
focused on selling refurbished white goods
through their online platform in partnership
with Norsk Ombruk. These are products
Norsk Ombruk collect at Elkjøp stores,
refurbish and prepare for a second life.
Meanwhile Currys in the UK trialled selling
pre-owned mobiles, laptops and
Chromebooks with 80% of refurbished
product lines sold-out within a week of
being on sale. We sold more than 4,700
items in our refurbished tech trial on
www.currys.co.uk.
When customers buy our amazing
technology, we can help protect it from
day one with our range of care services
and tech insurance plans. Customers want
to enjoy technology and that’s why, through
our care services and tech insurance plans,
14 million of our customers are getting
peace of mind and giving their new
technology longer life. This year we
launched tech insurance in the UK,
Our plans are a promise that we’ll help
customers give technology longer life
if something goes wrong.
14m
of our customers are protected
by our care services and
tech insurance plans
45Strategic Report Governance Financial Statements Investor Information
We welcome the European Commission’s proposal on the Right to
Repair and believe we are in a good position to meet the increased
attention on repair services due to our repair capabilities through
repair centres and service points in our stores.”
Dean Kramer
Services Director
When you need help
to repair it
Our care services and tech insurance
plans are a promise that we’ll help
you give your technology longer life
if something goes wrong. And we’re
delivering on that promise.
We’ve been repairing tech since the 80s.
Last year, we made 1.3 million repairs
across the Currys Group.
We have over 1,200 skilled colleagues
working to giving tech longer life in the
UK & Ireland, 999 of whom work in Europe’s
largest repair lab, our Customer Repair
Centre in Newark. This year we’ve
completed over 380,000 customer
repairs in Newark and our 223 field
engineers carried out over 225,000 repairs
in home. 83% of those were completed on
the first visit, up from 78% in 2021/22.
Further, we launched RepairLive, an on
demand speedy repair service, available
via video call for laptops and TVs. Our
repair experts help customers identify the
cause of a fault, undertake DIY fixes and
assist with arranging a repair. The team
conducted over 10,000 video calls with
customers in their first year, with almost half
of the issues being resolved during the call,
avoiding the need for a return. The initiative
picked up the Retail Week Award for
‘game-changing customer service’ in
March 2023.
Kotsovolos operate a 32,000 sq ft
repair centre, a 13,000 sq ft spare parts
warehouse and 58 service points in
Greece. In 2022/23 more than 170,000
services were carried out at service points,
in customers’ homes and at our repair
centre to give tech products longer life.
Elkjøp have repair centres, Elcare, that
employ 268 skilled repairers in Norway,
Sweden and Finland, with support
specialists in over 400 stores.
We continue to explore how we can
minimise the environmental impact of
our repair operations. In the UK & Ireland
we have repaired rather than replaced
24,000 parts, with the largest categories
of activity being large screen TVs and
computing. This reduces the requirement
for new parts and e-waste, whilst saving
over £2m in the process.
We have also continued our parts
harvesting programme, taking useful parts
for reuse from products that are no longer
fully functional or economical to repair.
We use the latest parts demand data to
drive our harvesting requirements, which
enables us to maximise the value of this
activity. We have harvested 138,000
spare parts in 2022/23 in the UK, and to
demonstrate how effective this can be,
16% of all parts used to repair customer
TV’s in 2022/23 were sourced through our
harvesting initiative. A similar operation in
Greece saw Kotsovolos harvest 19,500
spare parts from products.
We recognise that making repairs a natural
choice requires convenience, competitive
pricing and communicating the services
available. Elkjøp have increased their
focus on communicating their repair
services, for example in-store signage
encourages customers to consider
“Can it be repaired instead of replaced?”.
As well as providing repair services,
Currys and Elkjøp also make spare
parts available to customers via online
platforms.
When you’re ready for
something new
Trade-in is the bridge between old and
new tech. When you want to upgrade,
we do it in a way that’s good for your
pocket by using the trade-in value to
make sure your new technology is more
affordable. We’ll also give it longer life
in a different form to somebody else.
We’ll try to refurbish and reuse the tech.
We can sell it second hand or we’ll
donate it to those who need it most.
We have increased our focus on trade-in,
where we offer gift cards or money for
old devices. In the UK we’re now offering
trade-in promotions on a wider range of
categories including TV and small domestic
appliances. 108,000 products have been
traded-in, with an average value of £130
being given to customers this year.
Whilst not yet available in Greece and
Cyprus, our Kotsovolos team plan to
introduce trade-in services to promote
more circular business initiatives in the
near future.
When we can, we repair and refurbish
products to support local causes and
low-income families. In the UK & Ireland we
provided thousands of products for reuse
last year. This was achieved through our
partnership with the Reuse Network and
the charities and social enterprises they
support across the UK. This helped 9,311
low-income households save £1.75m in
2022/23. And through our work with the
UK’s largest independent recycler of
e-waste and provider of reuse, Environcom,
we have supported major UK charities with
4,039 refurbished white goods. We also
provided refurbished items to specific
causes, including those in need via our
Tech4Families programme.
46 Currys plc Annual Report & Accounts 2022/23
Sustainable business
Circular economy continued
It’s not just in the UK & Ireland that we’re
making a difference, either. Through the
‘Second Home’ programme in our
Kotsovolos stores, more than 1,000
refurbished appliances have been
distributed to families in need since 2017.
This means our customers can enjoy our
amazing technology even more, in the
knowledge that they are using a product
that is good for their pocket and better for
the planet, and that can be enjoyed again
by others. Read more on page 60.
When it’s reached
the end of life
We want everyone to bring their old or
unwanted tech into our stores to be
reused or recycled for free – whether
they bought it from us or not. If we can’t
reuse it, then we can harvest the parts
which can be put to good use by our
amazing repair colleagues in our repair
labs. Or we can recycle it.
Currys have worked on responsible
recycling for many years. We provide
free in-store drop off and collect our
customers’ unwanted electrical equipment
and small electrical appliances for
recycling when we deliver their new
technology. We currently collect more than
100,000 tonnes of used tech for reuse or
recycling every year across our Group –
that’s more than the combined weight of
50,000 London black cabs. In 2022/23
102,576* tonnes of e-waste were collected
for reuse and recycling across our Group,
meeting our bonus scorecard target for the
year, with Kotsovolos also winning two gold
awards for their achievements in this area.
We’re proud of our achievements
but we know there is more to do. In the
Environmental Audit Committee’s Electronic
Waste and the Circular Economy report,
it states that the UK is one of the world’s
largest producers of e-waste, with 23.9kg
generated on average, per person,
and that there are 190,000 tonnes,
equivalent to 527 million small, old,
unused electrical items, hoarded by UK
households. New research undertaken by
Currys this year found that over 50% of
Brits bin their redundant tech products
when they buy upgraded products.
In order to incentivise recycling of e-waste
we trialled a programme in the UK & Ireland,
Cash for Trash; our first ever scheme that
rewarded customers with £5 for old and
unwanted tech that they recycled with us.
Following success of the trials, in January
this year Cash for Trash was made a
permanent feature, meaning any customer
can head into their local store and hand
in any tech, from keyboards to kettles, to
receive a £5 voucher that they can then
use in-store or online. The programme was
also expanded with customers now also
able to receive ‘Cash for Trash’ vouchers
at home when Currys delivers a new
appliance and the customer gives back
any redundant products.
Currys also piloted a new collection
service, Currys Collects, with experts
on hand at drop-in sessions to raise
awareness on how to recycle old tech
correctly. The pilot in Bradford in the UK
saw a Currys Collects electric van driving
around the city collecting unwanted tech
from people’s front doors. The van was
also parked up at the local community
centre, Community Works, for drop-in
sessions where experts answered questions
people had, whilst collecting tech in
exchange for £5 Cash for Trash vouchers.
We’ve also been working to incentivise
recycling in the Nordics too. By combining
the need for electronics recycling with
the world’s most played computer game,
Minecraft, Elkjøp and Microsoft created
Urban Miner. The campaign reached
millions of people through social media
and led to more than 17 tonnes of old
gadgets being collected for recycling.
Collaborating with others
Giving technology longer life shows how
purpose and profit can – and must –
go hand in hand. We’re doing the right
thing and making a profit – and that
means we’re in it for the long-run. We’re
leading the way in changing everyone’s
relationship with tech for the better.
We are helping to accelerate industry
change by working with others. We have
continued our membership of the Circular
Electronics Partnership (‘CEP’) which brings
together experts, business leaders and
global organisations to set a vision and
roadmap to a circular economy for
electronics by 2030. We’ve contributed
to the roadmap review and action plans,
and have supported the design of a pilot
to increase the takeback of electronics.
Looking ahead
Key activities that we will focus on in the
coming year include:
• Continuing to build on our UK & Ireland
Cash for Trash plans and explore ways
to make it even easier for customers
to recycle their tech with us.
• Focusing on our trade-in offer, improving
our capabilities, our offer and making
the journey even easier for customers –
including further proof of concepts.
• Reviewing findings from our refurbished
proof of concept trial and explore
options of scaling this.
* We engaged KPMG LLP to undertake independent limited assurance under ISAE (UK) 3000 and ISAE 3410 for selected energy consumption, e-waste and Scope 1 and 2
GHG emissions which have been highlighted with an *. KPMG LLP’s assurance opinion is qualified in respect of Scope 2 Market and Location Based emissions. For more details
of the scope of their work, please refer to their assurance opinion on www.currysplc.com/sustainable-business/policies-disclosures.
47Strategic Report Governance Financial Statements Investor Information
Key facts
72
the average number of elements
a smartphone requires that are
found in the periodic table –
reusing technology reduces the
need to mine for new sources of
materials such as magnesium,
cobalt, tungsten and rare minerals
75m
number of tonnes e-waste is
expected to grow to globally
by 2030
1.3m
repairs completed across
our Group
18k+
products made available for
reuse across our Group
103k*
tonnes of e-waste collected
for reuse and recycling across
our Group
Product packaging
Plastics and packaging is one of the
key challenges we aim to solve, and
we’re prioritising a number of ways
to help reduce, recycle and reuse it.
We’re working to reduce product
packaging and encourage suppliers
to eliminate unnecessary plastics
and packaging.
We’re committed to making all our own
label and licensed brand packaging
reusable or recyclable by 2023.
At the end of 2022/23, over 99% was
recyclable, with 81% recyclable at
kerbside based on UK infrastructure.
69% of the remaining 19% of plastic
that cannot be recycled at kerbside is
expanded polystyrene (‘EPS’). We remain
committed to finding solutions that
reduce environmental impact whilst also
protecting the product from damage.
We will report on our progress against
this commitment at the end of 2023/24.
Whilst we continue to work on solutions,
we provide an in-store takeback scheme
for TV packaging, including EPS. In the UK
& Ireland, we also offer our customers
a free packaging recycling service when
we deliver and unbox large household
appliances.
We proactively work with suppliers of
own label and licensed brand products
to reduce packaging. In 2022/23 we
removed 3.6m items of plastic packaging
from own label and licensed brand
products – over 120 tonnes. Since the
start of the initiative in 2019/20 we have
removed over 6m pieces equivalent to
almost 180 tonnes. This equates to a 14%
decrease in the percentage of plastic
packaging used and the average weight
of plastic per product has reduced
by 28%.
We conduct trials to understand the
lifecycle impacts of packaging changes.
For example, we now have four
microwave oven product lines being
shipped with reduced plastic packaging
and expect to save nearly 16 tonnes
of plastic in 2023/24.
At our Customer Repair Centre in Newark
we have successfully reviewed the
packaging design for white goods
products that we have screened and/or
refurbished to sell on to customers
through our Marketplace channels.
We have redesigned the packaging
and reduced the cardboard used in the
manufacturing process and the plastic
involved in the final product, and plan to
further review packaging used for fully
recycled and recyclable alternatives.
Collaborating with others
To increase our impact, we are
continuing to help accelerate industry
change by working with other retailers
and suppliers to share best practice
and reduce the industry’s reliance
on plastic packaging.
We continue to give unrestricted access
to our Product Packaging Guidance
to share best practice with the wider
industry. This guide outlines preferred
materials to use and which materials
to avoid based on data sources and
engagement with specialist organisations
and experts.
Looking ahead
The costs of raw materials and shipping
present challenges to the viability
of some plastic reduction options.
In 2023/24 we will continue to work
with our suppliers to capture packaging
data that will help us make further
improvements. We will also continue to
engage suppliers and investigate ways
to get used packaging and other raw
materials back to suppliers for circular
production.
Read our Product Packaging Guidance
on our website, www.currysplc.com
48 Currys plc Annual Report & Accounts 2022/23
We will achieve net zero
(1)
by 2040
The climate crisis remains one of the greatest threats to our planet and we recognise the
impact this has on business and supply chains, including our own. Addressing our climate
risks and opportunities is a part of our Sustainability and Social Impact strategy.
Climate change strategy
Our purpose, to help everyone enjoy
amazing technology, goes beyond
ensuring customers can choose, afford
and enjoy the right technology.
We recognise our responsibility in ensuring
that our corporate purpose is one which is
sustainable and responds to our climate
risks and opportunities. This is why we
embed this thinking within our Sustainability
and Social Impact strategy.
Our progress on the delivery of our
strategy is recognised externally. We have
responded to the CDP questionnaire on
climate change since 2016, scoring an A-
in the latest 2022 disclosure.
We recognise that the impacts of climate
change are hard to predict with accuracy
and that they will impact businesses in
many different ways, at different times and
these impacts may also be compounded
by one another. We support the Task Force
on Climate-related Financial Disclosures
(‘TCFD’) and its recommendations.
Understanding the impacts of climate
change on our business provides us with
the opportunity to develop a strategic
response to mitigate the risks, whilst building
on the opportunities this presents for
Currys. We continue to make progress in
strengthening our strategy and we disclose
this in line with the recommendations of
the TCFD.
We recognise that climate-related risks
and opportunities cannot be assessed
through traditional risk management
processes only. We undertook a pilot
scenario analysis in 2021/22 for the two
most material climate-related risks for
our operations, identified through internal
workshops:
• Policy driven changes to energy costs,
and their impacts on the cost of running
our stores, distribution centres and
vehicles.
• Increasing severity and frequency of
extreme weather events, and their
impacts on damage to facilities, stock
and operational disruption.
The analysis considered each risk
independently of the other, except for
energy costs where we included the
additional cost of cooling our facilities
because of increasing average external
temperatures. In each analysis we used
consistent time horizons of 2025 (short
term), 2030 (medium term) and 2040
(long term) to align with our current risk
management time horizons and extending
out to the target years of our climate goals.
Analysis was based on the latest climate
models and scientific understanding. We
used the three climate scenario models
developed by the IPCC
(2)
(RCP 4.5 Low,
RCP 4.5 High and RCP 8.5) using NEX-GDDP
and EnerData datasets, across three
different time horizons.
Following this work, we are seeking to
improve our existing measures to adapt
to and mitigate climate change with
a strategy which is informed by scenario
analysis. To support this we plan to
formalise our current TCFD working group
into a TCFD Steering Group, and
we have already this year created
a new ESG Committee.
We recognise the importance of
collaborative action; we have committed
our support to EV100 and the British Retail
Consortium’s Climate Action Roadmap.
We have actively supported business
commitments to climate action, including
being signatories to the Business Ambition
for 1.5°C.
Currys strongly supports the need for
regulatory certainty and oversight of the
net zero agenda, which will give greater
confidence to businesses and investors to
invest in low carbon technologies. Currys
welcomed and strongly supported the
conclusions reached by Chris Skidmore
and the UK Department for Business, Energy
& Industrial Strategy in the Net Zero Review,
published in January 2023. Currys
contributed to the Review, alongside over
1,800 organisations in late 2022, sharing
our own experience of driving down
emissions and creating a more circular
approach through our Long Live Your Tech
campaign. We recognise the challenges
posed by the climate crisis, but strongly
agree with the Review’s identification of the
historic opportunity facing the UK to deliver
a low carbon future. We also welcome the
call for greater ambition around renewable
energy technologies and grid infrastructure,
which can provide low-cost and low
carbon energy. We proactively support
policy changes and recommendations
through our memberships of EV100 and
the UK Electric Fleets Coalition.
More information on our Sustainability
and Social Impact strategy and material
issues is on pages 40-41.
A-
CDP score for
climate change
in 2022
Sustainable business
Climate change
(1) Net zero is defined in the Glossary and definitions section on page 244.
(2) IPCC, 2014: Climate Change 2014: Synthesis Report. Contribution of Working Groups I, II and III to the Fifth Assessment Report of the Intergovernmental Panel on
Climate Change Core Writing Team, R.K. Pachauri and L.A. Meyer (eds.). IPCC, Geneva, Switzerland, 151 pp
49Strategic Report Governance Financial Statements Investor Information
Climate governance
In recognition of the importance of good
governance during the year we established
a new ESG Committee, chaired by Eileen
Burbidge, Independent Non-Executive
Director, to lead our management and
response to issues including climate-related
risks. The Committee considers, monitors and
reviews climate change related issues in its
meetings to ensure that the appropriate
strategy, programmes and investments are
in place to build robust and effective risk
management. The ESG Committee meets at
least two times a year with representation
including at least three Board members.
Reporting to the ESG Committee, the Group
Sustainability Leadership Team (GSLT)
brings together representation from the
UK & Ireland, Nordics and Greece, including
one Board member and two Executive
Committee members. The GSLT supports the
ESG Committee in the development of the
Group’s Sustainability and Social Impact
strategy and ensures it remains fit for
purpose and aligned to the Group’s vision.
Chaired by Paula Coughlan, Chief People,
Communications and Sustainability Officer,
the GSLT also reviews and submits progress
to the Group Risk and Compliance
Committee, Executive Committee and
Board. Further, the Regulatory Compliance
Committee reports up to the main operating
subsidiaries which report to the Board and
our Group Risk and Compliance Committee
also reports to the Executive Committee
and in turn reports to the Board. A diagram
of our governance structure is included
on page 98 and a report from the ESG
Committee is available on page 123.
In day-to-day operations, we have
assigned management level responsibility
for different climate-related issues in the
business and climate-related risks and
opportunities are incorporated into the ESG
Risk Register. These risks and opportunities
are included in Board agendas both through
ESG update papers and Group Risk and
Compliance Committee papers. Progress
against our annual climate targets is
reported to the Executive Committee
quarterly. Regular reporting on progress
against our climate targets is included within
the CEO report at Board meetings.
The Board fully support Currys’ science-
based targets and commitment to net zero
by 2040 across our Scope 1, 2 and 3
emissions and is continuously seeking to
increase their knowledge on climate-
related risks and opportunities. For
example, a climate-related risks and
opportunities workshop was held for
members of our Board and Executive
Committee in May 2022. This included
information and discussion on why net zero
is so important, the impacts of climate
change on businesses and the key
learnings from a pilot scenario analysis
exercise. The majority of the Board and
Executive Committee attended and those
that were unable to attend were provided
with a recording of the session. This year
we assessed our Board members skills,
experience and expertise on environment
issues including climate change; the results
are available on page 91.
In 2022/23, emissions-related KPIs were
again included in the annual bonus
scorecard for employees and will
continue to be a KPI for 2023/24. We have
committed to introduce an ESG-related
metric to Long Term Incentive Plans within
the current three-year period of the
Remuneration Policy.
Climate metrics and targets
We are fully committed to achieving net
zero emissions by 2040 – 10 years ahead
of the UK government – by reducing the
impact of the energy and resources we use
in our operations – but also in our wider
value chain. This is an absolute reduction
target for our total Scope 1, 2 and 3
emissions, measured against a 2019/20
baseline. Our net zero roadmap includes
near-term emissions reduction targets to
reduce Scope 1 and 2 GHG emissions by
50% absolute across the Group by
2029/30 from a 2019/20 base year, and
to reduce absolute Scope 3 GHG emissions
from purchased goods and services and
use of sold products by 50% within the
same timeframe. Our targets have been
approved by the Science Based Targets
initiative (‘SBTi’).
The targets covering GHG emissions from
Currys’ operations (Scope 1 and 2) are
consistent with reductions required to keep
warming to 1.5°C, the most ambitious goal
of the Paris Agreement. Currys’ target for
the emissions from its value chain (Scope 3)
meet the SBTi’s criteria for ambitious value
chain goals, meaning they are in line with
current best practice. In this way, our
commitment to net zero meets a number of
the requirements of the SBTi Corporate
Net-Zero Standard.
2022/23 represented the second year with
a Scope 1 and 2 emission-based KPI in the
bonus scorecard for colleagues, affirming
the importance of reducing emissions and
tackling climate change as a business.
This target was met in 2022/23, as shown
on page 145. This KPI will be present again
in the 2023/24 bonus scorecard.
Our emissions reporting is based on
the GHG protocol. Our Scope 1 and 2
emissions have been assured against the
ISAE 3410 and ISAE (UK) 3000 standards
by KPMG. An update on our progress
against our targets is included on pages
53-55. Our data methodology and
assurance opinion are available on
our website, www.currysplc.com.
We use a range of KPIs to measure and
monitor our progress and have identified
further metrics to manage our response to
energy cost increases such as percentage
of vehicles converted to EVs or alternative
fuels. We report on intensity metrics,
MWh/1,000 sq ft for energy, the
proportion of our business that uses
renewable electricity and the number
of electric vehicles (‘EVs’) in our fleet.
We also report our Scope 3 emissions,
the recyclability of product packaging
and the weight of e-waste we collect for
recycling and reuse.
We will refine the metrics that we monitor
for the physical impacts from the identified
material climate-related risks.
We are actively addressing wider
climate-related risks and report on the key
data we use to monitor our progress, for
example moving towards circular business
models (see pages 44-47).
Further information
Read about our energy and carbon data
on pages 53-55.
Read about our bonus scorecard target
on emissions on page 145.
Read about how we created value in
2022/23 on page 9.
Information on our Environmental Policy
is available on our website,
www.currysplc.com/sustainable-
business/policies-disclosures
50 Currys plc Annual Report & Accounts 2022/23
Risk management and
opportunities
Climate change risks are managed
within Currys risk management approach
detailed on pages 106-107. Group risk
assessment criteria have been determined
along with the net and gross risk profile.
Priority risks have been agreed by the ESG
Committee and reviewed by the Board. In
2022/23 we elevated climate-risk into an
outright standalone emerging risk within the
Group Emerging Risk Radar, in addition to
various existing risks related to the impact
of climate change. As referred to in
more detail on page 41, through the ESG
Committee and GSLT we will continue to
monitor changes to risk (increase, decrease
or no change), assess climate change
as a principal risk within the business
and identify new and emerging risks.
We will continue to report risk annually
in the Annual Report and Accounts.
We have an ESG Risk Register which
incorporates short-, medium- and
long-term physical and transitional
climate-related risks. This ESG Risk Register
includes climate-related risks covering
both transitional and physical risks scored
against impact and likelihood, along with
further mitigation actions identified and
assigned to the relevant management
team. Actions identified as a result of this
year’s pilot scenario analysis exercise will
be added to our ESG Risk Register.
In May 2022 a pilot exercise was
conducted to identify the risks and
opportunities faced by Currys over the
short, medium and long term. In this report
we are disclosing an overview of these and
we will continue to work towards mitigating
these risks and making the most of the
opportunities as our understanding and
response to climate change develops.
We are actively addressing wider
climate-related risks and report on the
key data we use to monitor our progress,
for example our transition to renewable
energy and moving towards circular
business models (see pages 44-47).
For physical risk, extreme precipitation,
extreme heat and wildfire were assessed
in detail. Our modelling uses scenarios
based on Intergovernmental Panel for
Climate Change (IPCC) global climate
model scenarios for different global
temperature projections, to assess
exposure up to 2050 of increasing
frequency of extreme weather events
(<2°C (RCP4.5 Low), 2-4°C (RCP4.5 High),
4°C (RCP8.5)).
The risk with the most financial impact is
extreme heat which is driven by impacts to
sales revenue as footfall adjusts during
heatwaves. The country most affected
by extreme precipitation is the UK. For
extreme heat, the UK is also most affected
financially, driven by impacts to sales
revenue, while Greece is most impacted
climatically (the largest relative change
in temperatures). Meanwhile Greece is
the most likely region to be affected
by wildfire.
For transitional risk, Enerdata was used to
assess Currys exposure to change in energy
/ fuel costs under different levels of
climate ambition: ‘Limited policy’ – policies
lack climate ambition and we see warming
of over 4°C by the end of the century,
‘COP 15 NDCS’ – climate policies are
implemented based on the first nationally
determined contributions objective and
warming of between 2-4°C is seen by the
end of the century, and ‘Paris aligned’ –
an ambitious greenhouse gas emissions
budget is set in line with the Paris
Agreement’s goals and warming is reduced
to below 2°C. Our science-based targets
and EV100 Commitment demonstrate
intended resilience to energy and fuel
costs, however this will be dependent upon
whether the targets are met. The regions
most likely to be affected by transition risk
are the UK and Greece, due to hard-to-
abate fleet emissions. Although the UK has
a larger fleet, plans to meet its EV100
target are further advanced than
in Greece.
For 2025 only we assessed the potential
impact on profits arising from Physical risks.
Minor means a profit impact of less
than £1m.
Strategic risks
Sustainable business
Climate change continued
Type Hazard Scenario*
Potential financial impact
2025 2030 2040
Physical
Rising mean temperatures and variability –
extreme heat
<2ºC Minor >£10m >£10m
2-4ºC Minor >£10m >£10m
4ºC Minor >£10m >£10m
Changes in precipitation patterns –
extreme precipitation
<2ºC Minor <£1m <£10m
2-4ºC Minor <£10m <£10m
4ºC Minor <£10m <£10m
Changes in extreme fire risk days (wildfire)
<2ºC Minor <£1m <£1m
2-4ºC Minor <£1m <£1m
4ºC Minor <£1m <£1m
Transitional
Policy and market
Limited policy
(EnerBase) <£1m <£1m <£1m
COP 15 NDCs
(EnerBlue) <£10m <£10m <£10m
Paris Aligned
(EnerGreen) >£10m >£10m >£10m
* For physical risks, scenarios are temperature increases by 2100 compared to pre-industrial temperatures.
51Strategic Report Governance Financial Statements Investor Information
Strategic opportunities
Opportunity type Climate-related opportunity Potential financial impacts Our response to address opportunity
Energy
Use of more efficient modes of
transport.
Reduced operating costs. Invest in low carbon fleet.
Use of lower-emission sources
of energy.
Reduced exposure to future fossil
fuel prices.
Increase proportion of sites supplied
by renewable energy and consideration
of on-site renewables rather than
off-site contracts.
Reduction in energy usage to
reduce consumption.
Reduced energy-associated
operating costs.
Reduce number of display products
switched on, reduce consumption
(e.g. display screen brightness).
Products
and
services
Ability to diversify business
practices.
Reputational benefits resulting
in increased demand for goods
and services.
Increase online sales promotions and
collection opportunities.
Shift in consumer preferences. Better competitive position
to reflect shifting consumer
preferences, resulting in
increased revenues.
Increase low carbon products and
circularity, promote recycling schemes
and work with suppliers to identify and
seize opportunities.
Increased footfall from consumers
seeking air-conditioning for some
regions on extreme heat days.
Upside in revenue sales from
cooling customers.
Provide adequate heating, ventilation
and air conditioning (‘HVAC’) sizing for
cooling, ensure HVAC systems are well
maintained with frequent checks.
Increased online sales due to
extreme weather events causing
consumers to shop online more
than in store.
Potential for increased delays of
deliveries if consumers are reliant
upon Currys to deliver in extreme
weather events.
Updating website or caveating delays
to deliveries during extreme precipitation,
wildfires, storms, etc, to avoid increased
customer complaints about delays and
therefore increased refunds or reductions
on sales costs.
Response
Reputation as one of the leading
employers responding to how
climate change could affect
productivity, health, safety and
well-being.
Benefits to workforce management
and planning (e.g. improved health
and safety, employee satisfaction)
resulting in lower costs.
Well-being policies for staff related to
weather related events, such as longer
comfort breaks during extreme heat or
flexible working.
Reputation as one of the leading
retailers responding to climate
change for consumers.
Increased footfall / online sales as
consumers see Currys as a retailer
that takes sustainability and
climate change seriously.
Low carbon advertising, avoiding
greenwashing.
Resilience
Participation in renewable energy
programmes and adoption of
energy efficiency measures.
Increased market valuation through
resilience planning (e.g.
infrastructure, land, buildings).
Investment in energy efficiency and
renewable energy.
Diversified supply chain. Increased reliability of supply chain
and ability to operate under
various conditions.
Decrease dependence on single
suppliers whilst also decreasing carbon
footprint across upstream supply chain.
Disclaimer: Scenario modelling has limitations. Modelling the impacts of climate change is subject to uncertainty and scientific debate.
The further we look out, the more challenging it is to model external conditions. The results summarised in this section should be reviewed
in the context of these limitations.
52 Currys plc Annual Report & Accounts 2022/23
Exactly what scenario the world takes
is completely unknown but the impacts
will be felt globally and could happen
anywhere at any time, indeed many
impacts are already being felt. Our
scenario analysis work provides an insight
into how exposed Currys could be to
climate change.
Operational emissions
Energy
We continue to take action to reduce our
use of energy through the rollout of LED
lighting, the optimisation of our building
management system control for heating,
ventilation and air conditioning (‘HVAC’)
systems, and reducing lighting with
various trials and improved reporting of
consumption and monitoring.
We achieved recertification of our Energy
Management system with ISO50001:2018
for our UK & Ireland estate and fleet for a
further three years. Elkjøp Nordic, Kotsovolos
and our UK Customer Repair Centre in Newark
are all ISO14001 certified, and we use the
Environmental Management system to
continuously improve our environmental
performance. We plan to expand our
ISO14001 certification to also include
our UK in-home repairs operation.
100% of our properties in the UK, Ireland,
Greece, Cyprus, Sweden, Norway, Finland
and Denmark are powered by renewable
electricity, including sites where we aren’t
responsible for the supplier contract.
We also have four UK sites with Solar PV
installed, with a capacity of over 2MWp,
reducing our emissions by approximately
303 tonnes of CO
2
e.
In line with the British Retail Consortium’s
Climate Action Roadmap, we have set
a target to operate 100% LED coverage
in all new buildings by 2025 – we made
progress in 2022/23 and now 85% of our
UK & Ireland portfolio uses LED technology
as the main source of lighting.
In the UK & Ireland, Building Management
System optimisation of HVAC systems
reduced the energy used in 187 stores
with an electricity saving of 3,521,755kWh.
We also improved our data reporting
on energy use across the estate with
automatic meter reading (‘AMR’)
technology now in use at 89% of sites.
We will continue to review lighting, building
management systems and other energy
reduction initiatives. The implementation of
hybrid working for our corporate colleagues
and relocating our head office to a smaller
facility has supported this. We are
determined to reduce and eliminate our
reliance upon gas. We have started a
programme to replace gas heating with heat
pumps in a number of retail store locations
which remain gas heated. This programme
significantly reduced the gas demand at
three retail sites in 2022/23 which will deliver
emissions benefits in 2023/24 onwards.
Elkjøp is also committed to reducing its
environmental impact by implementing
a range of energy reduction measures in
stores across Sweden, Norway, Denmark
and Finland. Our efforts include
implementing an energy management
system, unplugging white goods on display
during non-business hours, replacing
traditional lighting with energy efficient
LED lighting in most stores, changing energy
filters and upgrading ventilation systems
for better air quality and energy efficiency,
and developing our control and monitoring
systems to optimise energy usage.
Kotsovolos has achieved 100% LED lighting
installed in all stores and headquarters
and control the lighting of external signs
according to the season. Given the local
climatic conditions, there is extensive use
of shading systems with sensors that adjust
use according to sunlight. The combination
of external shading plus sunscreen films
allows optimal HVAC energy efficiency.
Store colleagues have also been trained in
energy reduction behaviours like using lights
only when needed and scheduling lighting
per zone as well as temperature control
instructions to both reduce consumption
and protect HVAC so as to avoid damage
and refrigerant gas leakages. We have
installed building management systems
in two stores in 2022/23 with differing
consumption profiles in order to draw
conclusions of the benefits and expand
installation accordingly.
In November 2022, our first store obtained
an A class energy efficiency certificate –
one of very few in Greece – as its uses all
new material technologies and equipment
that guarantee high levels of energy saving,
such as energy thermal break frames,
external wall cladding with thermal
insulation, roof thermal insulation, air
conditioning with the installation of high
thermal (‘CPO’) and cooling (‘EER’)
efficiency units, installation of ventilation
systems for the store premises with 70%
energy recovery and LED lighting sources
with the least possible energy consumption.
Fuel
We are a signatory to the Climate Group’s
EV100 initiative and are fully committed
to transitioning 100% of our company
cars and small van fleet and 50% of
our medium to heavy fleet to electric
or alternative fuel by 2030. EV100 is
a global initiative bringing together
companies committed to accelerating
the transition to EVs.
In 2022/23 we submitted our third progress
update to EV100. We have four EVs in service
across the Group, along with 69 charging
points installed across 14 sites. In February
2023 we introduced our first 7.2 tonne
delivery van powered by compressed
natural gas (‘CNG’) to carry out home
delivery and installation services from
our Newark Campus in the UK. Whilst this
represents a small proportion of the total
vehicles in our owned fleet, our approach is
to run trials for up to a year with a number of
different drivers to give them a true on-the-
job experience and to gain their feedback.
Solar panels are now operating on 209
of our 7.2 tonne Iveco Daily vans used for
home delivery in the UK. In 2022/23 these
vans avoided 126 tonnes of CO
2
e and
generated 23,500kWh of solar energy
and saved over 47,000 litres of diesel.
Our partner Casa Delivery in Finland
invested in several electric trucks in 2022
and are now delivering Gigantti goods in
Kokkola, Vasa and Seinäjoki for 60 – 70%
of the home deliveries. In early 2023 Bring
started up with electric trucks in Trondheim,
Norway, for our home deliveries with a
rollout plan for Bergen and the Vestfold
region in summer 2023.
For the last mile of Elkjøp home delivery
of postal packages, in partnership with
Bring, we offer 100% fossil fuel free home
deliveries to customers in 27 cities/areas in
Sweden (reaching 6 million people) and
three cities/areas in Denmark. In late 2022
we introduced same day deliveries to
customers in greater Oslo with EVs
operated by Bring.
Sustainable business
Climate change continued
53Strategic Report Governance Financial Statements Investor Information
Kotsovolos have increased the use of
hybrid and plug-in hybrid company cars
and received an award for making city
centre deliveries with e-bikes.
Across the Group we are continuing to
target reductions through efficient routing,
improved driver training, the use of
telematics and our ‘in-cab’ driver alert
system and – in the UK & Ireland –
implementing ISO 50001.
We are in talks with many of the major
vehicle manufacturers to continue trialling
car and van options, with the plan to
introduce more EVs at scale, as well as
develop and test other innovations.
Moving to electric or alternative fuelled
vehicles presents a number of challenges
including the lead times for the supply of
vehicles, the high cost of hydrotreated
vegetable oil (‘HVO’) fuel and the fact
that 7.5 tonne EV options are still limited at
present with demonstrators hard to obtain
for trials. Charging infrastructure is still
relatively immature in the UK for commercial
vehicles and this presents a significant
challenge based on current range
predictions for 4.25 tonne and 7.5 tonne
EVs currently being marketed.
Looking ahead
We are committed to continuously exploring
and implementing innovative energy
reduction measures, expanding the use of
building management systems for Kotsovolos
and looking into more opportunities for solar
panels across the Group.
We remain committed to reducing the
environmental impact of our fleet and
plan to:
• Fit solar panels on 110 new vans being
delivered for use in the UK from May 2023.
• Increase the proportion of our fleet using
electric or alternative fuels and collect
data on the new 3.5 tonne EV and
7.2 tonne CNG van operating in the UK to
understand their range and compatibility
with routing.
• Continue to work with key partners to
improve knowledge and awareness of
all relevant developments with vehicle
manufacturers and government policies
on EV and alternative fuels.
Energy and carbon reporting
This section details the energy consumption
and GHG emissions from the activities of
Currys for the period 1 May 2022 to 29 April
2023, as required by the Companies Act
2006 (Strategic Report and Directors’
Report) Regulations 2013 (‘the 2013
Regulations’) and the Companies (Directors’
Report) and Limited Liability Partnerships
(Energy and Carbon Report) Regulations
2018 (‘the SECR Regulations’).
An operational control approach has
been used to define the GHG emissions
boundary. This captures emissions associated
with the operation of offices, retail stores,
warehouses and distribution sites, plus
transport including Company-owned,
leased and employee-owned vehicles
used for business travel. This includes
emissions from the UK and Offshore
including the Republic of Ireland, Greece,
Sweden, Norway, Finland, Denmark,
Czechia, Cyprus and Hong Kong.
There are no material omissions from
the mandatory Scope 1 and 2 emission
reporting requirements. This information
was collected and reported using the
methodology in Defra’s updated GHG
reporting guidance, Environmental
Reporting Guidelines (ref. PB 13944), issued
June 2019. Emissions have been calculated
using the 2022 conversion factors provided
by the Department of Business, Energy &
Industrial Strategy for emissions in the UK
and Association of Issuing Bodies (‘AIB’)
and International Energy Agency (‘IEA’)
for offshore electricity conversion factors.
Weengaged KPMG LLP to undertake
independent limited assurance under ISAE
(UK) 3000 and ISAE 3410 for selected
energy consumption, e-waste and Scope 1
and 2 GHG emissions which have been
highlighted with an *. KPMG LLP’s assurance
opinion is qualified in respect of Scope 2
Market and Location Based emissions.
For more details of the scope of their work,
please refer to their assurance opinion
on our website, www.currysplc.com/
sustainable-business/policies-disclosures.
We have achieved reductions in energy
consumption and emissions in 2022/23.
Read more about measures taken to
improve energy and fuel efficiency on
page 52.
Progress against our net zero target is
positive, with a 43% reduction in Scope 1, 2
and 3 emissions achieved in 2022/23
against a 2019/20 baseline.
Global energy consumption – Currys
Energy consumption
(kWh)
UK and
Offshore
2022/23
Global total
2022/23
Global change
(%)
UK and
Offshore
2021/22
Global total
2021/22
(2)
UK and
Offshore
2019/20
Global total
2019/20
Transport (including
diesel, petrol, LPG) 57,960,124 -4.2% 60,508,453 63,377,377 71,261,546
Natural gas 15,888,132 -13.0% 18,261,838 20,301,590 22,142,355
Heating (district heating,
oil and LPG)
(2)
11,612,545 267.9% 3,156,663 214,868 214,868
Electricity
(2)
178,872,412 -10.2% 199,104,731 131,070,522 236,971,131
Total 148,746,060 264,333,212* -5.9% 163,863,416 281,038,428 214,964,357 330,589,900
Intensity (MWh/
1,000 sq ft)
(1)
12.08* -4.3% 12.63 18.02 16.24
Energy consumption (kWh) 2022/23 2021/22
(6)
2020/21
Total renewable energy purchased or generated (6) 175,996,303* 192,285,791 159,436,764
The Company-wide kWh energy consumption for the reporting period 1 May 2022 – 29 April 2023, are as follows:
54 Currys plc Annual Report & Accounts 2022/23
Sustainable business
Climate change continued
(1) Overall floor area of the Currys plc for 2022/23 is estimated to be 21,881,331 sq ft.
(2) Data for 2021/22 has been restated with district heating energy consumption of 3,010,529kWh now reported as ‘Heating’ rather than ‘Electricity’.
(3) The electricity consumption figure includes Scope 2 generation emissions but not Scope 3 transmission and distribution losses.
(4) Electricity and gas usage is based on supplier bills. Manual gap filling was conducted for a small proportion of electricity supplies using an average of the consumption
year to date or previous months. This is because this report was due before some electricity and gas bills had been provided by the suppliers. This report also includes
electricity consumption through supplies where the landlord procures the energy; some of this consumption has been estimated either based on the average energy
consumption per floor area for site type or using last year’s data estimation.
(5) Refrigerant data processing methodology and exclusions: Where refrigerant top-ups are reported, we assume this covers leakage across the estate under that
contractor’s responsibility to repair the leak and top-up the refrigerant, as such no estimation of leakage has been completed for units where no top-ups were carried out.
(6) Data for 2021/22 has been restated. The basis of calculation previously assumed that electricity used at a distribution site in Czechia was renewable. Additional
information on this electricity source was obtained following the approval of the prior year Annual Report and so we have revised this assumption and a residual factor
has now been used. As a result, the emissions from this site increased in 2021/22 from 0 to 1,646 tCO
2
e, increasing our total scope 2 market-based emissions for the year
from 3,188 to 4,834 tCO
2
e. This also impacts our emissions intensity ratios; our Group emissions intensity for 2021/22 has increased by 0.07tCO
2
e from 0.96tCO
2
e to
1.03tCO
2
e and our Global (excluding UK and Offshore) emissions for 2021/22 has increased by 0.18tCO
2
e from 0.54tCO
2
e to 0.72tCO
2
e. Our 2021/22 reported
consumption for renewable energy purchased or generated has reduced by 2,993,543kWh from 195,279,334kWh to 192,285,791kWh. For 2022/23 we have applied the
same residual factor in relation to this site. This site wasn’t reported prior to May 2021 and therefore has no impact on the 2019/20 baseline.
Emissions on location basis – Currys
Category
Tonnes of
CO
2
e emitted
2022/23
Change
(%)
Tonnes of
CO
2
e emitted
2021/22
Tonnes of
CO
2
e emitted
2019/20
Emissions from combustion of fuel
(4)
(Scope 1) 16,462 -2.9% 16,952 19,868
Emissions from the operation of facilities
(5)
(Scope 1) 890 -26.1% 1,205 874
Scope 1 emissions 17,352* -4.4% 18,158 20,742
Emissions from purchase of electricity
(3, 4)
(Scope 2) 29,865* -13.0% 34,318 51,131
Total 47,217 -10.0% 52,476 71,873
Intensity ratio: tCO
2
e/1,000 sq ft occupied floor area
(1)
2.16* -8.5% 2.36 3.53
Emissions on market basis – Currys
Category
Tonnes of
CO
2
e emitted
2022/23
Change
(%)
Tonnes of
CO
2
e emitted
2021/22
(6)
Tonnes of
CO
2
e emitted
2019/20
Emissions from combustion of fuel
(4)
(Scope 1) 16,462 -2.9% 16,952 19,868
Emissions from the operation of facilities
(5)
(Scope 1) 890 -26.1% 1,205 874
Scope 1 emissions 17,352* -4.4% 18,158 20,742
Emissions from purchase of electricity
(3, 4, 6)
(Scope 2) 3,499* -27.6% 4,834 16,121
Total
(6)
20,851 -9.3% 22,991 36,863
Intensity ratio: tCO
2
e/1,000 sq ft occupied floor area
(1, 6)
0.95* -7.7% 1.03 1.81
Emissions on location basis – By region
Category
Tonnes of
CO
2
e emitted
2022/23
Change
(%)
Tonnes of
CO
2
e emitted
2021/22
Tonnes of
CO
2
e emitted
2019/20
Tonnes of
CO
2
e emitted
per 1,000 sq ft
of floor area
2022/23
Tonnes of
CO
2
e emitted
per 1,000 sq ft
of floor area
2021/22
Tonnes of
CO
2
e emitted
per 1,000 sq ft
of floor area
2019/20
UK and Offshore
(Scope 1 and 2) 31,241 -12.7% 35,791 51,866 2.76 2.75 4.35
Global (excluding
UK and Offshore)
(Scope 1 and 2) 15,976 -4.2% 16,684 20,006 1.52 1.80 2.37
Total 47,217 -10% 52,476 71,873 2.16 2.36 3.53
Emissions on market basis – By region
Category
Tonnes of
CO
2
e emitted
2022/23 Change (%)
Tonnes of
CO
2
e emitted
2021/22
Tonnes of
CO
2
e emitted
2019/20
Tonnes of
CO
2
e emitted
per 1,000 sq ft
of floor area
2022/23
Tonnes of
CO
2
e emitted
per 1,000 sq ft
of floor area
2021/22
(6)
Tonnes of
CO
2
e emitted
per 1,000 sq ft
of floor area
2019/20
UK and Offshore
(Scope 1 and 2) 15,399 -5.6% 16,305 21 ,762 1.36 1.25 1.82
Global (excluding
UK and Offshore)
(Scope 1 and 2)
(6)
5,451 -18.5% 6,686 15,101 0.52 0.72 1.79
Total
(6)
20,851 -9.3% 22,991 36,863 0.95 1.03 1.81
The GHG emissions for our business for the reporting period 1 May 2022 – 29 April 2023 are as follows:
55Strategic Report Governance Financial Statements Investor Information
Information on our emissions and
e-waste data methodology is available
on our website, www.currysplc.com
Information on external assurance on our Scope 1 & 2
emissions and e-waste data is available on our
website, www.currysplc.com/sustainable-business/
policies-disclosures
Currys GHG emissions
Tonnes of
CO
2
e emitted
2022/23
% change from
2019/20
baseline
Tonnes of
CO
2
e emitted
2021/22
(6)
Tonnes of
CO
2
e emitted
2020/21
Tonnes of
CO
2
e emitted
2019/20
Scope 1 emissions 17,352* -16.3% 18,158 20,952 20,742
Scope 2 emissions (location-based) 29,865* -41.6% 34,318 36,817 51,131
Scope 2 emissions (market-based)
(6)
3,499* -78.3% 4,834 14,368 16,121
Scope 3 emissions total 19,796, 215 -43.4% 24,058,161 22,923,580 34,983,753
Category 1: Purchased goods and services 2,861,970 -33.5% 3,384,944 3,250,795 4,300,532
Category 3: Fuel and energy related emissions 16,200 1.9% 18,632 13,085 15,905
Category 4: Upstream transportation and distribution 58,765 -64.4% 77,860 53,653 165,115
Category 5: Waste generated in operations 2,599 167.4% 2,698 2,588 972
Category 6: Business travel
(7)
3,574 29.8% 1,400 415 2,754
Category 7: Employee commuting
(7)
42,206 54.7% 31,705 19,390 27,275
Category 9: Downstream transportation and distribution
(8)
19,495 -45.7% 17,118 16,904 35,906
Category 11: Use of sold products 16,784,068 -44.8% 20,515,679 19,556 ,760 30,425,451
Category 12: End-of-life treatment of sold products 7,339 -25.4% 8,125 9,990 9843
Total emissions from purchased goods and services
and use of sold products (Category 1 and 11) 19,646,037 -43.4% 23,900,624 22,807,555 34,725,983
Total emissions
(Scope 1, Scope 2 market-based and Scope 3)
(6)
19,817,066 -43.4% 24,073,016 22,958,900 35,020,616
Our Basis of Reporting, available on our website, www.currysplc.com, includes an assessment of the relevant Scope 3 categories for Currys
(7) 2021/22 Category Six and Seven emissions have been recalculated to reflect the latest best practice reporting, increasing from 1,143tCO
2
e and 27,889tCO
2
e respectively.
(8) 2021/22 Category Nine emissions were recalculated to reflect more accurate third party transport data, increasing emissions from 13,054tCO
2
e to 17,118tCO
2
e.
* We engaged KPMG LLP to undertake independent limited assurance under ISAE (UK) 3000 and ISAE 3410 for selected energy consumption, e-waste and Scope 1 and 2
GHG emissions which have been highlighted with an *. KPMG LLP’s assurance opinion is qualified in respect of Scope 2 Market and Location Based emissions. For more
details of the scope of their work, please refer to their assurance opinion on our website, www.currysplc.com/sustainable-business/policies-disclosures.
Scope 3 emissions
Our Scope 3 emissions include the indirect emissions from across our value chain which account for over 99% of our total emissions.
The most material impacts are within purchased goods and services and the use of sold products. We will achieve reductions in these
emissions through a programme of activities involving our suppliers, our manufacturers and through colleague and customer engagement.
The following table details Currys’ emissions.
We are to committed to reducing our
absolute Scope 3 GHG emissions from
purchased goods and services and use of
sold products by 50% by 2029/30 from
a 2019/20 base year. We have achieved
a 43% reduction to date. This reduction is a
result of continuing to increase granularity
and use of more primary data to calculate
our Scope 3 emissions, as well as changes
in our product mix and grid greening.
We have introduced a new cross
functional, Group-wide working group to
develop and enhance our approach to
reducing Scope 3 emissions. The Group
is focused on our Category 1 Purchased
goods and services and Category 11 Use of
sold products emissions and is led by our
UK & Ireland Commercial team supported
by specialists from across the Group.
We are leveraging Group-wide supplier
relationships with a single approach to
supplier emissions reduction management.
We have identified various activities that are
key to delivering this approach, by breaking
down the target into its constituent parts.
This Group is utilising the work that we
started in 2020 when we began our
partnership with EcoVadis, one of the
leading providers of business sustainability
ratings. Using the EcoVadis platform helps
us to measure supplier performance across
a wide range of metrics, including carbon
maturity through their Carbon Module. This
has helped us to identify and start to build
a group of like-minded suppliers with which
we can identify ways we can champion
positive activities, collaborate to improve
performance, reduce our emissions, and
benefit wider society.
43%
Reduction in Scope 1, 2
and 3 emissions since
2019/20
56 Currys plc Annual Report & Accounts 2022/23
Sustainable business
Climate change continued
There are high levels of complexity within our
Scope 3 emissions and it requires working
closely with suppliers and manufacturers to
help them decarbonise their own businesses
and their supply chains, where we have
varying degrees of influence. Further, due
to the nature of our activity many of our
suppliers are spread across the globe and
at different stages of their individual carbon
emission reduction journeys. Each country
has different legislative environments
with governmental net zero dates that
differ from the UK and EU and there is no
overarching global standard or requirement
or ambition globally. But whilst challenging,
this increases the imperative to act.
We aim to use the lens of customer,
colleague and supplier:
• Helping customers live a low carbon
lifestyle which links into our Go Greener
and energy efficient products
campaigns as well as our circular
economy initiative – Long Live Your Tech.
• Colleague engagement on the why
and how.
• Drive an open and transparent
approach to Scope 3 management,
sharing best practice across value
chains and raising awareness of why
it is important to all parties.
Looking ahead
We plan to build on our short-term plan for
Scope 3 emissions, extending this to cover
our business planning horizon and then set
out a roadmap to 2030 and 2040 net
zero during 2023/24.
Specifically, we will:
• Work with key suppliers who are more
mature in their carbon emissions reduction
activities and monitoring to establish
a best practice model and approach.
We will look to share this best practice
across our supply chain to help those
that are less developed in their journey.
• Gain an understanding of current
and future data availability. We will
introduce and expand Scope 3 data
usage to support decision-making,
measure upstream and downstream
environmental impacts for targeted
interventions, engage suppliers, set
targets and track progress, mitigate
risks and drive competitive advantage.
• As part of our governance, continue to
track our progression on a regular basis.
TCFD Statement of
Compliance
Currys is disclosing in accordance with
the Financial Conduct Authority (‘FCA’)
Policy Statement 20/17 and Listing Rule
LR 9.8.6R(8). The main disclosures are set
out on pages 48-56. The disclosures
describe activity to date and future
areas of focus to further strengthen our
strategic approach and communication
of climate-related issues. Requirements
(e) and (f) of the Companies and LLPs
Climate-related Financial Disclosure
Regulations (2022) are omitted as they
are not deemed necessary to understand
Currys’ strategy and operations in the
context of climate change.
We align our disclosures with the TCFD’s
recommendations and recommended
disclosures. We comply with seven of the
recommendations and continue to work
on fully addressing the remaining four
where we believe we are currently partially
compliant:
• 2b – Describe the impact of climate
related risks and opportunities on the
strategy, and financial planning. We
have identified the main risks and carried
out an assessment of the potential
impact but have yet to fully integrate this
into our strategy. The spend associated
with certain projects linked to climate
related risks and opportunities has been
incorporated into our budget. For
example, our HVAC renewal programme
to remove gas from our store estate in
the UK.
• 2c – Describe the resilience of the
organisation’s strategy, taking into
consideration different climate-
related scenarios, including a 2°C or
lower scenario. The pilot exercise in May
2022 described above included various
scenarios including 2°C or lower. We need
to conduct further work to assess the
resilience of our strategy in line with the
scenarios identified.
• 3a – Describe the organisation’s
processes for identifying and
assessing climate-related risks.
As set out in more detail above the ESG
Committee, supported by the GSLT is
responsible for identifying and assessing
climate-related risks and issuing
recommendations to the Audit
Committee to ensure that the most
appropriate and up to date climate-
related risks are both being identified
and considered by the business.
• 3b – Describe the organisation’s
processes for managing climate
related risks. Whilst we have identified
our material climate-related risks we
need to establish and develop our
processes for managing new and
emerging climate related risks.
We plan to formalise a TCFD Steering
Group which will focus on climate change
risks and opportunities across the business,
and support the business in developing
a well-informed strategy that can meet
the needs of the Paris Agreement and
demonstrate performance improvements.
This Steering Group will support us as
we continue to embed climate scenario
analysis into our governance, risk
management and strategic approach.
‘In time, we also intend to expand this to
other areas of our value chain to further
assess business resilience under different
scenarios. It will also oversee our efforts to
quantify the transitional and physical risk
outputs from our scenario analysis and
incorporate this into our business strategy.
We will continue to report our progress as
part of our annual TCFD disclosures and
intend to demonstrate full compliance
with all recommendations in time for our
2025/26 TCFD disclosure.
57Strategic Report Governance Financial Statements Investor Information
Sustainable business
Our communities
We will help eradicate digital poverty
We pride ourselves on bringing technology to more people through our competitive pricing,
access to online and physical stores, and affordable and responsible Credit offering.
But that’s not all: because our social purpose is at the heart of what we do, we also
support causes that help those who might otherwise be excluded.
We want everyone to be able to enjoy
equal access to the benefits of technology.
Operating across eight countries, our
approach is tailored to meet the needs
of each region and their relevant
socioeconomic conditions. During the
year we established and published
new Group Social Impact Principles.
Wherever we operate we can help:
• Our colleagues help people in their local
communities access and enjoy tech.
• Our customers help us raise funds to
help those who are excluded.
• Our suppliers work collaboratively
with us to be a force for good.
Digital poverty
We are committed to helping eradicate
digital poverty, in all countries we operate in.
We support the Digital Poverty Alliance’s
definition and consider digital poverty to be
the inability to interact with the online world
fully, when where and how an individual
needs to.
In December 2022 research conducted by
Currys, the Digital Poverty Alliance (DPA)
and YouGov revealed 89% of UK adults
believe that personally having access to
the internet is important. 83% consider using
digital devices important to accessing
essential services such as GP appointments
or local government services, 81% use them
to communicate with friends and family via
text or instant messaging and 72% to keep
up to date with news and events. And our
Techno Trouble survey in the Nordics this
year highlighted that people over 60
worry the most about keeping up with
digital development and one out of three
respondents said they would stay more
in touch with relatives over 75 if they
were more active on social media.
Digital inclusion is no longer something
that’s a ‘nice to have’ – it’s an essential.
Being cut off from digital isn’t just an
inconvenience – it compounds and
exacerbates poverty. Addressing digital
poverty is our contribution to supporting
progress on the UN Sustainable
Development Goal to reduce inequality
within and among countries.
Working to tackle digital
poverty in the UK
We are one of three founding partners of
the DPA (part of the Learning Foundation,
registered charity number 1086306)
alongside the Institute of Engineering and
Technology (‘IET’). We continue to be an
active and engaged member of the DPA’s
Founders Board and Community Board,
providing advice on strategy, longer-term
capability and horizon scanning.
We’re proud of our role in enabling them to
convene, compel and inspire collaboration
within the UK community to lead sustainable
action against digital poverty. The DPA
celebrated its first birthday this year and
published a One Year On Report setting out
their achievements in their first 12 months.
Whilst it’s important we continue to
spotlight this issue and drive systemic
change, it’s also critical that we provide
the financial backing to help support those
in digital need in the short-term. That’s
why in May 2022 we launched our new
Tech4Families programme in partnership
with the DPA.
Read our Social Impact Principles on our
website, www.currysplc.com/
sustainable-business/
Read more in the DPA’s One Year On
Report ontheir website at
https://digitalpovertyalliance.org/
one-year-on-report/
Key facts
26%
of young people do not have
access to a laptop or similar
device (Nominet Digital Youth
Index, 2022)
2.6m
people are still offline
(Lloyds Bank Consumer
Digital Index, 2021)
83%
consider using digital devices
important to accessing
essential services such as
GP appointments or local
government services (Currys
& the Digital Poverty Alliance,
2022)
58 Currys plc Annual Report & Accounts 2022/23
Tech4Families
It’s never been more important to make sure
families can get online. One way we’re
doing this is to help families who need a
laptop to get one. During the year funds
collected from our stores in the UK have
supported vulnerable families in need by
providing life changing access to digital
technology through Tech4Families.
This year we raised over £244,000 through
Pennies. 10% of the donations made at
the point of sale in Currys stores directly
support Pennies to grow the micro-
donation movement, the remaining 90%
funds Tech4Families.
