We help
everyone
enjoy
amazing
technology
Annual Report & Accounts 2023/24
Currys Annual Report & Accounts 2023/24
Non-financial and sustainability
information statement
We 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 36-49
TCFD Report page 40
Colleagues pages 16-19
Social matters pages 50-53
Respect for human rights page 53
Anti-corruption and anti-bribery
matters page 53
Description of our Business Model pages 8-9
Details of the Principal Risks relating
to Non-Financial Matters pages 54-59
Non-Financial KPIS page 61
Strategic Report
1 2023/24 highlights
2 Our markets
4 Our business
6 Investment case
8 Business model
10 Chair’s statement
12 Chief Executive’s statement
14 Our strategy
28 Our stakeholders
32 Sustainable business
54 Risk management
56 Principal risks and uncertainties
60 Going concern and viability statement
61 Key Performance Indicators
62 Performance review
Governance
74 Governance at a glance
76 Board of directors
78 Directors’ report
81 Corporate governance report
94 Audit committee report
103 Disclosure committee report
104 Nominations committee report
Introduction
www.currysplc.com/investors
For the latest news visit our website.
Our markets
107 Environmental, Social and Governance
(‘ESG’) committee report
109 Remuneration committee report
113 Remuneration at a glance
114 Remuneration policy
125 Annual Remuneration Report for 2023/24
142 Statement of directors’ responsibilities
Financial Statements
143 Independent auditor’s report
153 Consolidated income statement
154 Consolidated statement of
comprehensive income
155 Consolidated balance sheet
156 Consolidated statement of
changes in equity
157 Consolidated cash flow statement
158 Notes to the Group financial statements
207 Company balance sheet
208 Company statement of changes in equity
209 Notes to the Company financial statements
215 Five period record (unaudited)
Investor Information
216 Glossary and definitions
228 Shareholder and corporate information
Investment case
62
Business model
8
Sustainable business
32
Strategy overview
14
Our business
4
Contents
1
Strategic Report Governance Financial Statements Investor Information
£10,144m
£8,874m
£8,476m
2023/24
2022/23
2021/22
£126m
£(462)m
£28m
2022/23
2023/24
2021/22
£72m
£(92)m
£82m
2
023/24
2
022/23
2
021/22
12.4p
7.4p
7.9p
2023/24
2022/23
2021/22
£192m
£107m
£118m
2023/24
2022/23
2021/22
6.3p
(43.6)p
14.9p
2023/24
2021/22
2022/23
2023/24 highlights
* 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 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.
(1) 2022/23 figures have been restated following the disposal of Greece.
See our Key Performance Indicators on page 61.
Revenue
(1)
£8,476m
Adjusted profit before tax*
(1)
£118m
Adjusted EPS*
(1)
7.9p
Free cash flow
(1)
£82m
Statutory profit/(loss) before tax
(1)
£28m
Statutory EPS
14.9p
2 Currys plc Annual Report & Accounts 2023/24
2022
Video doorbell
CCTV camera
LSTV
Home phone
Games
console
Smart
speaker
Smart
hub
Smart
lighting
Fridge
Freezer
CookerKettle Air
fryer
Soundbar
Microwave
Smart
speaker
SSTV
TV
Hairdryer
Smart hub
Tablet
Smart scale
Laptop
Monitor
Printer
Gaming chair
Headphones
Mobile
phone
Electric toothbrush
Smart thermostat
Steam iron
Washing machine
Tumble dryer
Vacuum cleaner
Our markets
Technology plays a more
important role in our lives
today than ever before.
We believe in the power of
technology to improve lives,
help people stay connected,
productive, fit, clean,
healthy, and entertained.
3
Strategic Report Governance Financial Statements Investor Information
20.0
20.7
21.5
22.8
2021/22
2020/21
2022/23
2023/24
152.4
157.5
164.3
166.3
2021/22
2020/21
2022/23
2023/24
Key market drivers over the next year
The UK technology market is worth
£20.0bn
(1)
and decreased 3% over the
last year. Although the overall market
declined, PC and mobile accessories
as well as software continued to see
growth of 2% and 1% respectively.
In the Nordics, the technology market is
worth NOK152.4bn (£11.0bn)
(1)
and saw
a decline of 3% during the year despite
small domestic appliances growing by 7%.