Over the festive period alone we
generated over £70,000 through
a nationwide fundraising campaign.
As well as raising funds this helped
raise awareness.
On average, each day we raise enough
money to provide two families with a
much-needed device. The scheme aims
to support families with a child aged 4 to
16 years old who don’t have access to a
suitable device. Working with the DPA, our
Tech4Families programme has delivered
586 laptops to families in areas of high
digital poverty in 2022/23.
The scheme was one of three entries
shortlisted for the Digital Leaders Impact
Awards on digital poverty in March 2023.
And our wider work with Pennies led
to us being awarded an Outstanding
Achievement Award in November 2022
for going above and beyond to make
micro-donations matter.
Sustainable business
Our communities continued
Find out more about Tech4Families,
including how to apply, at https://
digitalpovertyalliance.org/
tech4families/
It really has made a huge difference already, his reading and writing
skills have increased significantly, and he is far more confident in his
course work using the laptop.”
Anonymous beneficiary of Tech4Families
59Strategic Report Governance Financial Statements Investor Information
Raising awareness
It’s easy to look at a problem as big
as digital poverty and just think it’s too
expensive and too difficult to fix. We are
working to change that perception, to make
people understand that addressing digital
poverty is a huge opportunity – it’s a
huge opportunity both economically
and societally.
One of the actions we are committed to
taking is raising awareness. During the year
we achieved this through a range of
activities including:
• The DPA exhibited at our Peak
conference event in Liverpool, where
over 1,500 of our store managers across
the country came together with suppliers
to celebrate everything Currys, giving our
colleagues a chance to really get to
know more about digital poverty and to
understand our relationship better, so
that they feel super-charged about our
mission – and encourage those all-
important Pennies donations at thetill.
• Over Peak selected shop window
displays and in-store event spaces
educated the public about the scale of
the digital poverty issue and encouraged
donations to the DPA to ‘light up futures’.
Sales of colleague-designed Christmas
gift cards also saw money donated to
the DPA for each card sold.
• Alongside colleague fundraising,
we supported the DPA on Christmas
Jumper Day and match funded Pennies
donations on the day. And our
fundraising festive drill rap video,
Merry Techmas, donated 1p for every
view to the DPA.
• Sponsoring the DPA to attend the Labour
and Conservative party fringe events at
the party conferences in autumn 2022.
We joined them at these events to
present the issues of digital poverty
and compel the government and main
opposition party to do more to tackle
the issue.
• Having conversations with key suppliers
to seek their support for Tech4Families
and the DPA more broadly.
Looking ahead
Key activities that we will focus on in the
coming year include:
• Expanding Tech4Families. The scheme
has been in pilot in five areas across the
UK: Staffordshire, West Cumbria, Norfolk
Coast (all in England), Neath Port Talbot
and Bridgend (Wales) and Ayrshire
(Scotland). We aim to expand the
scheme into Northern Ireland and other
areas identified by the DPA as having
high levels of digital poverty.
• Continue to identify opportunities to
support people to enjoy amazing
technology through our annual Techno
Trouble survey and the work of The
Elkjøp Foundation.
Age UK
We officially ended our
partnership with Age UK, having
raised £379,617 for them over the
two years of our partnership.
This money has funded the Tech
Connected programme: digital
instruction guides, provision of tech
and Digital Champions programme
delivered in four local communities,
as well as support seed funding of
their Digital Champion e-learning
programme.
Fighting digital
exclusion in the
Nordics
Through our annual research,
Techno Trouble, Elkjøp have
identified a number of groups
that due to age, socioeconomic
status, disabilities, language and
cultural barriers, or other matters,
find themselves on the wrong side
of the technological divide in
the Nordics.
The survey enables us to keep track
of customer challenges when it
comes to technology. For example,
this year the research showed:
• one out of three people in the
Nordics find it difficult to keep up
with the changes in technology;
• 42% say they have products at
home that they do not know
how to use;
• people over 60 worry the most
about keeping up with digital
development;
• one out of three respondents
say they would stay more in touch
with relatives over 75 if they were
active on social media.
The Elkjøp Foundation was
established to fight digital
exclusion. It works to raise
awareness, increase knowledge,
and enable access to people
who are falling behind in the rapid
development of technology.
To connect, play or learn with
technology should be easy and
fun but that is not always the case.
That is why The Elkjøp Foundation
supports organisations and
associations with products
and guidance – in addition to
financial resources.
In addition, Elgiganten Denmark
and Gigantti have held in-store
training sessions for the elderly
together with local senior
organisations – showing them
the amazing world of technology.
60 Currys plc Annual Report & Accounts 2022/23
Sustainable business
Our communities continued
We bring technology to everyone everyday
Technology plays a vital role in every aspect of our lives, whether it’s helping you stay
connected with friends and family, working from home, or keeping you fed, clean, fit,
healthy and entertained. While our focus is on eradicating digital poverty, we also aim
to support other causes, charities and communities that are important to our colleagues.
We want to be a business that colleagues
are proud to work for and feel like
they belong. Community fundraising is
encouraged right across Currys, and each
year our colleagues support many causes
which resonate locally.
Giving tech a second home
Kotsovolos have relaunched its Second
Home programme, designed to extend the
life of customers’ old products – functional
or damaged – by providing them to people
in need. Through Second Home, customers
who have a product they do not use have
the option to offer it to a family that
cannot afford one. Kotsovolos undertakes
collection, repair and disinfection of the
product, and then offers it to another
family. If the appliance cannot be repaired,
the product is redirected to their e-waste
handling process. The programme is a
great example of the interconnection
of sustainability issues and how circular
economy solutions can generate positive
social impact.
In December 2022, Kotsovolos implemented
a strong PR campaign, relaunching its
Second Home programme and highlighting
the good causes behind the initiative. The
relaunch was implemented with the support
of the Central Union of Municipalities
in Greece (‘KEDE’), strengthening the
programme’s dynamics and our efforts to
support families in need with the necessary
products for their home.
We plan to develop an integrated
communications plan in Greece in order to
further promote the initiative and motivate
more customers to offer products they
don’t need.
Appliance poverty
In the UK we’re teaming up with Iceland
Foods, Birds Eye and Clarion Housing
Group, the largest social landlord in
the country, to help low-income families
access the benefits of frozen food.
This new partnership follows the
publication of research from Manchester
Metropolitan University showing that
families switching from fresh to frozen food
halve their food waste and reduce their
household grocery bill by almost a quarter.
Yet, it’s estimated that 1.24 million people
are living without a freezer, meaning frozen
food is currently inaccessible to them.
Launched in February 2023, the pilot
scheme provides low-income families with
freezers, as well as information, recipes
and support, to explore the impact on
their household finances and eating habits.
Currys have donated freezers to 29
families taking part in the study and will
donate more in the coming months. The
project is being evaluated by Manchester
Metropolitan University as the academic
partner, and families will be supported to
better access and use frozen food in the
hope that it will lead to the adoption of
a more affordable and healthy diet.
Bringing together the expertise of frozen
food specialists and the social housing
sector, this innovative project will be
replicable across other communities in the
UK. The results of this project and a call to
action will be shared with UK policymakers,
social landlords, local authorities, retailers
and charities in a white paper.
Colleagues lend a helping hand
Good Deed Day was established by
Kotsovolos in 2013. It is the biggest
volunteer action for Kotsovolos’ colleagues
and takes place once a year. Every year,
more than 1,000 volunteers from our stores,
offices, warehouses and distribution centre
participate in multiple activities focusing
on children, minority social groups, older
persons or the environment. In 2022 more
than 1,600 employees organised and
participated in 45 different projects for
the 9th consecutive Good Deed Day, held
on 23 October. For example, 600 people
joined together to carry out a beach
cleaning activity at Schinia, a coastal
ecosystem, with the guidance of iSea,
an environmental organisation specialising
in protecting the aquatic environment.
50 bags of litter were collected, of which
6.5kg were recyclables and 90kg were
waste materials.
Good Deed Day will celebrate its 10th
year in 2023 and the team are focused
on encouraging yet more volunteers
to participate and to motivate them
to establish more sustainable habits in
their lives.
One million meals
Over the summer we supported
FareShare by donating £5 for every
fridge sold online and in store in the
UK, up to a total of £250,000. We
were pleased the campaign hit that
target, enabling FareShare to
provide 1 million meals to families
in need.
Humanitarian aid
Following our Group support of
£100,000 to the Red Cross for their
Ukraine Crisis appeal in 2021/22,
we once again felt compelled to
provide another donation to the
British Red Cross to support those
affected by the earthquake in
Turkey and Syria in February 2023.
Watch a video of scenes of Good Deed
Day 2022 online at https://www.
youtube.com/watch?v=fjJE5ZaV9tY
61Strategic Report Governance Financial Statements Investor Information
Helping everyone shop
for new technology
The initiative ‘Technology without
Obstacles’ highlights Kotsovolos’ efforts to
empower people to live a better life with
technology by aiming to maximise access
to technology for people with disabilities.
The programme deals with accessibility in
both the physical and digital world,
Kotsovolos products and touchpoints such
as stores, websites and call centres. For
example, 14 accessible stores are already
recognised by the Hellenic Society for
Protection and Rehabilitation of Disabled
Persons as accessible to people with
disabilities and there are plans to achieve
this for an additional 19 stores by the end
of 2023/24. Further, a dedicated microsite
explains all supportive technologies
segmented into three categories: visual
impairment, hearing disabilities and
mobility impairment. More than 3,100
products with supportive technology
specifications and filters have already
been added to Kotsovolos’ website.
In recognition that 5% of the Greek
population is directly or indirectly
affected by autism, the Kotsovolos team
are also working to improve accessibility
for people with autism in collaboration with
TheHappyAct team. Kotsovolos mapped
11of its stores and by providing sensory
information through its website, such as
sensory maps, the company creates the
conditions for a safe visit for people on the
spectrum. A video has been created that
provides a virtual tour that people on the
autism spectrum can consult before their
visit, in order to familiarise themselves
with the sensory stimuli and enjoy a safe
shopping experience. And, with the support
of TheHappyAct, all in-store colleagues
have been trained on how to create an
optimal experience for people on this
spectrum, including effectively dealing with
emergency-related incidents. Kotsovolos
is the first retailer in Greece to integrate
sensory accessibility into its business activity.
Our UK & Ireland team have also been
considering the needs of neurodiverse
customers. Following a highly successful
trial across the North West of England and
Wales, in January we launched ‘Quiet Hour’
in stores every Monday to Friday until 11am
where we reduce noise in store, keep lights
low and make sure there are no flashing
screens to ensure a calmer place to shop.
Our Kotsovolos team intend to learn from
our experiences here in the UK and design
and implement a Quiet Hour in their stores
in the future.
Our colleagues in the Republic of Ireland
have continued working with their charity
partner, My Canine Companion (Irish
national charity RCN 20079147). The
charity helps enhance the quality of life
for people with difficulties, such as autism,
through the provision of highly qualified
service dogs. Currys have raised over
£120,000 for the charity in 2022/23.
To date, enough has been raised to train
14dogs and we have pledged to raise
money for 17 dogs in total, one for every one
of the 16 Currys stores in the country and the
17th to represent our online presence.
Read more about work with My Canine
Companion on our website, www.currys.
ie/donate-to-my-canine-companion.
html
Read more about work with Hidden
Disabilities and Quiet Hour in the
UK & Ireland on our website,
www.currysplc.com
62 Currys plc Annual Report & Accounts 2022/23
Sustainable business
Our suppliers and colleagues
Our policies and standards
Read our policies and standards on our
website, www.currysplc.com/sustainable-
business/
Modern slavery
Read our policy and Modern Slavery
Statement on our website, www.currysplc.
com/sustainable-business/
Our suppliers
Bringing amazing and more sustainable tech to our customers isn’t something we do alone.
Our partnerships with suppliers make a big difference too.
Responsible sourcing
We collaborate with our manufacturers
and suppliers to make sure the products
we sell are safe and responsibly sourced.
In addition to this, we consider their overall
sustainability performance, particularly
their energy efficiency and climate
change impact.
Our standards
For customers to enjoy our amazing
technology they need peace of mind that
we’re sourcing responsibly. With around
7,000 suppliers across the globe, we want
to make sure we’re using our size and unique
capabilities to do good.
In addition to compliance with all relevant
national and international legislation,
we’ve created our own Standards for
Responsible Sourcing alongside Child
Labour Remediation and Conflict Minerals
policies which set out our expectations for
all suppliers, partners and subsequent
supply chains. The Standards and policies
reflect our commitment to acting with
integrity in business relationships and we
utilise our partnership with EcoVadis to
review supplier performance and
champion positive activities.
An Anti-Bribery, Gifts and Hospitality Policy
is in place. The procedures in place to
oversee the anti-corruption and bribery
control environment is reviewed by the
Audit Committee on at least an annual
basis and most recently in July 2022.
The full policy is reviewed by the Board
periodically.
Modern slavery
We’re committed to eradicating all forms
of modern slavery and human trafficking.
The fact that modern slavery still exists
today is abhorrent and eradication
requires collaboration and transparency.
Our Modern Slavery Policy has been
issued to all our colleagues, suppliers
and partners. It clearly states the actions
to take if a case of modern slavery is
discovered or suspected. We work with our
suppliers to ensure they take appropriate
steps and manage risks within their own
supply chains.
We continue to expand our efforts to
tackle the issue – collating existing actions
and working on new initiatives across our
business and supply chain to mitigate
risk and identify areas that need
additional focus.
63Strategic Report Governance Financial Statements Investor Information
Our progress
In 2022/23 we:
• Continued to invite suppliers to join the
EcoVadis platform to enable us to
measure their sustainability performance,
with over 50% of Group spend now
assessed for sustainability and 45%
for carbon maturity.
• Worked with the Responsible Business
Alliance to drive sustainable value for
workers, the environment and business
through global supply chains by
engaging in their Responsible Minerals,
Labour and Factories Initiatives to help
us mitigate risks within our supply chain.
• Rolled out Responsible Sourcing training
to Commercial and Procurement
colleagues in the UK & Ireland and
Nordics, and drove further reductions in
working hours for own label and licensed
brand suppliers.
• Collaborated with the Slave Free
Alliance, part of the global anti-slavery
charity Hope for Justice, to review
processes and identify potential risks
within last mile delivery contracts in
the Nordics.
Scope 3 emissions
Read more about our work on Scope 3
emissions from our supply chain and
products in use on pages 55-56.
Looking ahead
Key activities that we will focus on in the
coming year include:
• Reviewing our Standards for Responsible
Sourcing.
• Working with the Slave Free Alliance
and the Responsible Business Alliance
to develop our approach for mapping
and assessing risk in our supply chain
for tier two and beyond.
• Continuing our focus on assessing
suppliers on their sustainability
commitments and progress, including
GHG emissions.
45%
of Group spend now assessed
for carbon maturity
+50%
of Group spend now assessed
for sustainability
Our colleagues
Our capable and committed
colleagues provide the magic
ingredient in helping our customers
discover, choose and enjoy
amazing technology.
Expert face-to-face help is at the
heart of why customers shop with
us, and that takes skilled and
dedicated colleagues. We know
that happy colleagues make for
happy customers, and happy
shareholders too.
Read about how we are focused on
being Ready for the Future, Home
for the Best Talent and a Great
Place to Work on pages 18-23.
64 Currys plc Annual Report & Accounts 2022/23
Our approach to horizon scanning and
emerging risks
In order to promote sustainable success, the business continues to
analyse the risks likely to emerge in the short, medium and longer
term that may impact the delivery of our Strategy. Toprovide a
view over the medium to longer term, a horizon scanning approach
is required.
Our approach to undertaking horizon scanning is based on
conducting both reviews of external thought leadership and also
through obtaining the views of key business stakeholders on
emerging risks. The horizon scanning exercise is updated at least
semi-annually to ensure that the horizon is consistently scanned
for developments and changes that may impact the business.
The Group Risk and Compliance Committee is asked to review
and discuss the horizon risks and to form a view as to whether
any of these should be considered a Principal Risk.
Risks and potential impacts
The Group continues to develop its risk management processes,
fully integrating risk management into business decision-making.
The risk management process mirrors the operating model with
each business unit responsible for the ongoing identification,
assessment and management of their existing and emerging risks.
The output of these assessments is aggregated to compile an
overall Group-level view of risk.
The principal risks and uncertainties, together with their potential
impacts and changes in net risk since the last report, are set out in
the tables below along with an illustration of actions being taken
to mitigate them.
Risk management
Approach
Principal Risks
The Group recognises that taking risks is an inherent part of doing business and that
competitive advantage can be gained through effectively managing risk. The Group
has developed and continues to evolve robust risk management processes, and risk
management is integrated into business decision-making. The Group’s approach to risk
management and risk governance framework is set out in the Corporate Governance
Report on pages 97 to 109. The risks are linked to the strategic priorities on pages 16 to 35.
65Strategic Report Governance Financial Statements Investor Information
RISK PROFILE
Likelihood Impact
Increased
6
11
Decreased
1
3
13a
1
6
11
13a
No change
2
4
5
8
9
13b
12
2
3
4
5
8
9
13b
12
New
7
10 7
10
Principal Risks
1
Breach of Financial Services
2
Business continuity/IT DR
3
Business Transformation
4
Crystallisation of legacy tax
5
Data Protection Compliance
6
Failure of IT systems and infrastructure
7
Financial, liquidity and treasury
8
Health and Safety
9
Information Security
10
Macroeconomic environment
11
Our commitment to sustainability
12
Product Safety
13a
Supply Chain resilience – Logistics
13b
Supply Chain resilience – Sourcing
Colour Key
Strategic Regulatory Technology Operational Financial
Key changes to the Risk Profile
During 2022/23 a number of changes were made to the Group Risk profile, these included:
• As a result of changes in the macro economic environment, covering, inflation, the cost of living, consumer spending and competitor
activity, this has been raised up to a principal risk.
• Following a reduction in the threat from Covid-19, and the impact on colleague safety and availability, the People risk was removed
as a standalone risk with elements subsumed into other existing principal risks.
• The importance of long term access to, and diversification of, funding and liquidity has been recognised within the risk profile; and
• Our supply chain resilience risk has been split in two to recognise the importance of the key parts of that risk: sourcing and logistics.
66 Currys plc Annual Report & Accounts 2022/23
1 Breach of Financial Services
Risk owner:
Chief Commercial Officer
Risk category:
Regulatory
Risk movement:
Link to strategy
Considered in the
Viability statement:
Yes
What is the risk?
Failure to manage the
business of the Group
in compliance with FCA
regulation and other
financial services
regulation to which the
Group is subject in
a number of areas
including the mobile
insurance operations
and consumer credit
activities of Currys Retail
Limited.
What is the impact?
• Enforcement action
by the regulator
• Loss of authorisation
and inability to trade
regulated products.
• Reputational damage
• Financial penalties
• Reduced revenues
and profitability
• Deteriorating cash flow
• Customer
compensation
How we manage it
• Board oversight and risk management
structures monitor compliance and ensure
that the Company’s culture puts good
customer outcomes first
• Senior Manager and Certification Regime
and if required CBI/other regulators
certification implemented.
• Regulatory Compliance Committee,
Product Governance and other internal
governance structures
• Control structures to ensure appropriate
compliance
• Compliance monitoring and internal audit
review of the operation and effectiveness
of compliance standards and controls
• Recruitment, remuneration and training
competency programmes
• Conduct risk and control framework,
including defined minimum control
standards
Changes since
last report
The risk likelihood and
impact has reduced
over 2022/23.
2 Business Continuity and IT DR
Risk owner:
Chief Operating Officer
Risk category:
Operational
Risk movement:
Link to strategy
Considered in the
Viability statement:
Yes
What is the risk?
A major incident impacts
the Group’s ability to
trade and business
continuity plans are not
effective, resulting in an
inadequate incident
response.
What is the impact?
• Reduced revenue and
profitability
• Deteriorating cash flow
• Reputational damage
• Loss of competitive
advantage
How we manage it
• Business continuity and crisis
management plans in place and tested
for key business locations
• Enablement of home working for
office-based and contact centre
colleagues
• Disaster recovery plans in place and
tested for key IT systems and data
centres
• Cross functional Crisis team appointed
to manage response to significant events
• Major risks insured
• Group Business Continuity strategy
Changes since
last report
This risk has remained
stable over 2022/23.
3 Business Transformation
Risk owner:
Group Information Officer
Risk category:
Strategic
Risk movement:
Link to strategy
Considered in the
Viability statement:
Yes
What is the risk?
Failure to respond with
abusiness model that
enables the business
tocompete against
abroad range of
competitors on service,
price and/or product
range.
Failure to optimise Digital
opportunities.
Failure to respond to
changes in consumer
preferences and
behaviours.
What is the impact?
• Reduced revenue and
profitability
• Deteriorating cash flow
• Reduced market share
How we manage it
• Continued strengthening of digital
expertise as part of omni channel
capability
• Transformation Programme office
established and delivering key strategic
objectives
• Development of customer credit
propositions
• Development of omnichannel
capabilities
• Enhancement of data analytics
capabilities
• Robust portfolio governance
Changes since
last report
The likelihood of the
risk has decreased
over 2022/23 whilst
the impact has
remained stable.
Principal risks
and uncertainties
Risk movement
Increased
Stable
Decreased
Link to strategy
Colleagues
Easy to shop
Customers for life
Grow profits
67Strategic Report Governance Financial Statements Investor Information
4 Crystallisation of legacy tax
Risk owner:
Group Chief Financial Officer
Risk category:
Financial
Risk movement:
Link to strategy
Considered in the
Viability statement:
No
What is the risk?
What is the risk?
Crystallisation of
potential tax exposures
resulting from legacy
corporate transactions,
employee and sales
taxes arising from
periodic tax audits and
investigations across
the various jurisdictions
in which the Group
operates.
What is the impact?
• Financial penalties
• Reduced cash flow
• Reputational damage
How we manage it
• Board and internal committee
oversight actively monitors tax strategy
implementation
• Appropriate engagement of third-party
specialists to provide independent
advice where deemed appropriate
• The Group remains committed to
achieving a resolution with HMRC in
relation to open tax enquiries
Changes since
last report
This risk has remained
stable over 2022/23
5 Data Protection Compliance
Risk owner:
Chief Information Officer
Risk category:
Regulatory
Risk movement:
Link to strategy
Considered in the
Viability statement:
No
What is the risk?
Major loss of customer,
colleague or business
sensitive data.
Adequacy of internal
systems, policy,
procedures and
processes to comply
with the requirements of
EU General Data
Protection Regulation
(‘GDPR’).
What is the impact?
• Reputational damage
• Financial penalties
• Reduced revenue and
profitability
• Deteriorating cash flow
• Loss of competitive
advantage
• Customer
compensation
How we manage it
• The operation of a Data Management
Function to ensure compliance with
GDPR compliant operational processes
and controls
• The operation of a Data Protection
Office to ensure appropriate
governance and oversight on the Group’s
data protection activities
• Control activities operate over
management of customer and employee
data in accordance with the Group’s
data protection policy and processes
• Investment in information security
safeguards
• IT security controls and monitoring
Changes since
last report
This risk has remained
stable over 2022/23.
6 Failure of IT systems and infrastructure
Risk owner:
Chief Information Officer
Risk category:
Technology
Risk movement:
Link to strategy
Considered in the
Viability statement:
Yes
What is the risk?
A key system becomes
unavailable for a period
of time.
What is the impact?
• Reduced revenue and
profitability
• Deteriorating cash flow
• Loss of competitive
advantage
• Restricted growth and
adaptability
• Reputational damage
How we manage it
• Ongoing IT transformation to align IT
infrastructure to future strategy
• PEAK planning and preparation to ensure
system stability and availability over
high-demand periods
• Individual system recovery plans in place
in the event of failure which are tested in
line with an annual plan, with full
recovery infrastructure available for
critical systems
• Long-term partnerships with ‘tier 1’
application and infrastructure providers
established
• Strengthening of Technology leadership
team
• A mature IT Service Design & Transition
process controls and manages the
transition of new and changed services
into production
Changes since
last report
The likelihood of the
risk has increased over
2022/23 whilst the
impact has decreased.
68 Currys plc Annual Report & Accounts 2022/23
7 Financial, liquidity and treasury
Risk owner:
Group Chief Financial Officer
Risk category:
Financial
Risk movement:
N/A – new risk
Link to strategy
Considered in the
Viability statement:
Yes
What is the risk?
Failure to manage Currys’
access to sufficient
liquidity at any given time
may impact our ability to
meet our obligations
and business growth
plans.
What is the impact?
• Committed funding
facilities could be fully
utilised if not monitored
limiting our ability to
invest in the business,
pension scheme
or distribute to
shareholders
• Knock on detrimental
impacts on other areas
of liquidity, for example
credit insurers
decreasing cover which
could result in working
capital outflow or
suppliers reducing
payment terms
• Given the external
lending environment,
the ability to raise
further funding could
be more difficult
How we manage it
• Regular monitoring of cash and liquidity
levels takes place in the Tax and
Treasury committee
• Bank facility and covenant cover levels
have been reviewed and negotiated
during the year
• A series of capex prioritisation sessions
have been undertaken by the Executive
Committee and cost saving initiatives
in place
• The triennial pensions revaluation
process undertaken
Changes since
last report
This is a new risk
8 Health and Safety
Risk owner:
Chief Operating Officer
Risk category:
Operational
Risk movement:
Link to strategy
Considered in the
Viability statement:
Yes
What is the risk?
Failure to prevent injury
or loss of life to
customers, colleagues,
contractors, franchisee
partners, agency staff
and the public which
may have serious
financial and
reputational
consequences.
What is the impact?
• Employee / customer
illness, injury or loss
of life
• Reputational damage
• Financial penalties
• Legal action
• Ongoing repercussions
of Covid-19
How we manage it
• Group Health and Safety strategy
• Comprehensive Health and Safety
policies and standards supporting
continued improvement
• Health and Safety governance
committee
• Operational Health and Safety teams
located across business units
• Ongoing review of Pandemic controls to
protect colleagues in the workplace and
customers in the retail estate, including
continuous monitoring of changing
government regulation in all jurisdictions
• Risk assessment programme covering
retail, support centres, distribution and
home services
• Incident reporting tool and process
• Health and Safety training and
development framework
• Health and Safety inspection programme
• Audit programme including factory audits
for own brand products and third-party
supply chains
Changes since
last report
This risk has remained
stable over 2022/23
Principal risks
and uncertainties continued
Risk movement
Increased
Stable
Decreased
Link to strategy
Colleagues
Easy to shop
Customers for life
Grow profits
69Strategic Report Governance Financial Statements Investor Information
9 Information security
Risk owner:
Chief Information Officer
Risk category:
Operational
Risk movement:
Link to strategy
Considered in the
Viability statement:
Yes
What is the risk?
Inadequate governance
and control around
information security
could result in an
information security
breach compromising the
confidentiality, integrity
and/or availability of
customer, colleague or
supplier data.
What is the impact?
• Reputational damage
• Financial penalties
• Reduced revenue and
profitability
• Deteriorating cash flow
• Customer
compensation
• Loss of competitive
advantage
How we manage it
• Significant investment in information
security safeguards, IT security controls,
monitoring, in-house expertise and
resources as part of a managed
information security improvement plan
• Information security policy and
standards defined and communicated
• Information Security and Data Protection
Committee and Technology Risk Forum
with responsibility for oversight,
co-ordination and monitoring of
information security policy and risk
• Infosec training and awareness
programmes for employees
• Audit programme over key suppliers’
information security standards
• Introduction of enhanced security tooling
and operations
• Ongoing programme of penetration
testing
• Security Operations Centre implemented
Changes since
last report
This risk has remained
stable over 2022/23.
10 Macroeconomic environment
Risk owner:
Group Chief Financial Officer
Risk category:
Strategic
Risk movement:
N/A – new risk
Link to strategy
Considered in the
Viability statement:
Yes
What is the risk?
The external
macroeconomic
environment in which
we operate remains
challenging with a range
of existing, evolving and
new emerging risks driving
pressure on our financial
performance.
What is the impact?
• The potential for
increased operating
costs to Currys plc
• The potential for
external factors to
impact consumer
demand which may in
turn result in electrical
spend by customers.
How we manage it
• Rolling forecast to analyse future
expected performance across the
financial year
• Monthly Business Plan updates to the
Executive Committee to analyse the
investment initiatives taking place and
progress against delivery and financial
benefits, alongside more detailed daily
and weekly training performance.
• Cost flexibility in operating model
• Hedging strategy in place (for foreign
exchange and energy)
• Expanding the availability of our credit
and service offerings for customers in
areas such as in order and collect
Changes since
last report
This is a new risk.
70 Currys plc Annual Report & Accounts 2022/23
11 Our commitment to Sustainability
Risk owner:
Chief People, Communications &
Sustainability Officer
Risk category:
Strategic
Risk movement:
Link to strategy
Considered in the
Viability statement:
No
What is the risk?
Our commitment to
sustainability and being
a good corporate citizen
is either not delivered
or not adequately
communicated to, or
recognised by, customers
and investors.
What is the impact?
• Reduced cash flow
as customers shop
elsewhere
• Reputational damage
• Loss of competitive
advantage
How we manage it
• Agreed strategic priorities for Group,
with 12 month and three-year plans for
UK&I shared with International Teams.
• Roadmap to Net Zero by 2040
• Commitment to EV100
• Oversight from ESG Committee, ExCo
and the Board
• New Board ESG Committee supported
by Group Sustainability Leadership Team
• Group ESG strategy regularly reviewed
• Maintenance of a brand tracker
• Commitment to TCFD ahead of
mandatory compliance
• Independent reviews on environmental
practices e.g. CDP
• Group ESG team and in the line resource
in key areas across business
• Horizon scanning
• Partnerships with reputable external
agencies Circular Electronics Partnership
(on circular economy), British Retail
Consortium (on climate change), Digital
Poverty Alliance.
• ESG included in SOX project at Group
and regional level.
• Management reporting on progress
against target for e-waste (monthly)
and emissions (quarterly) with metrics for
both included in annual bonus scorecard
Changes since
last report
The likelihood of the
risk has increased over
2022/23 whilst the
impact has decreased.
12 Product Safety
Risk owner:
Chief Operating Officer
Risk category:
Operational
Risk movement:
Link to strategy
Considered in the
Viability statement:
No
What is the risk?
Unsuitable procedures
and due diligence
regarding product
safety, particularly in
relation to OEM sourced
product, may result in
poor quality or unsafe
products provided to
customers which pose
risk to customer health
and safety.
What is the impact?
• Financial penalties
• Reduced cash flow
• Reputational damage
How we manage it
• Factory Audits conducted over OEM
suppliers
• Technical Evaluation of OEM products
prior to production
• Product inspection of OEM products
prior to shipment
• Monitoring of reported incidents
• Safety Governance reviews conducted
by internal by Technical and Business
Standards teams
• Establish protocols and procedures
to manage product recalls
Changes since
last report
This risk remains
unchanged over
2022/23.
Principal risks
and uncertainties continued
Risk movement
Increased
Stable
Decreased
Link to strategy
Colleagues
Easy to shop
Customers for life
Grow profits
71Strategic Report Governance Financial Statements Investor Information
13a Supply Chain resilience – Logistics
Risk owner:
Chief Operating Officer
Risk category:
Operational
Risk movement:
Link to strategy
Considered in the
Viability statement:
No
What is the risk?
Overall capacity
reduction across the SC
and SO impacting the
customer proposition
and increased costs
reducing EBIT and
impacting operation of
the business.
What is the impact?
• Reduced revenue and
profitability
• Deteriorating cash flow
• Reduced market share
• For equipment delays:
direct impact on
capacity which could
impact our customer
proposition
• Ongoing labour
shortages and the
Cost of Living crisis are
increasing cost to serve
across the Supply Chain
and Service Operations
impacting on overall
profitability
How we manage it
• Longer term review of global sourcing to
mitigate shipping costs with OEM teams
as more volume moves to Europe
• Review of shift patterns to reduce
reliance on agency colleagues within
Logistics
• Long term strategy of using greater
automation across the network.
• Central review of our response to
the Cost of Living crisis ongoing
• Ongoing effort to De-risk next Peak
to drive efficiency and reduce the
requirements on temporary labour
Changes since
last report
This risk likelihood and
impact has reduced
over 2022/23
13b Supply Chain resilience – Sourcing
Risk owner:
Chief Commercial Officer
Risk category:
Strategic
Risk movement:
Link to strategy
Considered in the
Viability statement:
No
What is the risk?
Currys works closely
with a number of key
suppliers to ensure best
in class. The Top 10
brands deliver 60% of
our sales, and a larger
proportion of our end to
end profit. As a result,
there are opportunities
to manage by focusing
on developing and
maintaining strong ties
with these brands.
What is the impact?
• Disruptions to supply
of goods
• Pricing and stock
availability terms could
worsen, leading to
deceasing sales/
reduced margin
• Reduced revenue
and profitability
• Deteriorating cash flow
• Reduced market share
How we manage it
• Ensuring alignment of key suppliers to
future strategy; “Project Board Meetings”
with strategic suppliers’ management
• Continuing to leverage the scale of
operations to strengthen relationships
with key suppliers and maintain a
good supply of scarce products
• Working with suppliers to ensure
availability of products through Key
Supplier Group engagement program
• Ethical supply chain due diligence over
our supplier base
• Control structures to ensure appropriate
Supplier Relationship Management
for GFR, GNFR and OEM
• We are ensuring we still remain
competitive on pricing, despite the high
cost levels and are mitigating this by
reviewing OEM/non competed pricing
where possible
• In certain areas, we have a broad range
of suppliers that can support when
another supplier encounters shortages
Changes since
last report
This risk has remained
stable over 2022/23.
72 Currys plc Annual Report & Accounts 2022/23
Emerging Risk Radar: Climate Change
Risk description
We must manage our operations and influence our value chain towards a low-carbon future, to
mitigate the physical and financial risks of climate change and capitalise on the opportunities
the transition enables. The longevity and prosperity of our business depends intrinsically on the
health of our planet. We can play our part in helping to mitigate the most extreme effects of
climate change but we also need to be prepared and adapt to a changing climate.
Example of impacts
• Examples of the physical effects of climate change are already being experienced by
Currys (including increasing temperatures requiring greater cooling of stores and flood
damage together with weather impacts to shipping and logistics) and through our initial
scenario analysis exercise we know that we can expect this to increase.
• We must ensure compliance with evolving climate regulations.
• Failure to incorporate climate change considerations into our business operations will have
physical, financial, people and reputational implications.
Example of mitigating
actions
• We have a Group-wide Sustainability Leadership Team and ESG Committee who have
oversight and governance for monitoring our progress and plans
• Reducing greenhouse gas emissions across our value chain is a vital action to play our part
in mitigating the worst effects of climate change. We have publicly committed to be net zero
by 2040 and reduce our emissions by 50% by 2030, thereby aligning to the climate science
of a 1.5°C world. Activities and commitments to date include:
– annual emissions reduction targets as part of our corporate bonus setting and we have
committed to including ESG metrics in our LTIPs which may focus on emission reduction.
– Signed up to EV100 fleet commitment.
– Programmes to reduce energy usage at our sites as well as remove gas and reduce the
impact of refrigerant gases from the UK&I estate.
• Embedding climate-related scenario analysis insight into our risk management and strategic
planning. The Group Strategy & Corporate Development Director has been appointed lead
for TCFD which will progress our work in this area.
• The development of products and services that reduce society’s impact on the planet and
promote a more circular economy. A working group has been established to address Scope
3 emissions.
• Part of collaborations such as: the British Retail Consortium’s Climate Action Roadmap
to make the industry net zero by 2040 in the UK; and the Circular Electronics Partnership
to reimagine the value of electrical products and materials using a lifecycle approach,
reducing waste from the design stage through to product use and recycling.
Principal risks
and uncertainties continued
73Strategic Report Governance Financial Statements Investor Information
Going concern and
viability statement
Going Concern
For further information on Going Concern,
see note 1 to the financial statements on
page 174.
FURTHER
INFORMATION
Going concern is the basis of preparation of the financial statements that assumes an
entity will remain in operation for a period of at least 12 months from the date of approval
of the financial statements. The viability statement takes account of the Company’s
current position and principal risks, stating whether there is a reasonable expectation
that the Company will be able to continue in operation and meet its liabilities as they
fall due over a longer term than the going concern period.
Going concern
A review of the Group’s business activities,
together with the factors likely to affect its
future development, performance, and
position, are set out within this Strategic
Report, including the risk management
section. The financial position of the
Group, its cash flows, liquidity position
and borrowing facilities are shown in the
balance sheet, cash flow statement and
accompanying notes to the Annual Report
and Accounts. The directors have outlined
the assessment approach for going
concern in the accounting policy disclosure
in note 1 of the consolidated financial
statements. Following that review, the
directors have concluded that the going
concern basis remains appropriate.
Viability statement
In accordance with the UK Corporate
Governance Code, the directors have
assessed the viability of the Group over
a period longer than the 12 months covered
by the ’Going concern’ provision above.
The directors, in making the assessment that
three years was appropriate, considered
the current financial and operational
positions of the Group, the potential
impact of the risks and uncertainties in the
Strategic Report, and the macroeconomic
environment (covering inflation, cost of
living, consumer spending and competitor
activity), plus the mitigating actions
available to the Board.
The Board concluded that a period of
three years was appropriate, noting that
whilst the most recent strategic plan has
a five-year outlook, this is not the typical
planning horizon for the Group and is
instead the result of current macroeconomic
uncertainty. The Group’s strategic plan
is updated annually, and the period of
three years reflects where there is greater
certainty of cash flows associated with
the Group’s major revenue streams.
The strategic plan considers the forecast
revenue, EBITDA, working capital, cash
flows and funding requirements on a
business by business basis, which are
assessed in aggregate with reference
to the available borrowing facilities to
the Group over the assessment period
including seasonal cash flow and
borrowing requirements on a monthly
basis and the financial covenants to which
those facilities need to comply. The model
assessed by the directors has been derived
from the Board-approved annual Group
budget for 2023/24, and Board-approved
strategic plan for the remaining two
periods. These forecasts have been
subject to robust stress-testing, modelling
the impact of a severe but plausible
downside scenario based on those
principal risks facing the Group, including
specific consideration of a range of
impacts that could arise from the continued
short to medium term macroeconomic
uncertainty. This scenario included a
downside risk to sales across the Group
to reflect the risk caused by the current
macroeconomic environment with rising
energy costs, interest rates, and inflation
that could place additional pressure on
consumer spending.
As part of this analysis, mitigating actions
within the Group’s control have also been
considered. These forecast cash flows
indicate that there remains sufficient
headroom in the viability period for the
Group to operate within the committed
facilities and to comply with all relevant
banking covenants, for which the Group
obtained relaxation from October 2023
to October 2024.
As well as focusing on the potential
downside to sales caused by the current
macroeconomic environment, the scenario
also included other principal risks such as
regulation or information security incidents
and reduced forecast profitability and
cash flow as a result of a significant
change in consumer behaviour. The model
assumes no further funding facilities are
required over and above those currently
committed to the Group as disclosed in
note 17 to the Annual Report and Accounts.
Based on the results of this analysis, the
directors have a reasonable expectation
that the Group will be able to continue in
operation and meet its liabilities as they
fall due over the three-year period of their
assessment. In doing so, it is recognised that
such future assessments are subject to
a level of uncertainty and as such future
outcomes cannot be guaranteed or
predicted with certainty.
74 Currys plc Annual Report & Accounts 2022/23
14%
(3)%
(7)%
2022/23
2021/22
2020/21
£10,344m
£10,144m
£9,511m
2022/23
2021/22
2020/21
£438m
£72m
£(74)m
2022/23
2021/22
2020/21
24.1%
25.1%
24.1%
2022/23
2021/22
2020/21
29.1%
28.6%
27.6%
2022/23
2021/22
2020/21
36,863
22,991
20,851
2022/23
2021/22
2020/21
Key performance
indicators
Financial
LFL Revenue growth
(1)
(7)%
Revenue
£9,511m
Free cash flow
(1),(2)
£(74)m
What we measure and why it’s key
Like-for-like (LFL) revenue growth is the revenue
growth of the business using a constant currency,
adjusted for new and closed stores and other
changes in business. The metric enables us to
measure the underlying trading performance of
the Group on a consistent year-on-year basis.
Performance in 2022/23
LFL revenue decline due to weak consumer
demand across most markets coupled with
modest market share losses.
What we measure and why it’s key
Revenue represents total revenue generated
by the Group with sustainable growth being
an important measure of our brands appeal
and competitive position.
Performance in 2022/23
Group Revenue declined (6)% on a reported
basis due to the LFL decline.
What we measure and why it’s key
Free cash flow represents available cash after
operational cash outflows, cash tax and interest
paid and capital investment but before pension
contributions. It is a measure of the Group’s ability
to both generate cash and efficiently manage
working capital such that it optimises cash
resources available for the Group to invest in its
future growth and to generate shareholder return.
Performance in 2022/23
Lower operating profits in the Nordics, combined
with a working capital outflow due to sales
decline led to a free cash outflow during
the year.
Non-Financial
UK&I market share
(i)
24.1%
Nordics market share
(ii)
27.6%
Net zero by 2040
(scope 1 & 2 tonnes CO
2
e)
(43)%
What we measure and why it’s key
We calculate the reduction in Scope 1 and 2
greenhouse gas emissions, in line with the
standards of the Green House Gas Protocol
and using the methodology set out in Defra’s
Environmental Reporting Guidelines, by reference
to the Groups total emissions in financial year
2019/20 (36,863 tonnes), as the clearest
measure of our progress to achieving net zero
emissions by 2040.
Performance in 2022/23
The Group have achieved reductions in energy
consumption and Scope 1 and 2 emissions
this year.
What we measure and why it’s key
Market share is the clearest indicator that the proposition we are delivering to customers is more
appealing than the competition. Market share is defined as the Group’s product sales relative
to total consumer sales of technology products in each market.
Performance in 2022/23
We maintained our leading market share in both the UK and the Nordics despite increased
competitive pressure in the Nordics, which was exacerbated by an excess of stock.
In the UK, our market share is down (100)bps compared to last year as we lost share in consumer
electronics and computing but gained share in major domestic appliances.
In the Nordics, our market share was down (100)bps compared to last year.
(i) Source: Gfk. UK total market has been expanded in 2022/23 to include additional retailers, figures for 2020/21
and 2021/22 have been restated.
(ii) Source Gfk. Nordics Market Share calculation has been modified in 2022/23 and is based on B2C sales of
Elkjøp, own and franchise stores to final customers, figures for 2020/21 and 2021/22 have been restated.
75Strategic Report Governance Financial Statements Investor Information
£156m
£192m
£119m
2022/23
2021/22
2020/21
£33m
£126m
£(450)m
2022/23
2021/22
2020/21
10.7p
12.4p
8.3p
2022/23
2021/22
2020/21
1.0p
6.3p
(43.6)p
2022/23
2021/21
2020/21
+65
+66
+67
2022/23
2021/22
2020/21
103k
103k
103k
2022/23
2021/22
2020/21
+68
+77
+78
2022/23
2021/22
2020/21
Financial
Adjusted profit
before tax
(1), (5)
£119m
Adjusted earnings
per share
(1), (5)
8.3p
Statutory profit/(loss)
before tax
(3)
£(450)m
Statutory earnings/(loss)
per share
(3)
(43.6)p
Our ten Key Performance Indicators (KPIs) comprise a balanced set of financial and non-financial metrics that are consistent with our
strategy and vision and enable management to evaluate the Group’s strategic performance. Statutory equivalents of our KPIs are
provided where relevant.
What we measure and why it’s key
Sustainable growth of profit before tax and adjusting items represents
a clear measure of performance against our strategic priorities and
an indication of how we create long term value for all stakeholders.
Performance in 2022/23
Adjusted profit before tax decreased during the year due to the
deterioration in Nordics performance. Statutory profit before tax
was further impact by non-cash writedown of goodwill.
What we measure and why it’s key
Adjusted basic EPS represents the profit after tax, but before adjusting
items, attributable to each share after taking into account the change in
number of shares in issue from year to year. The level of growth provides
a clear measure of the financial health of the Group and its ability to
deliver returns to shareholders each year.
Performance in 2022/23
The decrease in EPS was driven by the reduction in profit.
Non-Financial
Net Promoter Score (‘NPS’)
+67
Colleague engagement
+78
Tonnes of electrical reuse
and recycling
102,576
(1) Alternative Performance Measure. Definitions, purpose and reconciliations to the closest statutory equivalent for our Alternative Performance Measures are provided
within the Glossary and definitions on pages 231 to 244.
(2) The directors consider free cash flow to be a useful measure as, unlike statutory equivalents, it is a good indicator of cash generated from continuing operations which is
available to fund future growth or be distributed to shareholders.
(3) Statutory profit/(loss) before tax and statutory earnings/(loss) per share are not KPIs but are presented
to give additional useful information to users on the performance of the business.
(4) Net zero is defined in the Glossary and definitions section on page 244.
(5) Adjusted results and adjusting items for the comparative period ended 30 April 2022 has been restated to reflect the updated adjusting items policy which is used to
determine whether an item is to be classified as adjusting. More information in Performance Review on page 76.
What we measure and why it’s key
Customer satisfaction a key indicator how
we’re performing. NPS is the percentage of
Promoters minus Critics answering the question
‘How likely are you to recommend Currys.com
to a friend or colleague?’
Performance in 2022/23
NPS improved 2.3 points in UK & Ireland which
more than offset the marginal decline in Nordics
and Greece.
What we measure and why it’s key
Tonnes of e-waste collected across our Group
for reuse or recycling is a key indicator of our
progress in creating circular business models and
reducing the impact that used electronics have
on the environment. It is the sum of all electronics
received including via trade-in and recycling
services from customers.
Performance in 2022/23
The total tonnes of e-waste collected for reuse
and recycling for the Group was flat year-on-
year. In 2023/24 we will measure and report
e-waste as the number of units collected across
the Group.
What we measure and why it’s key
Our capable and committed colleagues are
our greatest advantage. Keeping colleagues
engaged drives better experiences for customers.
Our Employee Satisfaction measure is measured
through our colleague’s response to the question
‘How happy are you working at Currys?’ and
forms just one part of our employee engagement
survey that enables our colleagues to provide
honest and open feedback.
Performance in 2022/23
Employee engagement continued to increase
this year (+1 points) on the back of investment in
training, well-being and reward. Group eSat score
of 78 is +4 points above global benchmarks.
76 Currys plc Annual Report & Accounts 2022/23
Performance Summary
2022/23
Group sales decreased (7)% on a like-for-like basis with a decline in all markets except
Greece driven by a fall in consumer spending due to persistent inflation and rising interest
rates, as well as a normalisation of spend on technology after strong growth during
the pandemic.
Year-on-year
Revenue
2022/23
£m
2021/22
£m
Reported
% change
Currency
neutral
% change
Like-for-Like
% change
UK & Ireland 5,067 5,485 (8)% (8)% (7)%
International 4,444 4,659 (5)% (4)% (7)%
– Nordics 3,807 4,105 (7)% (6)% (10)%
– Greece 637 554 15% 12% 12%
Group 9,511 10,144 (6)% (6)% (7)%
In UK&I adjusted EBIT increased +45% YoY. Improvements to gross margin were driven through higher adoption of credit and other services,
better monetisation of our improved proposition, focus on more profitable sales through improved use of data and analytics to drive
better marketing returns and cost savings in supply chain and service operations. Operating costs fell in absolute terms as savings more
than offset inflationary cost pressures and increased business rates tax.
As previously announced, we have recorded a £(511)m non-cash impairment of UK&I goodwill arising out of the Dixons Carphone merger
in 2014. This impairment was primarily driven by increased discount rates as a result of the sharp increases in UK bond yields, as well
as more prudent economic assumptions within our internal valuation models.
In International, adjusted EBIT declined a disappointing (73)% YoY. In our Nordic markets, the consumer spending environment has
deteriorated rapidly over the past 12 months, with falling consumer demand exacerbated by a general overstocking in the market.
This has meant several competitors have heavily discounted products, preventing the pass-through of inflated cost of goods, resulting
in lower profits.
Due to lower International profitability, Group operating cash flow declined (29)% YoY, while free cash flow was an outflow of £(74)m,
reflecting the lower operating profitability, continued investment and a working capital outflow as a result of the sales decline.
Profit and Cash Flow Summary
2022/23
£m
2021/22
£m
2022/23
Adjusted
£m
2021/22
Adjusted
(restated)
(1)
£m
Reported
% change
Currency
neutral
% change
Segmental EBIT
UK & Ireland (353) 71 170 117 45% 44%
International 7 151 44 163 (73)% (73)%
- Nordics (11) 130 26 142 (82)% (81)%
- Greece 18 21 18 21 (14)% (18)%
EBIT (346) 222 214 280 (24)% (24)%
EBIT Margin (3.6)% 2.2% 2.3% 2.8% (50) bps (60) bps
Net interest expense on leases (68) (70) (68) (70) n/a
Other net finance costs (36) (26) (27) (18) n/a
(Loss)/profit before tax (450) 126 119 192 (38)% (39)%
Tax (31) (55) (27) (52)
(Loss)/profit after tax (481) 71 92 140
(Loss)/earnings per share (43.6)p 6.3p 8.3p 12.4p (33)%
Operating cash flow 268 375 (29)% (29)%
Operating cash flow margin 2.8% 3.7% (90) bps (90) bps
Cash generated from operations 386 524
Free cash flow (74) 72 n/a
Net (debt)/cash (97) 44 n/a
77Strategic Report Governance Financial Statements Investor Information
Balance sheet and capital allocation
In November 2021, the Group laid out its capital allocation framework and priorities:
1. Maintain prudent balance sheet (defined as meeting banking covenants and meeting our own targets for indebtedness
fixed charge cover of >1.5x and indebtedness leverage <2.5x)
2. Pay required pension cash contributions
3. Invest to grow business/profits/cashflow
4. Pay and grow ordinary dividend
5. Surplus capital available to return to shareholders
Since we set these priorities, trading conditions have deteriorated, particularly in the Nordics. At this year-end, net indebtedness
leverage was 2.91x and total indebtedness fixed charge cover was 1.42x, outside of our targets. We are focussed on rebuilding these
metrics over the next year and have accordingly taken actions to reduce costs and capital expenditure. We have agreed a covenant
relaxation for the period to up to October 2024 and a reduction in contributions to the pension scheme over the next two years.
Consistent with these actions and cognisant of the uncertain economic outlook, the Board has decided not to declare a final dividend
for the 2022/23 financial year. Our capital allocation priorities remain unchanged.
Current year guidance
• Trading at the start of the year has been consistent with the Board’s expectations
• Capital expenditure of around £80m, down more than 25% YoY due to tighter control and lower transformation spend
• Net exceptional cash costs around £50m, up YoY due to additional property costs and restructuring
• Pension contributions of £36m, reduced from £78m in 2022/23
Other technical cashflow items:
• Depreciation & amortisation of £320-330m
• Cash payments of leasing costs, debt & interest of £280-290m
• Cash interest of around £40m
Longer term guidance
• Group continuing to target at least 3.0% adjusted EBIT margin
• Exceptional cash costs expected to fall significantly from 2024/25 onwards
• Pension contributions will rise to £50m in 2024/25 and to £78m for the following three years before a final payment of £43m
in 2028/29
(1) In the reporting of financial information, the Group uses certain measures that are not required under IFRS. These are presented in accordance with the Guidelines on
APMs issued by the European Securities and Markets Authority (‘ESMA’) and are consistent with those used internally by the Group’s Chief Operating Decision Maker
to evaluate trends, monitor performance, and forecast results.
We consider these additional measures to provide additional information on the performance of the business and trends to shareholders. Adjusted results and adjusting
items for the comparative period ended 30 April 2022 have been restated to reflect the updated adjusting items policy that reflects management’s belief that the revised
classification provides greater clarity on the current and future performance of the Group’s ongoing omnichannel retail operations. There has been no impact on statutory
results as a result of the restatements.
The below, and supplementary notes to the APMs, provides further information on the definitions, purpose, prior period restatements and reconciliations to IFRS measures
of those APMs that are used internally to provide parity and transparency between the users of this financial information and the CODM in assessing the core results of the
business in conjunction with IFRS measures.
These APMs may not be directly comparable with other similarly titled measures of ‘adjusted’ or ‘underlying’ revenue or profit measures used by other companies, including
those within our industry, and are not intended to be a substitute for, or superior to, IFRS measures.
78 Currys plc Annual Report & Accounts 2022/23
Performance Review
2022/23 continued
The business is managed and evaluated across three reporting segments; UK & Ireland, Nordics and Greece. The table below shows the
combined Group results, with fuller explanation following under each of the individual segments.
Income Statement
2022/23
£m
2021/22
(restated)
£m
Reported
% change
Currency
neutral
% change
Revenue 9,511 10,144 (6)% (6)%
Adjusted EBITDA 524 594 (12)% (12)%
Adjusted EBITDA margin 5.5% 5.9% (40) b ps (40) b ps
Depreciation on right-of-use assets (194) (190)
Depreciation on other assets (52) (62)
Amortisation (64) (62)
Adjusted EBIT 214 280 (24)% (24)%
Adjusted EBIT margin 2.3% 2.8% (50) bps (60) bps
Interest on lease liabilities (68) (70)
Finance income 2 2
Adjusted finance costs (29) (20)
Adjusted PBT 119 192 (38)% (39)%
Adjusted PBT margin 1.3% 1.9% (60) bps (70) bps
Adjusted tax (27) (52)
Adjusted Profit after tax 92 140
Adjusted EPS 8.3p 12.4p
Statutory Reconciliation
Adjusting items to EBITDA (537) (34)
EBITDA (13) 560 n/a n/a
Adjusting items to depreciation and amortisation (23) (24)
EBIT (346) 222 n/a n/a
EBIT Margin (3.6)% 2.2% (580) bps (580) bps
Adjusting items to finance costs (9) (8)
PBT (450) 126 n/a n/a
Adjusting items to tax (4) (3)
Profit after tax (481) 71
EPS – total (43.6)p 6.3p
79Strategic Report Governance Financial Statements Investor Information
Cash flow
2022/23
£m
2021/22
(restated)
£m
Reported
% change
Currency
neutral
% change
Adjusted EBITDAR 536 608 (12)% (11)%
Adjusted EBITDAR margin 5.6% 6.0% (4 0) b ps (40) b ps
Cash payments of leasing costs, debt & interest
(1)
(283) (263)
Other non-cash items in EBIT 15 30
Operating cash flow
(1)
268 375 (29)% (29)%
Operating cash flow margin 2.8% 3.7% (90) bps (90) bps
Capital expenditure (111) (133)
Adjusting items to cash flow
(1)
(40) (23)
Free cash flow before working capital 117 219 (47 )% (47 )%
Working capital (127) (112)
Segmental free cash flow (10) 107 n/a n /a
Cash tax paid (38) (18)
Cash interest paid (26) (17)
Free cash flow (74) 72 n/a n/a
Dividend (35) (46)
Purchase of own shares – share buyback – (32)
Purchase of own shares – employee benefit trust (4) (41)
Pension (78) (78)
Other 50 –
Movement in net cash/(debt) (141) (125) n/a n/a
Net cash/(debt) (97) 44 n/a n/a
(1) APM defined in Glossary.
80 Currys plc Annual Report & Accounts 2022/23
Performance review
2022/23 continued
UK and Ireland
Income Statement
2022/23
£m
2021/22
(restated)
£m
Reported
% change
Currency
neutral
% change
Revenue 5,067 5,485 (8)% (8)%
Adjusted EBITDA 325 286 14% 14%
Adjusted EBITDA margin 6.4% 5.2% 120 bps 120 bps
Depreciation on right-of-use assets (98) (100)
Depreciation on other assets (21) (29)
Amortisation (36) (40)
Adjusted EBIT 170 117 45% 44%
Adjusted EBIT margin 3.4% 2.1% 130 bps 130 bps
Adjusting items to EBIT (523) (4 6)
EBIT (353) 71 n/a n /a
EBIT margin (7.0)% 1.3% (830) bps (830) bps
Cash flow
Adjusted EBITDAR 332 295 13% 13%
Adjusted EBITDAR margin 6.6% 5.4% 120 bps 120 bps
Cash payments of leasing costs, debt & interest
(1)
(161) (155)
Other non-cash items in EBIT 10 26
Operating cash flow
(1)
181 166 9% 9%
Operating cash flow margin 3.6% 3.0% 60 bps 60 bps
Capital expenditure (58) (6 5)
Adjusting items to cash flow
(1)
(36) (23)
Free cash flow before working capital 87 78 12% 12%
Working capital (71) 31
Segmental free cash flow 16 109 (85)% (85)%
(1) APM defined in Glossary.
Total UK&I sales declined (8)%, driven by
like-for-like sales decline of (7)% and the
online share of business was 45%, flat YoY.
Domestic appliances and mobile were the
strongest performing categories due to our
investment in these areas and improved
availability, but only grew marginally
compared to last year. We are enjoying a
higher mix of iD Mobile which is good over
the long-term, but due to accounting for
the ownership this will likely cause a
short-term impact to profit and cash.
Computing saw sales decline and was
around the level of pre-pandemic.
Consumer electronic sales also declined
and are now lower than pre-pandemic.
The UK market shrank (6)% during the year
with the online market reducing by (8)% and
the store channel declining around (2)%.
Our market share is down (100)bps
compared to last year as we lost share in
consumer electronics and computing but
gained share in major domestic appliances.
Gross margins increased +160bps
(1H: +160bps, 2H: +160bps), as the
investment in long-term transformation
activities has yielded higher adoption rate
of credit and other services and allowed
us to better monetise the improvements
in customer proposition. Alongside this,
improved understanding and analysis of
the end-to-end P&L has allowed for more
selective promotional activity and we have
driven £42m of cost savings within supply
chain. The operating expense to sales ratio
worsened by (30)bps as costs reduced in
absolute terms, but not enough to offset
the decline in sales. A £(15)m headwind
from the lowering of UK & Ireland business
rates tax reliefs, energy cost inflation of
£(12)m and wage inflation of £(12)m were
more than offset by £75m of cost savings
across supply chain, store operations and
central costs.
Adjusted EBIT increased to £170m at 3.4%
margin, up +130bps YoY.
In the period, adjusting items to EBIT
totalled £(523)m due to £(511)m impairment
of goodwill, predominantly due to
increased discount rates as a result of the
increases in UK gilt yields and more prudent
assumptions within our valuation models
due to the increased macroeconomic
uncertainty. The cash costs in the period
related to leases on previously closed
stores and the cash impact of ongoing
strategic change and cost saving initiatives.
81Strategic Report Governance Financial Statements Investor Information
2022/23 £m 2021/22 (restated) £m
P&L Cash P&L Cash
Acquisition/disposal related items (11) – (12) –
Strategic change programmes (8) (36) 1 (56)
Impairment losses and onerous contracts (511) – (54) (20)
Regulatory 7 – – –
Other – – 19 53
Total (523) (36) (4 6) (23)
Operating cash flow was up +9% to £181m
due to the higher operating profit offset
by higher cash lease payments and lower
non-cash expenses. Capital expenditure
was down slightly compared to last year at
£58m, with significant expenditure focussed
on IT and upgrading our omnichannel
platform. Adjusting items are described
above. Working capital cashflow as the
sales decline drove a natural outflow
of working capital. In combination, this
resulted in segmental free cash inflow
of £16m, £(93)m lower than last year.
82 Currys plc Annual Report & Accounts 2022/23
Nordics
Income Statement
2022/23
£m
2021/22
£m
Reported
% change
Currency
neutral
% change
Revenue 3,807 4,105 (7)% (6)%
Adjusted EBITDA 156 264 (41)% (4 0)%
Adjusted EBITDA margin 4.1% 6.4% (230) bps (230) bps
Depreciation on right-of-use assets (81) (76)
Depreciation on other assets (25) (27)
Amortisation (24) (19)
Adjusted EBIT 26 142 (82)% (81)%
Adjusted EBIT margin 0.7% 3.5% (280) bps (280) bps
Adjusting items to EBIT (37) (12)
EBIT (11) 130 n/a n/a
EBIT margin (0.3)% 3.2% (350) bps (350) bps
Cash flow
Adjusted EBITDAR 159 267 (40)% (39)%
Adjusted EBITDAR margin 4.2% 6.5% (230) bps (230) bps
Cash payments of leasing costs, debt & interest
(1)
(100) (90)
Other non-cash items in EBIT 4 4
Operating cash flow 63 181 (65)% (6 5)%
Operating cash flow margin 1.7% 4.4% (270) bps (270) bps
Capital expenditure (45) (56)
Adjusting items to cash flow (4) –
Free cash flow before working capital 14 125 (89)% (88)%
Working capital (56) (113)
Segmental free cash flow (42) 12 n/a n/a
(1) APM defined in Glossary.
Revenue declined by (6)% on a currency
neutral basis, with like-for-like sales
decline of (10)%. Online share of business
was broadly stable compared to last year.
Except for mobile, all product categories
saw sales decline, with computing and
consumer electronics declining the most.
Compared to last year, the Nordic market
declined around (4)%. Our market share was
27.6%, down (100)bps compared to last year.
Cost of goods inflation was high and not fully
passed on to customers due to an excess of
stock in a market that declined more than was
expected. Aggressive competition meant
there was a lot of heavy discount and
clearance activity which drove a gross margin
decline of (200)bps (1H: (200)bps, 2H (210)
bps). The operating expense to sales ratio
worsened by (80)bps as a small decrease
in absolute costs was not enough to offset
operating deleverage. Our strong cost
control has allowed us to offset inflationary
increases of £(28)m and a further £(16)m of
costs related to new stores. Cost savings were
generated across many areas including
marketing, store and head office payroll,
IT expenditure and consultant fees.
As a result, adjusted EBIT declined (82)%
to £26m.
In the period, adjusting items to EBIT
totalled £(37)m, with £(12)m due to the
amortisation of acquisition intangibles and
£(7)m of asset impairments which have no
cash impact, and £(18)m restructuring costs.
The cash cost of restructuring was £(4)m in
the year with the balance expected to be
incurred in 2023/24.
Performance review
2022/23 continued
2022/23 £m 2021/22 £m
P&L Cash P&L Cash
Acquisition/disposal related items (12) – (12) –
Strategic change programmes (18) (4) – –
Impairment losses and onerous contracts (7) – – –
Total (37) (4) (12) –
The operating cash flow decreased by
(65)% to £63m, driven by the lower profit
outturn and higher cash lease costs.
Capital expenditure was £45m, with
significant areas of expenditure including
our Next Generation Retail omnichannel
platform and store refits. We have also
started work on our Nordic Distribution
Centre expansion in Jönköping. The total
spend was down on last year as spend on
some strategic projects was paused.
Working capital outflow of £(56)m was
due to changes in timing of stock buy-in
and the associated timing of VAT payments.
83Strategic Report Governance Financial Statements Investor Information
Greece
Income Statement
2022/23
£m
2021/22
£m
Reported
% change
Currency
neutral
% change
Revenue 637 554 15% 12%
Adjusted EBITDA 43 44 (2)% (4)%
Adjusted EBITDA margin 6.8% 7.9% (110) bps (120) bps
Depreciation on right-of-use assets (15) (14)
Depreciation on other assets (6) (6)
Amortisation (4) (3)
Adjusted EBIT 18 21 (14)% (18)%
Adjusted EBIT margin 2.8% 3.8% (100) bps (100) bps
Adjusting items to EBIT – –
EBIT 18 21 (14)% (18)%
EBIT margin 2.8% 3.8% (100) bps (100) bps
Cash flow
Adjusted EBITDAR 45 46 (2)% (2)%
Adjusted EBITDAR margin 7.1% 8.3% (120) bps (100) bps
Cash payments of leasing costs, debt & interest
(1)
(22) (18)
Other non-cash items in EBIT 1 –
Operating cash flow 24 28 (14)% (17)%
Operating cash flow margin 3.8% 5.1% (130) bps (140) bps
Capital expenditure (8) (12)
Adjusting items to cash flow – –
Free cash flow before working capital 16 16 0% (6)%
Working capital – (30)
Segmental free cash flow 16 (14) n/a n/a
(1) APM defined in Glossary.
Revenue increased +12% on a currency
neutral basis, with like-for-like sales growth
of +12%. During the year we opened one
outlet store and relocated two stores.
Online (including call centre) share of
sales fell slightly compared to last year.
Mobile performed strongly mainly due
to Apple phone launches. Cooling and
air conditioning sales were partially
aided by the start of a government
subsidy programme, but this also saw
high promotions and mix shift towards
lower end products. Computing sales fell
compared to the strong sales last year
when sales benefited from government
subsidies for students.
Gross margin declined (80)bps over prior
year as increases in cost of goods were not
fully passed on to customers due to high
stock positions and competitive intensity
in the market, the increased mix of mobile
which has a lower gross margin, and
promotions on delivery and installation.
Operating expense ratio worsened by (20)
bps, mainly due to increased energy costs,
increased colleague reward and removal
of government rent subsidies. As a result,
adjusted EBIT decreased to £18m. There
were no adjusting items to EBIT.
The operating cash flow was £24m, down
£(4)m from the prior year due to lower
operating profit. Capital expenditure was
£8m, with significant areas of expenditure
including stores, IT and distribution. Working
Capital was broadly neutral.
84 Currys plc Annual Report & Accounts 2022/23
Finance Costs
Interest on lease liabilities was £(68)m, a slight decrease on prior year due to timing of amortisation on the lease portfolio; the cash
impact of this interest is included within “Cash payments of leasing costs, debt & interest” in segmental free cash flow.
The adjusted net finance costs were higher than last year as the Group moved into an average net debt position. The net cash impact of
these costs was £(26)m, from £(17)m in the prior year.
The finance costs on the defined benefit pension scheme is an adjusting item and was broadly flat year-on-year in line with the
assumptions used in the valuation of the pension obligations.
2022/23
£m
2021/22
£m
Interest on lease liabilities (68) (70)
Finance income 2 2
Finance costs (29) (20)
Adjusted net finance costs (95) (88)
Finance costs on defined benefit pension schemes (7) (8)
Other finance costs (2) –
Net finance costs (104) (96)
Tax
The full year adjusted effective tax rate of 23% was lower than the previous year rate of 27% due to a lower proportion of overseas
profits, which are taxed at higher tax rates, and because the prior period included the deferred tax impact of the change in the UK tax
rate to 25% from 19%. Taxation payments of £38m (2021/22: £18m) were higher due to the reversal of the Norwegian payments that were
deferred in the prior period following an internal reorganisation.
Performance review
2022/23 continued
85Strategic Report Governance Financial Statements Investor Information
Cash flow
2022/23
£m
2021/22
(restated)
£m
Reported
% change
Currency
neutral
% change
Operating cash flow 268 375 (29)% (29)%
Capital expenditure (111) (133)
Adjusting items to cash flow (40) (23)
Free cash flow before working capital 117 219 (47 )% (47 )%
Working capital and network commissions (127) (112)
Segmental free cash flow (10) 107 n/a n /a
Cash tax paid (38) (18)
Cash interest paid (26) (17)
Free cash flow (74) 72 n/a n/a
Dividend (35) (46)
Purchase of own shares – share buyback – (32)
Purchase of own shares – employee benefit trust (4) (41)
Pension (78) (78)
Other 50 –
Movement in net cash (141) (125) n/a n/a
Opening net cash/(debt) 44 169 (74)%
Closing net cash/(debt) (97) 44 n/a n/a
Segmental free cash flow was an outflow of £(10)m (2021/22: inflow of £107m) and interest and tax outflows totalled £(64)m as
described above, resulting in a free cash outflow of £(74)m (2021/22: inflow of £72m).
A £24m (2.15p per share) final dividend for the 2021/22 financial year and £11m (1.0p per share) interim dividend for 2022/23 was
approved by shareholders and paid during the period. The employee benefit trust acquired £4m worth of shares to satisfy colleague
share awards.
Pension contributions of £78m (2021/22: £78m) were flat with prior year and in line with the contribution plan agreed with the pension
fund Trustees.
Other movements predominantly relate to currency translation differences. The NOK has significantly weakened against sterling
particularly in the final quarter of the financial year, which has caused a positive reported translation difference.
The closing net debt position was £(97)m, compared to a net cash position of £44m at 30 April 2022. This included £30m of restricted
cash (30 April 2022: £30m). The average net debt for the year was £(96)m, compared to an average net cash position of £290m
in 2021/22.
86 Currys plc Annual Report & Accounts 2022/23
Balance sheet
29 April 2023
£m
30 April 2022
£m
Goodwill 2,270 2,814
Other fixed assets 1,500 1,554
Working capital (230) (342)
Net cash / (debt) (97) 44
Net lease liabilities (1,228) (1,263)
Pension (249) (257)
Deferred tax 8 74
Provisions (48) (59)
Income tax payable (34) (64)
Net assets 1,892 2,501
Goodwill declined £(544)m during the
year ended 30 April 2023, of which £(511)m
related to an impairment over goodwill
allocated to UK & Ireland, primarily driven
by a material increase in the discount rate
used as explained in the UK&I performance
review. Currency revaluations of £(35)m
impacted goodwill allocated to Nordics.
Other fixed assets decreased by £(54)m
since 30 April 2022 as capital expenditure
and the increases in present value of
leases due to lease renewals were
more than offset by depreciation and
amortisation of £(310)m.
29 April 2023
£m
30 April 2022
£m
Inventory 1,151 1,286
Trade Receivables 299 336
Trade Payables (1,439) (1,614)
Trade working capital 11 8
Network commission receivables and contract assets 116 190
Network accrued income 105 40
Network receivables 221 230
Other Receivables 259 253
Other Payables (731) (850)
Derivatives 10 17
Working capital (230) (342)
At year-end, total working capital was
£(230)m (30 April 2022: £(342)m). Group
inventory was £1,151m, (10)% lower than
last year as inventory across markets has
been lowered in response to lower sales.
The lower sales resulted in stock days
increasing from 57 to 63 compared to
30 April 2022. Trade payable days
remained broadly flat at 76 since
30 April 2022 as trade payables
decreased significantly by £(175)m
to £(1,439)m (30 April 2022: £(1,614)m)
due to the reduced stock purchases
compared to the prior year.
Total network receivables are down £(9)m
compared to last year as reduced volume
has been offset by positive revaluations.
Due to changes in customer ownership at iD
mobile, debtors associated with iD Mobile
are now recorded as accrued income.
Other receivables was broadly flat
year-on-year. Other payables fell by
£68m due to lower VAT payable, lower
accrued expenses, and lower amounts
from sale of goods not yet delivered
to customers.
Lease liabilities are broadly unchanged
against 30 April 2022 as the store
portfolio has now normalised following
the closure of Carphone Warehouse stores
in previous periods, with all Ireland stores
now exited and only 14 remaining within
the UK.
The IAS 19 accounting deficit of the defined
benefit section of the pension scheme
amounted to £249m (30 April 2022:
£257m). The deficit is broadly flat to
30 April 2022 as the declining market value
of the underlying assets was offset by a
decrease in liability due to higher discount
rates linked to long-term bond yield returns.
During the period, the liability-driven
investments held by pension scheme
functioned as intended, but in order to
provide additional collateral in the event
of a further sudden spike in gilt yields, the
Group put in place an arrangement that
allowed short-term lending to the scheme.
This facility was not utilised and has
now terminated.
The triennial valuation as of 30 March
2022 has now been completed and
shows a deficit of £(402)m, a substantial
improvement on the £(645)m deficit at
31 March 2019. The improvement has been
driven by company contributions of £164m,
and investment outperformance, offset by
changes in inflation and other assumptions.
At end April 2023, the actuarial deficit was
around £(300)m due to further company
contributions and favourable movement
of scheme assets and liabilities.
Performance review
2022/23 continued
87Strategic Report Governance Financial Statements Investor Information
As the scheme is ahead of funding targets,
the trustee has agreed a reduction in
company contributions to £36m and £50m
in 2023/24 and 2024/25 respectively.
Contributions will then resume at £78m per
annum until December April 2028 with a
final payment of £43m in 2028/29,
when deficit is scheduled to be closed.
As part of the triennial valuation,
the Group has agreed to matching on
shareholder distributions such that
distributions above £nil for 2023/24,
above £12m for 2024/25 and above
£60m for 2025/26 onwards will be
matched be equal additional
contributions to the pension scheme.
29 April 2023
£m
30 April 2022
£m
1 May 2021
£m
Net cash / (debt) (97) 44 169
Restricted cash (30) (30) (35)
Net lease liabilities (1,228) (1,263) (1,322)
Pension liability (249) (257) (4 82)
Total closing indebtedness (1,604) (1,506) (1,670)
Less: year-end net cash / (debt) 97 (4 4) (169)
Add: average net cash / (debt) (96) 290 280
Total average indebtedness (1,603) (1,260) (1,559)
29 April 2023
£m
30 April 2022
(restated)
£m
1 May 2021
£m
Operating cashflow 268 375 338
Cash payments of leasing costs, debt & interest 283 263 288
Operating cash flow plus cash payments of leasing 551 638 626
Bank covenant ratios
Fixed charges (cash lease costs + cash interest) 309 280 312
Fixed charge cover 1.78x 2.28x 2.01x
Net cash excluding restricted funds (127) 14 134
Net debt leverage 0.47x (0.04)x (0.40)x
Net indebtedness ratios
Fixed charges (cash lease costs + cash interest + pension contributions) 387 358 359
Total indebtedness fixed charge cover 1.42x 1.78x 1 .74x
Total closing indebtedness (1,604) (1,506) (1,670)
Total indebtedness leverage 2.91x 2.36x 2.67x
At 29 April 2023 the Group had net debt
of £(97)m (2021/22: net cash £44m) and
average net debt for the year of £(96)m
(2021/22: net cash £290m). The Group
also has access to £501m across two
longer term revolving credit facilities
that expire in October 2026, and two
additional short-term credit facilities
totalling £135m that expire in October
2023, taking total available credit from
revolving credit facilities to £636m.
The covenants on the debt facilities are
net debt leverage <2.5x (2022/23: 0.47x)
and fixed charge cover >1.75x (2022/23:
1.78x). In April 2023 the Group’s supportive
lending syndicate agreed to relax the
fixed charge cover covenant to >1.5x
until April 2025.
The deferred tax asset reduced by £(66)m
in the period, largely as a result of the
derecognition of the UK deferred tax
asset, which has been prudently assessed
during the period based on the current
macroeconomic uncertainty.
Provisions primarily relate to property,
reorganisation and sales provisions.
The balance reduced by £(11)m during
the year as the utilisation of reorganisation
provisions for central and retail operations,
sales provisions and property related
onerous contract costs for closed stores
more than offset additions. Onerous
property contract costs of £5m were
released during the period following the
completion of negotiations to exit stores
closed as part of previously announced
property rationalisation projects.
88 Currys plc Annual Report & Accounts 2022/23
Comprehensive income/Changes in equity
Total equity for the Group decreased from £2,501m to £1,892m in the period, driven by a loss of £(481)m, the actuarial loss (net of
taxation) on the defined benefit pension deficit for the UK pensions scheme of £(96)m, dividends paid of £(35)m, hedging losses of
£(5)m, £(5)m for the translation of legacy overseas operations now disposed of and purchase of own shares by the EBT of £(4)m.
This was marginally offset by movements in relation to share schemes of £17m.
Share count
The weighted average number of shares used for basic earnings reduced by 26m to 1,104m as the weighted average number of shares
in issue fell 32m following the repurchase of shares in 2021/22, offset by a small decrease in the average number of shares held by
the Group EBT to satisfy colleague shareholder schemes.
The dilutive effect of share options and other incentive schemes decreased as several schemes’ performance underperformed against
vesting conditions.
29 April 2023
Million
30 April 2022
Million
Weighted average number of shares
Average shares in issue 1,133 1,165
Less average holding by Group EBT and treasury shares held by Company (29) (35)
For basic earnings / (loss) per share 1,104 1,130
Dilutive effect of share options and other incentive schemes 20 45
For diluted earnings / (loss) per share 1,124 1,175
Prior period restatement
As disclosed in the Performance Review the adjusted results and adjusting items for the comparative period ended 30 April 2022 has
been restated to reflect the updated adjusting items policy which is used to determine whether an item is to be classified as adjusting.
Management believes the revised classification policy, with the main change being the removal of mobile network debtor revaluations,
provides greater clarity on the current and future performance of the Group’s ongoing omnichannel retail operations.
The impact of the restatement on the Group’s adjusted results for the respective comparative periods is outlined below with additional
reconciliations and information on the revised policy included within the glossary and definitions section of this report. There is no
impact on statutory results as a result of the restatements.
Approval of Strategic Report
This Strategic Report was approved by the Board and signed
on its behalf by:
Alex Baldock
Group Chief Executive
6 July 2022
Performance review
2022/23 continued
89Strategic Report Governance Financial Statements Investor Information
Year ended 30 April 2022
2021/22
as previously
reported
£m
Policy
adjustment
£m
2021/22
restated
£m
Income Statement
Adjusted revenue 10,122 22 10,144
Adjusting items to revenue 22 (22) –
Revenue 10,144 – 10,144
Adjusted EBITDA 588 6 594
Adjusted EBITDA margin 5.8% +10 bps 5.9%
Depreciation on right-of-use assets (190) – (190)
Depreciation on other assets (62) – (62)
Amortisation (62) – (62)
Adjusted EBIT 274 6 280
Adjusted EBIT margin 2.7% +10 bps 2.8%
Interest on lease liabilities (70) – (70)
Finance income 2 – 2
Adjusted finance costs (20) – (20)
Adjusted PBT 186 6 192
Adjusted PBT margin 1.8% +10 bps 1.9%
Adjusted tax (51) (1) (52)
Adjusted Profit after tax 135 5 140
Adjusted EPS 11.9p 0.5p 12.4p
Cash flow
Adjusted EBITDAR 602 6 608
Adjusted EBITDAR margin 5.9% +10 bps 6.0%
Cash payments of leasing costs, debt & interest (263) – (263)
Other non-cash items in EBIT 22 8 30
Operating cash flow 361 14 375
Operating cash flow margin 3.6% +10 bps 3.7%
Capital expenditure (133) – (133)
Adjusting items to cash flow (33) 10 (23)
Free cash flow before working capital 195 24 219
Working capital (88) (24) (112)
Segmental free cash flow 107 – 107
Cash tax paid (18) – (18)
Cash interest paid (17) – (17)
Free cash flow 72 – 72
Dividend (4 6) – (46)
Purchase of own shares – share buyback (32) – (32)
Purchase of own shares – employee benefit trust (41) – (41)
Pension (78) – (78)
Other – –
Movement in net cash (125) – (125)
Net cash 44 – 44
90 Currys plc Annual Report & Accounts 2022/23
Compliance with the UK Corporate
Governance Code 2018 (the ‘Code’)
The Board confirms that throughout the year ended 29 April 2023
and as at the date of this report, the Company applied the
principles of, and was fully compliant with the provisions of the
Code other than provision 38 (alignment of executive director
pension contribution rates to those of the workforce) with which
it became compliant from December 2022 when Alex Baldock’s
pension contributions were reduced to 3% to align to those of the
wider workforce.
A copy of the Code is available from the website of the Financial
Reporting Council, www.frc.org.uk.
Further information on how the Company has implemented each
of the Code provisions can be found as follows:
Board Leadership and Company Purpose Page 97
Division of Responsibilities Page 101
Composition, Succession and Evaluation Page 103
Audit, Risk and Internal Control Page 106
Remuneration Page 125
Magdalena Gerger
Non-Executive Director
Magdalena joined the Board as a
non-executive director after the end
of the financial year on 1 May 2023.
She will be a member of the Company’s
Remuneration, Nominations, and
Environment, Social and Governance (‘ESG’)
Committees from 6 July 2023.
Magdalena’s former roles include president and CEO of
Systembolaget, senior vice president of Arla Foods, category
head for Nescafe and Retail Coffee at Nestle UK, and UK
marketing director at Tambrands (now Proctor & Gamble) and
ICI Paints. Magdalena has over 20 years’ non-executive director
experience, and her past roles include Ingka Holding BV (IKEA),
Husqvarna AB and Ahlsell AB. She is currently a non-executive
director of Peab AB and Investor AB, and chair of Nefab Group,
the Business Council of The Royal Swedish Academy of Engineering
Sciences and the British Swedish Chamber of Commerce.
Adam Walker
Non-Executive Director
Adam joined the Board as a
non-executive director after the end
of the financial year on 8 June 2023.
He is a member of the Company’s
Audit and Remuneration Committees.
Adam is currently a non-executive director and the chair of the
audit committee of Tritium DCFC Limited (listed on Nasdaq).
Prior to that, he was a non-executive director and the chair of
the audit committee of Kier Group plc.
His former executive roles include executive vice president and
chief financial officer of IHS Holding Limited (IHS Towers), chief
financial officer of GKN plc, group finance director at Informa
PLC, and finance director at National Express Group PLC.
Board highlights from 2022/23
• Enhanced focus on the Nordics business – additional deep dives
and updates.
• Approved the Three-Year Plan.
• Approved entering into a strategic partnership with Infosys to
establish a world class business services capability.
• Received updates from the Nominations Committee on Board
succession, the process to recruit additional non-executive
directors and approved the appointments of Magdalena Gerger
and Adam Walker.
• Evaluated strategic profit levers and value acceleration options.
• Appointed new brokers and received updates on the external market.
• Received deep dive updates including on the Company’s pension
scheme liability, the strategy for UK Mobile, pricing and colleague
listening.
• UK store visit including presentations from stores colleagues, a
deep dive on the strategy for UK stores and the Services business.
Board meeting attendance in 2022/23
Directors Meetings attended
Alex Baldock
Eileen Burbidge MBE
Tony DeNunzio CBE
(1)
Ian Dyson
Andrea Gisle Joosen
(1)
Bruce Marsh
Fiona McBain
(1)
Gerry Murphy
Company Secretary Meetings attended
Nigel Paterson
(1) Three directors missed one Board meeting that was scheduled at short notice
to consider the management of short-term liquidity issues in the pension fund
caused by the macroeconomic environment. The three directors that were unable
to attend the meeting each provided their input on the proposal to the Chair
of the Board in advance of the meeting.
Governance
at a glance
91Strategic Report Governance Financial Statements Investor Information
0-3 years
3-6 years
Over 6 years
2
25 .0%
1
12.5%
5
62.5%
5
62.5%
Balance of the Board
5
62.5%
3
37.5%
Board diversity by gender
4
66%
1
17%
1
17%
Non-executive director tenure
1
12.5%
7
87.5%
Board diversity by ethnicity
Female
Male
Executive
Chair of the Board
Non-executive directors
Ethnic minority group
White ethnic group
Board composition at 29 April 2023
Board skills and experience (no score = general understanding to 3 = deep subject matter expertise)
Directors
Ian Dyson
Board Chair and Nominations
Committee Chair
Eileen Burbidge
Independent Non-Executive
Director and ESG Committee
Chair
Tony DeNunzio
Deputy Chair, Senior
Independent Director and
Remuneration Committee Chair
Andrea Gisle Joosen
Independent Non-Executive
Director
Fiona McBain
Independent Non-Executive
Director and Audit Committee
Chair
Gerry Murphy
Independent Non-Executive
Director
Alex Baldock
Group Chief Executive
Bruce Marsh
Group Chief Financial Officer
General retailing experience
3 2 3 3 3 2 3 3
E-commerce
2 2 2 2 2 3 2
Commercial / supplier management
1 1 2 1 1 1 2 2
Supply chain / logistics
1 1 3 1 1 2 2
Environment including climate change
2 2 1 3 1 1 2 1
Social impact in communities
1 3 2 2 2
Strategy (development and implementation)
3 2 3 3 3 3 3 3
Accounting, finance and audit
3 1 3 2 3 3 2 3
Corporate transactions
3 2 2 3 3 3 2
Risk management
3 2 1 3 3 3 2
Listed company governance
3 2 3 3 2 2 2
Remuneration
2 1 3 2 2 2 2
Compliance / Regulatory
2 1 2 3 2 2 1
People / corporate culture / organisational design
2 3 2 2 2 1 2 2
IT and technology
1 3 1 1 2 2 2 2
Marketing / advertising
1 2 1 3 2 1 2 1
Consumer financial services
1 3 1 1 3 2 3 2
International businesses
2 2 3 3 1 1 3 1
Current executive leadership
N Y N N N N Y Y
92 Currys plc Annual Report & Accounts 2022/23
Board of
Directors
Ian Dyson (61)
Chair of the Board
C
Tony DeNunzio CBE (63)
Deputy Chair and Senior
Independent Director
C
Alex Baldock (52)
Group Chief Executive
Bruce Marsh (55)
Group Chief
Financial Officer
C
Andrea Gisle Joosen (59)
Independent
Non-Executive Director
Eileen Burbidge MBE (52)
Independent
Non-Executive Director
C
Fiona McBain (62)
Independent
Non-Executive Director
C
Gerry Murphy (71)
Independent
Non-Executive Director
Nigel Paterson (56)
General Counsel and
Company Secretary
Appointed September 2022 December 2015 (as Senior
Independent Director and
Non-Executive Director)
April 2017 (as Deputy Chair,
Senior Independent Director
and Chair of the
Remuneration Committee)
April 2018 July 2021 August 2014 (having served
on the Dixons Retail plc board
since March 2013)
Andrea will step down from
the Board on 6 July 2023.
January 2019 March 2017 April 2014 April 2015
Current
external
roles
Non-executive director of JD
Sports Fashion plc.
Chairman of the British Retail
Consortium, chairman of Evri
UK, senior advisor at Kohlberg,
Kravis, Roberts & Co L.P. and a
non-executive director of
PrimaPrix SL.
Non-executive director of RS
Group plc including
membership of the Audit and
Remuneration Committees.
None. Chair of Bilprovningen AB,
chair of Charge Amps AB,
non-executive director of 888
Holdings plc, Logent AB,
Neopitch AB and Stadium AB.
Eileen co-founded Passion
Capital in 2011 where she is a
partner and represents as
non-executive / investor
director at Monzo Bank and
Butternet Box along with
several other Passion Capital
portfolio companies.
Non-executive director of
Direct Line Insurance Group
plc (chair of the investment
committee) and Monzo Bank
Limited (senior independent
director and chair of the audit
committee).
Non-executive board
member of the Department
of Health and Social Care.
None.
Skills and
experience
Skills: Ian has more than
20 years’ experience in the
public market arena. He brings
strong, extensive leadership
experience from his previous
senior executive and financial
roles, and non-executive
directorships at both FTSE
100 and FTSE 250 levels
which equips him to
effectively lead the Board.
Experience: Ian’s past roles
include chair of ASOS plc,
chief executive of Punch
Taverns plc, group finance
and operations director at
Marks & Spencer Group plc,
group finance director of
Rank Group Plc and group
financial controller and
finance director for the hotels
division of Hilton Group plc.
He was a non-executive
director of SSP Group plc
and senior independent
non-executive director of
Flutter Entertainment plc.
More recently, Ian was a
non-executive director, and
audit committee chair, of
InterContinental Hotels Group
plc (2013-2023).
Skills: Tony has extensive
experience in the European
retail and consumer goods
sectors in finance, CEO and
chair roles.
Experience: Tony was
non-executive chairman of
Pets at Home Group Plc from
2014 to May 2020 and
president and chief executive
officer of Asda / Walmart UK
from 2002 to 2005, having
previously served as chief
financial officer of Asda PLC.
He started his career in the
fast-moving consumer goods
sector with financial positions
in Unilever PLC, L’Oreal and
PepsiCo, Inc. Tony was also
previously non-executive
director of Alliance Boots
GmbH, chairman of Maxeda
Retail Group BV, and
deputy chairman and senior
independent director of
MFI Furniture Group plc (now
Howden Joinery Group Plc).
He was chairman of the
advisory board of
Manchester Business School
and was awarded a CBE
for services to retail in 2005.
Skills: Alex has an outstanding
track record in leading large,
complex consumer-facing
businesses. He led the
delivery of the digital
transformation of Shop Direct,
now the Very Group, from a
catalogue retailer to the UK’s
second largest e-commerce
pure-play, delivering four
consecutive years of record
growth in sales, profits,
customer satisfaction and
colleague engagement.
Before that, he led the
successful transformation of
Lombard. Alex is particularly
valued for his strategic clarity,
relentless execution of
strategy and his ability to
inspire individuals around him.
Experience: Alex has been
Group Chief Executive
of Currys since 2018 and
was CEO of Shop Direct
(2012-2018). Before that,
Alex was managing director
of Lombard (2008-2012),
and commercial director
at Barclays. He started his
career in strategy and
operations consulting with
Kalchas and Bain & Company.
Skills: Bruce brings to the
Board a strong financial track
record over many years in
retail, and in the successful
delivery of large complex
business transformations in
rapidly changing environments.
He has extensive experience
in leading high-quality
finance teams, maintaining
robust financial controls
and improving planning
and performance.
Experience: Bruce joined
Currys from Tesco plc, where
he was finance director, UK &
Ireland. Before that, Bruce
was at Kingfisher plc where
he was managing director
of Kingfisher Future Homes
and group strategy director.
Previously, Bruce held several
senior finance roles at Dixons
Retail plc.
Skills: Andrea has an
MSc in Business and
International Marketing from
The Copenhagen Business
School (CBS). She brings
to the Board extensive
international business
experience in a variety of
sectors including marketing,
brand management, business
development and consumer
electronics.
Experience: Andrea’s former
roles include chair of Acast
AB, Teknikmagasinet AB,
non-executive director of
James Hardie Industries plc,
ICA Gruppen AB, Billerud AB,
chief executive of Boxer TV
Access AB in Sweden and
managing director (Nordic
region) of Panasonic,
Chantelle AB and Twentieth
Century Fox. Her early career
involved several senior
marketing roles with Procter
& Gamble and Johnson &
Johnson.
Skills: Eileen has a strong
technology background and
is a leader in the development
of the UK’s fintech industry.
Eileen brings a constructive,
challenging, and balanced
perspective to the Board
including a focus on
technology innovation, value
creation and an informed
perspective on the digital
consumer. Eileen is an
advocate for a range of
social impact issues including
increasing the number of
females in tech, as well as
diversity and inclusion and
sustainability.
Experience: Eileen has a
university degree in computer
science and has held
various roles at Apple, Sun
Microsystems, Openwave,
PalmSource, Skype, Yahoo!
and Verizon Wireless. Eileen
was a member of the Prime
Minister’s Business Advisory
Group, chair of Tech Nation –
a UK government-supported
technology industry group,
HM Treasury Special Envoy
for Fintech and Tech
Ambassador for the Mayor
of London’s office. She was
made an MBE for services
to business in the Queen’s
Birthday Honours in 2015.
Skills: Fiona is a chartered
accountant and has over
30 years’ experience in retail
financial services, both in the
industry and as an auditor.
She has an outstanding
record of business leadership
and is an experienced CEO
and chair.
Experience: Fiona was the
chair of Scottish Mortgage
Investment Trust plc until the
end of June 2023. She was
chief executive officer of
Scottish Friendly Group until
December 2016, having joined
the company in 1998. She
has worked in the finance
functions at Prudential plc
and Scottish Amicable and,
earlier in her career, across
a number of industry sectors
in the UK and then in the US.
She qualified as a chartered
accountant with Arthur Young
(now EY).
Skills: Gerry is a chartered
accountant. He brings to the
Board his extensive audit and
finance experience in
consumer business, retail,
technology, media and
communications sectors.
Experience: Gerry was a
non-executive director of
Capital & Counties Properties
PLC from 2015 to 2018 and
the senior independent
director from 2018 to 2020.
Gerry is a former Deloitte LLP
partner and was leader of
its Professional Practices
Group with direct industry
experience in consumer
business, retail and
technology, media and
telecommunications. He was
a member of the Deloitte
board and chairman of its
audit committee for a number
of years and was chairman of
the Audit & Assurance Faculty
of the Institute of Chartered
Accountants in England
and Wales.
Skills: Nigel is a qualified
solicitor and brings
extensive legal, risk and
governance experience to
the Board. Nigel also has
a strong background in
UK and international
telecommunications.
Experience: Nigel held
several senior legal roles
at BT Group plc including
general counsel of BT
Consumer, head of
competition & regulatory
law, and vice president and
chief counsel for UK and
major transactions. Prior
to BT, Nigel was engaged
as legal counsel at
ExxonMobil International
Limited. He trained and
qualified as a solicitor
with Linklaters.
Board meeting
attendance
6/6
Ian attended all six Board
meetings since his
appointment. He also
attended a Board meeting
as an observer prior to joining
the Board.
9/10
Tony was absent from one
meeting convened at short
notice (to consider short-term
liquidity issues in the pension
scheme), but provided his
input prior to the meeting.
10/10 10/10 9/10
Andrea was absent from one
meeting convened at short
notice (to consider short-term
liquidity issues in the pension
scheme), but provided her
input prior to the meeting.
10/10 9/10
Fiona was absent from one
meeting convened at short
notice (to consider short-term
liquidity issues in the pension
scheme), but provided her
input prior to the meeting.
10/10 10/10
Committee membership
Audit Committee
Disclosure Committee
Nominations Committee
Remuneration Committee
ESG Committee
C
Committee Chair
93Strategic Report Governance Financial Statements Investor Information
Ian Dyson (61)
Chair of the Board
C
Tony DeNunzio CBE (63)
Deputy Chair and Senior
Independent Director
C
Alex Baldock (52)
Group Chief Executive
Bruce Marsh (55)
Group Chief
Financial Officer
C
Andrea Gisle Joosen (59)
Independent
Non-Executive Director
Eileen Burbidge MBE (52)
Independent
Non-Executive Director
C
Fiona McBain (62)
Independent
Non-Executive Director
C
Gerry Murphy (71)
Independent
Non-Executive Director
Nigel Paterson (56)
General Counsel and
Company Secretary
Appointed September 2022 December 2015 (as Senior
Independent Director and
Non-Executive Director)
April 2017 (as Deputy Chair,
Senior Independent Director
and Chair of the
Remuneration Committee)
April 2018 July 2021 August 2014 (having served
on the Dixons Retail plc board
since March 2013)
Andrea will step down from
the Board on 6 July 2023.
January 2019 March 2017 April 2014 April 2015
Current
external
roles
Non-executive director of JD
Sports Fashion plc.
Chairman of the British Retail
Consortium, chairman of Evri
UK, senior advisor at Kohlberg,
Kravis, Roberts & Co L.P. and a
non-executive director of
PrimaPrix SL.
Non-executive director of RS
Group plc including
membership of the Audit and
Remuneration Committees.
None. Chair of Bilprovningen AB,
chair of Charge Amps AB,
non-executive director of 888
Holdings plc, Logent AB,
Neopitch AB and Stadium AB.
Eileen co-founded Passion
Capital in 2011 where she is a
partner and represents as
non-executive / investor
director at Monzo Bank and
Butternet Box along with
several other Passion Capital
portfolio companies.
Non-executive director of
Direct Line Insurance Group
plc (chair of the investment
committee) and Monzo Bank
Limited (senior independent
director and chair of the audit
committee).
Non-executive board
member of the Department
of Health and Social Care.
None.
Skills and
experience
Skills: Ian has more than
20 years’ experience in the
public market arena. He brings
strong, extensive leadership
experience from his previous
senior executive and financial
roles, and non-executive
directorships at both FTSE
100 and FTSE 250 levels
which equips him to
effectively lead the Board.
Experience: Ian’s past roles
include chair of ASOS plc,
chief executive of Punch
Taverns plc, group finance
and operations director at
Marks & Spencer Group plc,
group finance director of
Rank Group Plc and group
financial controller and
finance director for the hotels
division of Hilton Group plc.
He was a non-executive
director of SSP Group plc
and senior independent
non-executive director of
Flutter Entertainment plc.
More recently, Ian was a
non-executive director, and
audit committee chair, of
InterContinental Hotels Group
plc (2013-2023).
Skills: Tony has extensive
experience in the European
retail and consumer goods
sectors in finance, CEO and
chair roles.
Experience: Tony was
non-executive chairman of
Pets at Home Group Plc from
2014 to May 2020 and
president and chief executive
officer of Asda / Walmart UK
from 2002 to 2005, having
previously served as chief
financial officer of Asda PLC.
He started his career in the
fast-moving consumer goods
sector with financial positions
in Unilever PLC, L’Oreal and
PepsiCo, Inc. Tony was also
previously non-executive
director of Alliance Boots
GmbH, chairman of Maxeda
Retail Group BV, and
deputy chairman and senior
independent director of
MFI Furniture Group plc (now
Howden Joinery Group Plc).
He was chairman of the
advisory board of
Manchester Business School
and was awarded a CBE
for services to retail in 2005.
Skills: Alex has an outstanding
track record in leading large,
complex consumer-facing
businesses. He led the
delivery of the digital
transformation of Shop Direct,
now the Very Group, from a
catalogue retailer to the UK’s
second largest e-commerce
pure-play, delivering four
consecutive years of record
growth in sales, profits,
customer satisfaction and
colleague engagement.
Before that, he led the
successful transformation of
Lombard. Alex is particularly
valued for his strategic clarity,
relentless execution of
strategy and his ability to
inspire individuals around him.
Experience: Alex has been
Group Chief Executive
of Currys since 2018 and
was CEO of Shop Direct
(2012-2018). Before that,
Alex was managing director
of Lombard (2008-2012),
and commercial director
at Barclays. He started his
career in strategy and
operations consulting with
Kalchas and Bain & Company.
Skills: Bruce brings to the
Board a strong financial track
record over many years in
retail, and in the successful
delivery of large complex
business transformations in
rapidly changing environments.
He has extensive experience
in leading high-quality
finance teams, maintaining
robust financial controls
and improving planning
and performance.
Experience: Bruce joined
Currys from Tesco plc, where
he was finance director, UK &
Ireland. Before that, Bruce
was at Kingfisher plc where
he was managing director
of Kingfisher Future Homes
and group strategy director.
Previously, Bruce held several
senior finance roles at Dixons
Retail plc.
Skills: Andrea has an
MSc in Business and
International Marketing from
The Copenhagen Business
School (CBS). She brings
to the Board extensive
international business
experience in a variety of
sectors including marketing,
brand management, business
development and consumer
electronics.
Experience: Andrea’s former
roles include chair of Acast
AB, Teknikmagasinet AB,
non-executive director of
James Hardie Industries plc,
ICA Gruppen AB, Billerud AB,
chief executive of Boxer TV
Access AB in Sweden and
managing director (Nordic
region) of Panasonic,
Chantelle AB and Twentieth
Century Fox. Her early career
involved several senior
marketing roles with Procter
& Gamble and Johnson &
Johnson.
Skills: Eileen has a strong
technology background and
is a leader in the development
of the UK’s fintech industry.
Eileen brings a constructive,
challenging, and balanced
perspective to the Board
including a focus on
technology innovation, value
creation and an informed
perspective on the digital
consumer. Eileen is an
advocate for a range of
social impact issues including
increasing the number of
females in tech, as well as
diversity and inclusion and
sustainability.
Experience: Eileen has a
university degree in computer
science and has held
various roles at Apple, Sun
Microsystems, Openwave,
PalmSource, Skype, Yahoo!
and Verizon Wireless. Eileen
was a member of the Prime
Minister’s Business Advisory
Group, chair of Tech Nation –
a UK government-supported
technology industry group,
HM Treasury Special Envoy
for Fintech and Tech
Ambassador for the Mayor
of London’s office. She was
made an MBE for services
to business in the Queen’s
Birthday Honours in 2015.
Skills: Fiona is a chartered
accountant and has over
30 years’ experience in retail
financial services, both in the
industry and as an auditor.
She has an outstanding
record of business leadership
and is an experienced CEO
and chair.
Experience: Fiona was the
chair of Scottish Mortgage
Investment Trust plc until the
end of June 2023. She was
chief executive officer of
Scottish Friendly Group until
December 2016, having joined
the company in 1998. She
has worked in the finance
functions at Prudential plc
and Scottish Amicable and,
earlier in her career, across
a number of industry sectors
in the UK and then in the US.
She qualified as a chartered
accountant with Arthur Young
(now EY).
Skills: Gerry is a chartered
accountant. He brings to the
Board his extensive audit and
finance experience in
consumer business, retail,
technology, media and
communications sectors.
Experience: Gerry was a
non-executive director of
Capital & Counties Properties
PLC from 2015 to 2018 and
the senior independent
director from 2018 to 2020.
Gerry is a former Deloitte LLP
partner and was leader of
its Professional Practices
Group with direct industry
experience in consumer
business, retail and
technology, media and
telecommunications. He was
a member of the Deloitte
board and chairman of its
audit committee for a number
of years and was chairman of
the Audit & Assurance Faculty
of the Institute of Chartered
Accountants in England
and Wales.
Skills: Nigel is a qualified
solicitor and brings
extensive legal, risk and
governance experience to
the Board. Nigel also has
a strong background in
UK and international
telecommunications.
Experience: Nigel held
several senior legal roles
at BT Group plc including
general counsel of BT
Consumer, head of
competition & regulatory
law, and vice president and
chief counsel for UK and
major transactions. Prior
to BT, Nigel was engaged
as legal counsel at
ExxonMobil International
Limited. He trained and
qualified as a solicitor
with Linklaters.
Board meeting
attendance
6/6
Ian attended all six Board
meetings since his
appointment. He also
attended a Board meeting
as an observer prior to joining
the Board.
9/10
Tony was absent from one
meeting convened at short
notice (to consider short-term
liquidity issues in the pension
scheme), but provided his
input prior to the meeting.
10/10 10/10 9/10
Andrea was absent from one
meeting convened at short
notice (to consider short-term
liquidity issues in the pension
scheme), but provided her
input prior to the meeting.
10/10 9/10
Fiona was absent from one
meeting convened at short
notice (to consider short-term
liquidity issues in the pension
scheme), but provided her
input prior to the meeting.
10/10 10/10
94 Currys plc Annual Report & Accounts 2022/23
Directors’
Report
The Directors’ Report required by the Companies Act 2006 (the ‘Act’), the Corporate
Governance Statement as required by the Financial Conduct Authority’s (‘FCA’) Disclosure
Guidance and Transparency Rules (‘DTRs’) DTR 7.2 and the management report required
by DTR 4.1 comprises the Strategic Report on pages 1 to 89, the Corporate Governance
Report on pages 97 to 109, together with this Directors’ Report on pages 94 to 96.
All information is incorporated by reference into the Directors’ Report.
Directors
The names, biographies, committee memberships and dates
of appointment of each member of the Board are provided
on pages 92 and 93. During the year, Ian Livingston stepped down
as a director and Chair of the Board on 8 September 2022. On
1 September 2022, Ian Dyson was appointed as a non-executive
director and was appointed as Chair of the Board and
Nominations Committee with effect from 8 September 2022.
After the end of the financial year, on 1 May 2023, Magdalena
Gerger was appointed as a non-executive director of the Board.
She will become a member of the Remuneration, Nominations,
and Environment, Social and Governance (‘ESG’) Committees
on 6 July 2023. On 8 June 2023, Adam Walker was appointed
as a non-executive director of the Board and member of the
Audit and Remuneration Committees. Andrea Gisle Joosen will
step down from the Board on 6 July 2023.
The Board is permitted by its Articles of Association (the ‘Articles’), to
appoint new directors to fill a vacancy as long as the total number
of directors does not exceed the maximum limit of 15. The Articles
may be amended by special resolution of the shareholders
and require that any director appointed by the Board stand for
election at the following annual general meeting. In accordance
with the UK Corporate Governance Code 2018, all directors
submit themselves for election or re-election on an annual basis.
The Remuneration Report provides details of applicable service
agreements for executive directors and terms of appointment for
non-executive directors. All the directors proposed by the Board
for election or re-election are being unanimously recommended
for their skills, experience and the contribution they bring to
Board deliberations.
During the year, no director had any material interest in any
contract of significance to the Group’s business. Their interests in the
shares of the Company, including those of any connected persons,
are outlined in the Remuneration Report on pages 125 to 157.
The Board exercise all the powers of the Company subject to the
Articles, the Act and shareholder resolutions. A formal schedule of
matters reserved for the Board is in place and is available on the
Company’s website, www.currysplc.com.
Directors’ responsibilities
The directors’ responsibilities for the financial statements
contained within this Annual Report and Accounts and the
directors’ confirmations as required under DTR 4.1.12 are set out
on page 158.
Directors’ indemnities and insurance
The Company has made qualifying third-party indemnity
provisions (as defined in the Act) for the benefit of its directors
during the year; these provisions remain in force at the date of this
Directors’ Report.
In accordance with the Articles, and to the extent permitted by
law, the Company may indemnify its directors out of its own funds
to cover liabilities incurred as a result of their office. The Group
holds directors’ and officers’ liability insurance cover for any claim
brought against directors or officers for alleged wrongful acts in
connection with their positions, to the point where any culpability
for wrongdoing is established. The insurance provided does not
extend to claims arising from fraud or dishonesty.
Information required by Listing Rule 9.8.4R
Details of long term incentive schemes as required by Listing Rule
9.4.3R are located in the Directors’ Remuneration Report on pages
125 to 157. There is no further information required to be disclosed
under Listing Rule 9.8.4R.
Dividend
The Board has not proposed a final dividend for the year ended
29 April 2023. Details of the final and interim dividends for the
year are included in the below table.
As at 6 July 2023, the Company’s Employee Benefit Trust (‘EBT’)
held 26,685,537 ordinary shares. The right to receive the final
dividend for 2022/23 will be waived by the trustees of the EBT in
respect of the balance of shares held as at the dividend record
date on 4 August 2023.
Year ended
29 April 2023
Year ended
30 April 2022
Interim dividend 1.00p 1.00p
Final dividend nil 2.15p
Total dividends 1.00p 3.15p
95Strategic Report Governance Financial Statements Investor Information
Colleague involvement
The Group has a comprehensive communications programme
in place to provide colleagues with information on matters of
concern to them. This includes regular publications on the Group’s
intranet, email updates from the Group Chief Executive and other
Executive Committee members and regular meetings with line
managers. There is a colleague forum in place in UK & Ireland and
an International Colleague Forum representing all other countries
in the Group. The Colleague Forums form the basis of the
colleague listening framework and enable colleague feedback
to be received effectively and consistently across all countries
in the Group. The Colleague Forums make valuable contributions
to transformation and business change programmes and provide
input on a wide range of business and people topics. Details
of the colleagues’ involvement in the Group’s share plans are
disclosed in the Remuneration Report on pages 125 to 157.
Employment of disabled people
The business is committed to providing equal opportunities in
recruitment, training, development and promotion. We encourage
applications from individuals with all forms of disabilities.
All efforts are made to retain disabled colleagues in our
employment, including making any reasonable adjustments
to their roles. Every endeavour is made to find suitable alternative
employment and to retrain and support the career development
of any employee who becomes disabled while serving the Group.
Information on greenhouse gas emissions
The information on greenhouse gas emissions that the Company
is required to disclose is set out in the Sustainable Business report
on pages 40 to 63. This information is incorporated into this
Directors’ Report by reference and is deemed to form part of
this Directors’ Report.
Political donations
No political donations were made by the Group during the
period. It remains the policy of the Company not to make political
donations nor incur political expenditure as those expressions are
normally understood. As the definitions of political donations and
political expenditure in the Act are very wide, and could extend
to bodies such as those involved with policy review, law reform
and the representation of the business community, the directors
seek shareholder authority for political donations and political
expenditure each year on a precautionary basis to avoid
inadvertent infringement of the Act.
Capital structure
The Company’s only class of share is ordinary shares. Details
of the movements in issued share capital during the year are
provided in note 21 to the Group financial statements. The voting
rights of the Company’s shares are identical, with each share
carrying the right to one vote. The Company does not hold any
shares in treasury.
Details of employee share schemes are provided in note 4 to
the Group financial statements. As at 29 April 2023, the EBT held
26,786,947 shares.
Restrictions on transfer of securities of the
Company
There are no specific restrictions on the size of a holding nor
on the transfer of shares, which are both governed by the general
provisions of the Articles and prevailing legislation. The directors
are not aware of any agreements between holders of the
Company’s shares that may result in restrictions on the transfer of
securities or on voting rights. No person has any special rights of
control over the Company’s share capital and all issued shares
are fully paid.
Change of control – significant agreements
All of the Company’s share incentive scheme rules contain
provisions which may cause options and awards granted under
these schemes to vest and become exercisable in the event of
a change of control.
The Group’s main committed borrowing facility has a change of
control clause whereby the participating banks can require the
Company to repay all outstanding amounts under the facility
agreement in the event of a change of control. There are a number
of significant agreements which would allow the counterparties to
terminate or alter those arrangements in the event of a change of
control of the Company. These arrangements are commercially
confidential, and their disclosure could be seriously prejudicial
to the Company.
Furthermore, the directors are not aware of any agreements
between the Company and its directors or employees that
provide for compensation for loss of office or employment in
the event of a takeover bid.
96 Currys plc Annual Report & Accounts 2022/23
Directors’
Report continued
Significant shareholdings
As at 29 April 2023, the Company had been notified of the
following voting interests in the ordinary share capital of the
Company in accordance with the FCA’s DTR 5. Percentages are
shown as notified, calculated with reference to the Company’s
disclosed share capital as at the date of the notification.
Name
Number of
shares
Percentage
of share
capital
RWC Asset Management LLP 180,867,222 15.95%
Cobas Asset Management 90,735,430 8.00%
Artemis Investment Management LLP 88,211,458 6.89%
Schroders plc 59,677,996 5.26%
D P J Ross 55,738,699 4.80%
Ruffer 52,373,898 4.62%
Greater Manchester Pension Fund 45,040,040 3.97%
Majedie Asset Management 44,288,264 3.80%
Equiniti Trust (Jersey), trustee of the EBT 33,788,905 2.90%
Odey Asset Management LLP 31,851,616 2.81%
On 3 May 2023, Artemis Investment Management LLP disclosed
a holding of 78,066,112 shares or 6.89%.
On 19 June 2023, Frasers Group Plc disclosed a holding of
100,785,000 shares or 8.89% and then on 21 June 2023 disclosed
that this holding had increased to 106,395,278 shares or 9.39%.
On 23 June 2023, Artemis Investment Management LLP disclosed
a holding of 56,419,795 shares or 4.97%.
On 26 June 2023, Frasers Group Plc disclosed a holding of
117,773,451 shares or 10.39%.
On 6 July 2023, being the last practicable date prior to the
publication of this Annual Report and Accounts, no further
changes to the shareholdings reported above had been notified
to the Company in accordance with DTR 5.
Directors’ interests in the Company’s shares and the movements
thereof are detailed in the Remuneration Report on pages 125
to 157.
Issue of shares
In accordance with section 551 of the Act, the Articles and within
the limits prescribed by The Investment Association, shareholders
can authorise the directors to allot shares in the Company up
to one third of the issued share capital of the Company.
Accordingly, at the annual general meeting in 2022, shareholders
approved a resolution to give the directors authority to allot
shares up to an aggregate nominal value of £377,832. The
directors have no present intention to issue ordinary shares, other
than pursuant to obligations under employee share schemes.
This resolution remains valid until 29 October 2023, or, if earlier,
until the conclusion of the Company’s Annual General Meeting
(‘AGM’) in 2023. The Company will seek the usual renewal of
this authority at the AGM 2023.
Purchase of own shares
Authority was given by the shareholders at the annual general
meeting in 2022 to purchase a maximum of 113,349,465 shares,
such authority remaining valid until 29 October 2023, or, if earlier,
until the conclusion of the Company’s AGM in 2023. The authority
was not exercised during the year. The Company will seek the
usual renewal of this authority to purchase its own shares at the
AGM in September 2023.
Use of financial instruments
Information about the use of financial instruments is given in note
23 to the Group financial statements.
Post-balance sheet date events
Events after the balance sheet date are disclosed in note 29 to
the Group financial statements.
Auditor
Each director at the date of approval of this Annual Report and
Accounts confirms that:
• so far as the director is aware, there is no relevant audit
information of which the Company’s Auditor is unaware; and
• the director has taken all the steps that they ought to have
taken as a director in order to make themselves aware of any
relevant audit information and to establish that the Company’s
auditor is aware of that information.
This confirmation is given and should be interpreted in accordance
with the provisions of section 418 of the Act.
KPMG LLP was appointed as external Auditor for the 2022/23
financial year. KPMG LLP has expressed its willingness to continue
in office as auditor and a resolution for their reappointment will
be proposed at the Company’s AGM in September 2023.
Certain information required to be included in this Directors’ Report
may be found within the Strategic Report.
By Order of the Board
Nigel Paterson
Company Secretary
6 July 2023
97Strategic Report Governance Financial Statements Investor Information
Corporate Governance
Report
Chair of the Board statement
I am pleased to present my first Corporate Governance Report
as Chair of the Board for the year to 29 April 2023.”
Ian Dyson
Chair of the Board
This Corporate Governance Report describes the governance
framework in place to ensure that the Board is operating
effectively and supporting and challenging management to
maintain high standards of corporate governance across the
Group. Robust corporate governance is essential to deliver the
right outcomes for our shareholders, our customers, our colleagues,
our partners and suppliers, and our communities.
Throughout the financial year, the Board has been compliant
with all provisions of the UK Corporate Governance Code 2018
(the ‘Code’) other than achieving compliance with its provision 38
(alignment of executive director pension contribution rates to
those of the workforce) in December 2022. Alex Baldock’s pension
allowance was reduced to 3% with effect from December 2022 to
align to the pension contributions of the majority of the workforce.
Board Leadership
and Company Purpose
Role of the Board
The Board is responsible for the overall leadership and promotion
of the long-term sustainable success of the Company, generating
value for shareholders and contributing to wider society. The
Board sets the Company strategy and oversees its implementation
within a framework of efficient and effective controls that
allow the key issues and risks facing the business to be assessed
and managed. The Board considers the impact on, and the
responsibility it has to, the Company’s stakeholders as part
of its decision-making. The Board delegates clearly defined
responsibilities to its committees and the terms of reference
for these committees are available on the Company’s website,
www.currysplc.com/investors.