We are the leader in these markets with a
23.3% market share in the UK and a 27.7%
share in the Nordics.
1. Consumer
sentiment
After two years of high inflation and
falling consumer confidence across our
markets, there are early signs of inflation
and interest rates falling. This has led to
an improvement in consumer confidence
in all of our markets, which could lead to
increased sales in our more discretionary
product categories.
3. Artificial Intelligence
(AI) evolution
AI is a rapidly emerging technology and
we expect more of the products that we
sell to incorporate AI enabled technology.
As use cases become clear to customers,
this emerging technology could drive
further uptake and upgrades of
technology products.
In the last year, Samsung launched the
S24 mobile phone, which features AI
technology, including live translation
capabilities and generative photo and
video editing.
After the year end, we were the first retailer
globally to launch Microsoft Copilot+PC.
This innovative productivity tool simplifies
tasks using natural language queries. Some
of its key benefits include market leading
speed and performance, over 22 hours of
battery life, and live translation.
2. Technology
replacement cycle
Technology equipment undergo
replacement every four to seven years
due to obsolescence or the emergence
of superior alternatives. A large amount
of product was bought during the Covid
pandemic, as consumers sought to upgrade
their home technology. It has now been four
years since the pandemic and we may start
to see customers upgrading and replacing
products bought during that period.
(1) GfK, April 2024.
UK technology market size
(£bn)
(1)
Nordics technology market size
(NOKbn)
(1)
4 Currys plc Annual Report & Accounts 2023/24
59%
UK&I
41%
Nordics
Our business
UK&I
£5.0bn
Read more about our
performance review
on page 62.
Nordics
£3.5bn
Read more about our
performance review
on page 62.
Currys plc is a leading omnichannel retailer of
technology products and services, operating
online and through 719 stores in 6 countries.
We help everyone enjoy amazing technology,
however they choose to shop with us.
Computing
Consumer
Electronics
White Goods
Mobile
Online
Stores
B2C
B2B
In the UK & Ireland we trade as Currys
and in the UK we operate our own mobile
virtual network, iD Mobile. In the Nordics
we trade under the Elkjøp brand. We’re the
market leader in all markets, able to serve
all households and employing 24,000
capable and committed colleagues.
We help everyone enjoy amazing
technology. We believe in the power
of technology to improve lives, helping
people stay connected, productive, fit,
clean, healthy, and entertained. We’re here
to help everyone enjoy those benefits and,
with our scale and expertise, we’re uniquely
placed to do so.
Our full range of services and support
makes it easy for our customers to
discover, choose, afford and enjoy the
right technology to the full. The Group’s
operations include Europe’s largest
technology repair facility, a sourcing office
in Hong Kong and an extensive distribution
network, centred on Newark in the UK and
Jönköping in Sweden, enabling fast and
efficient delivery to stores and homes.
We’re a leader in giving technology a
longer life through reuse, repair and
recycling. We’re reducing our impact
on the environment in our operations
and our wider value chain, and we aim
to achieve net zero emissions by 2040.
We offer customers products that help
them save energy and water, as well
as reduce waste, and we partner with
charitable organisations to bring the
benefits of amazing technology to those
who might otherwise be excluded.
28%
38%
6%
22%
32%
18%
62%
94%
Group revenue by channel Group revenue by customer typeGroup revenue by product
Group resilience is underpinned by diversification
£8.5bn
Group revenue
2023/24
5
Strategic Report Governance Financial Statements Investor Information
UK&I market share
(1)
23.3%
2023/24
Nordic market share
(1)
27.7%
2023/24
(1) Gfk, April 2024.
Our footprint Our footprint
Colleagues
14,500
(2022/23: 14,850)
Colleagues
9,800
(2022/23: 10,100)
Stores
298
(2022/23: 301)
Stores
421
(2022/23: 426)
Store area sqft
5.4m
(2022/23: 5.5m)
Store area sqft
4.9m
(2022/23: 4.8m)
Key statistics
6
Countries
24,000
Colleagues
719
Stores
Our brands
6 Currys plc Annual Report & Accounts 2023/24
Investment case
Clear #1 leading brand
in all our markets
The UK technology market is worth £20bn
and the Nordics market NOK152.4bn (£11.0bn).