The Company’s vision, purpose, values and strategy are described
in more detail in the Strategic Report on pages 1 to 87. The Board
oversees the delivery of the strategy within the context of the
values and culture.
Culture
The directors monitor the culture in the business and receive regular
updates on the results of colleague ‘pulse surveys’. In January
2023, non-executive directors met privately with representatives
of the UK & Ireland and International Colleague Forums to learn
more about current issues impacting colleagues. In addition,
all non-executive directors have access to the Company’s
intranet and have corporate email addresses and receive all
communications sent to UK colleagues. The non-executive directors
frequently have direct contact with Executive Committee members
and their direct reports. Non-executive directors are invited to
Company events such as the annual Peak event. The Board also
visit key sites and stores. The October 2022 Board meeting was
held in Stockholm and included store visits and the opportunity to
meet office and store colleagues. The March 2023 Board meeting
was held at the Junction 9 Birmingham store in the UK, and included
a site tour and opportunities for directors to interact directly with
store colleagues. One non-executive director attends Leadership
Inclusion Forum meetings and another non-executive director
attends International Colleague Forum meetings. Non-executive
directors therefore have multiple opportunities to hear feedback
directly from colleagues across different geographies and areas
of the business and gain insights into corporate culture.
Corporate governance framework
The Currys plc Board is supported by five committees:
• Audit Committee – oversees financial reporting, risk
management, internal controls and the relationship with the
external Auditor;
• Disclosure Committee – oversees the procedures and
controls for the identification and disclosure of price sensitive
information;
• Environment, Social and Governance (‘ESG’) Committee
– established as a formal committee of the Board during the
financial year and approves the Group’s ESG strategy and
oversees the delivery of this strategy including the management
of ESG risks;
• Nominations Committee – oversees the composition of the
Board and its committees and that a diverse pipeline is in place
for succession planning; and
• Remuneration Committee – oversees the remuneration of the
executive directors and senior management and the structure of
remuneration for the workforce.
98 Currys plc Annual Report & Accounts 2022/23
These committees are each comprised of directors of the
Currys plc Board with the exception of the General Counsel
and Company Secretary who is a member of the Disclosure
Committee. The day-to-day management of the business is
delegated to the Group Chief Executive who is responsible
for leading the implementation of the strategy that has been
approved by the Board. The Group Chief Executive is supported
by an Executive Committee comprised of seven senior leaders in
the business. Awider Group Leadership Team of approximately
50 colleagues supports the Executive Committee in driving
the management agenda.
The Group Risk and Compliance Committee comprises the
members of the Executive Committee and oversees the
management of principal and emerging risks (see page 106 for
further information). The Group Sustainability Leadership Team
(‘GSLT’) also reports into the Executive Committee. The GLST
oversees the Group’s performance against ESG targets and is
responsible for the delivery of the strategy approved by the
new ESG Committee (see page 121 for further information).
Currys plc is the ultimate beneficial owner of the main operating
subsidiaries in the Group. In the UK, the Regulatory Compliance
Committee oversees the management of risks in relation to
regulated products and the Product Governance Committee
oversees the development of, and any subsequent material
changes to, such products. Similar governance frameworks
for regulated products are replicated in Ireland and the
International businesses.
Board reserved matters
The formal schedule of matters reserved for the decision of the
Board is considered by the directors on an annual basis. This was
last approved on 17 January 2023 and the directors agreed that
the balance of matters reserved and matters delegated remain
appropriate. The matters reserved for Board decision are
available on the Company’s website, www.currysplc.com and
these include:
• approval of published financial statements, dividend policy
and other disclosures requiring Board approval;
• declaration of interim and recommendation of final dividends;
• approval of budget and Group strategy and objectives;
• appointment and remuneration of directors, the Company
Secretary and other senior executives;
• approval of major acquisitions and disposals;
• approval of authority levels for expenditure;
• approval of certain Group policies; and
• approval of shareholder communications.
Key areas of focus for the Board during the year
• Enhanced oversight of the Nordics business – additional updates.
• Approved the Three-Year Plan.
• Oversight of liquidity management and bank covenant
renegotiation.
• Approved entering into a strategic partnership with Infosys to
establish a world-class business services capability.
• Received updates from the Nominations Committee on Board
succession, the process to recruit additional non-executive
directors and approved the appointments of Magdalena Gerger
and Adam Walker.
• Reviewed Group strategy and evaluated opportunities to
accelerate value creation for shareholders.
• Appointed new brokers and received updates on the external
market.
• Received deep dive updates including on the Company’s pension
scheme liability, the strategy for UK Mobile, pricing, and colleage
listening.
• UK store visit including presentations from stores colleagues, a
deep dive on the strategy for UK stores and the Services business.
Corporate Governance
Report continued
The Board and committees structure
Currys plc Board Audit Committee
Disclosure Committee
Nominations Committee
Remuneration Committee
ESG Committee
Executive Committee
Main operating subsidiaries
Group Sustainability Leadership
Team
Group Risk and Compliance
Committee
Regulatory Compliance Committee
Product Governance Committee
99Strategic Report Governance Financial Statements Investor Information
Board activities
during 2022/23
Strategy
• Oversight of Group performance against
strategy and delivery of transformation
projects.
• Nordics business deep dives.
• Services business deep dive.
• UK & Ireland stores deep dive.
• UK & Ireland commercial update.
• ESG governance.
• Pricing deep dive.
Financial and operational
performance
• The Company’s preliminary and interim
results, trading statements and the
annual report and accounts.
• Going concern and viability statements.
• Fair, balanced and understandable
assessment.
• Dividend, treasury and tax strategies.
• Budget approval.
• Three-year plan approval.
• New banking facility arrangements
approval.
• Capital expenditure approvals.
• International business updates.
• Capital allocation strategy.
• Consideration of short-term Pension
Fund liquidity issues.
Committee updates
• Detailed updates from each Committee Chair – Audit, Disclosure, ESG, Nominations
and Remuneration – following committee meetings.
Stakeholders
Customers
• Customer experience updates and insights.
• Customer feedback and metrics.
• Consumer Duty implementation updates.
Shareholders
• Annual general meeting documents.
• Investor Relations updates and
feedback.
• Feedback from the Chair on meetings
with the Company’s major shareholders.
• Feedback from shareholder
consultation on Directors’ Remuneration
Policy (following receiving below 80%
support for the resolution at the annual
general meeting in September 2022).
• Interim dividend approval.
Colleagues
• Meeting of the non-executive directors
with UK & Ireland and International
Colleague Forum representatives in
January 2023.
• Health and safety review.
• Colleague Share Schemes.
• People strategy and plan.
• Talent, succession planning and
leadership.
• Inclusion, diversity, culture and values
update.
• Colleague engagement and colleague
listening updates.
• Gender pay gap reporting.
Communities and
Environment
• Establishment of the ESG Committee as
a committee of the Board as part of
enhanced ESG governance framework.
• Modern slavery update and statement.
• Partnership with Digital Poverty
Alliance.
• ESG measures in bonus scorecard
metrics for 2023/24.
Governance and risk
• Risk framework and internal
control review.
• Principal risks and uncertainties review.
• Risk horizon scanning.
• Regulatory compliance updates.
• Litigation and disputes updates.
• Insurance review.
• Conflicts of Interest & new appointments.
• Group Delegation of Authority Policy.
• Board Reserved Matters and
committee terms of reference review.
• Role descriptions of the Chair of the
Board, the Group Chief Executive and
the Senior Independent Director review.
• Internally facilitated Board
effectiveness process completed.
100 Currys plc Annual Report & Accounts 2022/23
Communication with investors
The Board supports the initiatives set out in the Code and the UK
Stewardship Code 2020 and encourages regular engagement
with both existing and potential shareholders and other
stakeholders. The Board believes that it is important to explain
business developments and financial results to the Company’s
shareholders and to understand shareholder concerns. The
principal communication methods used to impart information to
shareholders are results announcements, news releases, investor
presentations and updates on the Company’s website. In addition,
the Chair of the Board invites each of the Company’s largest
shareholders to attend an engagement meeting on at least
an annual basis. Ian Dyson has met with many of the Group’s
largest shareholders during this year as part of his induction.
All shareholders are invited to submit any questions they have
for the Board to cosec@currys.co.uk or ir@currys.co.uk at any time
of the year.
The Board receives a report from the Investor Relations team at
every scheduled meeting and this includes a summary of investor
interactions during the period and a synopsis of shareholder
questions and feedback. The Board also met with the Company’s
brokers twice during the financial year to hear their perspective
on shareholder interactions and feedback.
The Group Chief Executive has principal responsibility for investor
relations. He is supported by an Investor Relations department
that, amongst other matters, ensures there is a full programme
of regular dialogue with major institutional shareholders and
potential shareholders as well as with sell-side analysts
throughout the year. In all such dialogue, care is taken to
ensure that no price-sensitive information is released.
The Chair of the Board and non-executive directors are available
to meet with major shareholders as required. During the year,
the Chair of the Remuneration Committee met with several major
shareholders to discuss remuneration matters and the Chair
of the Audit Committee was asked to join a shareholder meeting
to discuss oversight of cyber.
The Company is committed to fostering effective communication
with all members, be they institutional investors, private or
employee shareholders. The Company communicates formally to
its members when its full year and half year results are published.
These results are posted on the corporate website, as are other
external announcements and press releases.
The annual general meeting provides an opportunity for the
Company to engage with shareholders and for the Board to
provide an account of the progress made by the business during
the year, along with a synopsis of current issues facing the business.
Our stakeholders
The directors are fully aware of their responsibilities to promote
the success of the Company in accordance with section 172(1)
of the Companies Act 2006 (the ‘Act’). The Board considers the
impact on, and the responsibility it has to, all the Company’s
stakeholders as part of its decision-making. The Group
communicates with external stakeholders, including industry
bodies and regulators on the management of risks and issues.
Workforce
The Board remains committed to ensuring that it gives due regard
to the interests of all of its stakeholders, including colleagues,
including as set out under ‘Culture’ above. In its discussions, the
Board has sought to understand and take account of the views
of our colleagues. Further details are available in the Capable
and committed colleagues section on pages 18 to 23. Further
information on workforce policies and practices and how the
Company invests in and rewards colleagues is also available
in this section.
Authorisation of conflicts of interest
Each director has a duty under the Act to avoid a situation
where they have or may have a conflict of interest. They are also
required to disclose to the Board any interest in a transaction or
arrangement that is under consideration by the Company. The
General Counsel and Company Secretary supports the directors
in identifying potential conflicts of interest and reporting them to
the Board. The Board is permitted by the Company’s Articles of
Association to authorise conflicts when appropriate. Potential
conflicts are approved by the Board, or by two independent
directors if authorisation is needed urgently, and then reported
to the Board at its next meeting. A register of directors’ conflicts is
maintained and reviewed at least annually. Directors are asked to
confirm periodically that the information on the register is correct.
The Board is satisfied that the Company’s procedures to identify,
authorise and manage conflicts of interest have operated
effectively during the year.
Corporate Governance
Report continued
101Strategic Report Governance Financial Statements Investor Information
Division of
Responsibilities
Board structure
At the end of the financial year, the Board was comprised of two
executive directors, five independent non-executive directors and
the Chair of the Board to limit the ability for any individual or small
group to dominate Board decision-making. After the end of the
financial year, Magdalena Gerger joined the Board on 1 May
2023 and Adam Walker joined the Board on 8 June. Andrea Gisle
Joosen will step down from the Board on 6 July 2023. The Board
size will therefore temporarily increase from eight directors to ten
to manage the implementation of an orderly succession plan.
There is a clear division of responsibilities between the executive
leadership of the business and the leadership of the Board.
Director responsibilities
In accordance with the Code, there is a clear division of
responsibility between the Chair of the Board and the Group
Chief Executive. Role descriptions are in place for the Chair of the
Board, Group Chief Executive and Senior Independent Director
and the Nominations Committee reviews and considers these on
an annual basis and recommends any changes to the Board.
The role descriptions were last approved by the Board on
17 January 2023 and are available on the Company’s website,
www.currysplc.com. The main responsibilities of the different
components of the Board are set out below.
Chair of the Board’s responsibilities
• overall Board effectiveness and leadership;
• Board culture, including the encouragement of openness and
debate and constructive relations between the executive and
non-executive directors;
• the appropriate balance of skills, experience and knowledge
on the Board;
• oversight of the induction, development, performance
evaluation, and succession planning of the Board;
• promotion of diversity and equality of opportunity across
the Group;
• representation of all stakeholders’ interests; and
• promotion (with the support of the Company Secretary) of the
highest standards of corporate governance.
Group Chief Executive’s responsibilities
• formulation and proposal of the Group strategy and delivery
of the strategy approved by the Board;
• delivery of Group financial performance;
• leadership of the Group and senior management including
effective performance and succession planning;
• representation of the Company to key stakeholders;
• communication of Company culture and ensuring operational
practices drive appropriate behaviours;
• communication to the Board of views of the workforce;
• promotion of diversity and equality of opportunity across
the Group;
• identification of business development opportunities;
• management of Group risk profile and ensuring internal controls
and risk mitigation measures are in place;
• ensuring compliant management of the Group’s business; and
• oversight of the operational and support functions.
Senior Independent Director’s responsibilities
• available to communicate with shareholders;
• annual appraisal of the performance of the Chair of the Board;
• oversight of an orderly succession for the position of chair of
the Board;
• support the Chair of the Board in the performance of their
duties; and
• work with the Chair of the Board, other directors and
shareholders to resolve significant issues and to maintain Board
and Company stability in periods of stress.
Independent non-executive director’s
responsibilities
• provision of an independent perspective;
• ensuring constructive challenge of management;
• considering the effectiveness of the implementation of the
strategy within the risk appetite; and
• contribution of diversity of experience and backgrounds to
Board deliberations.
General Counsel and Company Secretary’s
responsibilities
• trusted advisor to the Board on corporate governance matters;
• support for the Chair of the Board and non-executive directors;
• ensuring that the Board and committees have the appropriate
type and quality of information they need to make sound
business decisions; and
• ensuring that the corporate governance framework and
practices remain fit for purpose.
102 Currys plc Annual Report & Accounts 2022/23
Time commitment and attendance
The Nominations Committee has considered the commitment
shown by the non-executive directors to the Company and is
satisfied that all directors devote appropriate time to their roles.
The Nominations Committee considers the external appointments
of each of the directors on at least an annual basis. It was
concluded again for 2022/23 that none of the directors had
external commitments that would hinder their ability to devote
sufficient time to discharging their Board role. Details of the
directors’ attendance at the Board meetings that took place
during the year can be found on page 91. There were no absences
from any scheduled Board or committee meetings during the year.
Three directors were unable to attend one Board meeting
convened at short notice to discuss the management of short-term
liquidity issues in the Company’s pension fund but each director
unable to attend the meeting provided their input to the Chair of
the Board in advance of the meeting.
Board meetings and information
The Chair of the Board is responsible for ensuring that all directors
are properly briefed on issues arising at Board meetings and
that they have full and timely access to relevant information.
A comprehensive rolling forward agenda is in place for the Board
and each committee to ensure that all regular updates and
approvals can be considered in sufficient detail whilst leaving
appropriate space on meeting agendas for the consideration
of current issues. The Company uses an electronic board paper
system which enables the safe and secure dissemination of
quality information to the Board. Paper templates and guidance
are provided to ensure that directors are provided with the
information they need to be able to discharge their duties. Formal
minutes of the Board and committee meetings are prepared by
the General Counsel and Company Secretary, or their nominee,
and are reviewed and approved by the Board or committee at
the next meeting.
The Chair of the Board maintains regular communications with the
non-executive directors in between meetings. Time is provided
before and after every Board meeting for the non-executive
directors to meet without the executives present. Board dinners
are held periodically on an evening prior to a Board meeting to
provide the opportunity to discuss corporate strategy, business
performance and other matters in an informal setting.
Board meetings are usually held at the Company’s office in
London. Where appropriate, at the discretion of the chair of
the meeting, some Board or committee meetings are held via
videoconference in accordance with the UK & Ireland hybrid
working policy. The Board usually holds meetings at other Group
locations twice each year. This enables directors to visit stores and
operational centres throughout the portfolio, meet colleagues
and gain a deeper understanding of the business. The October
2022 Board meeting was held at the Group’s office Stockholm
and the visit included a dinner with the local management team
and store visits. The March 2023 Board meeting was held at the
Company’s store in Birmingham and included a store tour and
updates on UK store strategy and the Services business.
Corporate Governance
Report continued
103Strategic Report Governance Financial Statements Investor Information
Composition, Succession
and Evaluation
Board composition and independence
At year end, the Board comprised eight members: the Chair of the
Board, two executive directors and five non-executive directors,
each of whom is determined by the Board to be independent in
character and judgement and who provide effective challenge
to the Board. Biographical information for these Board members
is available on pages 92 and 93. The Nominations Committee
considers the criteria set out in the Code when considering
independence, as well as contributions made during Board
deliberations.
More than half of the Board (excluding the Chair of the Board,
IanDyson) is considered to be independent in accordance with
the Code. Every year the Board, supported by the Nominations
Committee, considers the collective skills, experience and the
composition of the Board and assesses whether or not the Board
membership enables the effective delivery of the Company’s strategy.
The Nominations Committee, considered the composition of the
Board and its committees during the year. The Board approved
the establishment of an ESG Committee during the year given
the increased importance of the ESG agenda to each of the
Company’s stakeholders and business strategy. The Chair keeps
Board composition under regular review and addressed this
with each director during the Board effectiveness review process.
Overall, the Board is satisfied that the current composition
of the Board and committees is appropriate given the needs
of the business.
In accordance with the Code, all directors other than Andrea
Gisle Joosen will stand for re-election or election at the
Company’s AGM 2023. Biographical information for each of
the directors submitting themselves for election or re-election
is shown on pages 90, 92 and 93.
Board succession and changes to the Board
On 8 September 2022, Ian Livingston stepped down from the
Board and Ian Dyson became Chair of the Board and Nominations
Committee.
At the end of the financial year, the average director tenure was six
years. Andrea Gisle Joosen and Gerry Murphy have been on the
Board since the formation of the Company in 2014, and will have
served for nine years in August 2023. The Board, with the support
of the Nominations Committee, completed searches during the year
to identify suitable candidates to take over as non-executive
directors when Andrea and Gerry step down. This has included
considering longer-term succession plans and the Board skills matrix.
After the year end, Magdalena Gerger and Adam Walker
were appointed as directors on 1 May 2023 and 8 June 2023
respectively. Andrea Gisle Joosen will step down as a director
on 6 July 2023. Gerry has been asked to remain on the Board
for an additional year in order to support Audit Committee
succession planning and provide valuable continuity and support
to the Board as the Chair completes his first year and during the
induction of the two new non-executive directors.
Further information on Board succession planning is available in
the Nominations Committee report on pages 120 to 122.
In respect of senior management succession planning, the Board
received a detailed talent review update at the Board meeting in
October 2022. The Executive Committee complete a detailed
talent review of Group Leadership Team members on a quarterly
basis and have succession plans in place for the top 30 critical
roles in the business. This includes to monitoring diversity in the
senior team and ensuring that strong development plans are in
place including training and mentoring. The Board also receive
regular updates on talent and succession planning via the Group
Chief Executive and the Chief People, Communications and
Sustainability Officer.
Annual Board evaluation
2021/22 process
The Code recommends that the performance of the Board be
reviewed externally every three years and an external evaluation
of the Board was carried out in 2021/22. Clare Chalmers Limited
was engaged to carry out this evaluation. The process included a
document review, director and key stakeholder interviews and the
observation of Board meetings held on 18 January and 9 March
2022 and an Audit Committee meeting held on 7 March 2022.
The process addressed all matters relating to the performance
of the Board and included the roles of the executive and non-
executive directors, the Board, committees, the effectiveness
of each director and the Chair of the Board, leadership, culture,
strategy and corporate governance. A report summarising the
findings of the review was tabled at the Board meeting on
27 April 2022. Overall, the directors provided positive feedback
on the performance of the Board, highlighting in particular that:
• the Board had a good mix and balance of skills, good gender
and cognitive diversity, and the non-executive directors
contributed valuable experience and insights;
• the Board was led by a supportive and collaborative Chair
who had a strong understanding of the business and made
valuable contributions whilst ensuring that all Board members
contributed, and meeting time was used effectively;
• the Board was inclusive of the wider management team and
received regular presentations from a variety of colleagues
across the business;
• sharing an early view of the three-year plan in June 2022 and
giving the Board the opportunity to discuss this with the full
Executive Committee ahead of the submission of the final
plan in November 2022 had worked well and increased the
transparency of the process for non-executive directors;
• performance reporting had improved during the year including
key performance indicators (‘KPIs’) and performance against
the three strategic priorities;
• risk governance had improved considerably with better
integration of risk into business planning and monitoring; and
• the Board had a strong customer-centric mentality.
104 Currys plc Annual Report & Accounts 2022/23
The process identified some further actions to help enhance
effectiveness:
• ensure more time is spent on Chair and non-executive director
succession planning given the number of directors due to step down
from the Board in the next three years and the need to enhance
Board diversity – the full Board to be involved in this process;
• enhance the Board skills matrix to distinguish the level of
expertise directors have in each skill area to support Board
succession discussions;
• increase the number of Board training sessions, to keep directors
updated on evolving and technical topics;
• the Board to receive more granular information on external
insights, market trends, competitors and market share;
• enhance performance and programme oversight by way of
dashboards that include the main metrics and improve the view
the Board has of progress against strategic goals and how
effectively investments are delivering;
• increase the frequency of reporting on colleague matters
including workforce engagement and invite a representative from
the International Colleague Forum to interact directly with the
non-executive directors in the absence of management; and
• take a more structured approach to evaluation of and
feedback from suppliers.
Each of the follow up actions were successfully implemented.
More Board and Nominations Committee time was devoted to
succession planning during the year including the scheduling of
additional Nominations Committee meetings attended by the full
Board and used to brief directors on the recruitment of additional
non-executive directors. The Board skills matrix was enhanced
and used by the Nominations Committee for succession planning
discussions and a copy of this is available on page 91. The Board
received training on climate risks during the year. The feedback on
the Group Chief Executive’s report was reflected and the directors
met with representatives from the UK & Ireland and International
Colleague Forums in January 2023 and agreed that this meeting
would be repeated periodically.
2022/23 process
The 2022/23 process was carried out by way of the circulation
of questionnaires to directors supported by individual interviews
between the Chair of the Board and each director.
Overall, the directors provided positive feedback on the
operation of the Board and its committees. The key findings of the
process are summarised below:
• the Board collectively and effectively promotes the long-term
sustainable success of the Company;
• Board members work together effectively and constructively
to achieve the Board’s objectives;
• each committee has the right composition, with the right mix of
knowledge and skills to maximise performance;
• time is used effectively at Board and committee meetings and
meeting agendas cover the appropriate and relevant topics;
• the level of delegation of matters to Board committees is
appropriate and the role, remit and authority of each
committee is appropriately defined with effective reporting
back to the Board; and
• the Board has established formal and transparent policies and
procedures to ensure the independence and effectiveness of
the internal and external audit functions.
The Board considered the results of the process at the meeting
held on 26 April 2023. The following actions were agreed:
• the frequency and depth of Nordics updates to be increased
to enhance Board focus on this area of the business;
• the Board to continue to focus on succession planning and
the recruitment of additional non-executive directors; and
• additional training sessions and updates from external
speakers to be included in Board meetings.
An externally facilitated Board effectiveness review will next be
completed during 2024/25.
Chair of the Board performance
The Senior Independent Director collated feedback from the
Board on the performance of the Chair of the Board and carried
out his annual performance review. The directors provided positive
feedback on the Chair of the Board’s leadership since his
appointment during the year. The Board is of the opinion that the
Chair of the Board had no other commitments during the year that
adversely affected his performance, that his effectiveness in
leading the Board was not impaired and that he cultivated an
atmosphere that enabled challenging and constructive debate.
Individual director performance
Following the results of the internal evaluation, the Board confirms
that all directors, including the Chair of the Board, continue to be
effective and demonstrate commitment to the role, including
having time to attend all necessary meetings and to carry out
other appropriate duties.
Board diversity
The Board composition review takes account of all forms of
diversity, including gender, social and ethnic backgrounds, and
cognitive and personal strengths.
At the end of the financial year, the Board had three female
directors (37.5% of the Board), one director that is based outside
the UK, one director that meets the ethnic minority criteria as set
out in the Parker Review and the majority of the directors have
substantial international business experience. 25% of the
Executive Committee members are female. At the date of this
report, the appointments of Magdalena Gerger and Adam
Walker have increased the Board size from 8 directors to 10
with 40% of the Board female.
The review this year again concluded that the Board possessed the
necessary personal attributes, skills and experience to discharge
its duties fully and to challenge management effectively.
The Company is committed to developing a diverse workforce and
equal opportunities for all. The Board recognises that enhancing
diversity in all its forms is a critical part of having an effective
and engaged workforce which in turn supports the long-term
sustainable success of the business. Whilst the Board is strongly
supportive of enhancing all forms of diversity across the Board and
workforce as a matter of priority, the Board does not currently set
specific targets on gender balance or ethnicity. The Committee
and the Board continue to be very mindful of the benefits of
greater diversity of gender, social and ethnic backgrounds,
and cognitive and personal strengths, in all appointments.
Corporate Governance
Report continued
105Strategic Report Governance Financial Statements Investor Information
In accordance with DTR 7.2.8A, the Committee confirms that the
Board has adopted the same diversity policy as in place for UK &
Ireland colleagues and senior management. The Equality, Inclusion
& Diversity: Dignity at Work Policy was last approved by the
Nominations Committee in October 2022.
Board induction and training
New directors appointed to the Board receive a personal induction
programme, together with guidance and training appropriate to their
level of previous experience. Each director is given the opportunity
to meet with senior management and store colleagues and to visit
the Group’s key sites. This enables familiarisation with the businesses,
operations, systems and markets in which the Group operates. New
directors also meet with the Group’s external Auditor and advisors.
An example of a typical induction programme is included in the
table below. The Chair of the Board will meet with a new director
(or the Senior Independent Director in the event of a new chair) on
appointment to agree any appropriate changes to be made
before the start of the induction. Directors are provided with a
comprehensive induction pack on appointment. In addition, Group
information and policies are maintained within the electronic board
paper portal to ensure directors have access to current resources.
Ian Dyson joined the Board on 1 September 2022 and has
completed his induction during the year. Ian has met with several of
the Group’s largest shareholders and the Group’s external Auditor
and advisors since his appointment. At the date of this report, the
induction programmes for Magdalena Gerger and Adam Walker
are underway.
The directors are invited to nominate topics that they would like to
receive training on. During the year, the directors received training
on climate change and the management of climate-related risks.
Directors arrange individual meetings with Executive Committee
members as required when they require additional information or
context on a specific topic.
Standard induction programme briefings and information
Induction plans are customised for each incoming director depending on their individual requirements but will usually cover the following
key areas, meetings and locations as a minimum:
Business and strategy
• Business model and strategy.
• Markets and competitive landscape.
• Overview of each business area.
• ESG matters.
Finance
• Finance, treasury and tax overviews.
• Budget, forecast and Three Year Plan.
• Key accounting issues.
Audit
• Internal audit reports and findings.
• Risk and internal controls.
• Risk horizon.
Investor relations
• Shareholder base and communications.
• Analyst coverage and perspectives.
• Communication policies.
Governance
• Overview of committees.
• UK Corporate Governance Code and best practice guidance.
• UK listed company requirements including Market Abuse Regime.
• Companies Act and directors’ duties.
• Company Articles of Association and the role of the Board.
People to meet
• Directors.
• Committee chairs.
• General Counsel and Company Secretary.
• Members of the Executive Committee.
• Senior management, including the Group Director of Internal Audit, Risk and Insurance.
• Members of the external audit team.
• Store and distribution centre colleagues.
Sites to visit
• Different format stores in the UK & Ireland, Nordics and Greece.
• The Newark Distribution Centre.
• The store colleague training centre The Academy@FortDunlop.
106 Currys plc Annual Report & Accounts 2022/23
Risk management and internal control
The Board has overall responsibility for the Group’s system of
risk management and internal control and for reviewing its
effectiveness. The Board is supported by the Audit Committee,
the Group Risk and Compliance Committee, the Regulatory
Compliance Committee, business unit risk committees and the
Risk team in delivering on this responsibility.
The Group operates a process of continuous identification and
review of business risks. This includes the monitoring of principal
risks, undertaking horizon scanning to identify emerging risks,
evaluating how risks may affect the achievement of business
objectives and, by taking into account risk appetite, reviewing
management’s treatment of the risks.
The main business units, locations and functions are responsible
for preparing and maintaining risk registers and operating risk
management processes for their areas of responsibility. Risk
registers and the risk processes are undertaken in accordance with
a consistent Group risk management methodology and process.
The Group Risk and Compliance Committee meets at least four
times annually and there are additional meetings on risk appetite
or deep dive topics as required. The work of the Group Risk and
Compliance Committee includes: assessing and challenging the
consolidated risk profile, agreeing and monitoring the Group’s
principal risks; determining the prioritisation of mitigating actions;
reviewing the Company’s horizon-scanning processes and its
emerging risks; and providing reports and recommendations to
the Audit Committee and Board including to assist with the setting
of risk appetite with regard to the principal risks.
Our approach to risk management continues to evolve as part of
our organisational focus on transformation and how we continue
in optimal decision-making in an increasingly fast-moving
environment. The Group Risk team has continued to facilitate
the evaluation of the principal risks facing the Group.
In addition to the Group’s principal risks, the business faces
emerging threats which have been identified through horizon
scanning that may potentially impact the business in the longer-
term. The Group Risk and Compliance Committee evaluates
the appropriateness of management planning to address such
emerging risks. In some areas, there may be insufficient information
to understand the scale, impact or velocity of these risks.
Emerging risks continue to be monitored as part of the ongoing
risk management process in order to ensure that action is taken
at the right time.
Corporate Governance
Report continued
Assurance provision
Board
Responsible for risk management and internal control
Defines Currys’ risk appetite
Reviews and approves the risk profile
Group Risk and Compliance
Committee
• Reviews Group and business unit
Risk Registers.
• Monitors the management of key risks.
• Considers new and emerging risks.
Audit Committee
• Reviews the effectiveness of
internal control.
• Approves the annual internal
and external audit plans.
• Considers the internal audit
reviews across the Group.
Executive management
• Responsible for the
implementation of the risk
management process and
the operation of the internal
control environment.
Supported by the Group Director of Internal Audit, Risk and Insurance
Group
Sustainability
Leadership Team
Regulatory
Compliance
Committee
Business Continuity
Planning Steering
Committee
Information Security
and Data Protection
Committee
Business unit
and functional
risk experts
Group risk management structure
107Strategic Report Governance Financial Statements Investor Information
The Directors confirm that they have carried out a robust
assessment of the principal and emerging risks facing the Group,
including those that would threaten its business model, future
performance, solvency or liquidity. A description of the principal
risks, together with details of how they are managed or mitigated,
is set out on pages 64 to 72.
The system of risk management and internal control can only
provide reasonable and not absolute assurance against material
errors, losses, fraud or breaches of laws and regulations.
The Board also monitors the Company’s system of risk
management and internal control and conducts a review of its
effectiveness at least once a year. This year’s review covered all
material controls during the year and up to the date of approval
of the Annual Report and Accounts 2022/23, which were
approved by the Audit Committee and the Board.
The diagram on page 106 shows the governance structure in place
over the Group’s risk management activities, as at 6 July 2023.
Risk appetite
Currys faces a broad range of risks reflecting the business
environment in which it operates. The risks arising from Currys’
business environment and operating model can be significant.
Successful financial performance for the business is achieved by
managing these risks through intelligent decision-making and an
effective control environment that details the processes and
controls required to mitigate risk.
The Company’s risk appetite is set by the Board and governs the
amount of acceptable risk within which we operate. Our Group
risk appetite is further disaggregated by principal risk and takes
into consideration the acceptable level of risk across strategic,
operational, financial and regulatory risks faced by the business.
Reference to our appetite in business decisions provides guidance
for objective, risk-aware decision-making. A three-point scale
is used to assess the risk appetite for each of our principal
risks. Iflevels of risk in excess of appetite are being taken,
mitigating actions are identified to bring the risk back within
an acceptable level.
Currys’ general risk appetite is a balanced one that allows taking
measured risk as the Company pursues its strategic objectives,
whilst aiming to manage and minimise risk in its operations.
Currys recognises that it is not possible or necessarily desirable
to eliminate all of the risks inherent in its activities. Acceptance
of some risk is inherent in operations and necessary to foster
innovation and growth within its business practices.
Committed to effective risk management
The Board has overall responsibility for the system of internal
control and for reviewing its effectiveness. It relies on the Audit
and Risk Committees to assist in this process. In addition, members
of the Executive Committee, operating through the Risk Committee,
are accountable for identifying, mitigating and managing risks in
their area of responsibility. Management is also responsible for
implementing controls that are designed to ensure regulatory
compliance, financial and operational control and to confirm
that these operate effectively to protect the business from loss.
The Audit Committee reviews aspects of the internal control
environment as outlined in the Audit Committee Report on page
110 to 118 and the Board has considered the controls findings
raised in the Independent Auditor’s report on pages 159 to 168.
No significant failings or weaknesses were identified during the
period ending 29 April 2023. Where areas have been identified
that require improvement, plans are in place to ensure that
necessary actions are taken and that progress is monitored.
A report of the principal risks together with the viability statement
can be found on pages 64 to 73.
Controls, by their very nature, are designed to manage rather than
eliminate risk and can only provide reasonable assurance against
material misstatement or loss.
108 Currys plc Annual Report & Accounts 2022/23
Our System of
Internal Control
Our system of internal control is built on the pillars of Governance, the Tone from the Top, Control Activities, Risk Management and
Assurance. These are more fully described below:
Governance
• The Board has defined a risk appetite which sets the boundaries within which risk-based decision-
making can occur and outlines the expectations for the operation of the control environment.
• A Delegation of Authority Policy operates across the Group.
• Business planning, annual budgeting process and the setting of personal business objectives are
aligned to ensure focus on delivery of activities to support the delivery of strategic objectives.
• Policies and procedures are in place outlining the requirements for the control in finance,
operational, technology, regulatory and people areas. These include detailed standards for
the operation of Infosec, PCI and data compliance.
• Across the business, central functions and business committees support the operation of an
effective risk and control environment.
The Tone From
The Top
• The Tone from the Top communicates a clear commitment to do the right thing for customers,
colleagues and shareholders. Colleague behaviours are outlined in the Code of Business Conduct.
• The organisation demonstrates its commitment to ethical values through its range of ESG initiatives
and programmes.
• The business is committed to maintaining an ethical supply chain and undertakes activities to
ensure that our suppliers satisfy our Responsible Sourcing policy.
• All senior managers and colleagues engaged in FCA-regulated activities are required to complete
an annual Ethical Conduct declaration.
• The operation of a 24/7 whistleblowing hotline to enable the reporting of breaches of ethical
or policy requirements.
Control Activities
• All major capital and change programmes are evaluated by the Change Board. This includes
consideration of the risk involved to the achievement of successful delivery and the achievement
of projected benefits.
• A Programme Management Office operates to oversee delivery of our major Perform and
Transform change initiatives.
• Control activities operate to manage risk associated with our technology and information
security. These continue to evolve in line with the deployment of new systems and to meet the
challenges posed by external threats.
• A minimum controls framework is in place defining the key financial controls that are expected
to operate across the businesses core processes and activities.
• A financial services risk and control framework identifies control objectives for activities that
underpin customer outcomes in our financial services regulated activities.
• Training and development is provided to colleagues to cover their responsibilities for risk
management, compliance, and their operational obligations.
• Our performance management process holds colleagues accountable for their responsibilities.
• Fraud and loss prevention processes operate across our omnichannel and Supply Chain activities.
• Continuous improvement takes place throughout the organisation to improve the operation
of processes and controls. This is informed by actions identified through internal audit and
compliance monitoring reviews as well as customer feedback, the results of quality assurance
and through the complaints management process.
• The business is working towards compliance with potential UK SOX requirements.
Corporate Governance
Report continued
109Strategic Report Governance Financial Statements Investor Information
Risk Management
• A risk identification process operates in accordance with the Group risk management methodology.
This ensures that risk management takes place consistently across the Group to identify and
evaluate the significant risks faced by the Group.
• The Group Risk Register covers the principal risks faced by the business, their potential impact
and likelihood of occurrence and the key controls or actions established to mitigate these risks.
• The risk management framework operates across the business with key business units undertaking
risk assessment and risk management activities.
• The Group Risk team undertakes horizon scanning reviews to identify emerging risks and
opportunities that may impact the business.
• The Group Risk and Compliance Committee meets at least four times a year to review the
management of risk arising out of the Group’s activities and to monitor the status or risk and
actions at the Group and business unit level.
• The Board carries out an assessment of the principal risks, emerging risks together with matters
that would threaten the business model, future performance, solvency and liquidity.
Assurance
• The Audit Committee approves the annual internal audit programme. The progress of the plan
and the results of the audits are reviewed throughout the year.
• A compliance monitoring function reviews operation of financial services regulated activities.
• Annual evaluations are undertaken by business management against the minimum control
framework in order to ensure that the control environment operates as intended. Any deficiencies
identified are subject to remedial action.
• A broad range of assurance activities are undertaken across the business by functional
management to review the management of key risks.
• The Group communicates with external stakeholders, including industry bodies and regulators
on the management of risks and issues.
Internal audit
The Group has an internal audit department which conducts audits
of selected business processes and functions. The Group’s internal
audit plan sets out the internal audit programme for the year
and is agreed at the April Audit Committee meeting for the year
ahead. The internal audit plans are prepared taking into account
the principal risks across the Group with input from management
and the Audit Committee. The internal audit plan is designed each
year to test the robustness of financial and operational controls
and to determine whether operating procedures are designed and
operating effectively. The Audit Committee considers the alignment
of the internal audit plan with the principal risks faced by the
Group as part of its approval process. The Audit Committee
approved the 2023/24 internal audit plan in April 2023, having
considered the audit priorities.
The Chair of the Audit Committee receives and reviews all
reports from the internal audit department detailing its material
findings from testing performed and any recommendations for
improvement. The Audit Committee receives each audit report
with a summary at each meeting. The internal audit team tracks
and reports on the progress against the audit plan and the
implementation of action plans agreed with management.
Once closed, the action plans agreed with management can be
reviewed to determine whether any new controls and procedures
have been implemented effectively.
The Audit Committee considered the effectiveness of the internal
audit department by considering; scope, resources and access to
information as laid out in the internal audit charter; the reporting
line of internal audit; the internal audit three-year strategy; the
annual internal audit work plan; and the results of the work of
internal audit. The Audit Committee concluded that the internal
audit function operated effectively during the year.
Capital and constitutional disclosures
Information on the Company’s share capital and constitution
required to be included in this Corporate Governance Statement
is contained in the Directors’ Report on pages 94 to 96. Such
information is incorporated into this Corporate Governance
Statement by reference and is deemed to be part of it.
The annual general meeting provides an opportunity for the
Company to engage with shareholders and for the Board to
provide an account of the progress made by the business during
the year, along with a synopsis of current issues facing the
business. Shareholders can also submit any questions to the Board
at any time of the year via the General Counsel and Company
Secretary at cosec@currys.co.uk. We look forward to receiving
your feedback and questions.
Further financial and business information is available on the
Group’s corporate website, www.currysplc.com.
Ian Dyson
Chair of the Board
6 July 2023
110 Currys plc Annual Report & Accounts 2022/23
2022/23 HIGHLIGHTS
• Consideration of accounting and
management judgements including
the assessment of impairment of
Nordics and UK & Ireland goodwill
• Induction of new external
Audit team.
• Business deep dives including
supplier management and delivery
partner strategy and controls.
Chair’s statement
I am pleased to present the Audit Committee (the ‘Committee’) Report for the year
ended 29 April 2023. This report describes how the Committee has carried out its duties
to provide independent scrutiny of the Group’s financial reporting, risk management
and internal control systems during the year, in order to determine whether these remain
effective and appropriate.
During the year, I met regularly with the Group Chief Financial Officer, the Chief
Information Officer and the Group Director of Internal Audit, Risk and Insurance between
scheduled Committee meetings and in the absence of management to discuss their
reports as well as any relevant issues. The other Committee members also frequently
contacted members of management directly when they had questions on Committee
papers received.
I met regularly with members of the KPMG LLP (‘KPMG’) audit team including additional
meetings to provide support and induction as 2022/23 has been the first year that KPMG
has been the external Auditor.
This year, the Committee has considered accounting and management judgements
particularly in respect of the challenging external trading environment. The Committee has
continued to oversee the information security and cyber security programmes. Regulatory
compliance, including the Financial Conduct Authority’s (‘FCA’) new Consumer Duty
requirements, continues to be an important area of Committee focus in addition to
accounting matters and other duties. The Committee continues to have oversight across
the international footprint of the Group.
The only significant change to the responsibilities and role of the Committee during this
financial year was that the oversight of ESG data in the Group’s annual report and
accounts has become the responsibility of the Environment, Social and Governance
(‘ESG’) Committee which was established as a committee of the Board during the year.
Prior to this change, the Committee received an update on the plan for ESG reporting and
assurance in October 2022. The Committee continues to have responsibility for ensuring
that the annual report as a whole is fair, balanced and understandable notwithstanding
that it will no longer be involved in the oversight of the detailed assurance process for the
preparation of ESG data. The Committee continues to monitor with interest the external
market reforms designed to enhance the quality of audits and anticipates that there will
be an evolution of the duties of audit committees.
The Committee considered the requirements arising from the Companies (Miscellaneous
Reporting) Regulations 2018 and the UK Corporate Governance Code 2018 (the ‘Code’)
as part of the process to review the non-financial information included in this Annual
Report and Accounts, including in particular the section 172(1) statement on pages 36
and 39.
Number of meetings
6
Audit Committee topics coverage 2022/23
Anti money
laundering: 1
Bribery and
corruption: 1
Compliance: 5
Data protection: 1
Fraud and loss: 1
Information and
cyber security: 3
Internal controls: 3
IT general controls: 3
Risk review: 3
Whistleblowing: 5
Committee members Meeting attendance
Fiona McBain (Chair) 6/6
Eileen Burbidge 6/6
Gerry Murphy 6/6
Audit
Committee Report
www.currysplc.com
Committee Terms of Reference last
approved: 17 January 2023 and available
on www.currysplc.com
The biographical details for each
Committee member are available on
pages 92 and 93.
FURTHER
INFORMATION
111Strategic Report Governance Financial Statements Investor Information
Meetings and membership
The Committee met six times during the period under review and
each of these were scheduled meetings. Since the year end, there
has been two further Committee meetings. The Chair of the Board,
Group Chief Executive, Group Chief Financial Officer, Group
Financial Controller, Group Director of Internal Audit, Risk and
Insurance, General Counsel and Company Secretary and
representatives from KPMG, the external Auditor, have a standing
invite from the Committee Chair to join all Committee meetings.
Other members of senior management attend Committee
meetings by invitation including team members with responsibility
for information security and data management and those with
responsibility for internal controls including from the international
businesses. The Committee’s deliberations are reported by its
Chair at the next Board meeting and the minutes of each meeting
are circulated to all members of the Board.
There have not been any changes to the membership of the
Committee during the financial year. After the end of the financial
year, Adam Walker was appointed as a director and member
of the Committee on 8 June 2023. In compliance with the Code,
the Committee continues to consist exclusively of independent
non-executive directors. The Board continues to be satisfied that
the Chair of the Committee, a member of the Institute of Chartered
Accountants in England and Wales (‘ICAEW’), and Gerry Murphy,
also a member of the ICAEW, meet the requirement for recent
and relevant financial experience. The Committee, as a whole,
has competence relevant to the sector in which the Company
operates. The biographical details outlining the relevant
experience of the Committee members can be found on
pages 92 and 93. The Company Secretary, or their nominee,
acts as Secretary to the Committee and attends all meetings.
The Committee members meet without management present
before and after each Committee meeting. The Group Director
of Internal Audit, Risk and Insurance and representatives of KPMG
are invited to these private discussions periodically to allow
discussion of matters which they may wish to raise in the absence
of management.
In undertaking its duties, the Committee has access to the
services of the Group Director of Internal Audit, Risk and Insurance,
the Group Chief Financial Officer, the General Counsel and
Company Secretary and their respective teams, as well as
external professional advice as necessary. The Board makes
funds available to the Committee to enable it to take
independent legal, accounting or other advice when the
Committee believes it necessary to do so.
Looking ahead
The Committee will continue to focus on the Company’s financial
reporting and key accounting judgements and monitor the
operation of internal controls and management of risks. The
Committee will also continue to support the business by reviewing
and challenging the governance, risk and control environments
relating to strategic plans. The Committee will oversee the
implementation of Consumer Duty requirements and plans to
comply with the updated UK Corporate Governance Code
including the development of an audit and assurance policy.
Responsibilities
The Committee assists the Board in fulfilling its oversight
responsibilities by acting independently from the executive
directors. There is an annual schedule of items which are
allocated to the meetings during the year to monitor that the
Committee covers fully those items within its terms of reference.
These items are supplemented throughout the year as key
matters arise.
Key matters considered
The principal activities of the Committee during 2022/23 included:
• considering significant accounting and reporting judgements
including the UK & Ireland and Nordics Goodwill impairment
assessment, the appropriateness of taxation disclosures and
the appropriateness of the Group’s going concern position
and longer-term viability statement;
• considering and recommending that the Annual Report and
Accounts 2022/23, when taken as a whole, are fair, balanced
and understandable;
• reviewing the interim results in December 2022;
• considering the presentation, fairness, and balance of the
Group’s alternative performance measures (‘APMs’);
• reviewing the Group Risk Register and considering the
effectiveness of the risk management system and internal
controls, operated by management;
• considering updates on IT general controls, information security,
IT infrastructure and data management;
• providing oversight of the businesses regulated by the FCA
and receiving reports from the Head of Compliance;
• approving the internal audit annual plan, internal audit
three-year strategy, considering internal audit reports and
management actions, and monitoring the effectiveness of
internal audit in line with the approved internal audit charter;
• considering the external audit plan, audit reports and updates
from KPMG;
• monitoring the effectiveness of the external Auditor; and
• receiving presentations and challenging management on
matters such as system access controls, data management,
regulatory compliance-related customer claims, minimum
control standards assessments, whistleblowing and procedures
in place to prevent bribery and corruption.
112 Currys plc Annual Report & Accounts 2022/23
Accounting and financial reporting matters
The Committee is responsible for considering reports from
the external Auditor and monitoring the integrity of the interim
statement and annual report and accounts in conjunction
with senior management. During the year ended 29 April 2023,
consideration was given to the suitability and application of the
Group’s accounting policies and practices, including areas where
significant levels of judgement have been applied or significant
items have been discussed with the external Auditor.
Principal duties of the Committee
Accounting and financial reporting matters
• monitoring the integrity of the interim statement and annual
report and accounts, and any formal announcements
relating to the Group’s financial performance, reporting to
the Board on significant reporting issues and judgement
contained in them;
• reviewing significant financial reporting judgements and
accounting policies;
• reviewing the Committee’s report outlining the Committee’s
activities for inclusion in the Company’s annual report
and accounts;
• advising the Board on whether, as a whole, the annual report
and accounts are fair, balanced and understandable;
• considering the going concern statement;
• considering and reviewing the statement of the Group’s
viability over a specified period; and
• having regard to the applicable legal, regulatory and best
practice requirements and standards for reporting including
the UK Corporate Governance Code, the UK Financial
Reporting Council, the FCAs Disclosure Guidance and
Transparency Rules and Listing Rules and the
recommendations of the Taskforce on Climate-related
Financial Disclosure.
Risk management and internal control
• reviewing the Group’s financial controls and internal control
effectiveness and maturity;
• reviewing the Group’s risk management systems and risk
appetite; and
• reviewing and approval of the statements to be included in
the annual report and accounts concerning internal control,
risk management and the viability statement.
Compliance, conflicts, whistleblowing and fraud
• reviewing the adequacy of the Company’s whistleblowing
arrangements;
• reviewing the Company’s procedures to detect and
manage fraud;
• reviewing the Company’s systems and controls for the
prevention of bribery; and
• considering the effectiveness of the Company’s
compliance function.
Internal audit
• approving the appointment of the Group Director of Risk,
Internal Audit and Insurance;
• monitoring and assessing the effectiveness of the Group’s
internal audit function;
• approving the internal audit three-year strategy and
internal plan;
• considering the reports of work performed by internal audit
and reviewing the actions taken by management to
implement the recommendations of internal audit; and
• considering the major findings of internal investigations.
External audit
• considering recommendation of the external Auditor’s
appointment, reappointment and removal to the
shareholders in the annual general meeting and approving
their remuneration;
• reviewing the results and conclusions of work performed
by the external Auditor; and
• reviewing and monitoring the relationship with the external
Auditor, including their independence, objectivity,
effectiveness and terms of engagement.
General matters
• any specific topics as defined by the Board; and
• referring matters to the Board which, in its opinion, should be
addressed at a meeting of the Board.
Audit
Committee Report continued
113Strategic Report Governance Financial Statements Investor Information
Accounting and financial reporting matters Matters considered and how the Committee discharged its duties
Going concern and
viability statements
The Committee reviewed the processes and assumptions underlying both the going concern
and longer-term viability statements made on page 73 of the Annual Report and Accounts
2022/23.
In particular, the Committee considered:
• the impact in respect of uncertainties including macroeconomic downturn, the cost of living
pressures and high inflation;
• management’s assessment of the Group’s prospects including its current position,
assessment of principal business risks and its current business model, future cash forecasts,
historical cash flow forecasting accuracy, profit projections, available financing facilities,
facility headroom and banking covenants;
• the appropriateness of the three-year time period under assessment, noting that while
the most recent strategic plan has a five-year outlook, this is not the typical planning
horizon for the Group and is instead the result of current macroeconomic uncertainty.
The Committee has also considered the shorter-term nature of the retail market in which
the Group operates; and
• the robustness and severity of the stress-test scenarios with reference to the Group’s Risk
Register, those principal risks and mitigating actions as described on pages 64 to 72 of
the ARA 2022/23, the latest Board-approved budgets, strategic plans, and indicative
headroom under the current facilities available – examples of which included the impact
of regulatory, taxation or information security incidents, and reduced forecast profitability
and cash flow as a result of a market downturn.
The Committee concurred with management’s conclusions that the viability statement,
including the three-year period of assessment, disclosed on page 73 of the ARA 2022/23
is appropriate. The Board was advised accordingly.
Fair, balanced and
understandable
In ensuring that the Group’s reporting is fair, balanced and understandable, the Committee
reviewed the classification of items between adjusting and non-adjusting items including
consideration of the £568m pre-tax adjusting items disclosed in note A4 in the glossary
and definitions section of the Annual Report and Accounts 2022/23, and the tax impact
thereon. The assessment considered whether items fell within the Group’s definition of
adjusting items as well as the consistency of treatment of such items year on year.
The Committee gave due consideration to the integrity and sufficiency of information
disclosed in the Annual Report and Accounts 2022/23 to ensure that they explain the Group’s
position, performance, business model and strategy. An assessment of narrative reporting
was included to ensure consistency with the financial reporting section, including appropriate
disclosure of material adjusting items, and appropriate balance and prominence of statutory
and non-statutory performance measures. In response to the guidelines on APMs issued by
the European Securities and Markets Authority (‘ESMA’), the Committee considered the use of
such measures and the additional information on those APMs used by the Group is provided
in the glossary on pages 231 to 244.
The Committee concluded that the Annual Report and Accounts 2022/23, taken as a whole,
are fair, balanced and understandable, and that the measures used and disclosures made
are appropriate to provide users with a meaningful assessment of the performance of the
underlying operations of the Group; the Board was advised of the conclusion.
Matters of significance
and areas of judgement
The Committee received reports and recommendations from management and the external
Auditor setting out the significant accounting issues and judgements applicable to the
following key areas. These were discussed and challenged, where appropriate, by the
Committee. Following debate, the Committee concurred with management’s conclusions.
114 Currys plc Annual Report & Accounts 2022/23
Audit
Committee Report continued
Accounting and financial reporting matters Matters considered and how the Committee discharged its duties
Impairment testing of
non-financial assets
The Group discloses impairment of non-financial assets as a ‘key source of estimation
uncertainty’ as set out in note 1(d) to the Group financial statements.
The Group has significant goodwill, intangible assets and fixed asset investments which are
reviewed for impairment annually, or where there is an indicator of impairment. The Committee
reviewed appropriateness and accuracy of cash flow forecasts, discount rates and
long-term growth rates used in the impairment review performed at both the interim and year
end dates. Specific attention was paid to cash flow forecasts in light of uncertainties such
as the macroeconomic downturn, cost of living pressures, high inflation, climate risk and the
level of sensitivities applied by management in determining reasonably possible changes to
cash flows. An impairment of £511m against Goodwill was recognised in the period and further
detail on the sensitivity analysis are provided in note 5 to the Group financial statements.
In addition, the assumptions and approach to calculating the impairment of the Company’s
investment were reviewed in detail. This included assessing the components of the
subsidiaries’ value in use (‘VIU’) and ensuring consistency with the Goodwill impairment
models. As highlighted in note C4 to the Company financial statements an impairment over
the investment of £332m was recognised in the year which was eliminated on consolidation.
Further detail on the sensitivities of this impairment test are provided in note C4 to the
Company financial statements.
Taxation
The Group operates across multiple tax jurisdictions. The complex nature of tax legislation
in certain jurisdictions can necessitate the use of judgement.
The Committee reviewed the judgements and assumptions concerning any significant tax
exposures, including progress made on matters being discussed with tax authorities and,
where applicable, advice provided by external advisors. The total provisions recognised
at the balance sheet date amounted to £59m (2021/22: £66m).
The Committee also reviewed the appropriateness of the disclosures made around tax
provisions, contingent liabilities, and deferred tax balances.
The Group discloses tax provisions and contingent liabilities in relation to uncertain tax
positions as a ‘critical accounting judgement’ as set out in note 1(d) to the Group financial
statements.
Financial Reporting Council
During 2023, the Group received notification of the outcome of the Financial Reporting Council’s (‘FRC’) Corporate Reporting Review
team’s review of the Group’s annual report and accounts for the period ended 30 April 2022.
This review was undertaken in accordance with part 2 of the FRC Corporate Reporting Review Operating Procedures, and is based
solely on the annual report and accounts, and does not benefit from detailed knowledge of our business or an understanding of
the underlying transactions entered into. The review does not provide assurance that the annual report and accounts are correct in
all material respects. A small number of areas for disclosure improvement were noted as part of the review, and management have
briefed the Committee on how these have been addressed. The outcome of the enquiry is that the Group revisited the calculation of
the recoverable amount of parent company investments and has restated the disclosure of the headroom in the prior year as set out
in note C4 of the parent company financial statements. The Committee is satisfied that this has been properly addressed and the
FRC has acknowledged that it has concluded its consideration of the annual report and accounts for the period ended 30 April 2022.
115Strategic Report Governance Financial Statements Investor Information
Risk management and internal control
The Audit Committee is responsible for reviewing the Group’s risk management and internal control systems. Details of the overall
risk management and governance policies and procedures are given in the Corporate Governance Report on pages 97 to 109. The
Committee reviewed management’s assessment of risk and internal control, results of work performed by the second lines of defence
and internal audit, and the results and controls observations arising from the interim review procedures and the annual audit performed
by the external Auditor. The Committee also ensured that all risk topics were covered, as defined by its terms of reference, with detailed
reviews of risk topics scheduled throughout the year monitoring potential areas of concern.
Specific matters considered by the Committee to discharge its duties are detailed below:
Risk management and internal control Matters considered and how the Committee discharged its duties
Bribery and corruption
• The Committee reviewed the arrangements put in place to satisfy requirements to comply
with regulation for anti-bribery and corruption.
Anti-money laundering
• The Committee reviewed the arrangements put in place to satisfy requirements to comply
with regulation for anti-money laundering.
Data protection
• The Committee reviewed data protection compliance throughout the Group, particularly in
relation to the embedding of policies, procedures and processes implemented to comply
with the requirements of EU General Data Protection Regulation.
Compliance
• The Committee reviewed the nature of financial services regulated activities across
the Group’s business operations and the governance and oversight arrangements for
the operation of an effective FCA compliance regime in the business including the
implementation of the FCA’s Consumer Duty requirements. The Committee considered
compliance and regulatory reports prepared by the Regulatory Compliance Committee
and monitored key developments and ongoing activities for the Compliance team in areas
of governance, policy and compliance monitoring.
Information security and
IT controls framework
• The Committee regularly reviews the progress of the ongoing security improvement
programme and periodically considers and reviews the IT general controls framework and
related improvement initiatives progressed by the management team, in order to monitor
that appropriate actions are taken.
• The Company is currently undergoing a large transformation programme across many areas
of the business including its IT infrastructure. All transformation programmes are managed
in line with the Group risk management methodology to manage the risk appropriately in
order to provide reasonable reassurance against material losses.
Internal controls
• As per the obligations placed on the Committee under the Code, the Committee formally
considered a review of the system of risk management and internal control. The Committee
noted developments in the system of risk management and internal control, management
plans for 2022/23 and agreed the statements contained in the Annual Report and
Accounts 2022/23. The Committee reviewed the results of internal audit reviews and
minimum controls standards assessments.
Whistleblowing
• The Committee reviews a summary of all whistleblowing calls received by the Group, both
through the independently operated hotline and other channels. The Committee confirmed
that the calls had been appropriately dealt with (both individually and in aggregate) in
accordance with the Group’s Whistleblowing Policy.
116 Currys plc Annual Report & Accounts 2022/23
Audit
Committee Report continued
Internal audit
Internal audit is an independent, objective assurance function that impartially appraises the Group’s control activities. Internal audit
works with management to help improve the overall control environment and assist Group management, the Committee and the Board
in discharging their respective duties relating to maintaining an adequate and effective system of internal control and risk management,
and safeguarding the assets, activities and interests of the Group.
Internal audit Matters considered and how the Committee discharged its duties
Audit reviews of
significant risk areas
• The Committee considered the alignment of the annual internal audit plan with the key risks
of the business.
• During the period, internal audits included coverage of the following significant risk areas
of the business:
– cyber and data;
– business transformation;
– customer experience;
– relationships with major suppliers and third-party contracts;
– business continuity and disaster recovery;
– International business;
– financial controls; and
– financial services regulatory compliance.
• The Committee considered the key trends and material findings arising from internal audit’s
work and the adequacy of the agreed management actions in relation to those findings.
Assurance programme
• The Committee approved the annual internal audit plan and received an update relating
to the execution of the annual plan at each Committee meeting. It also considered and
approved the internal audit three-year strategy.
• As part of the rolling assurance programme, audits were performed over the following
processes to provide assurance to the Committee that controls were operating within
these areas:
– general business controls relating to UK & Ireland operations including cloud governance
and controls, information security operations, financial services compliance, major
third-party governance, delivery partner governance, business continuity and disaster
recovery arrangements, transformation processes, and financial controls;
– Nordics cloud governance and controls, information security operations, business
continuity and disaster recovery arrangements, financial services compliance and
financial controls; and
– Greek cloud governance and controls and financial controls.
• The Committee considered the actions taken by management in relation to the
audit findings.
• The Committee considered the results from these audits during its assessment of the
effectiveness of the system of internal control operated by management. The Committee
concluded that the system of internal control was appropriately monitored and managed.
Effectiveness of internal
audit and adequacy of its
resources
• The Committee approved the internal audit charter, concluding the role and mandate
were appropriate to the current needs of the organisation.
• The Committee monitored the work of internal audit and formally reviewed the
effectiveness of internal audit and the adequacy of its resources, considering:
– scope, resources and access to information as laid out in the internal audit charter;
– the reporting line of internal audit;
– the annual internal audit work plan; and
– the results of the work of internal audit.
• The Committee concluded that the internal audit department had in all respects been
effective during the period under review and performed its duties in accordance with its
agreed charter.
• The process to undertake an External Quality Assessment over the internal audit
department was commenced.
117Strategic Report Governance Financial Statements Investor Information
External audit
The external Auditor is appointed by shareholders to provide an opinion on the annual report and accounts and certain disclosures
prepared by Group management. KPMG acted as the external Auditor to the Group throughout the year. The Committee is responsible
for oversight of the external Auditor, including approving the annual audit plan and all associated audit fees. The key matters in relation
to external audit that were considered by the Committee were:
External audit Matters considered and how the Committee discharged its duties
Effectiveness of the
external Auditor
• The Committee reviewed and agreed the annual audit plan, specifically considering the
appropriateness of the key risks identified and proposed audit work, the scope of the
audit and materiality levels applied which are detailed in the Independent Auditor’s report
on pages 159 to 168.
• As part of the reporting of the half year and full year results, the Committee reviewed
the reports presented by KPMG in assessing the Group’s significant accounting judgements
and estimates, and considered the audit work undertaken, level of challenge and quality
of reporting.
• Following due consideration of the above, the Committee continues to be satisfied with
the quality and effectiveness of the external audit.
Auditor
independence
• The Committee considered the external Auditor’s assessment of and declaration of
independence presented in the annual audit plan and final audit report, and the
safeguards in place to make such declarations.
• The Committee considered the annual audit fee and fees for non-audit services, with due
regard to the balance between audit and non-audit fees and the nature of non-audit
fees undertaken in accordance with the policy as set out below.
• The Committee reviewed and approved the Group policy on the employment of former
employees of the external Auditor in March 2023.
118 Currys plc Annual Report & Accounts 2022/23
Audit
Committee Report continued
Policy on provision of non-audit services provided
by the external Auditor
Under the Group’s policy on auditor independence, the external
Auditor may only provide services which include:
a) audit services comprising issuing audit opinions on the Group’s
consolidated financial statements and on the statutory
financial statements of subsidiaries and joint ventures;
b) audit-related services comprising review of the Group’s
consolidated interim financial statements, and opinions /
audit reports on information provided by the Group upon
request from a third party such as prospectuses, comfort
letters and rent certificates, etc; and
c) services otherwise required of the external Auditor by local
law or regulation.
Any exceptions are subject to pre-approval by the Group
Chief Financial Officer, and such permission is only granted in
exceptional circumstances. Where the non-audit assignment is
expected to generate fees of over £100,000, prior approval
must be obtained from the Committee.
During the period under review, the non-audit services performed
by the external Auditor primarily arose from the interim financial
review procedures, the requirement in Greek law for the external
auditor of the company to provide tax compliance services and
the assurance of e-waste collection, energy consumption and
emissions data in the Annual Report & Accounts 2022/23. The
Committee has reviewed the services performed by the external
Auditor during the year and is satisfied that these services did not
prejudice the external Auditor’s independence and that it was
appropriate for them to perform these services.
The level of non-audit fees paid to the current external Auditor,
and approved by the Committee, is set out in note 3 to the Group
financial statements and amounted to £0.4m (2021/22: £0.3m)
compared with £2.0m (2021/22: £1.8m) of audit fees. The non-audit
fees as a percentage of audit fees were 20% in 2022/23 (2021/22:
16.7%), which reflects the restrictive policy governing the use of
the appointed external Auditor for non-audit services.
Consideration of external Auditor
appointment and independence
Deloitte LLP had been the Company’s external Auditor since
the Company was formed on 7 August 2014 by the merger of
Carphone Warehouse and Dixons Retail. Deloitte LLP was the
external Auditor of both Carphone Warehouse and Dixons Retail
prior to 2014.
In accordance with the Competition and Markets Authority (‘CMA’)
Statutory Audit Services Order, which is designed to align with
provisions of the EU Regulations on external audit tender and
rotation, and current guidance, the last period that Deloitte LLP
could have remained as external Auditor was the 2022/23
financial year.
During 2020/21, the Committee led a comprehensive tender
process to select a new external Auditor for the 2022/23 financial
year. A full description of the process is available in the annual
report and accounts 2020/21. KPMG LLP were appointed as the
external Auditor of the Company for the financial year 2022/23
and this received shareholder approval at the Company’s annual
general meeting in September 2022.
Where necessary, any non-audit services provided by KPMG to
the Company ceased by 1 May 2021 in order to meet specified
‘cooling-in’ requirements in the year before appointment.
The Committee considers the appropriateness of the appointment
of the external Auditor each year, including the rotation of the
audit partner. KPMG have formally confirmed to the Board its
independence as external Auditor of the Company.
In determining whether to recommend the external Auditor for
reappointment for this year, the Committee considered the
external Audit firm’s internal control procedures, the audit
effectiveness review and tenure and agreed that the audit
processes are effective and that KPMG LLP continues to be
independent.
Accordingly, the Company confirms that it has complied with
the CMA Statutory Audit Services Order for the financial year
under review and the Committee concluded that it was in the
best interests of the Company’s shareholders to reappoint
KPMG as the external Auditor for 2023/24. The Committee’s
recommendation that a resolution to reappoint KPMG be
proposed at the Company’s Annual General Meeting in
September 2023 has been accepted and endorsed by the Board.
Fiona McBain
Chair of the Audit Committee
6 July 2023
119Strategic Report Governance Financial Statements Investor Information
2022/23 HIGHLIGHTS
• Assessments of whether the Company was in possession
of inside information.
• Preliminary results for the financial year ended
30 April 2022.
• Trading updates.
• Interim results for the half year ended 29 October 2022.
Chair’s statement
I am pleased to present the Disclosure Committee (the ‘Committee’)
Report for the year ended 29 April 2023. The principal role of the
Committee is to ensure that adequate procedures, systems and
controls are maintained to enable the Company to fully meet its
legal and regulatory obligations regarding the timely and
accurate identification and effective disclosure of all price-
sensitive information.
The Committee is comprised of the Group Chief Financial Officer
(Committee Chair), the Group Chief Executive and the General
Counsel and Company Secretary. The Chair of the Board and the
Senior Independent Director have access to the papers for all
meetings and are able to act as ‘alternates’ to the Committee
members in the event that the quorum of three members cannot
be met. This has not been necessary during the year and all
Committee members have been able to attend all meetings.
The Company Secretary, or their nominee, acts as Secretary to
the Committee. The minutes of each Committee meeting are
circulated to all members of the Board.
The Committee was considered as part of the internal Board and
committee effectiveness review that was carried out this year
and this review concluded that the Committee discharges its
duties effectively.
Meetings
There were five scheduled Committee meetings during 2022/23
and three additional meetings held after the end of the financial
year. Committee meetings are scheduled in advance of
preliminary and interim results announcements and in advance
of scheduled trading updates. Meetings can be convened by
the Company Secretary, or their nominee, as requested by the
Committee Chair at other times as required. The Committee
receives input as appropriate from the other Board directors,
the Company’s brokers and senior management and invites the
Director of Investor Relations to attend all meetings.
Responsibilities
The principal duties of the Committee are to:
• establish and maintain adequate procedures, policies, systems
and controls to enable the Company to fully comply with its
legal and regulatory obligations regarding the timely and
accurate identification and disclosure of all price-sensitive
information;
• determine whether information is inside information and if
it requires immediate disclosure or whether disclosure can
be delayed;
• keep under review the adequacy of the Disclosure and
Communications policies, implement and monitor compliance;
• monitor communications received from any regulatory body
in relation to the conduct of the Group, and review any
proposed responses;
• consider generally the requirement for stock exchange
announcements, including in relation to the delayed disclosure
of inside information, substantive market rumours, and leaks of
inside information;
• consider and give final approval for trading statements
and/or results to be released to meet legal and regulatory
requirements; and
• review the content of all material regulatory announcements,
transactional shareholder circulars, prospectuses, and any
other documents issued by the Company, and ensure that these
comply with all applicable requirements.
Key matters considered
During the year ended 29 April 2023, the Committee met to
consider the following key matters:
• an assessment as to whether the Company was in possession
of inside information;
• the preliminary results for the financial year ended 30 April 2022;
• the interim results for the 26 weeks ended 29 October 2022;
• the Peak trading update for the ten weeks to 7 January 2023; and
• updates on trading and full year outlook.
After the year end, the Committee met to consider an update on
regulatory proceedings in Norway and the strategic review of the
Group’s business in Greece.
Bruce Marsh
Chair of the Disclosure Committee
6 July 2023
* Ian Dyson joined the Board on 1 September 2022. Ian Livingston stepped down from the Board on 8 September 2022.
Number of meetings
5
Committee members Meeting attendance
Bruce Marsh (Chair) 5/5
Alex Baldock 5/5
Nigel Paterson 5/5
Alternate members:
Ian Dyson*, Chair of the Board and Tony DeNunzio,
Senior Independent Director
Disclosure
Committee Report
The biographical details for each
Committee member are available on
pages 92 and 93.
FURTHER
INFORMATION
120 Currys plc Annual Report & Accounts 2022/23
2022/23 HIGHLIGHTS
• Completed the search process for a new Chair of the
Board and recommended the appointment of Ian Dyson.
• Considered succession planning for key Board roles.
• Led the process to recruit a new non-executive director
and recommended the appointments of Magdalena
Gerger and Adam Walker to the Board.
Chair’s statement
I am pleased to present my first Nominations Committee (the
‘Committee’) Report for the year ended 29 April 2023. The
Committee has continued to oversee the structure, size and
composition of the Board during the year, having regard to the
collective skills, knowledge, experience and diversity in all its forms.
This report sets out the key responsibilities of the Committee and
describes how it has discharged its duties.
The Committee received an update on the external governance
and best practice standards that relate to its remit in October 2022.
These requirements were discussed, and the Committee concluded
that the Board’s size and composition and the balance of skill,
knowledge and experience remained appropriate to meet the
current leadership needs of the Group and in compliance with the
2018 UK Corporate Governance Code (the ‘Code’). The Committee
considered the time commitments of each director, director
independence, director tenure, the diversity of the Board, the
collective skills and experience of the Board, directors’ external
appointments and potential conflicts of interests and concluded
that these remained appropriate for the effective function of
the Board.
The Board currently meets the voluntary diversity targets set by
the Hampton-Alexander Review and Parker Review, although
is not complacent about diversity. The Board supports the
recommendations set out in the FTSE Women Leaders Review
published in February 2022, and will continue to seek opportunities
to further increase diversity on the Board, including gender diversity,
as part of board succession planning. A Leadership Inclusion
Forum is in place to focus on increasing the diversity of the
workforce. All directors receive updates on colleague issues
including diversity at Board meetings.
Succession planning and the oversight of the development of
a diverse pipeline for succession have been a key focus of the
Committee and the Board during the year. The Board received a
comprehensive talent review update in October 2022 and updates
on culture, values, diversity and inclusion in April 2023.
Meetings and membership
The Committee meets as and when required and at least twice
a year. The Committee held five meetings during the financial year.
The majority of the members of the Committee are independent
non-executive directors as required by the Code. Other members
of the Board or senior management can attend meetings at the
invitation of the Committee Chair. The Company Secretary, or their
nominee, acts as Secretary to the Committee. The Committee’s
deliberations are reported by its Chair at the next Board meeting
and the minutes of each meeting are circulated to all members of
the Board. All directors (including those that are not members of the
Committee) were invited to join all Committee meetings during the
year to be updated on the process to recruit additional non-
executive directors.
Responsibilities
The principal duties of the Committee are to:
• review the structure, size and composition of the Board,
and recommend changes to the Board as necessary;
• evaluate the balance of skills, independence of thinking,
experience, knowledge and diversity at both Board and senior
management levels and make recommendations to the Board
as necessary;
• give full consideration to orderly succession planning for both
the Board and senior management positions and oversee
the development of a diverse pipeline for succession;
• identify and nominate candidates to fill vacancies on the Board
when they arise;
• carry out a formal, rigorous and transparent selection process
of candidates, giving due regard to promoting the benefits of
diversity on the Board and senior management team, including
gender, social and ethnic backgrounds, and cognitive and
personal strengths; and
• review all the recommendations from the annual Board
effectiveness process that relate to Board composition,
diversity or how effectively Board members work together.
* Ian Dyson was appointed Chair of the Board and Committee Chair on 8 September 2022.
Number of meetings
5
Committee members Meeting attendance
Ian Dyson (Chair)* 5/5
Tony DeNunzio 5/5
Andrea Gisle Joosen 5/5
Nominations
Committee Report
FURTHER
INFORMATION
www.currysplc.com
Committee Terms of Reference last
approved: 17 January 2023 and available
on www.currysplc.com
The biographical details for each
Committee member are available on
pages 92 and 93.
121Strategic Report Governance Financial Statements Investor Information
Key matters considered
The principal activities of the Committee during 2022/23
included the:
• evaluation of the size, composition and structure of the Board
and its committees;
• consideration of director tenure and board succession for key
board roles;
• oversight of the process to recruit a new Chair of the Board
and two new non-executive directors then consideration of
candidates and recommendation of the appointments of
Ian Dyson, Magdalena Gerger and Adam Walker;
• consideration of the independence and time commitments of
the directors;
• evaluation of director effectiveness during the year and
approval that each director wishing to submit themselves for
election or re-election be recommended to shareholders for
election or re-election at the Annual General Meeting 2023;
• confirmation that the Board composition was compliant with the
Parker Review and Hampton-Alexander voluntary diversity targets
and noting the recommendations of the FTSE Women Leaders
Review, February 2022;
• approval and adoption of the Company’s Equality, Inclusion,
& Diversity: Dignity at Work Policy;
• approval of the director external appointments policy;
• approval of Committee’s Terms of Reference;
• approval of the role descriptions of the Chair of the Board,
Senior Independent Director and the Group Chief Executive; and
• consideration of the external corporate governance
developments relating to the remit of the Committee.
Board evaluation
The Board effectiveness review for 2022/23 was facilitated
internally through questionnaires and then individual meetings with
each director and the Chair of the Board. The evaluation process
concluded that overall, the Committee is operating effectively.
Further details on the outcomes of the Board effectiveness review
are available on page 103.
Appointments to the Board
The Committee has a formal, rigorous and transparent procedure
for the appointment of new directors. Appointments are made to
the Board based on objective criteria and with due regard to the
benefits of diversity and the leadership needs of the Company.
External search firms are used to support the recruitment of
new directors.
The Committee uses a skills matrix tool when assessing the skills
and capabilities required in a new director, taking into account the
existing experience and expertise on the Board. The Committee
then develops candidate profiles describing the skills, knowledge
and experience required for each new role.
Ian Dyson joined the Board on 1 September 2022 and became Chair
of the Board and the Committee on 8 September 2022. Magdalena
Gerger joined the Board as a non-executive director on 1 May 2023
and will become a member of the Remuneration, Nominations and
Environment, Social & Governance Committees on 6 July 2023.
Adam Walker joined the Board as a non-executive director and
member of the Audit and Remuneration Committees on 8 June 2023.
The search process for a new Chair of the Board is described in
the annual report and accounts 2021/22. The process to recruit the
new non-executive directors was led by the Chair of the Board
and supported by executive search firm, Korn Ferry. The Committee
agreed role profiles taking into consideration the knowledge, skills
and experience of the Board, in particular, the existing directors
who were approaching their nine-year tenure. Members of the
Committee, and members of senior management, participated in
the candidate interviews and discussions with Korn Ferry. Both search
processes included consideration of a number of candidates.
The group of candidates shortlisted in both searches included
candidates with diverse characteristics. Magdalena Gerger was
the candidate who best met the criteria in the role profile for the
Nordics based non-executive director. Adam Walker best met
the criteria for the role profile of the non-executive director with
financial expertise. The Committee kept the Board updated during
the search processes and recommended the appointments of
Magdalena Gerger then Adam Walker to the Board.
Succession planning
The Group requires a talented Board with appropriate experience,
expertise and diversity. The Committee regularly monitors the
size and composition of the Board, leads the recruitment of new
directors and proposes any suitable candidates to the Board
for approval.
The Committee continue to be satisfied that a Board size of eight
directors is appropriate and effective for the leadership of the
Group although increasing to a Board size of nine or ten temporarily
is appropriate to enable succession planning for key Board and
committee roles. During the year, the Committee considered Board
tenure, in particular, that two non-executive directors would reach
their nine-year tenure prior to the Company’s Annual General
Meeting in 2023 and the Senior Independent Director would reach
a nine-year tenure in December 2024.
The Committee has completed searches to manage the Board
succession planning needs for 2023, but remains aware that
additional non-executive directors are approaching nine-year
tenures from 2024.
The Executive Committee carry out a detailed talent review process
across every area of the business. Succession plans are in place
for every member of the Executive Committee. The full Board
including the Committee members receive regular updates on
talent and succession from the Chief People, Communications
and Sustainability Officer. The Chair of the Board, who is also
the Committee Chair, receives regular updates during the year
directly from the People team on key appointments and initiatives.
The Committee, together with the Board, is focused on ensuring
that credible succession plans are maintained and that there is
a diverse talent pipeline for future business leaders.
122 Currys plc Annual Report & Accounts 2022/23
Diversity
The Company is committed to developing a diverse workforce and
equal opportunities for all. The Board recognises that enhancing
diversity in all its forms is a critical part of having an effective and
engaged workforce which in turn supports the long-term sustainable
success of the Company.
The Board meets the voluntary targets set by the Hampton-
Alexander Review and the Parker Review. At the end of the financial
year 37.5% of the Board (3 directors out of 8), and 25% of the
Executive Committee (2 out of 8 members), are female. One
member of the Board meets the criteria as set out in the Parker
Review. At the date of this report, 40% of the Board are female
(4directors out of 10).
During the year, the Board was not compliant with the requirement
under LR 9.8.6 that at least 40% of the individuals on the Board be
female and at least one of the four senior Board positions (chair,
chief executive, senior independent director or chief financial
officer) be a female. The Board and Committee will remain
cognisant of this requirement for future appointments. The Board
was mindful of this requirement during the recruitment of a new
Chair of the Board during the year, and the candidate long list and
short list had both included candidates with a range of diverse
characteristics including gender. Following careful consideration by
the Board, Ian Dyson was selected for appointment as he best met
the criteria for the Chair of the Board role and his appointment was
considered to be in the best interests of the long-term sustainable
success of the Company.
Whilst the Board is strongly supportive of enhancing all forms of
diversity across the Board and wider workforce as a matter of
priority, the Board does not currently set specific targets on gender
balance or ethnicity. The Committee and the Board continue to be
very mindful of the benefits of greater diversity of gender, social
and ethnic backgrounds, and cognitive and personal strengths,
in all appointments. The Board will actively seek to enhance
diversity on the Board during 2023/24 by taking steps to increase
the number of diverse candidates to be included in the process.
A Leadership Inclusion Forum is in place to seek to enhance diversity
across the wider workforce.
In accordance with DTR 7.2.8A, the Committee confirms that a
diversity policy is in place (the Equality, Inclusion, & Diversity: Dignity
at Work Policy) and was last reviewed and approved by the
Committee in October 2022. The Board no longer has a separate
policy that only applies to the Board but has approved the
adoption of the UK & Ireland policy to include all Board and senior
management appointments. The policy is in place to encourage
diversity and to ensure an inclusive culture is in place and the
principles of the UK & Ireland policy are replicated in similar
policies in the International businesses. The Board considers the
celebration of diversity and an inclusive culture to be a competitive
differentiator for the business. The policy establishes clear values
and behaviour standards for colleagues and confirms that any
form of bullying, harassment or discrimination is unacceptable.
The policy does not include any quotas and emphasises the need
for appointments to be made on the basis of merit.
Election and re-election
At the forthcoming annual general meeting, (‘AGM’) in September
2023, all directors as listed on pages 92 and 93 will present
themselves for re-election other than Andrea Gisle Joosen who will
step down from the Board on 6 July 2023.
Magdalena Gerger and Adam Walker will present themselves for
election and their biographical information is available on page 90
and in the Notice of AGM.
Gerry Murphy has been a director since the Company was formed
in 2014, and will have served on the Board for nine years in August
2023. Gerry has been asked to remain on the Board for a further
12months to help manage succession planning on the Audit
Committee and to provide stability and continuity on the Board
following the recent directorate changes. At the date of this report,
the Chair has been on the Board for less than a year and
Magdalena Gerger and Adam Walker have been on the Board
for 2 months and 1 month respectively. Gerry has comprehensive
knowledge of the business and will be able to provide valuable
support and context to Magdalena and Adam as they start their
new committee roles.
Each of the directors submitting themselves for election or
re-election is being unanimously recommended by the other
members of the Board due to their experience, knowledge, wider
management and industry experience, continued effectiveness and
commitment to their role, and significant contribution to the Board.
More information on the individual contributions of each director
is available within their biographies on pages 90, 92 and 93 and in
the Notice of AGM.
Ian Dyson
Chair of the Board
6 July 2023
Nominations
Committee Report continued
123Strategic Report Governance Financial Statements Investor Information
Chair’s statement
I am pleased to present my first ESG Committee (the ‘Committee’)
Report for the year ended 29 April 2023. During the financial year,
the Board established the ESG Committee as a committee of
the Board, a decision which elevates further the focus on ESG
at Board level and embodies the Company’s mission to help
everyone enjoy amazing technology. The remit of the Committee
includes the approval of the Group’s ESG strategy, oversight
of the delivery of this strategy and monitoring of ESG risks
and opportunities.
The Group previously had an ESG Committee that was a
management committee reporting to the Executive Committee and
this was in place and operating for part of the financial year. The
annual report 2021/22 included a report of the work of this legacy
forum that has since been renamed as the Group Sustainability
Leadership Team (‘GSLT’). The GSLT is comprised of several senior
leaders in the business and attended by representatives from
teams including Supply Chain, Risk, Sustainability, Services and
Commercial. The GSLT will continue to report into the Executive
Committee and manage the day-to-day oversight of the Group’s
sustainability agenda and metrics and will also now be subject
to the independent oversight and support of the ESG Committee.
During the year, the work of the GSLT included putting in place
a governance framework and assigned roles and responsibilities
to ensure delivery of the three ESG strategic priorities, developing
a deeper understanding of the drivers of the Group’s Scope 3
emissions and completion of emissions forecasts.
As part of my induction, I have received comprehensive updates
on the achievements of the GSLT, the Group’s ESG strategy,
metrics, and commitments during 2022/23. I have also been
updated on the expectations that our key stakeholder groups
have for our ESG programme and I have observed a meeting of
the GSLT.
I am very excited about the important role this Committee will play
in building on the work of the GSLT and accelerating the Group’s
ESG priorities – growing our circular business, achieving net zero
by 2040 on climate, and alleviating digital poverty.
I look forward to working with other stakeholders in the year
ahead as this Committee evolves to embed ESG in all aspects
of the operations of the Group.
Meetings and membership
The Committee meets as and when required and at least twice
a year. There were three GSLT meetings then one meeting of the
newly established Committee during the financial year 2022/23.
Afurther Committee meeting was held after the financial year end
in June 2023. All members of the Committee are independent
non-executive directors. Other members of the Board or senior
management can attend meetings at the invitation of the Committee
Chair. The Company Secretary, or their nominee, acts as Secretary to
the Committee. The Committee’s deliberations are reported by its
Chair at the next Board meeting and the minutes of each meeting
are circulated to all members of the Board. The Committee will
also make any recommendations to the Board as it deems
appropriate within its remit where action or improvement is needed.
The Committee did not take part in this year’s overall Board and
Committee’s effectiveness review since the Committee was newly
formed during the financial year. From next financial year, the
Committee will review its performance, constitution and procedures
at least annually in accordance with its terms of reference.
Environmental, Social and Governance (‘ESG’)
Committee Report
2022/23 HIGHLIGHTS
• Formation of the ESG Committee as a Committee of
the Board.
• Review of plans to ensure progress against the Company’s
ESG strategy and objectives.
• Review of ESG disclosures in the Annual Report and
Accounts 2022/23 including the assurance process.
Number of meetings
1
(since established
as a committee
of the Board)
Committee members Meeting attendance
Eileen Burbidge (Chair) 1/1
Andrea Gisle Joosen 1/1
Tony DeNunzio 1/1
FURTHER
INFORMATION
www.currysplc.com
Committee Terms of Reference last
approved: 17 January 2023 and available
on www.currysplc.com
The biographical details for each
Committee member are available on
pages 92 and 93.
124 Currys plc Annual Report & Accounts 2022/23
Responsibilities
The principal duties of the Committee are to:
• oversee the development of the Group’s ESG strategy, ensure
it remains fit for purpose and aligned to the Group’s vision:
Wehelp everyone enjoy amazing technology, and recommend
it to the Board for approval;
• oversee and challenge the objectives and key performance
indicators required to deliver the Group’s ESG strategy and
review reporting against these at Committee meetings;
• oversee the management of ESG risks;
• review the ongoing appropriateness of the Group’s approach
to ESG issues in the context of external best practice;
• approve the Group’s policies and practices relating to ESG
matters to ensure that they remain effective and compliant
with legal and regulatory requirements and industry standards;
• receive reports from Group Responsible Sourcing & OEM
Standards Manager over the operation of processes and
controls in place to ensure compliance with requirements of
Modern Slavery regulation;
• review all ESG content and data to be published in the
Company’s annual report and accounts including the process
for the assurance of this data by third parties or the Company’s
auditors and make any recommendations to the Board as
appropriate;
• review all ESG content on the Company’s website, approve
any material changes and make recommendations to the Board
as appropriate; and
• make any recommendations to the Board on any area within
itsremit.
Key matters considered
During the year ended 29 April 2023, the Committee considered
the following key matters:
• ESG framework and strategic approach;
• ESG emissions and e-waste bonus scorecard metrics;
• ESG disclosures in the Annual Report and Accounts 2022/23;
• achievements and plans for net zero emissions;
• achievements and plans for circular economy and next steps
on ‘Long Live Your Tech’;
• achievements and next steps for helping eradicate digital
poverty;
• a review of the People Plan, including colleague well-being,
inclusion and diversity; and
• the operation of the Committee, including its terms of reference;
and ESG policies and procedures.
Eileen Burbidge, MBE
Chair of the ESG Committee
6 July 2023
Environmental, Social and Governance (‘ESG’)
Committee Report continued
125Strategic Report Governance Financial Statements Investor Information
Remuneration
Report
Introduction
On behalf of the Board, I am pleased to present the 2022/23
Directors’ Remuneration Report (the ‘Report’) setting out our
philosophy and proposed policy for directors’ remuneration,
together with the activities of the Remuneration Committee (the
‘Committee’) for the financial year ending 29 April 2023.
Our Directors’ Remuneration Policy (the ‘Policy’) was approved by
shareholders at the annual general meeting in September 2022.
We would like to thank shareholders for their engagement during
2021 and 2022 as we consulted on this Policy and then for the
65.95% vote in favour of the Policy. We welcomed the vote in
favour but acknowledged that a minority of shareholders did not
support this resolution. Since the annual general meeting in 2022,
we have sought further engagement with many of our shareholders
to discuss the specific rationale for the votes against our Policy.
Iwrote to shareholders representing 67% of the Company’s issued
share capital, inviting them to meet with me or provide feedback,
and met with all the shareholders that accepted this offer to hear
their views.
Following careful consideration of all feedback received,
the Committee and the Board agreed to increase the post-
employment shareholding requirement for our Executive Directors.
Executive directors will be required to retain at least 100% of their
Currys plc shares for two years post-employment (the lower of
actual shareholding or the shareholding requirement immediately
prior to departure, in line with The Investment Association
guidelines). The previous requirement was for directors to retain
at least 100% of their Currys plc shares for one year and then
at least 50% in the following year. This new post-employment
shareholding was effective immediately from the date of the RNS
issued in March 2023, notwithstanding the wording in the approved
Directors’ Remuneration Policy. We intend to formally incorporate
this post-employment shareholding requirement into the binding
Remuneration Policy the next time that an amended version is put
to a shareholder vote. We will also continue to annually review
the weight of financial measures in both the short and long term
incentives as part of our ongoing remuneration activities.
We believe that the Company’s Directors’ Remuneration Policy
is appropriate in the context of incentivising our executive team,
as they continue to deliver the Group’s strategy and welcomed
the 86.90% vote in favour of the Remuneration Report at the
annual general meeting in 2022.
In determining the executive directors’ remuneration outcomes,
the Committee had a clear focus on ensuring alignment of pay
with performance and was equally attentive to the need to take
into consideration the experience of all our key stakeholders
throughout the year.
Remuneration in context
Corporate performance
This has been another challenging year in a rapidly changing
business and economic environment.
Summary
• Group full year profits at top end of guided range
• Transformation in UK&I delivering improved colleague and
customer experience, and better profits
• Very challenging year for Nordics business, but decisive action
underway with new leadership team
• Prudent and proactive measures in place have secured liquidity
and will further strengthen balance sheet
Financial performance
• Group LFL (7)%; Revenue (6)%
• Group adjusted profit before tax £119m, at top end of
guidance, down £(73)m YoY due to lower Nordic profits
• UK&I adjusted EBIT £170m, +45% YoY – gross margin improvement
and costs savings offset sales decline
• Nordic adjusted EBIT £26m, (82)% YoY – decisive action
now underway
• Greece adjusted EBIT £18m, (14)% YoY – delivering another year
of robust profits
• Statutory loss before tax of £(450)m, driven by previously
announced non-cash goodwill impairment of £(511)m
• Year-end net debt of £(97)m, from £44m net cash in prior year
Stakeholder experience
Our colleagues
In March 2023, we announced that from 1 April 2023 we were
increasing our minimum hourly rates for all UK colleagues for the
fourth time in 18 months. The new minimum rate is £10.50 per hour
(£11.50 in London), which represents a 13.6% increase over the
18-month period to 1 April 2023. Looking back over a two-year
period, our minimum hourly rate has increased by 20.6%.
Approximately 12,000 of our colleagues will benefit from
this change. This is testament to the value our colleagues bring
to our business and the critical role they play.
In addition, we introduced a new Pay For Skills programme which
recognised the changing role of our now multi-skilled UK & Ireland
store colleagues. This programme means that our store colleagues
who pass their induction and are performing well, will see their
minimum hourly rate increase to £10.80 per hour (£11.80 in London).
This is on top of any extra reward available through our Be
Amazing bonus programme, which can also boost hourly rates
significantly by an average 8% for all sales colleagues and over
26% for some of our top UK sales colleagues.
We have also invested in a new induction and extended
onboarding programme, called ‘What’s in Store’. This exciting
programme gives new store colleagues six months’ quality time to
develop their L.I.F.E (Listen, Inspire, Find, Enjoy) selling framework
skills, as well an in-depth understanding of how to serve and
support our customers in the best possible way.
126 Currys plc Annual Report & Accounts 2022/23
Remuneration
Report continued
In our Supply Chain and Services Operations, we already have
existing skills-based pay scales with higher hourly rates for skilled
colleagues and bonus schemes to reward delivery of our metrics
that matter. And in our Customer Management Centres we’re
recognising the important customer-facing role our colleagues
play, by introducing a skilled rate for colleagues who resolve the
most complex customer issues.
Our customers
Customer satisfaction metrics have continued to improve this year
and we are building more ‘Customers for Life’ with strong services
growth. Our customers have been impacted by the cost of living
squeeze in all our markets and we have supported them through
keeping prices low, giving customers access to responsible credit,
and offering more products that save them money through lower
energy costs. Our customers are becoming increasingly conscious
of ethical and environment issues and we have offered them more
sustainable choices such as our popular Go Greener range.
Our shareholders
Currys UK & Ireland performance has continued to strengthen this
year, reflecting good progress in the execution of our strategy
and goal to increase the value of our business for shareholders.
The Board approved the payment of an interim dividend during
2022/23. Unfortunately, the Nordic business, which had
consistently delivered growth in sales and profits over many years,
had a very challenging year due to lower demand and excess of
stock in the market that led to heavy discounting. Although market
conditions remain difficult, the trajectory of improving UK & Ireland
profitability, strong progress with cost efficiency work and ensuring
a robust recovery of profitability in the Nordic business makes us
confident that we can deliver long-term cash flow and value to
our shareholders.
Our communities
We have continued to support the work of the Digital Poverty
Alliance (DPA) this year providing advice on strategy, longer-term
capability and horizon scanning. In May 2022 we worked in
partnership with the DPA to launch a new Tech4Families
programme. During the year, funds collected from our UK stores
through Pennies have supported vulnerable families in need by
providing access to digital technology and we will continue to
expand this scheme in the year ahead.
Our environment
We continue to be the largest recycler for e-waste volumes in
the UK and Greece. This year we expanded our ‘Cash for Trash’
programme to collect e-waste in stores, and customers who
receive deliveries of new products can now also hand in unwanted
technology for recycling. During the year, Currys and Elkjøp started
selling refurbished technology through online platforms. We have
continued to grow our repairs service and our parts harvesting
programme – to take useful parts from products for reuse from
products that cannot be repaired. Our bonus scheme includes
two environmental measures to align with reward; Targets are
based on increasing e-waste recycling and the reduction of
Scope 1 and Scope 2 emissions.
2022/23 remuneration
Base salary
The Committee reviewed both Alex Baldock’s and Bruce Marsh’s
salary as at 30 April 2022 and applied an increase of 3% taking
their salaries to £906,400 and £427,450 respectively, effective
31 July 2022. The average increase for the UK & Ireland corporate
head office population was also 3%, effective 31 July 2022, and
3.7% for the Nordics, effective 1 April 2022. From 1 August 2022,
aminimum base hourly rate of £10 was paid to all hourly paid UK
colleagues. This was above the Real Living Wage for colleagues
outside London. The London rate continued to align to the Real
Living Wage rate of £11.05 per hour. This resulted in an average
increase of 5.2% for our hourly paid UK colleagues.
In January 2023, the Committee reviewed the base salary of Bruce
Marsh, in light of the fact that he had taken on the additional role
of overall management for the Company’s business in Greece
as well as the additional responsibility of leading the Global
Business Solutions, Investor Relations and Strategy teams. Taking
the increased scope of the role into account, the Committee
determined to apply a 14% adjustment to his base salary
increasing his salary from £427,450 to £487,400. This increase
also took into account the expected 31 July 2023 annual pay
budget of 4% planned for the UK & Ireland corporate head office
colleagues and the 8% increase for hourly paid colleagues over
the period from 1 August 2022 to 1 April 2023. On the basis of the
increase received in January 2023 Bruce will not receive any
additional increase in respect of 2023/24.
Pension
Bruce Marsh receives a 3% pension allowance, in line with the
wider workforce and Alex Baldock’s pension allowance was
reduced from 10% to 3% effective 1 January 2023, to ensure
alignment with the majority of the wider UK workforce and the
Investment Association guidelines.
Annual performance bonus
As discussed previously, this has been a challenging year for
the Nordic business and the formulaic outcome given the above
performance was 33.39% of maximum for the executive directors.
Full details on the targets set and performance against them can
be found on page 145 of this Report. The Committee considered
whether or not to adjust the formulaic outcome and noted that the
UK & Ireland bonus will pay out to the majority of UK & Ireland
corporate colleagues at between 72% to 81%. The Committee was
satisfied that the formulaic outcome is both fair and appropriate
given the financial performance delivered and the wider
stakeholder experience outlined above and no Committee
discretion was applied.
In accordance with the current Remuneration Policy, executive
directors must defer one third of their awarded bonus into shares
for a period of two years. Being mindful of his current shareholding
position, as set out on page 154 of the report (beneficial interest
of 150% at year-end or 296% on an initial acquisition price basis),
Alex Baldock proposed to the Committee that he would take
100% of his bonus in shares. The Committee commends his
commitment to building an even stronger alignment with
shareholders and accordingly, were happy to accept this request.
127Strategic Report Governance Financial Statements Investor Information
One third of the bonus will be deferred for a period of two years
in line with the Policy, with the remaining two-thirds provided in
shares immediately, which must be retained (net of tax) while he
builds towards the 250% of salary shareholding requirement. In
total, Alex’s shareholding will be 211% of base salary in August
2023 after the inclusion of the 2022/23 annual bonus and vesting
of the 2020 LTIP.
Long Term Incentive Plan (‘LTIP’)
The 2019 LTIP award was subject to relative TSR (50%) and
cumulative free cash flow (50%) targets measured over three
years. Based on the achieved level of performance, the threshold
required for vesting for the TSR element was not met but the free
cash flow achieved a vesting percentage of 100%. The cumulative
cash flow achieved was £436m against a maximum of £423m.
Overall, LTIP vesting was therefore 50%.
Again, the Committee considered whether or not to make an
adjustment to the formulaic outcome. The Committee concluded
that overall, it was satisfied that the outcome is both fair and
appropriate given the cash flow performance delivered and the
wider stakeholder experience outlined above.
Vested shares will be subject to a further two-year holding period.
Full details on the targets set and performance against them can
be found on pages 147 and 148.
2023/24 remuneration
Base salary
The Committee reviewed Alex Baldock’s salary for 2023/24 and
applied an increase of 4%, increasing his salary to £942,650,
effective 31 July 2023. This salary increase is in line with the 4%
pay budget applied to the UK & Ireland corporate head office
population effective on the same date and is below the 8%
increase for hourly paid colleagues received in the period from
1 August 2022 to 1 April 2023. The average increase for the Nordics
Head Office population is 5%, effective 1 May 2023.
As discussed above, Bruce Marsh received an additional pay
increase in January 2023 and on this basis, no further adjustment
will be made in respect of 2023/24.
Annual performance bonus
The annual performance bonus in respect of 2023/24 will be
based on achievement of stretching targets against five metrics
of EBIT (55%), free cash flow (15%), Net Promoter Score (10%),
employee engagement (10%) and environmental targets (10%).
The increase in the weighting of EBIT and substitution of free cash
flow for the previous average net debt metric is intended to
support the Company’s increased focus on driving profitability
and cash flow. The reweighting of metrics also takes into account
the feedback from our shareholder engagement exercise. To
accommodate the increase in the EBIT weighting, the colleague
and customer measures will be reduced from 15% to 10% for each
measure. These metrics remain critically important to the business
but the Committee is satisfied that the Company’s improvements
in engagement and customer scores have been demonstrated
by the achievements against the 2022/23 annual bonus targets,
and we now recognise the need to emphasise shareholder
outcomes with an increased focus on the financial measures.
Theenvironmental measures will remain at 10% giving equal
weighting to each of our environment, social and governance
measures, reflecting the core elements of our sustainability
strategy.
The targets and performance against all the scorecard elements
will be fully disclosed in next year’s Remuneration Report.
LTIP
The Committee also reviewed the performance measures to be
applied for the 2023/24 LTIP awards and took into account
feedback received during the investor engagement exercise that
EPS is a key performance measure for our shareholders. We are
therefore introducing an EPS measure alongside existing free cash
flow and relative TSR, the weightings will be 30%, 40% and 30%
respectively.
The Committee also considered introducing an environmental
metric into the 2023/24 LTIP design. We concluded not to include
this metric for the current year given that it is already included in
the annual performance bonus but the Committee commits to
including an ESG metric(s) into the LTIP during the course of the
current Policy duration.
The Committee is mindful of the current volatility in the market and
ensuring LTIP awards are aligned with shareholder experience.
Asat the date of this Report, the Committee has not yet finalised
the decisions on LTIP award levels (within the Policy limits) or the
calibration of applicable free flow cash flow and EPS targets.
Wewill confirm the conditions and make the awards after we
have announced our annual results, to ensure that we have targets
in place that are both stretching for participants and also fully
reflective of how shareholders and the market view the long-term
performance of the business. We will fully disclose the award
details and targets at the time of the grant announcement and
will include them in next year’s Remuneration Report.
Non-executive director changes and fees
As announced in March 2023, we are pleased to confirm
the appointment of Magdalena Gerger as an independent
non-executive director with effect from 1 May 2023. Magdalena
will become a member of the Remuneration, Nominations and
ESG Committees with effect from 6 July 2023. Inaddition,
Adam Walker has also joined the Board as an independent
non-executive director and a member of the Remuneration
and Audit Committees with effect from 8 June 2023.
128 Currys plc Annual Report & Accounts 2022/23
Remuneration
Report continued
The Company also announced that Andrea Gisle Joosen will
be stepping down as a non-executive director on 6 July 2023,
as she approaches a nine-year tenure on the Board. I would like
to welcome both Magdalena and Adam to the Board and the
Remuneration Committee and thank Andrea for her contribution
to the Committee during her tenure.
In addition, although not a matter for the Remuneration Committee
(being a matter reserved for the Board), the Board carried out a
review of the non-executive directors’ fees in 2021/22. As a result
of that review the Board decided to increase fee levels for the
non-executive directors by 2%, effective 1 May 2022, as detailed
on page 155. This was the first increase in fees to the non-executive
directors since the merger of Dixons and Carphone Warehouse
in 2014. The Chair of the Board and I, as Deputy Chair, waived
the increase to our fees, and these remain unchanged. The Board
reviewed non-executive director fees again in March 2023
and agreed that there should not be any increase, although
new fees have been put in place for membership of the newly
established ESG Committee of the Board. Further detail can be
found on page 155.
I hope you find that this Report clearly explains the remuneration
approach we have taken and how we will implement the Policy
in 2023/24. We have sought to ensure that a balanced approach
has been taken for all stakeholders based on their experiences
and feedback during the year. As always, we would welcome
any comments on this Report. We look forward to your continued
engagement and thank you for the feedback provided to date.
Tony DeNunzio CBE
Chair of the Remuneration Committee
6 July 2023
129Strategic Report Governance Financial Statements Investor Information
Remuneration at a glance
2022/23 2023/24 proposed
Base salary
• CEO (Alex Baldock) – £906,400
• CFO (Bruce Marsh) – £427,500, increased
to £487,400 (January 2023)
• CEO (Alex Baldock) – £942,650
• CFO (Bruce Marsh) – £487,400
Annual
performance
bonus
Maximum
opportunity
• 150% of base salary
• One-third deferred into shares for
a period of two years
• 150% of base salary
• One-third deferred into shares for
a period of two years
Performance
metrics
(weighting)
• EB IT (4 5%)
• Average net debt (15%)
• ESG (4 0%)
– Net Promoter Score (15%)
– Employee engagement (15%)
– Environmental (10%)
• E-waste take back volumes (5%); and
• Progress to net zero (5%)
• EBIT underpin and ‘Treating Customers
Fairly’ clawback
• EBIT (55%)
• Free cash flow (15%)
• ESG (30%)
– Net Promoter Score (10%)
– Employee engagement (10%)
– Environmental (10%)
• E-waste take back volumes (5%); and
• Progress to net zero (5%)
• EBIT underpin and ‘Treating Customers
Fairly’ clawback
LTIP
Maximum
opportunity
• 250% of base salary • 250% of base salary
Performance
metrics
(weighting)
• Cumulative free cash flow (50%)
• TSR relative to the FTSE 250 (50%)
• Cumulative free cash flow (40%)
• Cumulative EPS (30%)
• TSR relative to the FTSE 250 (30%)
Share ownership
guidelines
• 250% of salary to be achieved within
fiveyears of appointment
• Shares to the value of 250% of salary
must be retained for the first year
post-cessation and 125% for the
second year
• 250% of salary to be achieved within
five years of appointment
• Shares to the value of 250% of salary must
be retained for two years post-cessation
Total remuneration earned in the year
The chart below reflects the on-target and actual remuneration outcomes for 2022/23.
Fixed pay
Alex Baldock
On-target Actual
Bruce Marsh
On-target Actual
Annual bonus
LTIP
£3,117
£2,237
£866
£689
£4,000
£3,000
£2,000
£1,000
0
Remuneration (£'000)
130 Currys plc Annual Report & Accounts 2022/23
Remuneration
Report continued
Introduction
The purpose of this Report is to inform shareholders of the
Company’s directors’ remuneration for the year ended 29 April
2023 and the Remuneration Policy for subsequent years.
This report is divided into two sections:
• the Remuneration Policy; and
• the Annual Remuneration Report.
The current Remuneration Policy was approved by shareholders
at the annual general meeting on 8 September 2022 and was
effective from that date. The Annual Remuneration Report will be
put to an advisory vote at the Annual General Meeting (‘AGM’)
2023.
The role of the Committee is to determine on behalf of the
Board a remuneration policy for executive directors and senior
management which promotes the long-term success of the
business through the attraction and retention of executives who
have the ability, experience and dedication to deliver outstanding
returns for our shareholders.
The Committee has adopted the principles of good governance
relating to directors’ remuneration as enshrined in section 5 of
the UK Corporate Governance Code 2018 (the ‘Code’) and
has paid close regard to the principles of clarity, transparency,
risk management, proportionality and alignment to culture and
strategy. The Committee has complied with those principles in the
year under review.
This report has been prepared by the Committee on behalf of the
Board in accordance with the Companies Act 2006, Schedule 8
to the Large and Medium-sized Companies and Groups
(Accounts and Reports) Regulations 2008 (as amended) and the
Listing Rules of the Financial Conduct Authority. The Remuneration
Policy (which is not subject to audit) details the role of the
Committee, the principles of remuneration and other matters.
The Annual Remuneration Report (elements of which are audited)
details the directors’ and former directors’ fixed and variable pay,
share awards, share options and pension arrangements.
Remuneration Policy
Remuneration strategy
Put simply, our aim is to generate superior returns for our
shareholders and the key to achieving this is our colleagues.
Our remuneration strategy is therefore designed to motivate
high-performing colleagues to deliver our business strategy.
The objectives of our remuneration strategy are to:
• attract, motivate and retain high quality talent;
• be transparent and align the interests of senior management
and executive directors with those of shareholders, by
encouraging management to have a significant personal
stake in the long-term success of the business;
• weight remuneration to variable pay so that it incentivises
outperformance particularly over the long term whilst
discouraging inappropriate risk-taking;
• ensure that superior rewards are only paid for exceptional
performance against challenging targets;
• apply policies consistently across the Group to promote
alignment and teamwork;
• recognise the importance of delivering across a balanced
set of metrics to ensure the right behaviours are adopted
and the long-term health of the business is protected; and
• avoid rewarding failure.
In developing its policy, the Committee has regard to:
• the performance, roles and responsibilities of each executive
director or member of senior management;
• the remuneration arrangements and policy which apply below
senior management levels, including average base salary
increases across the workforce;
• information and surveys from internal and independent sources;
• the economic environment and financial performance of the
Company; and
• good corporate governance practice.
For reference. our workforce is comprised of full-time and
part-time colleagues and fixed-term contractors that are directly
employed by the Group. Our workforce is supported by people
employed by third parties that use Currys’ IT systems and work
on Currys’ premises but are not directly employed by the Group.
Guidelines on responsible investment disclosure
In line with The Investment Association guidelines on responsible
investment disclosure, the Committee is satisfied that the incentive
structure and targets for executive directors do not raise any
ESG risks by inadvertently motivating irresponsible or reckless
behaviour. The Committee considers that no element of the
remuneration package will encourage inappropriate risk-taking
by any member of senior management.
131Strategic Report Governance Financial Statements Investor Information
Remuneration Policy table
The individual elements of the remuneration packages offered to executive directors are summarised in the following table:
Base salary (fixed pay)
Purpose and link to strategy To aid the recruitment, retention and motivation of high-performing colleagues.
To reflect their skills, experience and importance to the business.
Operation Normally reviewed annually.
The review reflects a range of factors including merit levels, internal relativity, external
market data and cost. Our overall policy, having due regard to the factors noted, is normally
to target salaries at market level taking into consideration FTSE 51-150 and retailers of
a similar size.
Salaries for new appointments as executive directors will be set in accordance with the
recruitment policy set out on pages 138 and 139.
The Committee takes into consideration the impact of base salary increases on the
package as a whole, as other elements of pay (such as pension contributions) are generally
based on a percentage of salary.
Maximum opportunity Ordinarily, increases for executive directors will be in line with increases across the Group.
Increases beyond those granted across the Group may be awarded in certain
circumstances, such as changes in responsibilities, progression in the role and significant
increases in the size, complexity or value of the Group.
Salary levels for current directors are shown in the Annual Remuneration Report.
Performance assessment / targets Salaries are normally reviewed annually by the Committee at the appropriate meeting
having due regard to the individual’s experience, performance and added value to
the business.
Benefits (fixed pay)
Purpose and link to strategy In line with the Company’s strategy to keep remuneration weighted to variable pay that
incentivises outperformance, a modest range of benefits is provided.
Benefits may vary based on the personal choices of the director.
Provision of relocation or other related assistance may be provided to support the
appointment or relocation of a director.
Operation Executive directors are entitled to a combination of benefits which include, but are not
limited to:
• car allowance or the use of a driver for Company business;
• private medical cover;
• life assurance;
• holiday and sick pay; and
• a range of voluntary benefits including the purchase of additional holiday.
Executive directors will be eligible for other benefits which are introduced for the wider
workforce on broadly similar terms.
Any reasonable business-related expenses (including the tax thereon) can be reimbursed
if determined to be a taxable benefit.
Should an executive director be recruited from, or be based in, a non-UK location, benefits
may be determined by those typically provided in the normal country of residence and/or
reflect local market legislation.
Relocation or other related assistance could include, but is not limited to, removal and other
relocation costs, tax equalisation, tax advice and accommodation costs.
132 Currys plc Annual Report & Accounts 2022/23
Remuneration
Report continued
Maximum opportunity The cost to the Group of providing such benefits will vary from year to year in accordance
with the cost of providing such benefits, which is kept under regular review.
Performance assessment/targets Not applicable.
Pension (fixed pay)
Purpose and link to strategy A pension is provided which is consistent with that provided to other corporate employees
in the UK and in line with our strategy to keep remuneration weighted to variable pay that
incentivises outperformance.
Operation Defined contribution plans are offered to all employees. A defined benefit pension plan
continues in operation for ex-Dixons’ longer-serving employees, which is now closed to new
participants and future accrual.
Executive directors may choose to receive a cash allowance in lieu of pension contributions.
Maximum opportunity Executive directors will receive a pension contribution in line with the level paid to the
majority of the UK workforce across the Group, up to 10% of base salary, which can be
taken in whole or in part as a cash allowance in lieu of pension.
Performance assessment/targets Not applicable.
Annual performance bonus (variable pay)
Purpose and link to strategy Annual performance bonuses are in place to incentivise the delivery of stretching, near-term
business targets based on our business strategy.
These bonuses provide a strong link between reward and performance and drive the
creation of further shareholder value.
The principles and approach are consistently applied across the Group ensuring alignment
to a common vision and strategy.
They are based on a balanced approach ensuring appropriate behaviours are adopted
and encouraging a longer-term focus.
Operation Bonus payments are determined after the year end and subject to a minimum profit
threshold being achieved before payment is due.
For threshold level of performance, a bonus of up to 20% of the maximum potential award
is payable. A sliding scale determines payment between the minimum and maximum bonus
payable.
The annual bonus is typically determined in June based on the audited performance over
the previous financial year.
One-third of any bonus earned will be deferred into shares for a period of two years, with
the remaining two-thirds paid in cash. Any bonus earned is non-pensionable. Where any
bonus is deferred dividends (or equivalents) may accrue.
Performance is reviewed by the Committee using its judgement where necessary to assess
the achievement of targets. The Committee retains the discretion to adjust downwards bonus
payments where achievement of targets would result in a payment of a bonus at a level
which would not be consistent with the interests of the Company and its shareholders.
Recovery and withholding provisions apply for material misstatement, misconduct,
calculation error, reputational damage, corporate failure, material failure of risk
management and internal controls and unreasonable failure to protect the interests
of employees and customers, enabling performance adjustments and/or recovery
of sums already paid. These provisions will apply for up to three years after payment.
133Strategic Report Governance Financial Statements Investor Information
Maximum opportunity Maximum annual bonus potential for all executive directors is 150% of base salary.
No bonus is payable if the minimum profit threshold is not achieved.
Performance assessment / targets All measures and targets are reviewed and set by the Committee at the beginning of the
financial year with a view to supporting the achievement of the Group strategy.
The bonus scheme has targets based on a balanced scorecard. The balanced scorecard
may include both financial and non-financial measures, such as employee, customer and
strategic measures. The weighting of measures will be determined by the Committee each
year. Financial measures (such as profit and cash) will represent the majority of the bonus
opportunity, with other measures representing the balance.
Long term incentive scheme (variable pay): Long Term Incentive Plan (‘LTIP’)
Purpose and link to strategy Long term incentive schemes are transparent and demonstrably aligned with the interests of
shareholders over the long term.
The LTIP is designed to reward and retain executives over the longer-term, whilst aligning an
individual’s interests with those of shareholders and in turn delivering significant shareholder
value.
Operation Discretionary awards of nil-priced options or conditional share awards are granted over
Currys plc shares.
Awards will be granted annually and will usually vest after three years subject to continued
service and the achievement of performance conditions.
The level of vesting is dependent on achievement of performance targets, usually over a
three-year period. No more than 25% of the maximum will be payable for threshold level of
performance.
The post-tax number of share awards vesting will be subject to a further two-year holding
period, during which they cannot be sold, unless in exceptional circumstances and with the
Committee’s permission.
Dividend equivalents may be accrued on the shares earned from any award.
Awards will be subject to recovery and withholding provisions for material misstatement,
misconduct, calculation error, reputational damage and corporate failure, material failure
of risk management and internal controls and unreasonable failure to protect the interests
of employees and customers, enabling performance adjustments and/or recovery of sums
already paid. These provisions will apply for up to three years after vesting.
If employment ceases during the vesting period, awards will ordinarily lapse in full, unless the
Committee exercises its discretion.
The Committee has the discretion in certain circumstances to grant and/or settle an award in
cash. For the executive directors this would only be used in exceptional circumstances.
In the event of a change of control, any unvested awards will vest immediately, subject to
satisfaction of performance conditions and reduction on a time-apportioned basis.
Maximum opportunity Grants under the LTIP are subject to overall dilution limits.
The normal maximum grant per participant in any financial year will be a market value of
250% of base salary, with up to 375% in exceptional circumstances, e.g. recruitment.
More details on the proposed award levels for executive directors in 2023/24 are set out in
the Annual Remuneration Report on page 156 and full details will be disclosed at grant.
134 Currys plc Annual Report & Accounts 2022/23
Remuneration
Report continued
Performance assessment / targets Performance targets are reviewed by the Committee prior to each grant and are set to
reflect the key priorities of the business at that time.
The Committee determines the metrics from a range of measures, including but not limited to,
market-based performance measures such as TSR and financial metrics such as free
cash flow. The Committee retains the flexibility to introduce new measures in the future if
considered appropriate given the business context, although financial measures in total
will not be weighted any less than 60% of the total award. Material changes will be subject
to consultation with major shareholders.
The actual metrics applying for each award will be set out in the Annual Remuneration
Report and any changes in the metrics will be explained.
All employee share plans
Purpose and link to strategy Encourages employees to make a long-term investment in the Company’s shares and
therefore be aligned to the long-term success of the Company.
Operation Executive directors are eligible to participate in the Group all-employee share schemes,
but not the Colleague Shareholder Scheme, on the same terms as other eligible employees.
Maximum opportunity The same limits apply to executive directors as to all other participants in the schemes and
are in line with the appropriate regulations.
The Committee reserves the right to increase the savings limits for future schemes in
accordance with the statutory limits in place from time to time.
Performance assessment / targets None of the schemes are subject to any performance conditions.
Share ownership guidelines
Purpose and link to strategy Provides close alignment between the longer-term interests of executive directors and
shareholders in terms of the Company’s long-term success.
Operation The Company requires executive directors to retain a certain percentage of base salary
in the Company’s shares, with a five-year period in which to reach these limits. Executive
directors are also required to retain a proportion of these shares post the cessation
of employment.
The shares which count towards this requirement are beneficially owned shares (both
directly and indirectly).
Maximum opportunity Not applicable.
Performance assessment / targets The Company requires all executive directors to retain 250% of base salary in the
Company’s shares during employment. On leaving, an executive director will also be
required to retain shares equivalent to 250% of their base salary on leaving for a period
of 12 months and then 125% of their base salary for a further period of 12 months.
Note: As described in the Committee Chair’s introductory letter, following consideration of
feedback received from shareholders, the post-employment shareholding requirement for
executive directors has been increased such that they will be required to retain at least 100%
of their Currys plc shares for two years post-employment (the lower of actual shareholding
or the shareholding requirement immediately prior to departure). This change will be formally
incorporated into the binding Remuneration Policy the next time that an amended version is
put to a shareholder vote.
Details of the directors’ shareholding are shown in the table on page 154.
135Strategic Report Governance Financial Statements Investor Information
Non-executive directors and chair of the Board / deputy chair fees
Purpose and link to strategy To provide a competitive fee for the performance of non-executive director duties,
sufficient to attract high calibre individuals to the role.
Operation The fees are set to align with the duties undertaken, taking into account market rates,
and are normally reviewed on an annual basis. Factors taken into consideration include
the expected time commitment and specific experience.
Additional fees are payable for acting as the senior independent director or as chair of
any Board committee, and for membership of a Board committee.
Non-executive directors do not participate in the annual performance bonus or the long
term incentive plans or pension arrangements.
Any reasonable business-related expenses (including the tax thereon) can be reimbursed
if determined to be a taxable benefit.
For material, unexpected increases in time commitments, the Board may pay extra fees on
a pro-rated basis to reflect additional workload.
Maximum opportunity Aggregate annual limit of £2,000,000 imposed by the Articles of Association for Directors’
fees (not including fees in relation to any executive office or chair of the Board, deputy
chair, senior independent director or committee chair fees).
Performance assessment / targets Not applicable.
Selection of performance metrics
The Policy provides flexibility for the Committee to determine the measures to be used in the annual performance bonus and the LTIP.
The measures used currently, and their purposes are set out below.
Measure Where used Purpose
EBIT Annual performance bonus Key measure of annual financial delivery.
Free cash flow Annual performance bonus A principal measure of the financial health of the business
including the management of working capital, captured over
aone-year period.
Net promoter score Annual performance bonus Captures the overall perception of our business in the eyes
ofour customers.
Employee engagement Annual performance bonus Reflects how well we engage our colleagues – a factor which
we know to be a key driver of retention and performance.
Environmental Annual performance bonus Reflects our focus on the climate agenda.
Cumulative free cash flow LTIP A principal measure of the financial health of the business
including the management of working capital, captured over
amultiyear period.
EPS LTIP A key measure of the ongoing earnings of the underlying
Group.
Relative TSR LTIP Seeks to measure the growth in shareholders’ investment in
Currys (share price movements plus dividends paid) relative
toother similar companies.
136 Currys plc Annual Report & Accounts 2022/23
Remuneration
Report continued
Illustration of Remuneration Policy
The Remuneration Policy scenario chart below illustrates the level and mix of potential total remuneration the ongoing executive
directors could receive under the Remuneration Policy at three levels of performance: minimum, target and maximum.
Remuneration Policy
£7,000
£6,000
£5,000
£4,000
£3,000
£2,000
£1,000
0
Remuneration (£000s)
Alex Baldock
Minimum Target Maximum Maximum + 50%
share price growth
Minimum Target Maximum Maximum + 50%
share price growth
£971
£3,115
£4,742
£6,156
£502
£1,611
£2,451
£3,182
Bruce Marsh
Fixed pay
Annual bonus
Long-term incentives
(1) Fixed pay is based on the base salary payable at 1 August 2023, taxable benefits and pension contributions.
(2) Annual variable pay represents the annual performance bonus entitlement. No bonus is assumed at the minimum performance level. Target performance assumes
apayment of 90% of salary (i.e. 60% of maximum) and at maximum performance a payment of 150% of base salary.
(3) Long term incentives relate to the LTIP. No awards vest at the minimum performance level. Target performance assumes a vesting of 137.5% of salary (i.e. 55% of maximum
award) and maximum performance vesting of 250% of salary.
(4) The chart above does not take into account the impact of share price appreciation, other than the fourth bar, which assumes a growth in the share price of 50% over the
vesting period for LTIP and Deferred Share Bonus Plan awards.
Alignment of the Remuneration Policy to the 2018UK Corporate Governance Code (the ‘Code’)
The table below explains how the Remuneration Committee has addressed the factors set out in Provision 40 of the Code when
determining the Remuneration Policy.
Clarity Remuneration arrangements should be
transparent and promote effective
engagement with shareholders and
the workforce.
The Remuneration Committee has aimed to incorporate simplicity
and transparency into the design and delivery of our Remuneration
Policy. The remuneration structure is simple to understand for both
participants and shareholders and is aligned to the strategic
priorities of the business.
We aim for disclosure of the Policy and how it is implemented to
be in a clear and succinct format.
Simplicity Remuneration structures should avoid
complexity and their rationale and
operation should be easy to understand.
Our remuneration arrangements for executive directors are
purposefully simple, comprising fixed pay (salary, benefits,
pension / pension allowance), a short term incentive plan (annual
performance bonus) and a long term incentive plan (LTIP).
137Strategic Report Governance Financial Statements Investor Information
Risk Remuneration arrangements should
ensure reputational and other risks from
excessive rewards, and behavioural risks
that can arise from target-based
incentive plans, are identified and
mitigated.
The Remuneration Policy includes a number of points to mitigate
potential risks:
• There are defined limits on the maximum opportunity levels
under incentive plans.
• Performance targets are calibrated at appropriately stretching
but sustainable levels.
• The Remuneration Committee considers formulaic incentive
outcomes and determines whether to make any adjustments,
including to take into account the experience of wider
stakeholders such as employees and shareholders.
• Incentive plans include provisions to allow malus and clawback
to be applied, where appropriate.
• The use of bonus deferral, LTIP holding periods, in-employment
and post-employment shareholding requirements ensure that
there is an alignment of interests between executive directors
and shareholders and encourage sustainable performance.
Predictability The range of possible values of rewards
to individual directors and any other limits
or discretions should be identified and
explained at the time of approving the
Policy.
We aim for our disclosure to be clear to allow shareholders to
understand the range of potential values which may be earned
under the remuneration arrangements. Our Remuneration Policy
clearly sets out relevant limits and potential for discretion.
Proportionality The link between individual awards, the
delivery of strategy and the long-term
performance of the Company should be
clear. Outcomes should not reward poor
performance.
A significant part of an executive’s reward is linked to performance
with a clear line of sight between business performance and the
delivery of shareholder value. The Remuneration Committee may
adjust formulaic outcomes of incentive arrangements if they do
not appropriately align with performance achieved or the
experience of wider stakeholders such as employees and
shareholders.
Alignment to culture Incentive schemes should drive behaviours
consistent with Company purpose, values
and strategy.
The incentive arrangements and the performance measures used
are strongly aligned to those that the Board considers when
determining the success of the implementation of the Company’s
purpose, values and strategy. Please see our Strategic Report for
an explanation of our strategy and key performance indicators.
Remuneration Committee discretions
The Committee operates the annual performance bonus plan, LTIP
and all-employee plans in accordance with their respective rules,
the Listing Rules and HMRC rules (or overseas equivalent) where
relevant. The Committee retains discretion, consistent with market
practice, over a number of areas relating to the operation and
administration of these plans. These include but are not limited to:
• entitlement to participate in the plan;
• when awards or payments are to be made;
• size of award and/or payment (within the rules of the plans
and the approved Policy);
• determination of a good leaver for incentive plan purposes and
the appropriate treatment based on the rules of each plan;
• discretion as to the measurement of performance conditions
and pro-rating in the event of a change of control;
• any adjustment to awards or performance conditions for
significant events or exceptional circumstances; and
• the application of recovery and withholding provisions.
Shareholder consultation
The Committee has a policy to consult with its major shareholders
when making any significant changes to the Remuneration Policy of
the Company. Any feedback received is taken into consideration
when determining future policy. The Committee also takes into
consideration remuneration guidance issued by leading investor
bodies, in addition to the principles of good governance relating
to directors’ remuneration as set out in the Code.
Employee engagement and consultation
When considering remuneration arrangements for executive
directors, the Committee takes into account, as a matter of course,
the pay and conditions of colleagues at all levels throughout the
Company, to ensure appropriate alignment. The Committee
receives regular updates regarding any major changes to
colleague remuneration during the year and reviews information
on internal measures, including details of our gender pay gap and
the ratio of Group chief executive remuneration to UK colleagues’
remuneration. The Committee considers how these compare
externally and change over time. The Committee is also kept
informed of general employment conditions across the Group,
including the annual pay review outcomes.
138 Currys plc Annual Report & Accounts 2022/23
Remuneration
Report continued
The Company communicates regularly with colleagues by way of
email updates, live Q&A sessions and intranet posts to provide
information about our strategy, our performance and on
operational matters as well as asking for feedback on how
colleagues are feeling via regular employee surveys.
The Committee and the Board places great importance on
listening to the views of our colleagues on a range of issues
including pay and benefits, and the International Colleague
Forum is in place to unify country forums into a single listening
and engagement forum for colleagues. Tony DeNunzio, the
Remuneration Committee Chair attends UK forum meetings with
the Chief People Communications and Sustainability Officer, and
Andrea Gisle Joosen, Independent Non-Executive Director and
Remuneration Committee member, attends Nordics colleague
forum meetings. Attendance at these forums provides a welcomed
opportunity to directly engage with the wider workforce and to
bring colleagues’ views to both the Committee and Board
discussions. Colleague feedback from this forum has been used
to develop the Company culture and values and resulted in a
range of initiatives including, for example, the establishment of
colleague mental health first aiders. This year the Chief People,
Communications and Sustainability Officer held a session at one
of the colleague listening forums to discuss the Company’s pay
philosophy. At the session it was discussed how the Company
takes a consistent approach to remuneration across the entire
workforce, including for the executive directors and how this
philosophy aligns the wider workforce pay to executive pay.
The Remuneration Committee Chair also attended this session
and feedback from the session was reported to the Committee
at the subsequent meeting.
Many of our colleagues are also shareholders and as such
are able to attend annual general meetings, vote on all of the
resolutions and share their views on the policy in the same way
as other shareholders.
Remuneration policy for the wider workforce
Currys employs a large number of colleagues across different
countries. Our reward framework is structured to suit the needs of
the different businesses, employee groups and locations. Reward
packages differ for a variety of reasons including the impact
on the business, local practice, custom and legislation.
For management, the current bonus and LTIP structure cascades
down to around 200 managers ensuring management are
focused on delivering on strategic objectives and are aligned
to overall shareholders’ experience.
In determining salary increases to apply across the wider
workforce, the Company takes into consideration Company
performance and other market metrics as necessary. When
determining salary increases for executive directors, the
Committee takes into consideration salary increases throughout
the Company as a whole.
The Company actively encourages wide employee share
ownership. The Colleague Shareholder Scheme has provided the
opportunity for all colleagues, subject to eligibility criteria, to
become shareholders in the Company. In addition, the Group’s UK
& Ireland employees, who meet the eligibility criteria, are invited
to join the Company’s SAYE schemes.
Discretionary share plans are also extended to both senior
management and other key members of the workforce, as the
Company feels that it is important to incentivise and retain these
employees over the longer-term in order for the Company to
continue to grow.
Recruitment or promotion policy
On appointment or promotion, base salary levels will be set
taking into account a range of factors including market levels,
experience, internal relativities and cost. If an individual is
appointed on a base salary below the desired market positioning,
the Committee retains the discretion to realign the base salary
over one to three years, contingent on individual performance,
which may result in a higher rate of annualised increase above
ordinary levels. If the Committee intends to rely on this discretion,
it will be noted in the first Remuneration Report following an
individual’s appointment. Other elements of annual remuneration
will be in line with the policy set out in the Remuneration Policy
table. As such, variable remuneration will be capped as set out
in the Policy table.
The following exceptions will apply:
• in the event that an internal appointment is made or an
executive director joins as a result of a transfer of an
undertaking, merger, reconstruction or similar reorganisation,
the Committee retains the discretion to continue with existing
remuneration provisions and the provision of benefits. This
discretion will not be used in respect of pension contributions in
excess of the Committee’s commitment to ensure that any newly
appointed executive director will receive a pension contribution
in line with the level paid to the majority of the UK workforce;
• as deemed necessary and appropriate to secure an
appointment, the Committee retains the discretion to make
additional payments linked to relocation (including any
tax thereon);
• for an overseas appointment, the Committee will have
discretion to offer cost-effective benefits and pension
provisions which reflect local market practice and relevant
legislation;
• the Committee may set alternative performance conditions for
the remainder of the initial annual bonus performance period,
taking into account the circumstances and timing of the
appointment; and
• the Committee retains the discretion to provide an immediate
interest in Company performance by making a long term
incentive award on recruitment (or shortly thereafter if in a
prohibited period) in accordance with the Policy table under its
existing long term incentive schemes or such future schemes as
may be introduced by the Company with the approval of its
shareholders. The Committee will determine, at the time of
award, the level of the award, the performance conditions
and time horizon that would apply to such awards, taking
into account the strategy and business circumstances
of the Company.
139Strategic Report Governance Financial Statements Investor Information
Service contracts will be entered into on terms similar to those
for the existing executive directors, summarised in the recruitment
table below. However, the Committee may authorise the payment
of a relocation and/or repatriation allowance, as well as other
associated international mobility terms and benefits, such as tax
equalisation and tax advice.
In addition to the annual remuneration elements noted above,
the Committee may consider buying out, on a like-for-like basis,
bonuses and/or incentive awards that an individual forfeits from
a previous employer in accepting the appointment. The Committee
will have the authority to rely on Listing Rule 9.4.2(2) or exceptional
limits of awards of up to 375% of base salary within the LTIP.
If made, the Committee will be informed by the structure, time
horizons, value and performance targets associated with any
forfeited awards, while retaining the discretion to make any
payment or award deemed necessary and appropriate.
The Committee may also require the appointee to purchase
shares in the Company in accordance with its shareholding policy.
With respect to the appointment of a new chair of the Board or
non-executive director, terms of appointment will be consistent
with those currently adopted. Variable pay will not be considered
and as such no maximum applies. With respect to non-executive
directors, fees will be consistent with the policy at the time of
appointment. If necessary, to secure the appointment of a new
chair of the Board not based in the UK, payments relating to
relocation and/or housing may be considered.
Elements of remuneration on appointment are set out in the
recruitment table below.
A timely announcement with respect to any director’s appointment
and remuneration will be made to the regulatory news services
and posted on the Company’s corporate website.
Recruitment table for executive directors
Area Feature Policy
Service contract and
incentive plan provisions
• Notice period
• Entitlements on termination
• Restrictive covenants
• Variable elements
• Up to 12 months from either side.
• As summarised in the Policy on loss of office.
• Provisions for mitigation and payment in lieu of notice.
• Garden leave provisions.
• Non-compete, non-solicitation, non-dealing and
confidentiality provisions.
• The Committee has the discretion to determine whether
an individual shall participate in any incentive in the year
of appointment.
• The Committee shall have the discretion to determine
appropriate bonus performance targets if participating
in the year of appointment.
Annual remuneration Base salary • To be determined on appointment, taking into account
factors including market levels, experience, internal
relativities and cost.
Salary progression • If appointed at below market levels, salary may be
realigned over the subsequent one to three years subject
to performance in role. In this situation, the Committee
reserves the discretion to make increases above ordinary
levels.
• This initial market positioning and intention to increase
pay above the standard rate of increase in the
Remuneration Policy table (subject to performance) will
be disclosed in the first Remuneration Report following
appointment.
Benefits and allowances • The Committee retains the discretion to provide
additional benefits as reasonably required. These may
include, but are not restricted to, relocation payments,
housing allowances and cost of living allowances
(including any tax thereon).
140 Currys plc Annual Report & Accounts 2022/23
Policy on loss of office
Service contracts contain neither liquidated damages nor a
change of control clause.
The Company shall have a right to make a payment in lieu of
notice in respect of base salary, benefits, including car allowance
and pension contributions, only for the director’s contractual
period of notice or, if termination is part way through the notice
period, the amount relating to any unexpired notice to the date of
termination. There is an obligation on directors to mitigate any loss
which they may suffer if the Company terminates their service
contract. The Committee will take such mitigation obligation into
account when determining the amount and timing of any
compensation payable to any departing director.
A director shall also be entitled to a payment in respect of
accrued but untaken holiday and any statutory entitlements
on termination. No compensation is paid for dismissal, save for
statutory entitlements.
A director shall be entitled to receive a redundancy payment
in circumstances where, in the judgement of the Committee,
they satisfy the statutory tests governing redundancy payments.
Any redundancy payment shall be calculated by reference to
the redundancy payment policy in force for all employees in
the relevant country at the time of the redundancy and may
include modest outplacement costs.
If a director’s employment terminates prior to the relevant annual
performance bonus payment date, ordinarily no bonus is payable
for that financial year. The Committee shall retain discretion to
make a pro-rated bonus payment in circumstances where the
Committee considers them to be a ‘good leaver’ and it would be
appropriate to do so having regard to the contribution of the
director during the financial year, the circumstances of the
departure and the best interests of the Company.
Any entitlements under long term incentive schemes operated
by the Company shall be determined based on the rules of the
relevant scheme. The default position of the LTIP is that awards
will lapse on termination of employment, except where certain
good leaver circumstances exist (e.g. death, ill-health, injury,
disability, redundancy, transfer of an undertaking outside of the
Group or retirement or any other circumstances at the Committee’s
discretion) whereby the awards may vest on cessation, or the
normal vesting date, in both cases subject to performance and
time pro-rating. Although, the Committee can decide not to
pro-rate an award (or pro-rate to a lesser extent) if it regards
it as appropriate to do so in the particular circumstances.
The Committee shall be entitled to exercise its judgement with
regard to settlement of potential claims, including but not limited
to wrongful dismissal, unfair dismissal, breach of contract and
discrimination, where it is appropriate to do so in the interests of
the Company and its shareholders.
In the event that any payment is made in relation to termination for
an executive director, this will be fully disclosed in the following
Annual Remuneration Report.
A timely announcement with respect to the termination of any
director’s appointment will be made to the regulatory news service
and posted on the Company’s corporate website.
Service agreements
Service agreements for executive directors
Each of the executive directors’ service agreements provides for:
• the reimbursement of expenses incurred by the executive
director in performance of their duties;
• 25 days’ paid holiday each year;
• sick pay; and
• a notice period of 12 months from either party.
In situations where an executive director is dismissed, the
Committee reserves the right to make additional exit payments
where such payments are made in good faith, such as:
• in discharge of a legal obligation; and
• by way of settlement or compromise of any claim arising
in connection with the termination of the director’s office
and employment.
Letters of appointment
Each of the non-executive directors has a letter of appointment.
The Company has no age limit for directors. Non-executive
directors derive no other benefit from their office, except that
the Committee retains the discretion to continue with existing
remuneration provisions, including pension contributions and the
provision of benefits, where an executive director becomes a
non-executive director. It is Company policy not to grant share
options or share awards to non-executive directors. The Chair of
the Board, Deputy Chair and the other non-executive directors
have a notice period of three months from either party.
Appointments are reviewed by the Nominations Committee and
recommendations made to the Board accordingly.
External appointments
The Board supports executive directors should they chose to
take non-executive directorships as a part of their continuing
development and agrees that the executive directors may retain
their fees from one such appointment. Further details on current
external directorships and fees can be found in the Annual
Remuneration Report on page 153.
Dilution limits
All the Company’s equity-based incentive plans incorporate
The Investment Association’s current Share Capital Management
Guidelines (‘Guidelines’) on headroom which provide that overall
dilution under all plans should not exceed 10% over a ten-year
period in relation to the Company’s issued share capital (or reissue
of treasury shares). In addition, the LTIP operates with a 5% in
ten-year dilution limit (excluding historic discretionary awards).
The Company regularly monitors the position and prior to making
any award the Company ensures that it will remain within these
limits. Any awards which will be satisfied by market purchase
shares are excluded from such calculations. As at 6 July 2023,
the Company’s dilution position, which remains within the current
Guidelines, was 4% for all plans (against a limit of 10%) and
1.3% for the LTIP (against a limit of 5%).
Remuneration
Report continued
141Strategic Report Governance Financial Statements Investor Information
Remuneration
Committee Report
2022/23 HIGHLIGHTS
• Approving the amended Directors’
Remuneration Policy.
• Engaging with shareholders on the
annual general meeting 2022
Remuneration Policy voting
outcome.
• Engaging with the wider workforce
on executive pay.
Remuneration Committee purpose
The Board has delegated to the Committee responsibility for determining policy in
relation to the remuneration packages for executive directors, the Chair of the Board and
other senior management that promote the long-term sustainable success of the business
through the attraction and retention of executives who have the ability, experience and
dedication to deliver outstanding returns for our shareholders. This delegation includes
their terms and conditions of employment in addition to the operation of the Group’s
share-based employee incentive schemes. The Committee also makes recommendations
and monitors the level and the overall reasonableness of the structure of remuneration
for the general workforce. The Committee approves the service agreements of each
executive director, including termination arrangements and considers the achievement
of the performance conditions under annual and long term incentive arrangements.
Meetings
Only members of the Remuneration Committee are entitled to attend Committee
meetings. The Chair of the Board, Group Chief Executive, Group Chief Financial Officer,
General Counsel and Company Secretary, Chief People, Communications and
Sustainability Officer, Group Reward Director, Head of Executive Reward and Share Plans
and other members of senior management, and representatives from the Company’s
remuneration advisor (Willis Towers Watson) attended the relevant Committee meetings
by invitation.
No directors participate in discussions about their own remuneration.
The Company Secretary, or his nominee, acts as Secretary to the Committee and attends
all meetings. The Committee’s deliberations are reported by its Chair at the subsequent
Board meeting and the minutes of each meeting are circulated to all members of the
Board following approval.
The Committee meets as and when required and at least twice a year. The biographical
details for each Committee member are available on pages 92 and 93.
The Committee has the following principal duties:
• making recommendations to the Board on the Company’s framework of executive
remuneration;
• determining the fees of the Chair of the Board and Deputy Chair;
• considering and making recommendations to the Board on the remuneration of the
Executive Directors and senior management relative to performance and market data;
• approving contracts of employment which exceed defined thresholds of total
remuneration or have unusual terms or termination periods;
• considering and agreeing changes to the Remuneration Policy or major changes to
employee benefit structures;
• reviewing the reward and benefits structures across the Group for all levels of
colleagues; and
• approving and operating employee share-based incentive schemes and associated
performance conditions and targets.
Number of meetings
6
Committee members Meeting attendance
Tony DeNunzio
(Chair) 6/6
Andrea Gisle Joosen 6/6
Gerry Murphy 6/6
www.currysplc.com
Committee Terms of Reference last
approved: 17 January 2023 and available
on www.currysplc.com
The biographical details for each
Committee member are available on
pages 92 and 93.
FURTHER
INFORMATION
142 Currys plc Annual Report & Accounts 2022/23
Activities during the year
The principal activities of the Committee during 2022/23 included:
Executive directors remuneration and governance
• 2022 Directors’ Remuneration Policy updates, consulting
with shareholders on the annual general meeting 2022 voting
outcome for the Remuneration Policy and agreed subsequent
changes to the post-employment holding requirement;
• Directors’ Remuneration Report reviewed and approved;
• Annual performance bonus;
– 2021/22 – assessed the performance of the executive
directors against targets;
– 2022/23 – agreed the design including the performance
measures and targets;
• LTIP:
– 2019/20 – assessed the performance against targets and
approved the vesting outcome;
– 2022/23 – agreed the design including the performance
measures;
• benchmarking and approval of base pay changes for the
Group Chief Financial Officer and Executive Committee roles;
and
• monitoring the developments in the corporate governance
environment and investor expectations.
Wider workforce across the Group
• approval of the February 2020 Colleague Shareholder Award
vesting;
• approval of the UK Gender Pay Gap reporting and assessing
the international reporting obligations, including the first year of
filing of the Irish Gender Pay Gap Report;
• review and approval of various senior management
arrangements on joining and leaving the Company;
• approval of share awards to senior management under the
2016 Long Term Incentive Plan and reviewing the share award
design for senior management levels;
• assessing the retention options for senior management top
talent and Executive Committee members and approval of the
grant of a special award;
• approval of the new scheme rules for the Irish and UK Sharesave
Schemes and the 2022 grant;
• approval of a Nordics specific retention bonus;
• benchmarking and approval of base pay changes for Executive
Committee roles;
• engaging with the wider workforce on executive pay;
• reviewing the wider workforce pay and bonus arrangements;
and
• monitoring and ensuring alignment of remuneration practices
across the Group.
Remuneration
Committee Report continued
143Strategic Report Governance Financial Statements Investor Information
The following sections set out how the Remuneration Policy was implemented during 2022/23 and how it will be implemented for the
following year.
Single figure of directors’ remuneration for the year ended 29 April 2023 (audited information)
Base salary
and fees
£’000
Pension
contributions
(1)
£’000
Taxable
benefits
(2)
£’000
Total fixed
remuneration
£’000
Annual
performance
bonus
£’000
Deferred
Share Bonus
Plan award
£’000
LTIP
payments
(4)
£’000
Total
variable
remuneration
£’000
Total
remuneration
£’000
Executive
Alex Baldock 900 67 102 1,069 300
(3)
150
(3)
717 1,167 2,236
Bruce Marsh 442 13 13 468 147 74 0 221 689
1,342 80 115 1,537 447 224 717 1,388 2,925
Non-executive
Eileen Burbidge 67 0 0 67 0 0 0 0 67
Tony DeNunzio 140 0 2 142 0 0 0 0 142
Ian Dyson
(5)
196 0 1 197 0 0 0 0 197
Andrea
Gisle Joosen 73 0 5 78 0 0 0 0 78
Fiona McBain 77 0 6 83 0 0 0 0 83
Gerry Murphy 71 0 0 71 0 0 0 0 71
Former non-
executive
directors
Lord Livingston
of Parkhead
(6, 7)
117 0 0 117 0 0 0 0 117
741 0 14 755 0 0 0 0 755
2,083 80 129 2,292 447 224 717 1,388 3,680
(1) Pension contributions comprise the Company’s contribution or allowance in lieu. The contribution amount was 3% for Bruce Marsh and 10% for Alex Baldock, reduced to 3%
from 1 January 2023.
(2) Taxable benefits for the executive directors include private medical insurance and car allowance or driver benefit amounts. £100,746 for Alex Baldock relates to the
provision of a car and driver and includes the grossed-up element payable to cover the tax liability arising from business activities considered taxable by HMRC. In
addition, the benefits for both Alex Baldock and Bruce Marsh includes the gain resulting from the 2022 Sharesave grant, in which they participate on the same basis as all
eligible employees. For non-executive directors they include routine travel expenses relating to travel, accommodation and subsistence costs incurred in connection with
attendance at Board meetings and other Board business during the year, which are considered taxable by HMRC.
(3) One third of the bonus is deferred into shares for a period of two years. The remaining two-thirds awarded as immediately available shares.
(4) Share plans vesting represent the value of LTIP awards where the performance period ends on 29 April 2023 and are based on a share price of £0.6668, being the
three-month average to 29 April 2023 and an estimate of the accrued dividend equivalent up to 29 April 2023 using the same share price. The proportion of the value of
the LTIP that is attributable to share price depreciation (the depreciation being the difference between the face value at the date of award and the vested value of the
award) is 23%.
(5) Ian Dyson was appointed to the Board on 1 September 2022.
(6) Ian Livingston stepped down from the Board on 8 September 2022.
(7) Ian Livingston has a deferred pension in the Dixons Retirement and Employee Security Scheme.
Remuneration
Remuneration details for 2022/23
144 Currys plc Annual Report & Accounts 2022/23
Remuneration
Remuneration details for 2022/23 continued
Single figure of directors’ remuneration for the year ended 30 April 2022 (audited information)
Base salary
and fees
£’000
Pension
contributions
(3)
£’000
Taxable
benefits
(4)
£’000
Total fixed
remuneration
£’000
Annual
performance
bonus
£’000
Deferred
Share Bonus
Plan award
£’000
LTIP
payments
£’000
Total
variable
remuneration
£’000
Total
remuneration
£’000
Executive
Alex Baldock 877 88 75 1,040 735 367 352
(5)
1,454 2,494
Bruce Marsh
(1)
337 10 11 358 279 140 775
(6)
1,194 1,552
Former directors
Jonny Mason
(1, 2)
397 9 4 410 0 0 127
(5)
127 537
1,611 107 90 1,808 1,014 507 1,254 2,775 4,583
Non-executive
Eileen Burbidge 65 – 0 65 – – – – 65
Tony DeNunzio 140 – 1 141 – – – – 141
Andrea
Gisle Joosen 70 – 2 72 – – – – 72
Lord Livingston
of Parkhead
(7)
300 – 1 301 – – – – 301
Fiona McBain 75 – 1 76 – – – – 76
Gerry Murphy 70 – 0 70 – – – – 70
720 0 5 725 0 0 0 0 725
2,331 107 95 2,533 1,014 507 1,254 2,775 5,308
(1) Remuneration is shown for the period served on the Board. Jonny Mason stepped down from the Board on the 9 July 2021. Bruce Marsh was appointed to the Board on
12 July 2021.
(2) Jonny Mason was on a 12-month notice period to be given by the Company, and notice was given on 20 January 2021. After termination, payment in lieu of notice of
£291,064, was paid in instalments until the end of his notice period. He also received accrued holiday pay of £16,226. These amounts are included in the base salary figure.
(3) Pension contributions comprise the Company’s contribution or allowance in lieu. The contribution amount was 10% of salary for Alex Baldock and Jonny Mason, and 3%
for Bruce Marsh.
(4) Taxable benefits for the executive directors include private medical insurance and car allowance or driver benefit amounts. £73,937 for Alex Baldock relates to the
grossed-up element payable to cover the tax liability for his car and driver, arising from business activities considered taxable by HMRC. For non-executive directors
they include routine travel expenses relating to travel, accommodation and subsistence costs incurred in connection with attendance at Board meetings and other Board
business during the year, which are considered taxable by HMRC.
(5) Share plans vesting represent the value of LTIP awards and associated accrued dividend equivalents where the performance period ends on 30 April 2022. This figure
has been restated from last year’s report to reflect the actual share price on the vesting date of 25 July 2022, being £0.71. Jonny Mason’s award has been pro-rated for
service to his termination date. The proportion of the value of the LTIP that is attributable to share price depreciation (the depreciation being the difference between the
face value at the date of award and the vested value of the award) is 42%.
(6) Bruce Marsh received a buy-out award and cash payment to compensate for bonus and awards lost from his previous employer. The total value of the award has been
restated from the prior year report and the reported value of £774,968 is made up from the cash payment of £271,449 paid on joining and the buy-out award value of
£503,519. The buy-out award comprised of nil cost options over 410,366 shares granted on 22 October 2021, valued at £503,519 using the share price of £1.227, being the
mid-market price on the day of grant on 22 October 2021. 72,693 vested immediately on grant and the remaining 337,673 shares vest in July 2024.
(7) Ian Livingston has a deferred pension in the Dixons Retirement and Employee Security Scheme.
145Strategic Report Governance Financial Statements Investor Information
Annual performance bonus for 2022/23 (audited information)
The maximum bonus opportunity for executive directors was 150% of base salary based on performance in the 12-month period to the
end of the financial year. The maximum is payable at the maximum level of performance, 20% of the maximum opportunity is payable
on achievement of threshold performance (30% of base salary) and 60% on achievement of target performance (90% of base
salary). No bonus is payable if the minimum EBIT threshold is not achieved.
The Committee determined at the beginning of the year that the disclosure of performance targets was commercially sensitive and
therefore these were not disclosed in last year’s Directors’ Remuneration Report. This was because targets were set within the context
of a longer-term business plan and consideration of scenario analysis resulting from the uncertainty surrounding the macroeconomic
environment and consumer confidence. Consideration was given to the anticipated market decline due to these external factors whilst
also factoring in external market consensus at the time. In addition to this, significant factors not expected to repeat from the prior year
including inflows such as Business Rate reliefs and network commissions settlements, as well as outflows including supply chain related
wages and shipping costs were reflected. It was determined that this disclosure could give information to competitors to the detriment
of business performance. The Committee has, however, disclosed in the table below the targets on a retrospective basis and the actual
performance against these. The Committee has a robust process for considering and calibrating performance targets, taking into
account internal and external expectations, which ensures that they represent a significant stretch which corresponds to the creation of
value for shareholders. The uncertain external factors explained above are the driving factors behind the reduction in financial targets
compared to the prior year.
Measure
As a percentage
of maximum
bonus opportunity Threshold Target Maximum Actual
Potential
bonus
percentage
achieved
Adjusted EBIT 45% £210m £235m £260m
£216m
(vs £277m 2021//22) 13.32%
Average net (debt) 15% £(70)m £(10)m £50m
£(96)m
(vs £290m 2021/22) 0%
Customer Net Promoter score 15% 66.64% 68.21% 69.72%
67.36%
(vs 66.12% 2021/22) 5.76%
Employee engagement score 15% 77 78 79
77.50
(vs 77 2021/22) 6%
Environmental:
• E-waste take back volumes
(tonnes) 5% 97,7 74 101,929 106,103
102,576
(vs 102,839 2021/22) 3.31%
• Progress to net zero
(tonnes of CO
2
e emitted) 5% 22,132 21,481 21,071
19, 277
(vs 21,221 2021/22) 5%
Total 33.39%
Total awarded 33.39%
Throughout the year the Nordics performance has been very challenging, facing into a tough consumer environment, high-cost inflation
and unrelenting competitive intensity. These factors were the driver behind significant reductions in previously healthy levels of profit and
cash generation which was the predominant issue impacting the outcomes against the Adjusted EBIT and average net debt metrics. This
was partially offset by the strong performance across the UK & Ireland business, with significantly improved profits driven by continued
gross margin improvements and management focus on cost efficiencies. The UK performance also includes inflows from the inflationary
uplifts applied to the sale of mobile connectivity contracts. These inflationary price increases result in revaluation of previously sold
mobile contracts with recognition of this increased contractual revenue within the year. These mobile related uplifts helped to offset
the wider cost inflation incurred across the business, with particular increases seen within fuel and utilities.
Customer satisfaction metrics have continued to improve this year and we are building more Customers for Life with strong services
growth. Colleague engagement also continues to improve year on year, maintaining our status as benchmarking equal to the Global
Top 25% Companies. The challenging Nordics market has materially impacted e-waste recycling volumes over the year. However,
Kotsovolos benefitted from a government subsidy scheme which encouraged consumers to replace and recycle old air-conditioning
units. Progress in Scope 1 & 2 emissions reduction has continued in 2022/23, largely driven by the purchasing of renewable electricity
or certificates across all regions and energy reduction initiatives. Read more about our activities on e-waste and our progress against
emissions reduction targets on pages 44 to 47 and 48 to 56 respectively.
The Treating Customers Fairly withholding condition applies to all executive directors. This states that the Company must perform at a
rate of 90% or better on the ‘Must Do’ assessment regarding regulated products. If this isn’t met, then 10% of the bonus must be withheld.
The Treating Customers Fairly outcome for 2022/23 was 91.2%, and therefore, no withholding is required.
The Committee considered whether or not to adjust the formulaic outcome of 33.39% of maximum and decided it was satisfied that the
outcome is both fair and appropriate given the financial performance delivered and the wider stakeholder experience outlined
in the Remuneration in context section on pages 125 and 126. Therefore, for the avoidance of doubt, no Committee discretion was
exercised in respect of the formulaic outcome outlined above.
146 Currys plc Annual Report & Accounts 2022/23
Remuneration
Remuneration details for 2022/23 continued
In accordance with the current Remuneration Policy, executive directors must defer one third of their awarded bonus into shares for a
holding period of two years. Being mindful of his current shareholding position, Alex Baldock proposed to the Committee that he would
take 100% of his bonus in shares. The Committee accepted this request on the basis that it reflects a commitment to building a stronger
alignment with shareholders. One third of the bonus will be deferred for a period of two years in line with the Policy, with the remaining
two-thirds provided in shares immediately, which must be retained (net of tax) while he builds towards the 250% of salary shareholding
requirement.
LTIP and other share awards (audited information)
LTIP awards made during 2022/23
Nil cost option awards of 250% of base salary were made to the executive directors on 25 July 2022.
The performance period for the awards is the three financial years up to the end of the 2024/25 financial year and they have two
equally weighted performance conditions. Half of the awards are subject to the achievement of a relative TSR performance condition,
measured against the companies ranked in the FTSE 250 at the start of the performance period.
The relative TSR condition will be assessed over the three-year performance period, with vesting determined as follows:
Rank of Company TSR against comparator group TSR Percentage of TSR element vesting
Below Median 0%
Median 25%
Between Median and Upper Quartile basis Pro rata between 25% and 100% on a straight-line basis
Upper Quartile or above 100%
Following a review of the TSR peer group element of the awards the Committee decided to change the TSR peer group from the
bespoke retail sector group used in prior years to the constituents of the FTSE 250 index. The new peer group provides more
appropriate alignment with our shareholder base, given differing investor views on who the relevant peers are and more relevance
in terms of similarity of external factors including the nature of business / sector, share price correlation and volatility.
The free cash flow performance condition is measured cumulatively over the three-year performance period. The percentage of the
award vesting will be as follows:
Cumulative free cash flow up to the end of the 2024/25 financial year Percentage of the free cash flow element vesting
Below £340m 0%
£340m 10%
Between £340m and £400m basis Pro rata between 10% and 25% on a straight-line basis
£400m 25%
Between £400m and £460m Pro rata between 25% and 100%
Above £460m 100%
The free cash flow targets were set taking into account a number of inputs including market consensus at the time of the award and
the external environment within which the Company is operating. The medium-term targets set were reduced when compared to the
prior year. This was a result of the intervening change in macroeconomic impacts of the Russian invasion of Ukraine in February 2022,
resulting in disruption to supply chains, increased interest rates and inflation, and a negative shift in consumer sentiment. As always,
the Committee will consider the level of performance achieved at the end of the performance period and would be prepared to
exercise discretion if the formulaic outcome was not appropriate or aligned with the shareholder experience.
Calculations of the achievement against the targets will be independently performed and approved by the Committee. Free cash flow
is defined in the Glossary and definitions section on page 239; however, the Committee retains discretion to adjust for exceptional items
which impact cash flow during the performance period and will make full and clear disclosure of any such adjustments in the Directors’
Remuneration Report, together with details of the achieved levels of performance, as determined by the above definitions,
at the end of the performance period.
Awards will be subject to recovery and withholding provisions for material misstatement, misconduct, calculation error, reputational
damage and corporate failure, enabling performance adjustments and/or recovery of sums already paid. These provisions will apply
for up to three years after vesting.
The awards are subject to a two-year post vesting holding period, during which the executive director is not permitted to sell any shares
vesting, other than those required to settle any tax obligations.
147Strategic Report Governance Financial Statements Investor Information
The table below sets out the LTIP awards made to the executive directors in 2022/23:
Nil cost options
awarded
Share price at
date of award
(£)
Face value
(1)
(£)
End of
performance
period Vesting date
Minimum value at
threshold vesting
(2)
(£)
Alex Baldock – 250% of salary
(3)
3,083,824 0.71 2,200,000 4 May 2025 25 July 2025 £383,165
Bruce Marsh – 250% of salary
(3)
1,454,303 0.71 1 ,037,500 4 May 2025 25 July 2025 £180,697
(1) Due to market volatility, the share price used to determine the number of shares making up the award was calculated using the average mid-market price at the close of
business since the announcement of the Company results on 6 July 2022 up to the business day prior to grant, being 22 July 2022 (71.34p).
(2) The minimum value at threshold vesting is calculated on 50% of the award operating with a threshold vesting of 25% of maximum, and 50% with a threshold vesting of 10%
of maximum. Value calculated using the share price at the grant date of the award (71p), being 25 July 2022.
(3) Nil cost option awards were made to Alex Baldock and Bruce Marsh on 25 July 2022 and the share price used to calculate the number of shares granted was the average
mid-market price at the close of business since the announcement of the Company results on 6 July 2022 up to the business day prior to grant, being 22 July 2022 (71.34p).
Deferred Share Bonus Plan awards made during 2022/23
On 25 July 2022 the following nil cost options were granted to Alex Baldock and Bruce Marsh under the Company Deferred Share Bonus
Plan (‘DSBP’):
Nil cost options
awarded
Share price
used
to grant
award
(1)
(£)
Face value
(2)
(£) Vesting date
Alex Baldock 523,659 0.7015 367,347 25 July 2024
Bruce Marsh 198,979 0.7015 139,584 25 July 2024
(1) The share price used to calculate the numbers of shares granted was using the mid-market price on the business day prior to grant, being 22 July 2022.
(2) The face value is calculated based on the number of options awarded multiplied by the share price used to grant the award.
The awards represent one-third of the 2021/22 annual performance bonus entitlement granted in accordance with the Company’s
approved Remuneration Policy, approved by shareholders at the annual general meeting 2019. Details of the 2021/22 annual
performance bonus were disclosed in the 2021/22 Directors’ Remuneration Report.
Each award (a nil cost option) will be satisfied using market purchase shares and will ordinarily vest and become exercisable on the
second anniversary of grant.
Vesting of awards made under 2016 LTIP (audited information)
Nil cost option awards equivalent to 250% of base salary were made to Alex Baldock and Jonny Mason on 19 August 2020. The
performance period for the awards was the three financial years up to the end of the 2022/23 financial year and there were two
equally weighted performance conditions. Half of the awards are subject to the achievement of a relative TSR performance condition,
measured against a bespoke comparator group comprised of 21 European Special Lines Retailers and other comparable companies
at the start of the performance period. The list of companies included in the group is provided below.
The remaining half of the awards was subject to the achievement of a cumulative free cash flow target. The performance period for
these awards ended on 29 April 2023.
The performance measures for the award and the outcomes are shown below.
TSR target
Level of performance Below Threshold Threshold Maximum Achieved
TSR Performance over performance period Below Median Median Upper Quartile Below Median
Vesting level 0% 25% 100% 0%
Comparator Group: AO World, Ceconomy Ag, Dufry AG, Dunelm Group, Fenix Outdoor International AG, Fielmann AG, FNAC Darty SA,
Grandvision N.V., JD Sports Fashion, Kingfisher, Maisons Du Monde S.A., Marks & Spencer Group., Mobilezone Holding Ag, Pets At Home
Group, SMCP S.A.S., Frasers Group, Superdry, Valora Holding AG, WH Smith, XXL ASA, Zur Rose Group AG.
148 Currys plc Annual Report & Accounts 2022/23
Remuneration
Remuneration details for 2022/23 continued
Cumulative free cash flow
Level of performance Below threshold Threshold Target Maximum Achieved
Cumulative free cash flow over the
performance period Below £312m £312m £368m £423m £436m
Vesting level 0% 10% 25% 100% 100%
Based on the achieved level of performance, the threshold required for vesting for the TSR element was not met but the free cash flow
achieved a vesting percentage of 100%. Overall vesting was therefore 50%. From a free cash flow perspective, the Group has
outperformed the targets set at the time of grant. The targets were set at a time of major uncertainty due to Covid-19 and government
enforced store lockdowns. The Company continued to trade successfully throughout this period having taken action to successfully
switch to serving a much larger share of business through our online channels. In addition, continued focus on margin driving initiatives
and significant action taken on cost efficiencies has played a key part in delivering the outperformance in EBIT. The Company has also
significantly reduced the capex spend across the 3-year period, with focus on cost efficiencies and high return projects following the
completion of most of our transformational activity. We also delivered on our working capital expectations, albeit the profile of this
changed throughout the years due to early cash collection of the EE network debtor. Other smaller upsides including lower interest
charges due to the improved average net debt position as a result of the above noted performance. The positive outcome has been
partially offset however by the downturn in performance in the Nordics business in 2022/23 due to macroeconomic impacts, excess
stock, FX deterioration, increased inflation, competitive intensity, and lower consumer demand. The Committee reviewed whether any
discretion should be applied to the vesting outcomes and determined that it was satisfied that the outcome is both fair and
appropriate given the overall performance and the wider stakeholder experience outlined in the Remuneration in context section on
pages 123 and 124. On this basis, the Committee determined that the awards should be paid in accordance with the vesting outcome.
All the awards are subject to a two-year post vesting holding period, during which the executive director is not permitted to sell any
shares vesting, other than those required to settle any tax obligations.
Nil cost options awarded Overall vesting % Overall vesting awards Vesting date
Alex Baldock 1,991,959 50% 995,980 19 August 2023
Jonny Mason
(1)
1,101,436 50% 163,306 19 August 2023
(1) Jonny Mason’s award has been pro-rated for service to his termination date.
Accrued dividend equivalents, calculated by reference to the value of dividends that would have been payable between the grant of
the award and the start of the exercise period will be added to each award.
Performance graph
The graph below shows the value, by 29 April 2023, of £100 invested in Currys on 31 March 2013, compared with the value of £100
invested in the FTSE 350 Index on the same date. The other points plotted are the values at intervening financial year ends.
£250
£200
£150
£100
£50
£0
Data is sourced from S&P CapIQ.
This graph shows the value, by 28 April 2023, of £100 invested in Currys on 31 March 2013, compared with the value of £100 invested in the FTSE 350 Index on the same date.
The other points plotted are the values at intervening financial year ends.
31 March
2013
29March
2014
2 May
2015
30 April
2016
29 April
2017
28 April
2018
27 April
2019
2 May
2020
1 May
2021
30 April
2022
28 April
2023
Currys
FTSE 350
The FTSE 350 has been used as it is a broad market which includes the Company and a number of its competitors.
149Strategic Report Governance Financial Statements Investor Information
Group chief executive pay
The following table shows, over the same ten-year period as the performance graph, the Group Chief Executive’s single total figure of
remuneration, the amount of bonus earned as a percentage of the maximum remuneration possible, and the vesting of long-term
awards as a percentage of the maximum number of shares that could have vested, where applicable.
Year
CEO single figure
of remuneration
£’000
Annual bonus payout
against maximum
%
Long term incentive vesting
rates against maximum
opportunity
%
2022/23 Alex Baldock 2,236 33.39 50
2021/22 Alex Baldock 2,494
(1)
83.8 26.5
2020/21 Alex Baldock
(2)
2,884
(1)
88 50
2019/20 Alex Baldock
(2)
1,038 0 n/a
2018/19 Alex Baldock 1,619 58
(3)
n/a
201 7/1 8 Alex Baldock 1,946
(4)
0 n/a
201 7/1 8 Sebastian James 2,716
(5)
0 n/a
2016/17 Sebastian James 1,795 83 n/a
2015/16 Sebastian James 1,616 68 n/a
2014/15 Sebastian James 1,687 100 n/a
2014/15 Andrew Harrison 420 100 n/a
2013/14 Andrew Harrison 679 54 n /a
2013/14 Roger Taylor 159 n /a n /a
(1) The CEO single figure has been restated to account for the LTIP value on the vesting date.
(2) As a result of Covid-19, Alex Baldock voluntarily agreed to a temporary 20% base pay reduction with effect from 5 April 2020 to 28 June 2020.
(3) Alex Baldock voluntarily deferred 100% of his annual performance bonus into a share award, vesting two-years from grant.
(4) The single figure has been restated to include the value of the buy-out award, of 989,078 nil cost options, which was granted on 3 April 2018. The face value of the award
at the date of grant was £1,871,336, using the share price on the date of grant of £1.8920. As there were no performance conditions attached to this award other than
continued employment the value of the award at grant should have been included in the 2017/18 CEO single figure. Full details of the award were detailed in the 2017/18
Remuneration Report.
(5) The single figure includes the taxable benefit relating to the waiving of the loan from the Dixons Share Plan award.
150 Currys plc Annual Report & Accounts 2022/23
Remuneration
Remuneration details for 2022/23 continued
Annual percentage change in remuneration
The table below provides the percentage change in the annual remuneration of directors and the average UK colleague from
2022/23 onwards.
As the parent company only employs a small number of the workforce, the average UK colleague was deemed to be the most
appropriate comparator group, as the UK has the largest employee base, and the Committee considers remuneration levels in the UK
when setting salaries and fees for executive and non-executive directors and the Group Chief Executive is based in the UK.
Percentage change from 2021/22
to 2022/23
Percentage change from 2020/21
to 2021/22
Percentage change from 2019/20
to 2020/21
Salary
and fees
Taxable
benefits
Annual
bonuses
Salary
and fees
(2)
Taxable
benefits
(7)
Annual
bonuses
Salary
and fees
(2)
Taxable
benefits
Annual
bonuses
Executive directors
Group Chief Executive –
Alex Baldock 2.7% 35.7% -59.1% 3.9% 123% -3.7% -0.8% -67% 100%
(10)
Group Chief Financial
Officer – Bruce Marsh
(1)
30.9% 24.8% -47.2% n/a n/a n/a n/a n/a n/a
Non-executive directors
Eileen Burbidge 2.3%
(3)
0% n/a 2.8% 0% n/a -1.3% -100% n/a
Tony DeNunzio 0.0% 189.9%
(8)
n/a 2.8% 100% n/a -1.3% -100% n/a
Ian Dyson
(5)
n/a n /a n/a n/a n/a n/a n/a n/a n/a
Andrea Gisle Joosen 3.6%
(3)
106.9%
(8)
n/a 3.1%
(4)
100% n /a -3.2%
(4)
-100% n/a
Lord Livingston of Parkhead
(1)
n/a -82.8% n/a 2.8% 100% n /a -1.3% -100% n/a
Fiona McBain 2% 691.1 %
(8)
n/a 2.8% 100% n/a -1.3% -100% n/a
Gerry Murphy 2% 0% n/a 2.8% 0% n /a -1.3% 0% n/a
Employees 24.2%
(6)
0%
(9)
n/a
(11)
2.0%
(6)
0%
(9)
n/a
(11)
-6.5%
(6)
0%
(9)
n/a
(11)
(1) Bruce Marsh joined the Company in July 2021. Ian Livingston stepped down from the Board on 8 September 2022.
(2) No pay increases were applied for 2020/21 for the Group Chief Executive, Group Chief Financial Officer and non-executive directors, however they voluntarily agreed
to a temporary 20% base pay reductions with effect from 5 April 2020 to 28 June 2020.
(3) Eileen Burbidge and Andrea Gisle Joosen received additional fees relating to the establishment of the ESG Committee, effective 1 May 2023.
(4) Andrea Gisle Joosen is paid on a four weekly payroll cycle and therefore the impact of the 20% reduction on basic fees paid was different than for the other
non-executives, who were paid on a monthly payroll cycle up to 10 July 2020. From 11 July 2020 all non-executives moved to a four weekly payroll cycle. The same
reduction of 20% was applied for all across the same period.
(5) No figures have been included for Ian Dyson as he joined during the 2022/23 year.
(6) The average employee percentage change has been calculated using the median pay data collated for CEO pay ratio reporting purposes. The calculation includes data
for UK colleagues who were furloughed and had Covid-19 related salary reductions in 2020/21.
(7) The Group Chief Executive and Non-executive directors’ taxable benefit figure includes the variable expenses relating to travel and subsistence costs deemed taxable by
HMRC as referenced in the Single Figure tables on pages 141 and 142. No expenses were claimed by the Non-executive directors in 2020/21 due to travel restrictions, claims
were made in 2019/20 and 2021/22.
(8) The taxable benefit figures for Non-executive directors in the table above reflect repayment of business expenses considered taxable by HMRC and gross up of tax on
these. The absolute amounts are relatively small (especially as business travel was more limited due to COVID in FY22) and so small changes have resulted in the large
percentage differences in the table.
(9) The percentage change in taxable benefits for the UK workforce is considered to be 0% since there have been no material changes in UK benefits.
(10) No annual performance bonus was paid out for 2019/20 for UK or Group, due to the EBIT performance threshold not being met by the business areas, so a 100% increase
has been applied for 2020/21, as an annual performance bonus has been paid for 2020/21.
(11) The median UK colleague is not eligible for an annual performance bonus.
151Strategic Report Governance Financial Statements Investor Information
Relative importance of spend on pay
The following table sets out both the total cost of remuneration for the Group compared with adjusted EBIT and profits distributed for
2022/23 and the prior year. Adjusted EBIT was chosen by the Committee as it is the most appropriate measure of the Group’s
performance. Adjusted EBIT is defined in the Glossary and definitions section on page 232.
2022/23
£m
2021/22
£m
Change
%
Dividends
(1)
35 46 -23.91%
Share buybacks
(2)
0 32 -100%
Adjusted EBIT
(3)
214 280
(4)
-23.57%
Total staff costs
(5)
926 1,008 -8.13%
Number Number
Change
%
Average employee numbers 29,569 33,532 -11.82%
(1) Extracted from note 22 to the Group financial statements.
(2) The Company completed a £32m share buyback in 2021/22. There were no share buybacks in 2022/23.
(3) Extracted from note A1 to the Glossary and definitions section.
(4) Restated – see note A12 to the Glossary and definitions section.
(5) Extracted from note 4 to the Group financial statements.
CEO pay ratio
The legislation requires the publishing of the ratio of total remuneration of the Group Chief Executive to the 25th, 50th and 75th
equivalent percentile of full-time equivalent colleagues.
The ratio is shown in the table below:
Financial year Methodology
P25
(Lower Quartile)
P50
(Median)
P75
(Upper Quartile)
2022/23 Option A 94:1 89:1 70:1
2021/22
(1)
Option A 127:1 111:1 82:1
2020/21
(1)
Option A 167:1 142:1 107:1
2019/20 Option A 54:1 48:1 37:1
2018/19 Option A 79:1 65:1 50:1
(1) The CEO pay ratios have been restated to account for the actual value of the LTIP at the vesting date.
Of the three calculation approaches available in the regulations, we have chosen Methodology A because we believe it to be the
most appropriate and robust way for the Company to calculate the ratio.
In determining the figures, the following should be noted:
• The single total figure of remuneration of our UK colleagues was calculated and ranked using 2022/23 P60 and P11D data, employer
pension contributions and payments under the Company share schemes, in line with the reporting regulations. P60 data was used
as it also includes the value of any overtime payments made in the year.
• Part time colleagues’ earnings have been annualised on a full-time equivalent basis.
• Joiners and leavers were excluded from the ranking.
• The 25th, 50th and 75th percentile colleagues’ single total figure of remuneration was then identified and compared to the CEO pay,
as shown in the single total figure of remuneration table on page 143.
152 Currys plc Annual Report & Accounts 2022/23
Remuneration
Remuneration details for 2022/23 continued
The following table provides base salary and total remuneration information in respect of the 25th, 50th and 75th percentile
colleagues, on a full-time equivalent basis.
Financial Year Remuneration
Group Chief
Executive
(£)
P25
(Lower Quartile)
(£)
P50
(Median)
(£)
P75
(Upper Quartile)
(£)
2022/23 Base salary 899,945 21,902 23,930 30,750
Total remuneration 2, 237,066 23,707 25,212 32,085
The Committee has confirmed that the ratio is consistent with the Company’s wider policies on colleague pay and reward, taking into
account a range of factors including market practice, experience and National Living Wage requirements.
The CEO pay ratio has decreased for the second year in a row, due in part to the hourly pay increases at lower levels in the
organisation. From 1st August 2022, we increased the minimum base hourly rate to £10 for all our hourly paid UK colleagues. This was
above the Real Living Wage (‘RLW’) for colleagues outside London. The revised London rate of £11.05 aligned to the RLW rate of £11.05
per hour. This resulted in an average increase of 5.2% for our hourly paid UK colleagues. In October 2022 we increased our minimum
rates again, to £10.35 and £11.43 for London.
The effect of these increases is demonstrated by the 14% increase in the P25 and P75 base salaries and a 25% increase in P50 base
salary. In contrast, CEO base salary increased by 3%, with total remuneration falling by 10% primarily due to the lower pay out of the
2022/2023 annual performance bonus and also the reduction in pension allowance from 10% to 3%.
The ratio of the CEO’s pay to that of all colleagues is likely to be a volatile number, mainly resulting from the Group Chief Executive
having a larger proportion of his total remuneration linked to business performance than other colleagues in the UK workforce and
therefore it does not necessarily shed any light on the alignment or otherwise with regard to pay, reward and progression for the UK
workforce. This alignment is, however, something that the Committee considers as part of its overall responsibilities.
Service agreements
Service contracts
The following table summarises key terms of the service contracts in place with the executive directors:
Date of contract
Alex Baldock 3 April 2018
Bruce Marsh 12 July 2021
More details are set out in the Service agreements section of the Report on page 140.
Letter of appointment
Non-executive directors are normally appointed for three-year terms, subject to annual re-election at the annual general meetings,
although appointments may vary depending on length of service and succession planning considerations. Appointments are reviewed
annually by the Nominations Committee and recommendations made to the Board accordingly. The contracts in respect of the Chair of
the Board’s, Deputy Chair’s and non-executive directors’ services can be terminated by either party, the Company or the director, giving
not less than three months’ notice.
The date of the letters of appointment are shown below:
Letter of appointment
Eileen Burbidge 1 January 2019
Tony DeNunzio 16 December 2015
Ian Dyson 1 September 2022
Magdalena Gerger 1 May 2023
Andrea Gisle Joosen 6 August 2014
Lord Livingston of Parkhead
(1)
16 December 2015
Fiona McBain 1 March 2017
Gerry Murphy 6 August 2014
Adam Walker 1 June 2023
(1) Ian Livingston stepped down from the Board on the 8 September 2022.
153Strategic Report Governance Financial Statements Investor Information
External directorships
The policy relating to external directorships is outlined in the Remuneration Policy; the following external directorship was undertaken
and fee retained:
• Alex Baldock was paid a fee of £64,816 for the year to 29 April 2023 in respect of his non-executive role of RS Group.
Leavers and joiners (audited information)
Ian Livingston stepped down from the Board and Ian Dyson was appointed in September 2022. No additional leaver or joiner payments
were made in connection to these Board changes.
Payments to past directors (audited information)
As disclosed in the annual report and accounts 2021/22, the Committee determined that Jonny Mason was deemed to have good
leaver status in respect of his outstanding buy-out, LTIP and DSBP awards, taking into account his significant contribution to the strong
profit and cash flow performance during his tenure as well as support of a successful transition to Bruce Marsh. The buy-out and LTIP
awards were subsequently pro-rated for the period of his employment. The 2019 LTIP and the second tranche of the buy-out award
vested this year equivalent to 211,503 shares (including accrued dividend equivalents) equal to a value of £148,331, using a share price
of 71.00p and 65.10p respectively, being the share price at each of the applicable vesting dates.
Directors’ interests in LTIP (audited information)
Date of grant
At 1 May
2022
Awarded in
the year
Lapsed or
forfeited in
the year
Exercised in
the year
At 29 April
2023
Date from
which first
exercisable
Expiry of the
exercise
period
Exercise
Price
(p)
Alex Baldock
2016 LTIP 25-Jul-22 0 3,083,824 3,083,824 25-Jul-25 25-Jul-32 —
2020/21 DSPB 25-Jul-22 0 523,659 523,659 25-Jul-24 25-Jul-32 —
2016 LTIP 2-Aug-21 1,677,632 1,677,632 2-Aug-24 2-Aug-31 —
2020/21 DSPB 6-Jul-21 278,249 278,249 6-Jul-23 6-Jul-31 —
2016 LTIP 19-Aug-20 1,991,959 1,991,959 19-Aug-23 19-Aug-30 —
2016 LTIP 25-Jul-19 1,737,530 34,740
(1)
1, 277,085 495,185 0 25-Jul-22 25-Jul-29 —
Section 9.4. 2 3-Apr-18 329,693 64,091
(1)
393,784 0 3-Apr-21 3-Apr-28 —
Total (with
performance
conditions) 6,753,415
Total (without
performance
conditions) 801,908
Bruce Marsh
2016 LTIP 25-Jul-22 0 1,454,303 1,454,303 25-Jul-25 25-Jul-32 —
2020/21 DSPB 25-Jul-22 0 198,979 198,979 25-Jul-24 25-Jul-32 —
2016 LTIP 2-Aug-21 803,018 803,018 2-Aug-24 2-Aug-31 —
Section 9.4. 2 22-Oct-21 337,673 337,673 22-Oct-21 22-Oct-31 —
Total (with
performance
conditions) 2, 257, 321
Total (without
performance
conditions) 536,652
Jonny Mason
(1)
2020/21 DSPB 6-Jul-21 153,856 153,856 6-Jul-23 6-Jan-24 —
2016 LTIP 19-Aug-20 326,611 326,611 19-Aug-23 19-Feb-24 —
2016 LTIP 25-Jul-19 627,072 14,209
(1)
460,898 180,383 0 25-Jul-22 25-Jan-24 —
Section 9.4. 2 13-Aug-18 54,290 3,975
(1)
31,120 27,145 13-Aug-21 13-Feb-24 —
Total (with
performance
conditions) 326,611
Total (without
performance
conditions) 181,001
(1) Accrued dividend equivalents were granted on exercise of the relevant awards.
154 Currys plc Annual Report & Accounts 2022/23
Remuneration
Remuneration details for 2022/23 continued
Directors’ interests in Sharesave (audited information)
Date of grant
Exercise
price
(p)
At 1 May
2022
Awarded
in the year
Lapsed or
cancelled
in the year
Exercised
in the year
At 29 April
2023
Date from
which first
exercisable
Expiry of
the exercise
period
Alex Baldock
Sharesave 25-Aug-22 59.28 20,242 – – 20,242 1-Oct-27 1-Apr-28
Sharesave 28-Aug-20 66.64 6,662 – – – 6,662 1-Oct-25 1-Apr-26
Sharesave 10-Sept-19 97. 28 13,939 – – – 13,939 1-Oct-24 1-Apr-25
Total 20,601 20,242 – – 40,843
Bruce Marsh
Sharesave 25-Aug-22 59.28 22,530 – – 22,530 1-Oct-25 1-Apr-26
Total 22,530 – – 22,530
Directors’ shareholding (audited information)
The Company share ownership guidelines are designed to encourage shareholding in the Company for executive directors.
The current level of shareholding requirement for executive directors is 250% of base salary to be achieved five years from the date
of their appointment.
Beneficially owned shares (including any interests held by connected persons e.g. spouse) count towards the guidelines, together with:
• unvested awards, on a ‘net of tax’ basis, granted under any deferred bonus arrangement or other plan / arrangement with no
post-grant performance conditions; and
• shares subject to an unexpired holding period (including any shares held under a vested but unexercised option), on a ‘net of tax’
basis and provided that no further performance targets must be met.
Details of directors’ interests in shares of the Company as at 29 April 2023 are shown in the following table:
Scheme interests
Beneficially owned
shares (including any
interests held by
connected persons)
Shares subject
to performance
conditions
Shares without
performance
conditions
Total beneficial
interests under
share ownership
guidelines
(1)
Total beneficial
share interests as a
percentage of
salary
(2)
Executive directors
Alex Baldock 1,946,924 6,753,415 842,751 2,409,972 150%
Bruce Marsh 91,892 2, 257, 321 559,182 396,969 46%
Non-executive directors
Eileen Burbidge 4,200 – – 4,200 n/a
Tony DeNunzio 280,000 – – 280,000 n/a
Ian Dyson
(4)
200,000 – – 200,000 n/a
Andrea Gisle Joosen 24,976 – – 24,976 n/a
Lord Livingston of Parkhead
(5)
205,631 – – 205,631 n /a
Gerry Murphy 100,000 – – 100,000 n/a
Fiona McBain 28,129 – – 28,129 n/a
(1) This figure is calculated on a ‘net of tax’ and commission basis, as appropriate.
(2) The percentage is based on base salary as at 29 April 2023 and an average share price over the month to 29 April 2023 of £0.5642.
(3) Executive directors have five years from their appointment date to reach their shareholding requirement of 250%.
(4) Ian Dyson purchased 200,000 shares on 5 October 2022. The purchase price was £0.6106 per share.
(5) Ian Livingston stepped down from the Board on the 8 September 2022 and the shareholding shown is as at that date.
The Committee notes that the total beneficial interests of both executive directors for the purposes of the shareholding guidelines have
increased in absolute numbers of shares terms over the past 12 months, though levels have reduced in percentage of salary terms due to
the fall in share price over that period. In particular, the Committee notes that, following Alex Baldock’s decision to take two-thirds of his
2022/23 annual bonus as shares, in addition to the one-third deferred into the 2022/23 DSBP Award in July 2023, and the vesting of the
2020 LTIP in August 2023, Alex Baldock’s holding will be around 211% of salary. Without the fall in share price, this holding would have
been above the requirement (296% of salary as at year end and 357% of salary following the payment of bonus in shares and LTIP
vesting on an initial acquisition cost basis) and so the Committee has judged that he continues to make a good faith effort to build up to
the required level. The executive directors will be expected to continue to build up to the 250% of base salary holding requirement via
retention of vested LTIP awards. There were no changes in the directors’ share interests between 29 April 2023 and the date of this
Report.
155Strategic Report Governance Financial Statements Investor Information
Non-executive directors’ and Chair of the Board’s fees
The fees for the independent non-executive directors, including the Deputy Chair, are determined by the Board (excluding non-
executive directors) after considering external market research and are reviewed on an annual basis. Factors taken into consideration
include the required time commitment, specific experience and/or qualifications. A base fee is payable and additional fees are paid
for chairing and membership of committees. The Chair of the Board is not involved in the setting of his own salary, which is dealt with
by the Remuneration Committee annually. Non-executive directors receive no variable pay and receive no additional benefits, except
in situations where an executive director becomes a non-executive director, and benefit and pension arrangements continue.
The fees for 2022/23 increased for the non-executive directors by 2%, effective 1 May 2022. This is the first increase in fees to the
non-executive directors since merger of Dixons and Carphone in 2014. The Chair of the Board and Deputy Chair fees remain unchanged.
The Chair of the Board and Deputy Chair receive all-inclusive fees reflecting their duties. Other independent non-executive directors
received a basic fee of £61,200 and additional fees as set out in the table below for chairing or membership of committees.
2022/23
£’000
Increase
effective
1 May 2022
%
2021/22
(4)
£’000
Chair of the Board
(1)
300 – 300
Deputy Chair
(2)
140 – 140
Chair of Audit Committee
(3)
15.3 2% 15
Member of Audit Committee 5.1 2% 5
Member of Nominations Committee 5.1 2% 5
Member of Remuneration Committee 5.1 2% 5
Base Board fee 61.2 2% 60
(1) The Chair of the Board’s fee includes Chairship of the Nominations Committee.
(2) The Deputy Chair’s fee includes the Senior Independent Director, Chairship of the Remuneration Committee, and membership of the Nominations Committee fees.
(3) The Chair of the Audit Committee fee includes fees for attending the board meetings of the two main operating subsidiaries.
How the Remuneration Policy will be applied in 2023/24
Executive directors
i) Base salary
The following salaries will apply during the 2023/24 financial year:
Salary at
29 April 2023
£’000
Increase in
salary in
2023/24
%
Salary at
31 July 2023
£’000
Current directors
Alex Baldock 906.4 4% 942.65
Bruce Marsh 487.4 0% 487.4
The Committee reviewed Alex Baldock’s salary for 2023/24 and applied an increase of 4%, increasing his salary to £942,650,
effective 31 July 2023. This salary increase is in line with the 4% pay budget applied to the UK & Ireland corporate head office
population effective on the same date and is below the 8% increase for hourly paid colleagues received in the period from
1 August 2022 to 1 April 2023. The average increase for the Nordics Head Office population is 5%, effective 1 May 2023.
Bruce Marsh received an additional pay increase in January 2023 and on this basis, no further adjustment will be made in respect
of 2023/24.
ii) Pension contributions
Company pension contributions or allowance in lieu of 3% of base salary will be paid to Alex Baldock and Bruce Marsh.
156 Currys plc Annual Report & Accounts 2022/23
iii) Annual performance bonus
The maximum annual performance bonus for 2023/24 will be 150% of base salary. Measures are selected to reflect the Group’s key
objectives and for 2023/24 the bonus will include a clawback facility in order to demonstrate the Company’s objective to reinforce
a culture of ‘Treating Customers Fairly’. As set out in the Remuneration Committee Chair’s letter, the performance metrics and their
weightings for 2023/24 are shown in the table below:
Weighting (as a percentage of
maximum bonus opportunity)
Adjusted EBIT 55%
Free cash flow 15%
ESG metrics (30%):
Customer Net Promoter Score 10%
Employee engagement 10%
Environmental to include:
- Focusing on recycling by increasing e-waste take back 5%
- Reducing Scope 1 and 2 carbon emissions 5%
The increase in the weighting of EBIT and substitution of free cash flow for the previous average net debt metric is intended to support
the Company’s increased focus on cash, driving profitability and cash flow and transparency. To accommodate this change, the
colleague and customer measures will be reduced from 15% to 10% for each measure. These metrics remain critically important for the
business but the Committee is satisfied that the Company’s improvements in engagement and customer scores have been demonstrated
by achievement against the 2022/23 annual bonus targets, but we now recognise the need to emphasise shareholder outcomes with
an increased focus on the financial measures. The environmental measures will remain at 10% giving equal weighting to each of our
ESG measures, reflecting the core elements of our sustainability strategy.
A minimum EBIT threshold must be achieved before any bonus is paid out. One-third of any bonus earned will be deferred into shares for
two years after payment. The Committee feels that specific targets relating to the 2023/24 bonus scheme are commercially sensitive
and as such will not be disclosed on a forward-looking basis. Retrospective disclosure of the targets and performance against them
will be provided in next year’s Remuneration Report.
Recovery and withholding provisions apply for material misstatement, misconduct, calculation error, reputational damage, corporate
failure, material failure of risk management and internal controls and unreasonable failure to protect the interests of employees and
customers, enabling performance adjustments and/or recovery of sums already paid. These provisions will apply for up to three years
after payment.
iv) LTIP
As set out in the Remuneration Committee Chair’s statement, the Committee reviewed the performance measures to be applied
for the 2023/2024 LTIP awards and took into account feedback received during the investor engagement exercise that EPS is a key
performance measure for shareholders. An EPS measure is therefore being introduced alongside existing free cash flow and relative TSR,
the weightings will be 30%, 40% and 30% respectively.
The Committee is mindful of the current volatility in the market and ensuring LTIP awards are aligned with shareholder experience.
As at the date of this Report, the Committee has not yet finalised the decisions on LTIP award levels (within the Policy limits) or
the calibration of applicable free cash flow and EPS targets. We will confirm the conditions and make the awards after we have
announced our annual results, to ensure that we have targets in place that are both stretching for participants and also fully reflective
of how shareholders and the market view the long-term performance of the business. We will fully disclose the award details and
targets at the time of the grant announcement and also include them in next year’s Remuneration Report.
These awards will vest after three years based on continued service and will be subject to a further two-year post vesting
holding period, during which the executive director is not permitted to sell any shares vesting, other than those required to settle
any tax obligations.
Awards will be subject to recovery and withholding provisions for material misstatement, misconduct, calculation error, reputational
damage and corporate failure, material failure of risk management and internal controls and unreasonable failure to protect the
interests of employees and customers, enabling performance adjustments and/or recovery of sums already paid. These provisions will
apply for up to three years after vesting. Any shares vesting as a result of these awards, net of tax and national insurance, will be
required to be held for a further two years post vesting.
Remuneration
Remuneration details for 2022/23 continued
157Strategic Report Governance Financial Statements Investor Information
v) Non-executive directors’ and Chair of the Board’s fees
As discussed on page 155 above, fee levels for the non-executive directors increased by 2% in May 2022. No further increase will be
applied for 2023/24. In addition, following the establishment of the ESG Committee as a committee of the Board, we introduced an
ESG Committee Chair fee of £10,000 and a committee membership fee of £5,100.
2023/24
£’000
2022/23
£’000
Chair of the Board
(1)
300 300
Deputy Chair
(2)
140 140
Chair of Audit Committee
(3)
15.3 15.3
Chair of ESG Committee 10 n /a
Member of Audit Committee 5.1 5.1
Member of Nominations Committee 5.1 5.1
Member of Remuneration Committee 5.1 5.1
Member of ESG Committee 5.1 n/a
(1) The Chair of the Board’s fee includes Chairship of the Nominations Committee.
(2) The Deputy Chair’s fee includes the Senior Independent Director, Chairship of the Remuneration Committee, and membership of the Nominations Committee and ESG
Committee fees.
(3) The Chair of the Audit Committee fee includes fees for attending the board meetings of the two main operating subsidiaries.
Statement of voting at shareholder meetings
The Company is committed to ongoing shareholder dialogue in respect of directors’ remuneration and takes an active interest in voting
outcomes. Where there are substantial votes against resolutions, explanatory reasons will be sought, and any actions in response will
be communicated to shareholders.
The following table sets out the voting results in relation to the in relation to the resolutions put to the annual general meeting in 2022:
Resolution Votes for % Votes against % Withheld
Approval of Directors’ Remuneration Policy 6 30,74 2, 347 65.95 325,630,007 34.05 33,828
Approval of Annual Remuneration Report 831,115,642 86.90 125,254,427 13.10 36,531
As described in the Remuneration Committee Chair’s introductory letter, the Committee has engaged with shareholders to discuss the
specific rationale for the votes against the Remuneration Policy. The Committee Chair wrote to shareholders representing 67% of the
Company’s issued share capital and met with all the shareholders that accepted this offer to hear their views.
Following careful consideration of all feedback received, the Committee and the Board agreed to increase the post-employment
shareholding requirement for the executive directors. The executive directors will be required to retain at least 100% of their Currys plc
shares for two years post-employment (the lower of actual shareholding or the shareholding requirement immediately prior to
departure, in line with The Investment Association guidelines). The previous requirement was for directors to retain at least 100% of
their Currys plc shares for one year and then at least 50% in the following year.
Advice
The Committee retained Willis Towers Watson throughout 2022/23 as independent advisors. Willis Towers Watson, who were appointed
by the Committee in 2020 following a competitive tender process, are engaged to provide advice to the Committee and to work
with the directors on matters relating to the Group’s executive remuneration and its long term incentives. They are members of the
Remuneration Consultants Group and operate under its code of conduct in relation to the provision of executive remuneration advice
in the UK and have confirmed that they adhered to the Code during 2022/23 for all remuneration services provided to the Group.
Willis Towers Watson received fees of £157,251 (2021/22: £109,350) in relation to the provision of those services. Fees are charged on
a time and expenses basis. During the year, Willis Towers Watson also provided other ad hoc remuneration services outside the scope
of the Committee to the Company.
Compliance
As required by the Regulations, a resolution to approve this Remuneration Report will be proposed at the AGM 2023.
Tony DeNunzio CBE
Chair of the Remuneration Committee
6 July 2023
158 Currys plc Annual Report & Accounts 2022/23
The directors are responsible for preparing the annual report and the financial statements
in accordance with applicable law and regulations.
Company law requires the directors to prepare financial
statements for each financial year. Under that law, the directors
are required to prepare the consolidated financial statements in
accordance with UK-adopted international accounting standards
and applicable UK law. The directors have also elected to
prepare the Company financial statements in accordance with
Financial Reporting Standard 101 ‘Reduced Disclosure Framework’.
Under company law, the directors must not approve the accounts
unless they are satisfied that they give a true and fair view of the
state of affairs of the Company and the Group and of the profit
or loss of the Company and the Group for that period.
In preparing the Company financial statements, the directors are
required to:
• select suitable accounting policies and then apply them
consistently;
• make judgements and accounting estimates that are
reasonable and prudent;
• state whether Financial Reporting Standard 101 ‘Reduced
Disclosure Framework’ has been followed, subject to any
material departures disclosed and explained in the financial
statements; and
• prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Company will
continue in business.
In preparing the Company financial statements, IAS 1: ‘Presentation
of Financial Statements’ requires that directors:
• properly select and apply accounting policies;
• present information, including accounting policies, in a manner
that provides relevant, reliable, comparable and
understandable information;
• provide additional disclosures when compliance with the
specific requirements in IFRS are insufficient to enable users to
understand the impact of particular transactions, other events
and conditions on the Group’s financial position and financial
performance; and
• make an assessment of the Group’s ability to continue as
a going concern.
The directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Company’s
transactions and disclose with reasonable accuracy at any time
the financial position of the Company and the Group and enable
them to ensure that the financial statements comply with the
Companies Act 2006. They are also responsible for safeguarding
the assets of the Company and the Group and hence for taking
reasonable steps for the prevention and detection of fraud and
other irregularities.
The directors are responsible for the maintenance and integrity of
the corporate and financial information included on the Group’s
website. Legislation in the UK governing the preparation and
dissemination of financial statements may differ from legislation
in other jurisdictions.
Responsibility statement
We confirm that to the best of our knowledge:
• the financial statements, prepared in accordance with the
relevant financial reporting framework, give a true and fair
view of the assets, liabilities, financial position and profit
or loss of the Company and the undertakings included in the
consolidation taken as a whole;
• the Strategic Report includes a fair review of the development
and performance of the business and the position of the
Company and the undertakings included in the consolidation
taken as a whole, together with a description of the principal
risks and uncertainties that they face; and
• the Annual Report and Accounts, taken as a whole, are fair,
balanced and understandable and provide the information
necessary for shareholders to assess the Group and the
Company’s performance, business model and strategy.
By Order of the Board
Alex Baldock
Group Chief
Executive
6 July 2023
Bruce Marsh
Group Chief
Financial Officer
6 July 2023
Statement of
directors’ responsibilities
159Strategic Report Governance Financial Statements Investor Information
Independent Auditor’s Report to the Members of Currys plc
Report on the audit of the financial statements
1. Our opinion is unmodified
We have audited the financial statements of Currys plc (“the Company”) for the 52-week period ended 29 April 2023 which comprise
the consolidated income statement, the consolidated statement of comprehensive income, the consolidated balance sheet, the
consolidated statement of changes in equity, the consolidated cash flow statement, the Company balance sheet, the Company
statement of changes in equity, and the related notes, including the accounting policies in note 1.
In our opinion:
• the financial statements give a true and fair view of the state of the Group’s and of the parent Company’s affairs as at 29 April 2023
and of the Group’s loss for the period then ended;
• the Group financial statements have been properly prepared in accordance with UK-adopted international accounting standards;
• the parent Company financial statements have been properly prepared in accordance with UK accounting standards, including
FRS101 Reduced Disclosure Framework; and
• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our
responsibilities are described below. We believe that the audit evidence we have obtained is a sufficient and appropriate basis
for our opinion. Our audit opinion is consistent with our report to the audit committee.
We were first appointed as auditor by shareholders on 8 September 2022. The period of total uninterrupted engagement is for the one
financial period ended 29 April 2023. We have fulfilled our ethical responsibilities under, and we remain independent of the Group in
accordance with, UK ethical requirements including the FRC Ethical Standard as applied to listed public interest entities. No non-audit
services prohibited by that standard were provided.
Overview
Materiality:
Group financial statements as a whole
£12.5m
0.13% of Revenue
Coverage 92% of group revenue
Key audit matters
Event-driven risk
Recoverability of group goodwill,
and of parent’s investment in subsidiaries
Recurring risks Contingent tax liabilities
160 Currys plc Annual Report & Accounts 2022/23
Independent Auditor’s Report continued
2. Key audit matters: our assessment of risks of material misstatement
Key audit matters are those matters that, in our professional judgement, were of most significance in the audit of the financial
statements and include the most significant assessed risks of material misstatement (whether or not due to fraud) identified by us,
including those which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the
efforts of the engagement team. We summarise below the key audit matters, in decreasing order of audit significance, in arriving at our
audit opinion above, together with our key audit procedures to address those matters and, as required for public interest entities, our
results from those procedures. These matters were addressed, and our results are based on procedures undertaken, in the context of,
and solely for the purpose of, our audit of the financial statements as a whole, and in forming our opinion thereon, and consequently
are incidental to that opinion, and we do not provide a separate opinion on these matters.
The risk Our response
Recoverability of group
goodwill, and of parent’s
investment in subsidiaries
(£2,270m; 2022: £2,814m)
Impairment charge: £511m; 2022:
£nil
Parent: £2,340m ; 2022: 2,670m;
(Impairment charge: £329m;
2022: £nil)
Refer to page 110 (Audit
Committee Report), page 175
(accounting policy) and pages
189 and 225 (financial
disclosures).
Forecast-based assessment
Goodwill in the group and the carrying
value of the parent company’s investment
in subsidiaries are significant and at risk of
irrecoverability due to weaker demand in
both the UK and Ireland (“UK&I”) and
Nordics markets following the economic
uncertainty arising after the effects of the
COVID-19 pandemic, its impact on the
retail industry, and current macro-
economic pressures driven by inflation and
reduced consumer spending. The estimated
recoverable amount of these balances is
subjective due to the inherent uncertainty
involved in forecasting and discounting
future cash flows.
Changes in the key assumptions in cash
flow forecasts can have a material impact
on the value-in-use (VIU) calculation for
estimating the recoverable amount and the
amount of any impairment that might be
required. The most significant assumptions
are operating profit margins, long-term
growth rates, and discount rates.
The effect of these matters is that, as part
of our risk assessment, we determined that
the recoverable amounts of Group
goodwill and the parent’s cost of
investment in subsidiaries have a high
degree of estimation uncertainty, with a
potential range of reasonable outcomes
greater than our materiality for the
financial statements as a whole, and
possibly many times that amount. The
financial statements disclose the sensitivity
estimated by the Group (note 8c) and the
Company (note C4).
Our procedures included:
• Our sector experience: Evaluating assumptions
used, in particular those relating to forecast revenue
growth and profit margins in UK&I and the Nordics;
• Benchmarking assumptions: Comparing the
Group’s assumptions to externally derived data in
relation to key inputs such as projected economic
growth, competition, and cost inflation. With the
assistance of our valuation specialists, assessing
the methodology applied by the Group to derive its
discount rates and the basis for the calculation of
the key components such as debt/equity ratios, risk
free rates and market risk premium;
• Sensitivity analysis: Performing sensitivity analysis
to stress-test the impairment calculation to changes
in sales growth and profit margins and the discount
rate;
• Historical comparisons: We evaluated the track
record of historical assumptions used against actual
results achieved.
• Comparing valuations: Comparing the sum of
the discounted cash flows to the Group’s market
capitalisation to assess the reasonableness of
those cashflows;
• Assessing consistency: Assessing the consistency
of the forecasts used in impairment testing with those
applied for the going concern assessment; and
• Assessing transparency: Assessing whether the
Group and parent company’s disclosures about
the sensitivity of the outcome of the impairment
assessment to changes in key assumptions reflected
the risks inherent in the recoverable amount of
goodwill and investment in subsidiaries, respectively.
We performed the tests above rather than seeking to
rely on any of the group’s controls because the nature
of the balance is such that we would expect to obtain
audit evidence primarily through the detailed
procedures described.
Our results
We found the Group’s conclusion that there is no
impairment of the Nordics goodwill to be acceptable.
In respect of the UK&I goodwill balance in the group
and the parent Company’s investment in subsidiaries,
and the related impairment charges, we found them to
be acceptable.
161Strategic Report Governance Financial Statements Investor Information
The risk Our response
Contingent tax liabilities
Potential range of tax exposure
of £nil to £211m; 2022: £nil to
£214m)
Refer to page 110 (Audit
Committee Report), page 176
(accounting policy) and page
221 (financial disclosures).
Dispute outcome:
Uncertain tax positions require the directors
to make judgements and estimates in
relation to tax issues and exposures given
the time taken for tax matters to be agreed
with the tax authorities. In addition there is
judgement as to whether these enquiries
represent a contingent liability or whether
the Group should recognise a provision,
and there is a risk that the potential range
of tax exposure is not accurate and
properly disclosed.
The Group is currently engaged with HMRC
in relation to open tax enquiries arising from
pre-merger legacy corporate transactions
associated with the former Carphone
Warehouse Group. In respect of these
enquiries, the Group has disclosed a
potential range of unprovided tax
exposures in relation to one of these
enquiries. In reaching this conclusion
management have been advised by a
number of third-party experts specialised
in tax law to assess the likelihood of
success in this case.
The effect of these matters is that, as part
of our risk assessment, we determined that
the potential range of unprovided tax
exposures has a high degree of estimation
uncertainty, with a potential range of
reasonable outcomes greater than our
materiality for the financial statements as
a whole, and possibly many times that
amount.
The financial statements (notes 1d and 28)
disclose the range estimated by the Group.
Our procedures included:
• Our tax expertise: Use of our own tax specialists
to evaluate the Group’s assessment of the likely
outcome of the enquiry, its correspondence with
the UK tax authority, supporting documentation
prepared by management and their advisors
based on our knowledge and experiences of the
application of the UK legislation by the tax authority
and courts;
• Tests of detail: Examining the calculations of the
potential tax exposure prepared by the directors
and agreeing key assumptions used to underlying
data.
• Assessing transparency: Assessing the adequacy
of the Group’s disclosures in respect of tax and
uncertain tax positions including the directors’
assessment of the likelihood of any outflow and
estimate, and their rationale as to why no provision
has been made.
We performed the tests above rather than seeking to
rely on any of the group’s controls because the nature
of the balance is such that we would expect to obtain
audit evidence primarily through the detailed
procedures described.
Our results
We found the directors’ judgement that this matter
represents a contingent liability and the related
disclosures to be acceptable.
2. Key audit matters: our assessment of risks of material misstatement continued
162 Currys plc Annual Report & Accounts 2022/23
£12.5m
Whole financial
statements materiality
£9.4m
Whole financial statements
performance materiality
£10.5m
Range of materiality
at 3 components
(£10.0m-£10.5m)
£0.6m
Misstatements reported
to the audit committee
Group revenue
£9,511m
Group materiality
£12.5m
Group materiality
Group revenue
3
1
3
1
3
1
Independent Auditor’s Report continued
3. Our application of materiality and an overview of
the scope of our audit
Materiality for the Group financial statements as a whole was set
at £12.5m, determined with reference to a benchmark of Group
revenue as disclosed in notes 2 and 3, of £9,511m, of which it
represents 0.13%. We consider total revenue to be the most
appropriate benchmark because of the low level of profit before
tax from continuing operations in recent periods.
Materiality for the parent Company financial statements as a
whole was set at £10.0m, determined with reference to a
benchmark of Company total assets, of which it represents 0.17%.
In line with our audit methodology, our procedures on individual
account balances and disclosures were performed to a lower
threshold, performance materiality, so as to reduce to an
acceptable level the risk that individually immaterial
misstatements in individual account balances add up to a
material amount across the financial statements as a whole.
Performance materiality was set at 75% of materiality for the
financial statements as a whole, which equates to £9.4m for the
Group and £7.5m for the parent Company. We applied this
percentage in our determination of performance materiality
because we did not identify any factors indicating an elevated
level of risk.
We agreed to report to the Audit Committee any corrected or
uncorrected identified misstatements exceeding £0.6m, in addition
to other identified misstatements that warranted reporting on
qualitative grounds.
The Group has 11 reporting components. In order to determine the
work performed at the reporting component level, we identified
those components which we considered to be of individual
financial significance, those which were significant due to risk and
those remaining components on which we required procedures to
be performed to provide us with the evidence we required in order
to conclude on the group financial statements as a whole.
We determined individually financially significant components as
those contributing at least 10% of group revenue. We selected
group revenue because this is the most representative of the
relative size of the components. We identified 2 components as
individually financially significant components and performed full
scope audits on these components.
In addition, to enable us to obtain sufficient appropriate audit
evidence for the group financial statements as a whole, we
selected 2 components on which to perform procedures. Of these
components, we performed full scope audits for 1 component,
and performed specific risk-focused audit procedures over loans
and other borrowings and associated finance costs on 1
component.
Group revenue
Group total assets
Total profits and losses that
made up Group loss before tax
Full scope for group audit purposes
Specified risk-focused audit procedures
Residual components
92%
91%
94%
163Strategic Report Governance Financial Statements Investor Information
3. Our application of materiality and an overview of the scope of our audit continued
The components within the scope of our work accounted for the percentages illustrated above. The remaining 8% of total Group
revenue, 6% of the total profits and losses that made up Group loss before tax and 9% of total Group assets is represented by 7
reporting components, none of which individually represented more than 6% of any of total Group revenue, the total profits and losses
that made up Group loss before tax or Group assets. For the residual components, we performed analysis at an aggregated group
level to re-examine our assessment that there were no significant risks of material misstatement within these.
The work on 1 of the 4 components, the Nordics, was performed by component auditors in Norway and the rest, including the audit of the
Parent Company, was performed by the Group team. The scope of the audit work performed was predominately substantive as we
placed limited reliance. upon the Group’s internal control over financial reporting.
The Group operates one shared service centre in Czechia, the outputs of which are included in the financial information of the reporting
components it services, and therefore it is not a significant separate reporting component. This service centre is subject to specified
risk-focused audit procedures, predominantly the testing of transaction processing.
The Group team instructed the component auditors as to the significant areas to be covered, including the relevant risks detailed above
and the information to be reported back. The Group team set the component materialities for the Nordics component and for
components where work was performed by the Group team; these ranged from £10.0m to £10.5m, having regard to the mix of size and
risk profile of the Group across the components. In working with the component auditor, we:
• Held planning calls with the Nordics component audit team to discuss the significant areas of the audit relevant to the component.
• Issued group audit instructions to the component auditor on the scope of their work, including specifying the minimum procedures to
perform in their audit of cash and cash equivalents and journal entries testing.
• Held regular update discussions with the Nordics component audit team before the commencement of the final phases of the audit
led by the Group engagement partner and engagement quality control partner.
• Visited the Nordics component in-person in Norway as the audit progressed to understand and challenge the audit approach and
organised weekly video conferences with the partners and senior managers of the Group and component audit teams. At these visits,
meetings and video conferences, the findings reported to the Group team were discussed in more detail, and any further work
required by the Group team was then performed by the component auditor.
Inspection of component audit team’s key work papers (in person and using remote technology capabilities) to evaluate the quality of
execution of the audits of the components, with a particular focus on revenue, management override of controls, including journal
entries testing; accounting for rebates and restructuring associated costs, and cash and cash equivalents.
4. The impact of climate change on our audit
In planning our audit, we considered the potential impacts of climate change on the Group’s business and its financial statements. The
Group has set out further detail within the Sustainability section in the Strategic Report of the Annual Report on page 42 its commitment
to reach climate net zero green-house gas emissions by 2040 and on its commitment to several other shorter-term targets. The financial
statement areas that may be affected by climate plans and risks are those that involve forward cash flow projections, such as goodwill
impairment assessments.
As a part of our audit, we have performed a risk assessment, including enquiries of management, and inspection of the Group’s road
map for net zero transition to understand how the impact of commitments made by the Group in respect of climate change, as well as
the physical or transition risks of climate change, may affect the financial statements and our audit.
Whilst the Group is still undertaking work to quantify and assess the potential impact of climate change on the business, based on our
risk assessment procedures we did not identify any significant risk of material misstatement in this period as a result of climate change.
This is due to the expected timescale and extent of the potential effects on discounted cash flows and asset lives.
We have read the disclosures of climate-related information in the Annual Report and considered their consistency with the financial
statements and our audit knowledge.
164 Currys plc Annual Report & Accounts 2022/23
Independent Auditor’s Report continued
5. Going concern
The directors have prepared the financial statements on the going concern basis as they do not intend to liquidate the Group or the
Company or to cease their operations, and as they have concluded that the Group’s and the Company’s financial position means that
this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over their ability
to continue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”).
We used our knowledge of the Group, its industry, and the general economic environment to identify the inherent risks to its business
model and analysed how those risks might affect the Group’s and Company’s financial resources or ability to continue operations over
the going concern period. The risks that we considered most likely to adversely affect the Group’s and Company’s available financial
resources and metrics relevant to debt covenants over this period were:
• changes in trading performance as a result of prolonged macro-economic pressures, including the impact from inflation, alongside
weaker customer demand and confidence, and
• the Group’s ability to operate within its current facilities and comply with its banking covenants for the foreseeable future.
We considered whether these risks could plausibly affect the liquidity or covenant compliance in the going concern period by assessing
the directors’ sensitivities over the level of available financial resources and covenant thresholds indicated by the Group’s financial
forecasts taking account of severe, but plausible adverse effects that could arise from these risks individually and collectively.
Our procedures also included:
• Funding assessment: Assessing the financing arrangements currently in place and the actions taken by the Group to maintain liquidity
and covenant headroom. We inspected the confirmation from the lender of the level of committed financing, and the associated
covenant requirements.
• Key dependency assessment: Using our knowledge of the business, and the audit work performed on the areas such as the forecasts
used in impairment testing and current period performance (e.g. revenue, operating costs, and pensions), to identify critical factors
within the Group’s financial forecasts and to inform our assessment of the severe-but-plausible downside scenario.
We considered whether the going concern disclosure in note 1 to the financial statements gives a full and accurate description of the
directors’ assessment of going concern.
Our conclusions based on this work:
• we consider that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is
appropriate;
• we have not identified, and concur with the directors’ assessment that there is not, a material uncertainty related to events or
conditions that, individually or collectively, may cast significant doubt on the Group’s or the Company’s ability to continue as a going
concern for the going concern period;
• we have nothing material to add or draw attention to in relation to the directors’ statement in note 1 to the financial statements on the
use of the going concern basis of accounting with no material uncertainties that may cast significant doubt over the Group and the
Company’s use of that basis for the going concern period, and we found the going concern disclosure in note 1 to be acceptable;
and;
• the related statement under the Listing Rules set out on page 172 is materially consistent with the financial statements and our audit
knowledge.
However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent
with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the Group or the
Company will continue in operation.
6. Fraud and breaches of laws and regulations – ability to detect
Identifying and responding to risks of material misstatement due to fraud
To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive
or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:
• Enquiring of directors, the audit committee, and internal audit and inspection of policy documentation as to the Group’s high-level
policies and procedures to prevent and detect fraud, including the internal audit function, and the Group’s channel for
“whistleblowing”, as well as whether they have knowledge of any actual, suspected or alleged fraud.
• Reading Board, and audit committee minutes.
• Considering remuneration incentive schemes and performance targets for management,and directors.
• Using analytical procedures to identify any unusual or unexpected relationships.
165Strategic Report Governance Financial Statements Investor Information
6. Fraud and breaches of laws and regulations – ability to detect continued
Identifying and responding to risks of material misstatement due to fraud continued
We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit.
This included communication from the Group audit team to the full scope component audit team of relevant fraud risks identified at the
Group level and request to the full scope component audit team to report to the Group audit team any instances of fraud that could
give rise to a material misstatement at the Group level.
As required by auditing standards, and taking into account possible pressures to meet profit targets, recent revisions to guidance and
our overall knowledge of the control environment, we perform procedures to address the risk of management override of controls, in
particular the risk that Group and component management may be in a position to make inappropriate accounting entries and the risk
of bias in accounting estimates and judgements such as tax provisioning, deferred tax assets, impairment of non-financial assets, and
pension assumptions.
On this audit we do not believe there is a fraud risk related to revenue recognition due to the limited opportunity arising from the
simplicity of retail revenue transactions and sources and its close relationship to cash movements, and for network revenue from
variable commission because of the reduction in variable consideration recognized as revenue.
We did not identify any additional fraud risks.
We performed procedures including:
• Identifying journal entries and other adjustments to test based on risk criteria and comparing the identified entries to supporting
documentation. These included those posted to unusual accounts.
• Assessing whether the judgements made in making accounting estimates are indicative of a potential bias.
Identifying and responding to risks of material misstatement due to non-compliance with laws and regulations
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements
from our general commercial and sector experience, and through discussion with the directors and other management (as required by
auditing standards), and from inspection of the Group’s regulatory and legal correspondence and discussed with the directors and
other management the policies and procedures regarding compliance with laws and regulations.
As the Group is regulated, our assessment of risks involved gaining an understanding of the control environment including the entity’s
procedures for complying with regulatory requirements.
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance
throughout the audit.
This included communication from the Group audit team to the full-scope component audit team of relevant laws and regulations
identified at the Group level, and a request for the full-scope component auditor to report to the Group audit team any instances of
non-compliance with laws and regulations that could give rise to a material misstatement at the Group level.
The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, the Group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation
(including related companies legislation), distributable profits legislation, and taxation legislation and pension legislation and we
assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Secondly, the Group is subject to many other laws and regulations where the consequences of non-compliance could have a material
effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation or the loss of the
Group’s license to operate. We identified the following areas as those most likely to have such an effect: health and safety, financial
services regulation, data protection laws, anti-bribery, employment law, regulatory capital and liquidity, and certain aspects of
company legislation recognising the financial and regulated nature of the Group’s activities and its legal form. Auditing standards limit
the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other
management and inspection of regulatory and legal correspondence, if any. Therefore if a breach of operational regulations is not
disclosed to us or evident from relevant correspondence, an audit will not detect that breach.
Further detail in respect of the Group’s open tax enquiries arising from pre-merger legacy corporate transactions is set out in the key
audit matter disclosures in section 2 of this report.
166 Currys plc Annual Report & Accounts 2022/23
Independent Auditor’s Report continued
6. Fraud and breaches of laws and regulations – ability to detect continued
Identifying and responding to risks of material misstatement due to non-compliance with laws and regulations
continued
For the legal matters discussed in notes 19 and 28 we assessed disclosures against our understanding from legal and tax
correspondence.
We discussed with the audit committee matters related to actual or suspected breaches of laws or regulations, for which disclosure is
not necessary, and considered any implications for our audit.
Context of the ability of the audit to detect fraud or breaches of law or regulation
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in
the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For
example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial
statements, the less likely the inherently limited procedures required by auditing standards would identify it.
In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement.
We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and
regulations.
7. We have nothing to report on the other information in the Annual Report
The directors are responsible for the other information presented in the Annual Report together with the financial statements. Our
opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or,
except as explicitly stated below, any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work, the
information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. Based solely on that work
we have not identified material misstatements in the other information.
Strategic report and directors’ report
Based solely on our work on the other information:
• we have not identified material misstatements in the strategic report and the directors’ report;
• in our opinion the information given in those reports for the financial period is consistent with the financial statements; and
• in our opinion those reports have been prepared in accordance with the Companies Act 2006.
Directors’ remuneration report
In our opinion the part of the Directors’ Remuneration Report to be audited has been properly prepared in accordance with the
Companies Act 2006.
Disclosures of emerging and principal risks and longer-term viability
We are required to perform procedures to identify whether there is a material inconsistency between the directors’ disclosures in respect
of emerging and principal risks and the viability statement, and the financial statements and our audit knowledge.
Based on those procedures, we have nothing material to add or draw attention to in relation to:
• the directors’ confirmation within the Going concern and viability statement on page 172 that they have carried out a robust
assessment of the emerging and principal risks facing the Group, including those that would threaten its business model, future
performance, solvency and liquidity;
• the Principal risks and uncertainties disclosures describing these risks and how emerging risks are identified, and explaining how they
are being managed and mitigated; and
• the directors’ explanation in the Going concern and viability statement of how they have assessed the prospects of the Group, over
what period they have done so and why they considered that period to be appropriate, and their statement as to whether they have
a reasonable expectation that the Group will be able to continue in operation and meet its liabilities as they fall due over the
period of their assessment, including any related disclosures drawing attention to any necessary qualifications or assumptions.
We are also required to review the Going concern and viability statement, set out on page 172 under the Listing Rules. Based on the
above procedures, we have concluded that the above disclosures are materially consistent with the financial statements and our audit
knowledge.
167Strategic Report Governance Financial Statements Investor Information
7. We have nothing to report on the other information in the Annual Report continued
Disclosures of emerging and principal risks and longer-term viability continued
Our work is limited to assessing these matters in the context of only the knowledge acquired during our financial statements audit. As we
cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements
that were reasonable at the time they were made, the absence of anything to report on these statements is not a guarantee as to the
Group’s and Company’s longer-term viability.
Corporate governance disclosures
We are required to perform procedures to identify whether there is a material inconsistency between the directors’ corporate
governance disclosures and the financial statements and our audit knowledge.
Based on those procedures, we have concluded that each of the following is materially consistent with the financial statements and our
audit knowledge:
• the directors’ statement that they consider that the Annual Report and financial statements taken as a whole is fair, balanced and
understandable, and provides the information necessary for shareholders to assess the Group’s position and performance, business
model and strategy;
• the section of the Annual Report describing the work of the Audit Committee, including the significant issues that the audit committee
considered in relation to the financial statements, and how these issues were addressed; and
• the section of the Annual Report that describes the review of the effectiveness of the Group’s risk management and internal control
systems.
We are required to review the part of the Corporate Governance Report relating to the Group’s compliance with the provisions of the
UK Corporate Governance Code specified by the Listing Rules for our review. We have nothing to report in this respect.
8. We have nothing to report on the other matters on which we are required to report by exception
Under the Companies Act 2006, we are required to report to you if, in our opinion:
• adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received
from branches not visited by us; or
• the parent Company financial statements and the part of the Directors’ Remuneration Report to be audited are not in agreement with
the accounting records and returns; or
• certain disclosures of directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
We have nothing to report in these respects.
9. Respective responsibilities
Directors’ responsibilities
As explained more fully in their statement set out on page 156, the directors are responsible for: the preparation of the financial
statements including being satisfied that they give a true and fair view; such internal control as they determine is necessary to enable
the preparation of financial statements that are free from material misstatement, whether due to fraud or error; assessing the Group
and parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and using
the going concern basis of accounting unless they either intend to liquidate the Group or the parent Company or to cease operations,
or have no realistic alternative but to do so.
Auditor’s responsibilities
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue our opinion in an auditor’s report. Reasonable assurance is a high level of
assurance but does not guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities.
The Company is required to include these financial statements in an annual financial report prepared using the single electronic
reporting format specified in the TD ESEF Regulation. This auditor’s report provides no assurance over whether the annual financial
report has been prepared in accordance with that format.
168 Currys plc Annual Report & Accounts 2022/23
10. The purpose of our audit work and to whom we owe our responsibilities
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006.
Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them
in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to
anyone other than the Company and the Company’s members, as a body, for our audit work, for this report, or for the opinions we
have formed.
Mark Flanagan (Senior Statutory Auditor)
for and on behalf of KPMG LLP, Statutory Auditor
Chartered Accountants
15 Canada Square
London, E14 5GL
6 July 2023
Independent Auditor’s Report continued
169Strategic Report Governance Financial Statements Investor Information
Consolidated Income Statement
Note
Period ended
29 April
2023
£m
Period ended
30 April
2022
£m
Revenue 2,3 9, 5 1 1 1 0,144
Profit before impairment of goodwill, interest and tax 2,3 165 222
Impairment of goodwill 8 (511 ) –
(Loss)/profit before interest and tax (3 4 6 ) 222
Finance income 2 2
Finance costs (1 0 6 ) (9 8 )
Net finance costs 5 (1 0 4 ) (9 6 )
(Loss)/profit before tax (4 5 0 ) 1 26
Income tax expense 6 (31 ) (5 5 )
(Loss)/profit after tax for the period (4 8 1 ) 71
Earnings per share (pence) 7
Basic – total (4 3 . 6 )p 6.3 p
Diluted – total (4 3 . 6 )p 6.0 p
170 Currys plc Annual Report & Accounts 2022/23
Consolidated Statement of Comprehensive Income
Note
Period ended
29 April
2023
£m
Period ended
30 April
2022
£m
(Loss)/profit after tax for the period (4 8 1 ) 71
Items that may be reclassified to the income statement in subsequent periods:
Cash flow hedges 21
Fair value movements recognised in other comprehensive income 11 14
Reclassified and reported in income statement 3 (2 8 )
Tax on movements on cash flow hedges 6 – (3 )
Exchange (loss) arising on translation of foreign operations 21 (5 ) (3 3 )
Items that will not be reclassified to the income statement in subsequent periods:
Actuarial (loss)/gain on defined benefit pension schemes – UK 20 (6 1 ) 1 56
– Overseas 20 – 3
Tax on movements on defined benefit pension schemes 6 (35 ) 8
(96 ) 1 67
Other comprehensive (expense)/income for the period (taken to equity) (87 ) 117
Total comprehensive (expense)/income for the period (5 6 8 ) 188
171Strategic Report Governance Financial Statements Investor Information
Consolidated Balance Sheet
Note
29 April
2023
£m
30 April
2022
£m
Non-current assets
Goodwill 8 2 , 2 70 2 , 814
Intangible assets 9 350 385
Property, plant & equipment 10 155 162
Right-of-use assets 11 9 95 1 , 0 07
Lease receivables 12 4 3
Trade and other receivables 14 14 8 1 23
Deferred tax assets 6 23 28 2
Current assets
Inventory 13 1 ,1 51 1, 286
Lease receivables 12 1 1
Trade and other receivables 14 6 31 696
Income tax receivable 1 –
Derivative assets 23 23 28
Cash and cash equivalents 15 97 1 26
Total assets 5,849 6 ,9 1 3
Current liabilities
Trade and other payables 16 (2 ,0 67 ) (2 , 3 6 8 )
Derivative liabilities 23 (13 ) (11 )
Income tax payable (3 5 ) (6 4 )
Loans and other borrowings 17 (1 6 ) (2 )
Lease liabilities 18 (21 3 ) (2 1 0 )
Provisions 19 (4 3 ) (4 8 )
(2,387 ) (2 , 70 3 )
Non-current liabilities
Trade and other payables 16 (1 03 ) (9 6 )
Loans and other borrowings 17 (17 8 ) (8 0 )
Lease liabilities 18 (1 ,0 20 ) (1 ,0 57 )
Retirement benefit obligations 20 (2 49 ) (257 )
Deferred tax liabilities 6 (1 5 ) (2 0 8 )
Provisions 19 (5 ) (1 1 )
(1 , 570 ) (1 , 70 9 )
Total liabilities (3 ,957 ) (4 , 4 1 2 )
Net assets 1 ,892 2, 501
Capital and reserves 21
Share capital 1 1
Share premium reserve 2 , 263 2 , 26 3
Other reserves (8 04 ) (8 0 3 )
Accumulated profits 432 1,040
Equity attributable to equity holders of the parent company 1 ,892 2, 501
The financial statements were approved by the directors on 6 July 2023 and signed on their behalf by:
Alex Baldock
Group Chief Executive
Bruce Marsh
Group Chief Financial Officer
Company registration number: 7105905
172 Currys plc Annual Report & Accounts 2022/23
Consolidated Statement of Changes in Equity
Note
Share
capital
£m
Share
premium
reserve
£m
Other
reserves*
£m
Accumulated
profits
£m
Total
equity
£m
At 1 May 2021 1 2 , 26 3 (76 4 ) 881 2, 3 81
Profit for the period – – – 71 71
Other comprehensive (expense)/income
recognised directly in equity – – (5 0 ) 1 67 117
Total comprehensive (expense)/income for
the period – – (5 0 ) 23 8 188
Amounts transferred to the carrying value of
inventory purchased during the period – – 28 – 28
Net movement in relation to share schemes – – 24 (1 ) 23
Purchase of own shares – employee benefit trust – – (4 1 ) – (4 1 )
Purchase of own shares – share buyback 21 – – (3 2 ) – (32 )
Cancellation of treasury shares – – 32 (32 ) –
Equity dividend – – – (4 6 ) (4 6 )
At 30 April 2022 1 2 , 26 3 (8 0 3 ) 1 ,040 2, 501
Profit for the period – – – (4 8 1 ) (4 8 1 )
Other comprehensive (expense)/income
recognised directly in equity – – 9 (96 ) (8 7 )
Total comprehensive (expense)/income for
the period – – 9 (57 7 ) (56 8 )
Amounts transferred to the carrying value of
inventory purchased during the period – – (19 ) – (19 )
Net movement in relation to share schemes 4 – – 13 4 17
Purchase of own shares – employee benefit trust 21 – – (4 ) – (4 )
Equity dividend 22 – – – (3 5 ) (3 5 )
At 29 April 2023 1 2 , 26 3 (8 0 4 ) 432 1 , 892
* A detailed reconciliation of Other reserves is provided in note 21b.
173Strategic Report Governance Financial Statements Investor Information
Consolidated Cash Flow Statement
Note
Period ended
29 April
2023
£m
Period ended
30 April
2022
£m
Operating activities
Cash generated from operations 24 3 86 5 24
Contributions to defined benefit pension scheme (78 ) (78 )
Income tax paid (38 ) (1 8 )
Net cash flows from operating activities 270 428
Investing activities
Net cash outflow arising from acquisitions – (2 )
Proceeds on sale of business – 1
Acquisition of property, plant & equipment and other intangibles (111 ) (1 33 )
Net cash flows from investing activities (111 ) (1 3 4 )
Financing activities
Interest paid (94 ) (87 )
Capital repayment of lease liabilities (2 1 6 ) (2 0 8 )
Purchase of own shares – employee benefit trust (4 ) (4 1 )
Purchase of own shares – share buyback – (3 2 )
Equity dividends paid (3 5 ) (4 6 )
Drawdown of borrowings 110 80
Cash inflows from derivative financial instruments 43 –
Facility arrangement fees paid (1 ) (6 )
Net cash flows from financing activities (1 97 ) (340 )
(Decrease) in cash and cash equivalents and bank overdrafts (3 8 ) (4 6 )
Cash and cash equivalents and bank overdrafts at the beginning of the period 124 1 69
Currency translation differences (5 ) 1
Cash and cash equivalents and bank overdrafts at the end of the period 24 81 1 24
174 Currys plc Annual Report & Accounts 2022/23
175Strategic Report Governance Financial Statements Investor Information
1 Significant accounting policies continued
176 Currys plc Annual Report & Accounts 2022/23
Notes to the Group Financial Statements continued
1 Significant accounting policies continued
d) Key sources of estimation uncertainty and critical accounting judgements continued
177Strategic Report Governance Financial Statements Investor Information
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Notes to the Group Financial Statements continued
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Notes to the Group Financial Statements continued
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Notes to the Group Financial Statements continued
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Notes to the Group Financial Statements continued
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Notes to the Group Financial Statements continued
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6 Tax continued
c) Deferred tax continued
188 Currys plc Annual Report & Accounts 2022/23
Notes to the Group Financial Statements continued
189Strategic Report Governance Financial Statements Investor Information
8 Goodwill continued
190 Currys plc Annual Report & Accounts 2022/23
8 Goodwill continued
Notes to the Group Financial Statements continued
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Notes to the Group Financial Statements continued
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Notes to the Group Financial Statements continued
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Notes to the Group Financial Statements continued
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Notes to the Group Financial Statements continued
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Notes to the Group Financial Statements continued
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18 Lease liabilities continued
Notes to the Group Financial Statements continued
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Notes to the Group Financial Statements continued
205Strategic Report Governance Financial Statements Investor Information
20 Retirement and other post-employment benefit obligations continued
206 Currys plc Annual Report & Accounts 2022/23
20 Retirement and other post-employment benefit obligations continued
b) UK defined benefit pension scheme – actuarial valuation and key risks continued
Notes to the Group Financial Statements continued
207Strategic Report Governance Financial Statements Investor Information
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Notes to the Group Financial Statements continued
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Notes to the Group Financial Statements continued
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Notes to the Group Financial Statements continued
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Notes to the Group Financial Statements continued
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Notes to the Group Financial Statements continued
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Notes to the Group Financial Statements continued
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Notes to the Group Financial Statements continued
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222 Currys plc Annual Report & Accounts 2022/23
Company Balance Sheet
Note
29 April
2023
£m
30 April
2022
£m
Non-current assets
Investments in subsidiaries C4 2,340 2,670
2,340 2,670
Current assets
Cash and cash equivalents 1 12
Debtors C5 3,369 3,306
Derivative assets C7 35 39
3,405 3,357
Current liabilities
Creditors C6 (3,282) (3,338)
Derivative liabilities C7 (31) (30)
Net current (liabilities)/assets 92 (11)
Total assets less current liabilities 2,432 2,659
Net assets 2,432 2,659
Capital and reserves
Share capital C8 1 1
Share premium reserve C8 2,263 2,263
Profit and loss account 168 395
2,432 2,659
The Company’s loss for the period was £(204)m (2021/22: £50m profit).
The financial statements of the Company were approved by the Board on 6 July 2023 and signed on its behalf by:
Alex Baldock
Group Chief Executive
Bruce Marsh
Group Chief Financial Officer
Company registration number: 7105905
223Strategic Report Governance Financial Statements Investor Information
Company Statement of Changes in Equity
Share
capital
£m
Share premium
reserve
£m
Profit and loss
account
£m
Total
equity
£m
At 1 May 2021 1 2,263 464 2,728
Total comprehensive income for the period – – 50 50
Purchase of own shares – employee benefit trust – – (41) (41)
Purchase of own shares – share buyback – – (32) (32)
Equity dividend – – (46) (4 6)
At 30 April 2022 1 2,263 395 2,659
Total comprehensive (expense) for the period – – (204) (204)
Purchase of own shares – employee benefit trust – – (4) (4)
Purchase of own shares – share buyback – – – –
Share-based payments 16 16
Equity dividend – – (35) (35)
At 29 April 2023 1 2,263 168 2,432
224 Currys plc Annual Report & Accounts 2022/23
Notes to the Company Financial Statements
C1 Accounting policies
Basis of preparation
The Company is incorporated in the United Kingdom. The financial statements have been prepared on a going concern basis
(see note 1 to the Group financial statements).
The separate financial statements of the Company are presented as required by the Companies Act 2006. The Company meets
the definition of a qualifying entity under FRS 100 (Financial Reporting Standard 100) issued by the Financial Reporting Council.
Accordingly, the financial statements have therefore been prepared in accordance with FRS 101 (Financial Reporting Standard 101)
‘Reduced Disclosure Framework’ as issued by the Financial Reporting Council, incorporating the Amendments to FRS 101 as issued by
the Financial Reporting Council.
As permitted by FRS 101, the Company has taken advantage of the disclosure exemptions available under that standard in relation
to share-based payments, financial instruments, capital management, presentation of comparative information in respect of certain
assets, presentation of a cash flow statement, certain related party transactions and standards not yet effective. Where required,
equivalent disclosures are given in the Consolidated financial statements.
The financial statements have been prepared on the historical cost basis except for the remeasurement of certain financial instruments
to fair value. The principal accounting policies adopted are the same as those set out in the notes to the Group financial statements
except as noted below.
Investments in subsidiaries are stated at cost less, where appropriate, provisions for impairment.
The Company had no employees during the period ended 29 April 2023 (2021/22: nil). All directors were remunerated by other
Group companies.
Judgements and sources of estimation uncertainty
As required by IAS 36, the Investments balance of the Company and its other assets are subject to an impairment review if it
is determined that indicators of impairment exist. The Company has considered if indicators of impairment exist with regard to
a number of external factors including the recent increase in the long-term risk-free investment rates, increased uncertainty in the wider
macroeconomic environment and whether the carrying value of the investment in subsidiaries exceeds the market capitalisation of
the Group. Management concluded that these factors were an indicator of impairment and consequently, an impairment review was
undertaken per IAS 36 which resulted in a non-cash impairment of £329m being recognised against the Investments in Subsidiaries
balance. Determining the recoverable amount of the investment balance requires assumptions relating to discount rates, long-term
growth rates and future cash flows.
C2 Profit and loss account
In accordance with the exemption permitted by section 408 of the Companies Act 2006, the profit and loss account of the
Company is not presented separately. The loss recognised for the period ended 29 April 2023 was £(204)m (2021/22: £50m profit).
Information regarding the audit fees for the Group is provided in note 3 to the Group financial statements.
C3 Equity dividends
Details of amounts recognised as distributions to shareholders in the period and those proposed are detailed in note 22 of the
Group financial statements.
225Strategic Report Governance Financial Statements Investor Information
C4 Investments in subsidiaries
29 April
2023
£m
30 April
2022
£m
Opening balance 2,670 2,670
Disposals (1) –
Impairments (329) –
Closing balance 2,340 2,670
Cost 2,676 2,776
Accumulated impairments (336) (106)
Net carrying amount 2,340 2,670
Balances comprise investments in subsidiary undertakings and other minority investments. Details of the Company’s investments in
subsidiary undertakings are provided in note C9.
The directors acknowledged that as at 29 April 2023 the market capitalisation of Currys plc was less than the net assets of the
Company, which primarily consists of investments in subsidiaries. This was considered to be an indicator of impairment and
an impairment test over the investment in subsidiaries was performed in accordance with IAS 36.
The recoverable amounts of the investments have been determined based on value in use calculations for each identifiable CGU
represented by the investment balance where management have prepared discounted cash flows based on the latest three or
five-year strategic plan, depending on segment, and require the use of estimates including management’s sales and costs projections,
the long-term growth rates beyond the plan period, and the pre-tax discount rate. The discounted cash flows are then adjusted for
the value of certain assets and liabilities in the subsidiary entities to the extent that they impact the future return on investment to the
Company. The discount rates and long-term growth rates applied in the calculation of the value-in-use for each CGU are as follows:
29 April 2023 30 April 2022
Long-term
growth rate
Pre-tax
discount rate
Long-term
growth rate
Pre-tax
discount rate
UK & Ireland 1.6% 12.2% 1.5% 10.6%
Nordics 1.5% 10.8% 1.8% 9.6%
Greece 1.3% 12.5% 1.3% 12.1%
Upon performing the impairment testing described above, it was determined that the recoverable amount of the investment was lower
than the carrying amount, and an impairment of £329m (2021/22: £nil) was recognised over the investment balance. This impairment
primarily relates to a material increase in discount rate reflecting increased market risk and volatility, and partly due to the short-to-
medium term macroeconomic uncertainty which has been factored into the Group’s business plan. In accordance with IAS 36, this
impairment may be subject to reversal if in future periods there is a change in the estimates used to determine the investment’s
recoverable amount. At the period end, the recoverable amount, based on the adjusted value in use, shows a headroom of £nil
(2021/22 restated*: £1,009m) above the carrying amount of the investments in subsidiaries.
As described above, the cash flows used within the value in use calculation, the long-term growth rate and the discount rate are sources
of estimation uncertainty. A summary of the sensitivities applied to the key assumptions and the resulting impact on the current value of
the impairment recognised in the period is below:
Key assumption Sensitivity applied
Headroom/(Impairment)
£m
Movement
£m
Operating profit in final year of plan Increase of 20% 188 517
Decrease of 20% (846) (517)
Long-term growth rate Increase of 0.2% (276) 53
Decrease of 0.2% (380) (51)
Pre-tax discount rate Increase of 2.0% (943) (614)
Decrease of 2.0% 583 912
During the period investments with £1m carrying value (2021/22: £nil) were disposed of, relating to interests no longer held by the Company.
* Following a review from the Financial Reporting Council the investment impairment calculation was revised and the prior period figure restated. This matter was closed in April 2023.
226 Currys plc Annual Report & Accounts 2022/23
Notes to the Company Financial Statements continued
C5 Debtors
29 April
2023
£m
30 April
2022
£m
Amounts owed by Group undertakings 3,368 3,305
Other debtors 1 1
Amounts falling due within one year 3,369 3,306
Amounts owed by Group undertakings are unsecured, repayable on demand and any interest charged is at current market rates.
Receivable balances with other Group entities are reviewed for potential impairment based on the ability of the counterparty to meet
its obligations. The net current asset/liability position of the entity is considered and where the amount due to the Company is not
covered, the estimated future cash flows of the counterparty and subsidiary companies with the ability to distribute cash to it are
considered. In the prior period an increase in expected credited losses of £49m was recognised in relation to amounts owed by Group
undertakings that are non-trading entities across the group, have net liabilities and are in the process of being wound down. Other than
the amounts impaired there has been no significant change in credit risk to all of the balances and therefore the 12-month expected
credit loss method has been applied.
C6 Creditors
29 April
2023
£m
30 April
2022
£m
Amounts owed to Group undertakings 3,255 3,329
Overdrafts 27 9
Amounts falling due within one year 3,282 3,338
C7 Derivatives
29 April
2023
£m
30 April
2022
£m
Foreign exchange contracts 35 39
Derivative assets 35 39
Foreign exchange contracts (31) (30)
Derivative liabilities (31) (30)
This value is determined using forward exchange and interest rates derived from market sourced data at the balance sheet date, with the
resulting value discounted back to present value (level 2 classification). See note 23 to the Group financial statements for further details.
As at 29 April 2023 the Company has external forward and swap foreign exchange contracts in place with a notional value of £2,088m
(2021/22: £1,698m) and a fair value of £23m asset (2021/22: £28m) and £13m liability (2021/22: £11m). These derivatives will mature in
between one month and one year.
Derivatives with a notional value of £774m (2021/22: £731m) and a fair value of £18m asset (2021/22: £17m) and £12m liability (2021/22:
£10m) were designated by subsidiaries in cash flow hedge relationships. These derivatives were passed down to the hedging subsidiary
using an internal derivative with the same (but opposite) terms to external derivatives. The purpose of these derivatives is explained
further in note 23.
Derivatives with a notional value of £1,055m (2021/22: £203m) and a fair value of £1m asset (2021/22: £1m) and £1m of liability
(2021/22: £1m) were not designated by subsidiaries in cash flow hedge relationships but were passed down to subsidiaries to offset
foreign currency balance sheet exposures. These derivatives were passed down using an internal derivative with the same (but
opposite) terms to external derivatives.
Derivatives with a notional value of £259m (2021/22: £764m) and a fair value of £4m asset (2021/22: £10m asset) and £nil liability
(2021/22: £nil) were used by the Company to minimise the translational impact on the Company balance sheet for amounts held in
foreign currencies. These were not passed down to subsidiaries.
227Strategic Report Governance Financial Statements Investor Information
C8 Share capital and share premium
Details of movements in share capital and share premium are disclosed in note 21 to the Group financial statements.
C9 Subsidiary undertakings
a) Subsidiaries as at 29 April 2023
The Company has investments in the following subsidiary undertakings of the Group, all of which are wholly owned unless otherwise
indicated. All holdings are in equity share capital and give the Group an effective holding of 100% on consolidation.
Name Registered office address
Country of
incorporation or
registration Share class(es) held % held
Alfa s.r.l. Via monte Napoleone n. 29, 20121 Milano Italy Ordinary 100
Carphone Warehouse Europe Limited 1 Portal Way, London, W3 6RS United Kingdom A and B Ordinary 100
Carphone Warehouse Ireland Mobile
Limited (in liquidation)
44 Fitzwilliam Place, Dublin 2 Ireland Ordinary 100
CCC Nordic A/S Arne Jacobsens Allé 15, 8., 2300
København S.
Denmark Ordinary 100
Connected World Services
Distributions Limited
1 Portal Way, London, W3 6RS United Kingdom Ordinary 100
Connected World Services LLC Corporation Service Company, 251 Little
Falls Drive, Wilmington, New Castle
Delaware 19808
United States Ordinary 100
Connected World Services
Netherlands BV
Watermanweg 96, 3067 GG, Rotterdam Netherlands Ordinary 100
Connected World Services SAS
(in liquidation)
26 rue de Cambacérès, 75008 Paris France Ordinary 100
CPW Acton Five Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100
CPW Brands 2 Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100*
CPW CP Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100
CPW Technology Services Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100
CPW Tulketh Mill Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100*
Currys CoE s.r.o. Trnitá, 491/5, 602 00 Brno Czech Republic Business shares 100
Currys Group Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100
Currys Holdings Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100*
Deferred 100*
A Ordinary 100*
B Ordinary 100*
Currys Hong Kong Sourcing Limited 31/F, AXA Tower Landmark East, 100
How Ming Street, Kwun Tong Kowloon
Hong Kong Ordinary 100
Currys Ireland Limited 3rd Floor Office Suite, Omni Park Shopping
Centre, Santry, Dublin 9
Ireland Ordinary 100
Currys Retail Group Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100
Deferred 100*
Currys Retail Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100
Currys Sourcing Limited 31/F, AXA Tower Landmark East, 100 How
Ming Street, Kwun Tong Kowloon
Hong Kong Ordinary 100
Dixons Deutschland GmbH i.L
(in liquidation)
Ottostraße 21, 80333 Munich Germany Ordinary 100
Dixons South East Europe A.E.V.E. 90 Marinou Antypa str., Neo Irakleio,
Athens 14121
Greece Ordinary 100
Dixons Stores Group Retail Norway AS Nydalsveien 18A, NO-0484 Oslo Norway Ordinary 100
DSG Corporate Services Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100
228 Currys plc Annual Report & Accounts 2022/23
Notes to the Company Financial Statements continued
Name Registered office address
Country of
incorporation or
registration Share class(es) held % held
DSG European Investments Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100
DSG International Holdings Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100
DSG International Retail Properties
Limited
1 Portal Way, London, W3 6RS United Kingdom Ordinary 100
DSG Ireland Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100
DSG Overseas Investments Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100
DSG Retail Ireland Pension Trust Limited 38 Upper Mount Street, Dublin 2, D02 PR89 Ireland Ordinary 100
Elcare Nordic AS Industrivegen, 53, 2212, Kongsvinger Norway Ordinary 100
Elcare Nordic Oy Silvastintie 1, 01510, Vantaa Finland Ordinary 100
Electrocare Nordic AB Arabygatan 9, 35246 Växjö,
Kronobergs Län
Sweden Ordinary 100
Elgiganten Aktiebolag Franzéngatan 6, 112 51 Stockholm Sweden Ordinary 100
ElGiganten A/S Arne Jacobsens Allé 16, 2.sal København S,
2300 Copenhagen
Denmark Ordinary 100
El-Giganten Logistik AB Möbelvägen 51, 556 52 Jönköping Sweden Ordinary 100
Elkjøp Holdco AS Nydalsveien 18A, NO-0484 Oslo Norway Ordinary 100
Elkjøp Nordic AS Nydalsveien 18A, NO-0484, Oslo Norway Ordinary 100
Elkjøp Norge AS Nydalsveien 12B, 0484 OSLO Norway Ordinary 100
Epoq Logistic DC k.s. Evropská 868, 664 42 Modřice Czech Republic Ordinary 100
Gigantti Oy Töölönlahdenkatu 2, FI-00100, Helsinki Finland Ordinary 100
iD Mobile Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100
Mastercare Service and Distribution
Limited
1 Portal Way, London, W3 6RS United Kingdom Ordinary 100
MTIS Limited Carphone Warehouse, Dixons Unit,
301 Omni Park Shopping Centre,
Swords Road, Dublin 9
Ireland Ordinary 100
New CPWM Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100
Petrus Insurance Company Limited 28 Irish Town Gibraltar Ordinary 100
Simplify Digital Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100
TalkM Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100
The Carphone Warehouse
(Digital) Limited
1 Portal Way, London, W3 6RS United Kingdom Ordinary 100*
The Carphone Warehouse Limited 3rd Floor Office Suite, Omni Park
Shopping Centre, Santry, Dublin 9
Ireland Ordinary 100
The Phone House Holdings (UK) Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100
* Interest held directly by Currys plc.
b) Other significant shareholdings
The following are the other significant shareholdings of the Company, all of which are held indirectly.
Name Registered office address
Country of
incorporation
or registration Share class(es) held % held
Elkjøp Fjordane AS Fugleskjærgata 10, 6905 Florø Norway Ordinary 30
C9 Subsidiary undertakings continued
a) Subsidiaries as at 29 April 2023 continued
229Strategic Report Governance Financial Statements Investor Information
C9 Subsidiary undertakings continued
c) Subsidiary undertakings exempt from audit
The following subsidiaries, all of which are incorporated in England and Wales are exempt from the requirements of the Companies Act
2006 relating to the audit of individual accounts by virtue of section 479A of that Act:
Name Company registration number
Carphone Warehouse Europe Limited 06534088
Connected World Services Distributions Limited 01847868
CPW Acton Five Limited 05738735
CPW Technology Services Limited 02881162
Currys Holdings Limited 07866062
Currys Retail Group Limited 03847921
DSG European Investments Limited 03891149
DSG International Holdings Limited 03887870
DSG International Retail Properties Limited 00476440
DSG Ireland Limited 00240621
DSG Overseas Investments Limited 02734677
Simplify Digital Limited 06095563
TalkM Limited 04682207
The Carphone Warehouse (Digital) Limited 03966947
The Phone House Holdings (UK) Limited 03663563
230 Currys plc Annual Report & Accounts 2022/23
Five Period Record (Unaudited)
2022/23
£m
2021/22
(restated)*
£m
2020/21
£m
2019/20
£m
2018/19
£m
Adjusted results
Revenue 9,511 10,144 10,330 10,217 1 0,474
EBIT 214 280 262 214 363
Interest (95) (88) (106) (98) (24)
Profit before tax 119 192 156 116 339
Tax (27) (52) (33) (38) (70)
Profit after tax 92 140 123 78 269
Earnings per share
– Basic 8.3p 12.4p 10.7p 6.7p 23.2p
– Diluted 8.2p 11.9p 10.3p 6.6p 23.0p
* Figures in the comparative period have been restated as explained in note A12 to the Glossary and definitions
231Strategic Report Governance Financial Statements Investor Information
Glossary and Definitions
Alternative performance measures (‘APMs’)
In the reporting of financial information, the Group uses certain measures that are not required under IFRS. These are presented in
accordance with the Guidelines on APMs issued by the European Securities and Markets Authority (‘ESMA’). These measures are
consistent with those used internally by the Group’s Chief Operating Decision Maker (‘CODM’) in order to evaluate trends, monitor
performance and forecast results.
These APMs may not be directly comparable with other similarly titled measures of ‘adjusted’ or ‘underlying’ revenue or profit measures
used by other companies, including those within our industry, and are not intended to be a substitute for, or superior to, IFRS measures.
We consider these additional measures to provide additional information on the performance of the business and trends to
shareholders. The below, and supplementary notes to the APMs, provides further information on the definitions, purpose and
reconciliations to IFRS measures of those APMs that are used internally in order to provide parity and transparency between the
users of this financial information and the CODM in assessing the core results of the business in conjunction with IFRS measures.
Adjusted results
Included within our APMs the Group reports a number of adjusted profit, and earnings measures, all of which are described throughout
this section. The Group subsequently refers to adjusted results as those which reflect the in-period trading performance of the ongoing
omnichannel retail operations (referred to below as underlying operations and trade) and excludes from IFRS measures certain items
that are significant in size or volatility or by nature are non-trading or highly infrequent.
Restatement of comparative periods as a result of a change in Group adjusting items policy
During the current period the Group adopted a new policy to determine whether an item is to be classified as adjusting. The policy
reduces the scope of items that could be classified as adjusting by assessing the significance of income or costs on a project-by-
project or one-off item basis. This ensures that the impact is material and therefore the departure from IFRS measures is useful for the
users of the financial statements.
Management believes the revised classification policy provides greater clarity on the current and future performance of the Group’s
ongoing omnichannel retail operations.
The updated criteria for income or costs to be recognised within adjusting items is explained below. The change in policy has been
applied retrospectively with the Group’s adjusted results presented within the Performance review being restated for the comparative
periods. The reconciliations to the closest equivalent statutory measures within notes A1 to A11 have also been restated, and a
reconciliation of the prior period Performance review is provided within note A12.
Adjusting items
When determining whether an item is to be classified as adjusting, and the departure from IFRS measures is deemed more appropriate
than the additional disclosure requirements for material items under IAS 1, it must meet at least one of the following criteria:
• be one-off in nature and have a significant impact on amounts presented in either the statutory income statement or statutory
cash flow statement in any set of annual Group financial statements; or
• recur for a finite number of years and do not reflect the underlying trading performance of the business.
Management will classify items as adjusting where these criteria are met and it is considered more useful for the users of the financial
statements to depart from IFRS measures.
Items excluded from adjusted results can evolve from one financial period to the next depending on the nature of exceptional items or
one-off type activities. Where appropriate, for example where a business is classified as exited/to be exited, comparative information
is restated accordingly.
Below highlights the grouping in which management allocate adjusting items and provides further detail on how management consider
such items to meet the criteria set out above. Further information on the adjusting items recognised in the current and comparative period
can be found in note A4.
232 Currys plc Annual Report & Accounts 2022/23
Glossary and Definitions continued
Alternative performance measures (‘APMs’) continued
Adjusting items continued
Acquisition and disposal related items
Includes costs incurred in relation to the acquisition, and income for the disposal of business operations, as the related costs and
income reflect significant changes to the Group’s underlying business operations and trading performance. Adjusted results do not
exclude the related revenues or costs that have been earned in relation to previous acquisitions, with the exception of the amortisation
of intangibles, such as brands, that would not have been recognised prior to their acquisition. Where practically possible amounts
are restated in comparative periods to reflect where a business operation has subsequently been disposed.
Strategic change programmes
Primarily relate to costs incurred for the execution and delivery of a change in strategic direction, such as; severance and other direct
employee costs incurred following the announcement of detailed formal restructuring plans as they are considered one-off; property
rationalisation programmes where a business decision is made to rebase the store estate as this is considered both one-off in nature
and to cause a significant change to the underlying business operations; and implementation costs for strategic change delivery
projects that are considered one-off in nature. Such costs incurred do not reflect the Group’s underlying trading performance.
Results are therefore adjusted to exclude such items in order to aid comparability between periods.
Regulatory costs
The Group includes material costs related to data incidents and regulatory challenge within adjusting items so far as on the basis of
internal or external legal advice, it has been determined that it is more than possible that a material outflow will be required to settle
the obligation (legal or constructive) and subsequently recognised a provision in accordance with IAS 37.
Impairment losses and onerous contracts
In order to aid comparability, costs incurred for material non-cash impairments (or reversals of previously recognised impairments) and
onerous contracts are included within adjusting items where they have a significant impact on amounts presented in either the statutory
income statement or statutory cash flow statement in any set of annual Group financial statements. When considering the threshold,
management will consider whether the gross impairment charge and gross reversal of previously recognised impairment in any one
reportable operating segment is above the material threshold for that financial period.
While the recognition of such is considered to be one-off in nature, the unavoidable costs for those contracts considered onerous is
continuously reviewed and therefore based on readily available information at the reporting date as well as managements historical
experience of similar transactions. As a result, future cash outflows and total charges to the income statement may fluctuate in future
periods. If these changes are material they will be recognised in adjusting items.
Other items
Other items include those items that are non-operating and one-off in nature that are material enough to distort the underlying
results of the business but do not fall into the categories disclosed above. Such items include the settlement of legal cases and
other contractual disputes where the corresponding income, or costs, would be considered to distort users understanding of trading
performance during the period.
Net interest income/(costs)
Included within adjusting interest income/(costs) are the finance income/(costs) of businesses to be exited, previously disposed
operations, net pension interest costs on the defined benefit pension scheme within the UK and other exceptional items considered
so one-off or material that they distort underlying finance costs of the Group (including legacy tax cases). As disclosed above, the
disposal of businesses represents a significant change to the underlying business operations, as such, the related interest income/(costs)
are removed from adjusted results to assist users’ understanding of the trading business.
The net interest charge on defined benefit pension schemes represents the non-cash remeasurement calculated by applying
the corporate bond yield rates applicable on the last day of the previous financial period to the net defined benefit obligation.
As a non-cash remeasurement cost which is unrepresentative of the actual investment gains or losses made or the liabilities paid
and payable, and given the defined benefit section of the scheme having closed to future accrual on 30 April 2010, the accounting
effect of this is excluded from adjusted results.
233Strategic Report Governance Financial Statements Investor Information
Alternative performance measures (‘APMs’) continued
Adjusting items continued
Tax
Included within taxation is the tax impact on those items defined above as adjusting. The exclusion from adjusted results ensures that
users, and management, can assess the overall performance of the Groups underlying operations.
Where the Group is cooperating with tax authorities in relation to legacy tax cases and is applying tax treatments to changes in
underlying business operations as a result of acquisition, divestiture or closure of operations, the respective costs will also be included
within adjusting items. Management considers it appropriate to divert from IFRS measures in such circumstance as the one-off charges
related to prior periods could distort users understanding of the Group’s ongoing operational performance.
The Group also includes the movement of un-recognised deferred tax assets relating to unused tax losses and other deductible
temporary differences within adjusting items. Management considers that the exclusion from adjusted results aids users in the
determination of current period performance as the recognition and derecognition of deferred tax is impacted by management’s
forecast of future performance and the ability to utilise unused tax losses and other deductible temporary differences.
Definitions, purpose and reconciliations
In line with the Guidelines on Alternative Performance Measures issued by ESMA we have provided additional information on the
APMs used by the Group below, including full reconciliations back to the closest equivalent statutory measure.
EBIT/EBITDA
In the key highlights and Performance review we reference financial metrics such as EBIT and EBITDA. We would like to draw to the user’s
attention that these are shown to aid comparison of our adjusted measures to the closest IFRS measure. We acknowledge that the
terminology of EBIT and EBITDA are not IFRS defined labels but are compiled directly from the IFRS measures of profit without making
any adjustments for adjusting items explained above. These measures are: profit for the period before deducting interest and tax,
termed as EBIT; and profit for the period before deducting interest, tax, depreciation and amortisation, termed as EBITDA. These metrics
are further explained and reconciled within notes A1 and A2 below.
Currency neutral
Some comparative performance measures are translated at constant exchange rates, called ‘currency neutral’ measures. This restates
the prior period results at a common exchange rate to the current period in order to provide appropriate period-on-period movement
measures without the impact of foreign exchange movements.
Like-for-like (‘LFL’) % change
LFL revenue is calculated based on adjusted store and online revenue (including order & collect, online in-store and ShopLive UK) using
constant exchange rates consistent with the currency neutral percentage change measure detailed above. New stores are included
where they have been open for a full financial period both at the beginning and end of the financial period. Revenue from franchise
stores are excluded and closed stores are excluded for any period of closure during either period. Customer support agreement,
insurance and wholesale revenues along with revenue from other non-retail businesses are excluded from LFL calculations. We consider
that LFL revenue represents a useful measure of the trading performance of our underlying and ongoing store and online portfolio.
234 Currys plc Annual Report & Accounts 2022/23
Glossary and Definitions continued
A1 Reconciliation from statutory profit before interest and tax to adjusted EBIT and adjusted PBT
Adjusted EBIT and adjusted PBT are measures of profitability that are adjusted from total IFRS measures to remove adjusting items, the
nature of which are disclosed above. A description of costs included within adjusting items during the period and comparative periods
is further disclosed in note A4.
As discussed above, the Group uses adjusted profit measures in order to provide a useful measure of the ongoing performance
of the Group.
The below reconciles profit before tax and profit before interest and tax, which are considered to be the closest equivalent
IFRS measures, to adjusted EBIT and adjusted PBT.
Period ended 29 April 2023
Total
profit
£m
Acquisition
/ disposal
related
items
£m
Strategic
change
programmes
£m
Impairment
losses and
onerous
contracts
£m
Regulatory
income
£m
Other
£m
Interest
£m
Adjusted
profit
£m
UK & Ireland (353) 11 8 511 (7) – – 170
Nordics (11) 12 18 7 – – – 26
Greece 18 – – – – – – 18
EBIT (346) 23 26 518 (7) – – 214
Finance income 2 – – – – – – 2
Finance costs (106) – – – – – 9 (97)
(Loss)/profit before tax (450) 23 26 518 (7) – 9 119
Period ended 30 April 2022
Total
profit/
(loss)
£m
Acquisition
/ disposal
related
items
£m
Strategic
change
programmes
£m
Impairment
losses and
onerous
contracts
£m
Regulatory
income
£m
Other
£m
Interest
£m
Adjusted
profit
(restated)*
£m
UK & Ireland 71 12 (1) 54 – (19) – 117
Nordics 130 12 – – – – – 142
Greece 21 – – – – – – 21
EBIT 222 24 (1) 54 – (19) – 280
Finance income 2 – – – – – – 2
Finance costs (98) – – – – – 8 (90)
Profit/(loss) before tax 126 24 (1) 54 – (19) 8 192
* Adjusted EBIT in the comparative period has been restated as explained in note A12 to the Glossary and definitions.
A2 Reconciliation from statutory profit before interest and tax to EBITDA
EBITDA represents earnings before interest, tax, depreciation and amortisation. It provides a useful measure of profitability for users by
adjusting for the volatility of depreciation and amortisation expense which, due to variable useful lives and timing of capital investment,
could distort the underlying profit generated from the Group in relative periods.
The below reconciles profit before interest and tax, which are considered to be the closest equivalent IFRS measures, to EBITDA.
Period ended
29 April
2023
£m
Period ended
30 April
2022
£m
(Loss)/profit before interest and tax (346) 222
Depreciation 246 252
Amortisation 87 86
EBITDA (13) 560
235Strategic Report Governance Financial Statements Investor Information
A3 Reconciliation from adjusted EBIT to adjusted EBITDA and adjusted EBITDAR
Adjusted EBITDA represents earnings before interest, tax, depreciation and amortisation. This measure also excludes adjusting items, the
nature of which are disclosed above and with further detail in note A4. It provides a useful measure of profitability for users by adjusting
for the items noted in A1 above as well as the volatility of depreciation and amortisation expense which, due to variable useful lives
and timing of capital investment, could distort the underlying profit generated from the Group in relative periods.
The depreciation adjusted within adjusted EBITDA includes right-of-use asset depreciation on leased assets under IFRS 16. As some
lease rental expenses are not depreciation linked to right-of-use assets due to being short-term, low value or variable, a similar
measure of adjusted EBITDAR is provided. Adjusted EBITDAR provides a measure of profitability based on the above adjusted EBITDA
definition as well as deducting rental expenses not linked to right-of-use assets. The purpose of this measure is aligned to the adjusted
EBITDA purpose above, with the addition of excluding the full cost base of leases which can vary from period to period, for example
when leases are short-term whilst negotiations are ongoing regarding lease renewals.
The below reconciles adjusted EBIT to adjusted EBITDA and adjusted EBITDAR. The closest equivalent IFRS measures are considered to
be profit before interest and tax, the reconciliation of such from adjusted EBIT can be found in note A1.
Period ended
29 April
2023
£m
Period ended
30 April
2022
(restated)*
£m
Adjusted EBIT 214 280
Depreciation 246 252
Amortisation 64 62
Adjusted EBITDA 524 594
Leasing costs in EBITDA 12 14
Adjusted EBITDAR 536 608
* Adjusted EBIT in the comparative period has been restated as explained in note A12 to the Glossary and definitions.
A4 Further information on the adjusting items between IFRS measures to adjusted profit measures
noted above
Note
Period ended
29 April
2023
£m
Period ended
30 April
2022
(restated)*
£m
Included in profit before interest and tax
Acquisition/disposal related items (i) 23 24
Strategic change programmes (ii) 26 (1)
Impairment losses and onerous contracts (iii) 518 54
Regulatory income (iv) (7) –
Other (v) – (19)
560 58
Included in net finance costs
Net non-cash finance costs on defined benefit pension schemes (vi) 7 8
Other interest (vii) 2 –
Total impact on profit before tax 569 66
Tax on other adjusting items (viii) 4 3
Total impact on profit after tax 573 69
* Adjusted EBIT and Tax in the comparative period has been restated as explained in note A12 to the Glossary and definitions.
(i) Acquisition/disposal related items
A charge of £23m (2021/22: £24m) relates primarily to amortisation of acquisition intangibles arising on the Dixons Retail Merger.
236 Currys plc Annual Report & Accounts 2022/23
Glossary and Definitions continued
A4 Further information on the adjusting items between IFRS measures to adjusted profit measures
noted above continued
(ii) Strategic change programmes
During the period, further costs of £13m have been incurred as the Group continues to deliver the long-term strategic plan set back
in 2018; becoming clearer, simpler and faster, improving the overall customer experience with an omnichannel offering and building
customers for life. The Group have included such items within adjusting items as the projects are one-off in nature and have a significant
impact on the statutory income statement or statutory cash flow statement in the current period. The costs incurred relate to the
following strategic change programmes:
• £3m (2021/22: £11m) of restructuring costs for central operations and UK & Ireland retail operations; and
• £10m of one-off implementation costs related to transferring service centre operations to a third party.
An additional £17m of restructuring costs have been recognised in the period in relation to strategic decision to restructure the Nordics
central operations and retail business in response to the recent Nordic trading conditions. This was announced during the current period
and costs are expected to continue in 2023/24.
For the period ended 30 April 2022, the Group also incurred £10m of one-off implementation costs of the Currys rebrand.
Property rationalisation
Included within strategic change programmes is a credit of £4m (2021/22: £22m credit) that primarily relates to the release of lease
liabilities and excess property provisions following successful early exit negotiations on stores included within previously announced
rationalisation and closure programmes. Included in the £4m credit is a £2m impairment charge against right-of-use assets for non-
trading properties in the UK. The number of periods impacted by the property programme is determined by the remaining lease duration
for closed stores where they cannot be exited early.
(iii) Impairment losses and onerous contracts
During the period a non-cash impairment charge of £511m was recognised over the goodwill recognised in the UK & Ireland operating
segment. Further explanation is provided within note 8 to the financial statements. No impairment charge over goodwill was recognised
in the period ending 30 April 2022.
Additionally, following the announcement in the period of the strategic decision to restructure elements of the Nordics segment, fixed
asset impairment charges of £7m were recognised over assets held in the Nordics component of the Group. This includes £3m recognised
over right-of-use assets to reflect the reduced value-in-use of the assets for closed or downsized stores, and £4m recognised over
intangible software assets to reflect the reduced value-in-use of asset components that won’t be fully integrated due to termination
of contractors and other resource restriction.
In the period ended 30 April 2022 impairment losses and onerous contracts of £54m were recognised as follows:
• £31m impairment (£25m over right-of-use assets and £6m on other fixed assets) was recognised after the Group announced it would
close its Acton Campus and relocate to facilities operated by WeWork;
• £24m impairment of fixed assets and recognition of a £4m provision for onerous contracts relating to the unavoidable costs after
management took the decision to stop selling its credit-based mobile offer;
• £2m impairment of right-of-use assets after the Group negotiated an early termination settlement on non-trading lease premises;
• £7m credit following the release of previously recognised onerous contracts related to the closure of the Dixons Travel business
following successful early exit negotiations and lower than expected closure costs; and
• £16m non-cash impairment charge and a non-cash impairment reversal of £16m over store assets within the UK as a result of changes
in consumer shopping habits between our store mix.
(iv) Regulatory costs
In periods prior, the Group provided for redress related to the mis-selling of Geek Squad mobile phone insurance policies following the
FCA investigation for periods preceding June 2015. All customer claims are carefully considered by the Group on a case-by-case basis
with the majority of claims received being invalid. During the period ended 29 April 2023, the Group received confirmation that no further
action would be taken for a large proportion of claims and as a result, the Group reduced the provision in relation to redress by a
further £7m.
(v) Other
In the prior period ended 30 April 2022, credits of £19m primarily related to compensation received following the settlement of
a legal case in relation to anti-competitive behaviour engaged by the counterparty. No charges or credits have been recognised in the
current year.
237Strategic Report Governance Financial Statements Investor Information
A4 Further information on the adjusting items between IFRS measures to adjusted profit measures
noted above continued
(vi) Net non-cash financing costs on defined benefit pension schemes
The net interest charge on defined benefit pension schemes represents the non-cash remeasurement calculated by applying the
corporate bond yield rates applicable on the last day of the previous financial period to the net defined benefit obligation.
(vii) Other interest
As outlined in note 1 d, the Group continues to cooperate with HMRC in relation to open tax cases arising from pre-merger legacy
transactions in the Carphone Warehouse Group. The Group has risk assessed that certain of the cases have a probable chance of
resulting in cash outflows to HMRC that are measured at £59m as at 29 April 2023 (comprising the amount of tax payable and interest
up to 29 April 2023) (2021/22: £66m). During the period, interest of £2m accrued in relation to these cases which is based upon HMRC’s
prevailing interest rates.
(viii) Tax on other adjusting items
The effective tax rate on adjusting items is (1)%. The rate is lower than the UK statutory rate of 19.5% predominantly due to the goodwill
impairment at (iii) above not being tax deductible.
A5 Reconciliation from statutory net finance costs to adjusted net finance costs
Adjusted net finance costs exclude certain adjusting finance cost items from total finance costs. The adjusting items include net pension
interest costs and interest charged on Uncertain Tax Positions (UTP). Further information on these items being removed from our adjusted
earnings measures is included within the definitions above.
The below provides a reconciliation from net finance costs, which is considered to be the closest IFRS measure, to adjusted net
finance costs.
Period ended
29 April
2023
£m
Period ended
30 April
2022
£m
Total net finance costs (104) (96)
Net interest on defined benefit pension obligations 7 8
Other interest 2 –
Adjusted total net finance costs (95) (88)
238 Currys plc Annual Report & Accounts 2022/23
Glossary and Definitions continued
A6 Adjusted tax expense
a) Tax expense
The corporation tax charge comprises:
Period ended 29 April 2023 Period ended 30 April 2022
Adjusted
£m
Adjusting
items
£m
Statutory
£m
Adjusted
£m
Adjusting
items
£m
Statutory
£m
Current tax
UK corporation tax at 19.5% (2021/22: 19%) 14 – 14 21 (7) 14
Overseas tax 9 (1) 8 21 – 21
23 (1) 22 42 (7) 35
Adjustments made in respect of prior years:
UK corporation tax – (9) (9) 1 – 1
Overseas tax 1 2 3 1 – 1
1 (7) (6) 2 – 2
Total current tax 24 (8) 16 44 (7) 37
Deferred tax
UK corporation tax 17 9 26 (3) 13 10
Overseas tax (13) (1) (14) 8 (3) 5
4 8 12 5 10 15
Adjustments made in respect of prior years:
UK corporation tax – (14) (14) 5 – 5
Overseas tax (1) 18 17 (2) – (2)
(1) 4 3 3 – 3
Total deferred tax 3 12 15 8 10 18
Total tax charge 27 4 31 52 3 55
b) Reconciliation of standard to actual (effective) tax rate
The principal differences between the total tax charge shown above and the amount calculated by applying the standard rate
of UK corporation tax to profit/(loss) before taxation are as follows:
Period ended 29 April 2023 Period ended 30 April 2022
Adjusted
£m
Adjusting
items
£m
Statutory
£m
Adjusted
£m
Adjusting
items
£m
Statutory
£m
Profit/(loss) before taxation 119 (569) (450) 192 (66) 126
Tax at UK statutory rate of 19.5% (2021/22: 19%) 23 (111) (88) 36 (12) 24
Items attracting no tax relief or liability
(i)
5 100 105 2 (6) (4)
Movement in unprovided deferred tax
(ii)
(2) 19 17 4 24 28
Effect of change in statutory tax rate 4 (1) 3 3 (4) (1)
Differences in effective overseas tax rates (1) – (1) 2 – 2
Increase in provisions – – – 1 – 1
Other tax adjustments (2) – (2) – – –
Adjustments in respect of prior periods
(iii)
– (3) (3) 4 1 5
Total tax charge 27 4 31 52 3 55
The effective tax rate on adjusted earnings for the period ended 29 April 2023 is 23% (2021/22: 27%). The effective tax rate on
adjusting items is (1)% (2021/22: (5)%). The future effective tax rate is likely to be impacted by the geographical mix of profits and
the Group’s ability to take advantage of currently un-recognised deferred tax assets.
(i) Items attracting no tax relief or liability relate mainly to non-deductible expenditure, including the goodwill impairment recorded in the period and share-based payments.
(ii) Deferred tax assets relating to tax losses and other short-term temporary differences in the UK business were de-recognised during the period (see note 6c).
(iii) Prior period adjustments were made to current and deferred tax balances following a review by management as set out in note 6d.
239Strategic Report Governance Financial Statements Investor Information
A7 Adjusted earnings per share
Earnings per share (‘EPS’) measures are adjusted in order to show an adjusted EPS figure, which reflects the adjusted earnings per share
of the Group. Weconsider the adjusted EPS to provide a useful measure of the ongoing earnings of the underlying Group.
The below table shows a reconciliation of statutory basic and diluted EPS to adjusted basic and diluted EPS as these are considered
to be the closest IFRS equivalents.
Period ended
29 April
2023
£m
Period ended
30 April
2022
(restated)*
£m
Profit after tax for the period
Total (481) 71
Adjustments 573 69
Adjusted profit after tax 92 140
Million Million
Weighted average number of shares
Average shares in issue 1,133 1,165
Less average holding by Group EBT and Treasury shares held by Company (29) (35)
For basic earnings per share 1,104 1,130
Dilutive effect of share options and other incentive schemes 20 45
For diluted earnings per share 1,124 1,175
Pence Pence
Basic earnings per share
Total (43.6) 6.3
Adjustments 51.9 6.1
Adjusted basic earnings per share 8.3 12.4
Diluted earnings per share
Total (43.6) 6.0
Adjustments 51.8 5.9
Adjusted diluted earnings per share 8.2 11.9
* Adjusted EBIT and Tax in the comparative period has been restated as explained in note A12 to the Glossary and definitions.
Basic and diluted EPS are based on the profit for the period attributable to equity shareholders. Adjusted EPS is presented in order
to show the underlying performance of the Group. Adjustments used to determine adjusted earnings are described further in note A4.
A8 Reconciliations of cash generated from operations to free cash flow
Operating cash flow comprises cash generated from/(utilised by) operations, adjusting items (the nature of which are disclosed above),
and after repayments of lease liabilities (excluding non-trading stores) and movements in working capital presented within the
Performance review. The measure aims to provide users a clear understanding of cash generated from the operations of the Group.
Sustainable free cash flow comprises cash generated from/(utilised by) operations, but before movements in working capital, and
after capital expenditure, capital repayments of lease liabilities, net cash interest paid, and income tax paid. Free cash flow comprises
all items contained within sustainable free cash flow but after movements in working capital. Sustainable free cash flow and free cash
flow are considered to be useful for users as they represent available cash resources after operational cash outflows and capital
investment to generate future economic inflows. We consider it useful to present both measures to draw users’ attention to the impact
of movements in working capital on free cash flow.
240 Currys plc Annual Report & Accounts 2022/23
Glossary and Definitions continued
A8 Reconciliations of cash generated from operations to free cash flow continued
The below provides a reconciliation of cash generated from operations, which is considered the closest equivalent IFRS measure,
to operating cash flow, sustainable free cash flow and free cash flow.
Reconciliation of cash inflow from operations to free cash flow
Period ended
29 April
2023
£m
Period ended
30 April
2022
(restated)*
£m
Cash generated from operations 386 524
Capital repayment of leases cost and interest (284) (278)
Less adjusting items to cash flow 40 23
Less movements in working capital presented within the Performance review (note A10) 127 112
Facility arrangement fees (1) (6)
Operating cash flow 268 375
Capital expenditure (111) (133)
Add back adjusting items to cash flow (40) (23)
Taxation (38) (18)
Cash interest paid (26) (17)
Sustainable free cash flow 53 184
Add back movements in working capital presented within the Performance review (note A10) (127) (112)
Free cash flow (74) 72
* Adjusting items to cash flow and working capital cash flow in the comparative period has been restated as explained in note A12 to the Glossary and definitions.
Reconciliation of adjusted EBIT to free cash flow and sustainable free cash flow
Period ended
29 April
2023
£m
Period ended
30 April
2022
(restated)*
£m
Adjusted EBIT (note A1) 214 280
Depreciation and amortisation (note A3) 310 314
Working capital presented within the Performance review (note A10) (127) (112)
Capital expenditure (111) (133)
Taxation (38) (18)
Interest (26) (17)
Repayment of leases** (271) (249)
Other non-cash items in EBIT *** 15 30
Free cash flow before adjusting items to cash flow (34) 95
Adjusting items to cash flow (40) (23)
Free cash flow (74) 72
Less working capital presented within the Performance review (note A10) 127 112
Sustainable free cash flow 53 184
* Adjusted EBIT in the comparative period has been restated as explained in note A12 to the Glossary and definitions.
** Repayment of leases excludes the impact of non-trading leases which are presented within adjusting items to cash flow.
*** Other non-cash items in EBIT, as disclosed within the Performance review, comprise share-based payments, profit / loss on disposal of fixed assets, impairments and other
non-cash items.
A9 Reconciliation from liabilities arising from financing activities to total indebtedness
and net cash
Total indebtedness is a new measure used for the first time in the prior period and represents period end net cash, pension deficit, lease
liabilities and lease receivables, less any restricted cash. The purpose of this is to evaluate the liquidity of the Group with the inclusion
of all interest-bearing liabilities.
Net cash comprises cash and cash equivalents and short-term deposits, less loans and other borrowings. Lease liabilities are not
included within net cash. We consider that this provides a useful alternative measure of the indebtedness of the Group and is used
within our banking covenants as part of the leverage ratio.
241Strategic Report Governance Financial Statements Investor Information
A9 Reconciliation from liabilities arising from financing activities to total indebtedness
and net cash continued
The below provides a reconciliation of total liabilities from financing activities, which is considered the closest equivalent IFRS measure,
to total indebtedness and net cash.
29 April
2023
£m
30 April
2022
£m
Loans and other borrowings (note 17) (178) (80)
Lease liabilities* (note 18) (1,233) (1,267)
Total liabilities from financing activities (note 24c) (1,411) (1,347)
Cash and cash equivalents less restricted cash (note 15) 67 96
Overdrafts (note 17) (16) (2)
Lease receivables* (note 12) 5 4
Pension liability (249) (257)
Total indebtedness (1,604) (1,506)
Restricted cash 30 30
Add back pension liability 249 257
Add back lease liabilities 1,233 1, 267
Less lease receivables (5) (4)
Net cash (97) 44
* Net lease liabilities within the Performance review relates to lease liabilities less lease receivables.
Within the Performance review management also refer to average net cash/(debt) and total average indebtedness. Average net cash/
(debt) and total average indebtedness comprises the same items as included in net cash and total indebtedness as defined above,
however the net cash element is calculated as the average between April – April for the full period to align to the Group’s Remuneration
Committee calculation and as reported internally.
A10 Reconciliation of statutory working capital to working capital presented within the
Performance review
Within the Performance review a reconciliation of the adjusted EBIT to free cash flow is provided. Within this, the working capital balance
of £(127)m (2021/22: £(112)m) differs to the statutory working capital balance of £(136)m (2021/22: £(123)m) as cash flows on adjusting
items are separately disclosed.
Working capital presented within the Performance review is a measure of working capital that is adjusted from total IFRS measures to
remove the working capital on adjusting items, the nature of which are disclosed above. A description of costs included within adjusting
items during the period and comparative periods is further disclosed in note A4.
As discussed above, the Group uses adjusted profit measures in order to provide a useful measure of the ongoing performance of the
Group. A reconciliation of the disclosed working capital balance is as follows:
Period ended
29 April
2023
£m
Period ended
30 April
2022
(restated)*
£m
Movements in working capital (note 24b) (136) (123)
Adjusting items provisions 10 51
Exceptional receivable – legal settlement – (34)
Facility arrangement fees (1) (6)
Working capital presented within the Performance review (127) (112)
* Adjusted Working capital in the comparative period has been restated as explained in note A12 to the Glossary and definitions.
In the prior period the Group received £28m following the settlement of a contractual dispute with the counterparty that caused
damage to the Group. A further £6m was received following the settlement of a separate legal case related to anti-competitive
practices with a different counterparty.
242 Currys plc Annual Report & Accounts 2022/23
Glossary and Definitions continued
A11 Summary of working capital presented within the Performance review
Within the Performance review a summary balance sheet is provided which includes a working capital balance of £(230)m
(2021/22: £(342)m). The below table provides a breakdown of how the summary working capital balance ties through to the statutory
balance sheet.
Note
29 April
2023
£m
30 April
2022
£m
Non-current assets
Trade and other receivables 14 148 123
Current assets
Inventory 13 1,151 1,286
Trade and other receivables 14 631 696
Derivative assets 23 23 28
Current liabilities
Trade and other payables 16 (2,067) (2,368)
Derivative liabilities 23 (13) (11)
Non-current liabilities
Trade and other payables 16 (103) (96)
Working capital presented within the Performance review (230) (342)
243Strategic Report Governance Financial Statements Investor Information
A12 Restatement of the Group’s Performance review
The adjusted results and adjusting items for the prior period ended 30 April 2022 have been restated to reflect the updated adjusting
items policy which is used to determine whether an item is to be classified as adjusting. Management believes the revised classification
policy, with the main change being the removal of mobile network debtor revaluations, provides greater clarity on the current and future
performance of the Group’s ongoing omnichannel retail operations.
The impact of the restatement on the Group’s adjusted results for the respective comparative periods is outlined below. There is no
impact on statutory results as a result of the restatements.
Period ended 30 April 2022
2021/22
as previously
reported
£m
Policy
adjustment
£m
2021/22
restated
£m
Income Statement
Adjusted revenue 10,122 22 10,144
Adjusting items to revenue 22 (22) –
Revenue 10,144 – 10,144
Adjusted EBITDA 588 6 594
Adjusted EBITDA margin 5.8% +10 bps 5.9%
Depreciation on right-of-use assets (190) – (190)
Depreciation on other assets (62) – (62)
Amortisation (62) – (62)
Adjusted EBIT 274 6 280
Adjusted EBIT margin 2.7% +10 bps 2.8%
Interest on lease liabilities (70) – (70)
Finance income 2 – 2
Adjusted finance costs (20) – (20)
Adjusted PBT 186 6 192
Adjusted PBT margin 1.8% +10 bps 1.9%
Adjusted tax (51) (1) (52)
Adjusted profit after tax 135 5 140
Adjusted EPS 11.9p 0.5p 12.4p
Cash flow
Adjusted EBITDAR 602 6 608
Adjusted EBITDAR margin 5.9% +10 bps 6.0%
Cash payments of leasing costs, debt & interest (263) – (263)
Other non-cash items in EBIT 22 8 30
Operating cash flow 361 14 375
Operating cash flow margin 3.6% +10 bps 3.7%
Capital expenditure (133) – (133)
Adjusting items to cash flow (33) 10 (23)
Free cash flow before working capital 195 24 219
Working capital (88) (24) (112)
Segmental free cash flow 107 – 107
Cash tax paid (18) – (18)
Cash interest paid (17) – (17)
Free cash flow 72 – 72
Dividend (4 6) – (46)
Purchase of own shares – share buyback (32) – (32)
Purchase of own shares – employee benefit trust (41) – (41)
Pension (78) – (78)
Other – – –
Movement in net cash (125) – (125)
Net cash 44 – 44
244 Currys plc Annual Report & Accounts 2022/23
Other definitions
The following definitions apply throughout this Annual Report and Accounts unless the context otherwise requires:
Acquisition intangibles Acquired intangible assets such as customer bases, brands and other intangible assets acquired through
a business combination capitalised separately from goodwill.
B2B Business to business
Board The Board of Directors of the Company
Carphone,
Carphone Warehouse
or Carphone Group
The Company or Group prior to the Merger on 6 August 2014
CGU Cash-generating unit
CODM Chief Operating Decision Maker
Company or the
Company
Currys plc (incorporated in England & Wales under the Act, with registered number 07105905), whose
registered office is at 1 Portal Way, London W3 6RS
Credit adoption Sales on Credit as a proportion of total sales
Currys plc or Group The Company, its subsidiaries, interests in joint ventures and other investments
Dixons Retail Merger
or Merger
The all-share merger of Dixons Retail plc and Carphone Warehouse plc which occurred on 6 August 2014
EBT Employee benefit trust
ESG Environmental, social and governance
GfK Growth from Knowledge
HMRC Her Majesty’s Revenue and Customs
IFRS International Financial Reporting Standards as adopted by the UK
Market share Market share is measured for each of the Group’s markets by comparing data for revenue or volume of units
sold relative to similar metrics for competitors in the same market
MNO Mobile network operator
Net zero Net zero emissions includes our Scope 1, 2 and 3 emissions as reported in the Sustainable business section of
the Strategic Report. In 2020, we collaborated with The British Retail Consortium and other major retailers on
the development of a Climate Action Roadmap to decarbonise the retail industry and its supply chains. The
plan aims to bring the retail industry and its supply chains to net zero by 2040. Our commitment to net zero
meets a number of the criteria of the SBTi Corporate Net-Zero Standard but is not fully aligned or validated
against this standard. We will develop and publish a robust net zero emissions roadmap for the Group which
will provide detail on carbon abatement for key emissions sources and neutralisation plans of any source of
residual emissions that remain unfeasible to remove.
NPS Net Promoter Score, a rating used by the Group to measure customers’ likelihood to recommend its operations
Online Online sales, Online market share, and Online share of business relate to all sales where the journey is
completed via the website or app. This includes online home delivered, order & collect, Online in-store and
ShopLive UK
Online in-store Sales that are generated through in-store tablets for product that is not stocked in the store
Order & collect Sales where the sale is made via the website or app and collected in store
Peak/post-Peak Peak refers to the ten-week trading period ended on 7 January 2023 as reported in the Group’s Christmas
Trading statement on 18 January 2023. Post-Peak refers to the trading period from 8 January 2023 to the
Group’s year end on 29 April 2023.
RCF Revolving credit facility
Sharesave or SAYE Save as you earn share scheme
ShopLive UK The Group’s own video shopping service where store colleagues can assist, advise and demonstrate the use
of products to customers online face-to-face
Store Store sales, Store market share, and Store share of business relate to all sales where the journey is completed
in store. This excludes online home delivered, order & collect, Online in-store and ShopLive UK
TSR Total shareholder return
WAEP Weighted average exercise price
Glossary and Definitions continued
245Strategic Report Governance Financial Statements Investor Information
Shareholder and Corporate Information
Currys plc is listed on the main market of the London Stock
Exchange (stock symbol: CURY) and is a constituent of the FTSE 250.
Company registration number
07105905
Registered office
Corporate website
www.currysplc.com
The website includes information about the Group’s vision
and strategy, business performance, corporate governance,
sustainability, latest news and press releases. The Investors
section includes information on the latest trading performance,
records of past financial results, share price information and
analyst coverage.
Share registrar
Equiniti is the share registrar for Currys plc. Shareholders can
contact Equiniti as follows:
Post – Aspect House, Spencer Road, Lancing, West Sussex,
BN99 6DA, United Kingdom
Online – https://equiniti.com/uk/contact-us/shareholder-
enquiries for FAQs as well as an online query form
Telephone – +44 371 384 2030 (Please use the UK telephone
country code when calling from outside the UK). Telephone lines
are open on UK business days between 8.30am and 5.30pm UK
time; excluding UK Bank Holidays. For deaf and speech impaired
customers, Equiniti welcome calls via Relay UK. Please see
www.relayuk.bt.com for more information.
Shareholder enquiries
Any queries that shareholders have regarding their shareholdings,
such as a change of name or address, transfer of shares or lost
share certificates, should be referred to Equiniti using the contact
details above.
Managing shares online
Shareholders can manage their holdings online by registering with
Shareview at www.shareview.co.uk. This is a secure online platform
which is provided by Equiniti. To register, you will need your
shareholder reference number, which can be found on your share
certificate, form of proxy or any correspondence from Equiniti.
ShareGift
If you have a very small shareholding that is uneconomical to sell,
you may wish to consider donating it to ShareGift (Registered
charity no. 1052686), a charity that specialises in the donation of
small, unwanted shareholdings to good causes. You can find more
information by visiting sharegift.org or by calling 020 7930 3737.
Unauthorised brokers (boiler room scams)
Currys plc is legally obliged to make its share register available
to the general public in certain circumstances. Consequently,
some shareholders may receive unsolicited phone calls or
correspondence concerning investment matters which may imply
a connection to the company concerned. These are typically
from ‘brokers’ who target shareholders offering to buy their shares
or to sell them shares in what can turn out to be worthless or
high-risk investments. These communications can be persistent
and extremely persuasive.
Share fraud includes scams where investors receive unsolicited
calls and offered shares that often turn out to be worthless or
non-existent, or an inflated price for shares they own. These calls
come from fraudsters operating in ‘boiler rooms’ that are mostly
based outside the UK. While high profits are promised, those who
buy or sell shares in this way usually lose their money.
If you are approached about a share scam, you should tell the
Financial Conduct Authority using the share fraud reporting form
at www.fca.org.uk/consumers/report-scam-us where you can
find out about the latest investment scams. You can also call the
Consumer Helpline on 0800 111 6768 or 0300 500 8082 from
the UK or +44 207 066 1000 from abroad.
Electronic communications
Shareholders will receive annual report and accounts and other
documentation electronically, unless they tell our registrar that
they would like to continue to receive printed materials. This is in
line with best practice and underpins our commitment to reduce
waste. Shareholders may view shareholder communications
online instead of receiving them in hard copy. Shareholders may
elect to receive notifications by email whenever shareholder
communications are added to the website by visiting
www.shareview.co.uk and registering online.
Auditor
KPMG LLP, 15 Canada Square, Canary Wharf, London E14 5GL
www.kpmg.com/uk
Joint stockbrokers
Citigroup Global Markets Limited, 33 Canada Square, Canary
Wharf, London, E14 5LB
www.citigroup.com
Liberum Capital Limited, 25 Ropemaker Street, London EC2Y 9LY
www.liberum.com
Company Secretary
Nigel Paterson, General Counsel and Company Secretary
cosec@currys.co.uk
Investor relations
Dan Homan, Investor Relations Director
ir@currys.co.uk
Currys plc Annual Report & Accounts 2022/23
Currys plc
1 Portal Way
London
W3 6RS
United Kingdom
E: ir@currys.co.uk
www.currysplc.com