Our scale underpins our long term supplier
relationships while our high brand awareness
presents a significant opportunity for future
growth by expanding our market share.
23.3%
market share in the UK&I
27.7%
market share in the Nordics
Large and flexible
infrastructure supported
by world class colleagues
Our extensive infrastructure is well invested and
can be flexed to support sales and provide
services in any channel and wherever is most
convenient for customers. Our colleagues are
highly engaged and help our customers enjoy
technology that, while exciting, can be confusing
and expensive. A better colleague experience
drives a better customer experience, which in
turn drives market share gains and profits.
81
Group eSat score
Diversified across
products, services,
channels and geographies
We sell a full range of products across consumer
electronics, computing, domestic appliances
and mobile as well as complementary services
that help customers enjoy technology for life.
44%
of revenues outside of UK
Modern omnichannel
network with further
improvements to come
Customers browse and purchase tech products
both in-store and online, allowing us to serve
them according to their preferences and grow
our market share. We are enhancing the shopping
experience by integrating channels and focusing
on range, price, availability, and getting it
‘Right First Time’. This ultimately helps customers
choose and buy the full solutions for their needs.
38%
of Group sales are online
Computing
Consumer Electronics
White Goods
Mobile
28%
22%
32%
18%
Group
revenue by
product
7
Strategic Report Governance Financial Statements Investor Information
Our Services drive high
margin, recurring revenue
and have significant
growth potential
Our Services enable customers to enjoy
technology for life. With Europe’s largest tech
repair facility in Newark, and our own mobile
operator, iD Mobile, we are uniquely positioned
to provide these services. They deliver high
margin, recurring revenue and have significant
growth potential.
12m
Protection plans across the Group
1.8m
iD Mobile subscribers
Strong track record of cost
savings
We have delivered significant cost savings over
the last three years and have clear opportunities
to drive more efficiencies in our business by
making more of our Group’s scale and buying
power, as well as harnessing the growing use
cases of AI technology, which we are developing
in partnership with Microsoft and Accenture.
£268m
UK&I gross cost savings over the last 3 years
Sustainability and
profit generation go
hand-in-hand
Our sustainability and social impact strategy
has three priorities: circular business models,
eradicating digital poverty, and achieving net
zero emissions by 2040. Our repair facilities give
us the unique ability to give tech a longer life,
driving outcomes that are good for customers,
the environment and our profits.
1.4m
repairs carried out in 2023/24
8.1m
e-waste products collected across the
Group for reuse or recycling
Cash flow ambitions
should deliver healthy
shareholder returns
We aim to improve our adjusted EBIT
margins which alongside tight discipline on
capital expenditure, exceptional cash and
working capital, will enhance our cash flow.
With a stronger balance sheet and steady
growth, we aim to return increasing amount
to our shareholders.
£96m
2023/24 net cash
8 Currys plc Annual Report & Accounts 2023/24
C
h
o
o
s
e
A
f
f
o
r
d
E
n
j
o
y
f
o
r
l
i
f
e
Business model
Competitive
strengths
Our business model is to help everyone to
choose, afford and enjoy technology.
Modern omnichannel
network
Our 719 stores are well located and
invested to provide a true omnichannel
experience. Our infrastructure can also
be flexed to support sales and provide
services wherever is most convenient for
our customers.
Read more on page 20.
Established and
well loved brands
Each of our brands has a long history
as the customers’ preferred brand.
Read more on page 5.
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 30.
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 page 16.
Unique Services
capabilities
We are uniquely positioned within
tech retail to help customers get
started with delivery, installation,
and set-up, and help give tech a
longer life through protection, repair,
trade-in, and recycling. Central to this
offering is Europe’s largest technology
repair centre, our facility in Newark.
Additionally, we help customers get
the most out of their tech through
connectivity, especially with iD Mobile.
Read more on page 22.
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 large
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 24,000 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
9
Strategic Report Governance Financial Statements Investor Information
A
f
f
o
r
d
E
n
j
o
y
f
o
r
l
i
f
e
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.
Adjusted Profit before Tax
£118m
+10% YoY
Net cash
£96m
+193m YoY
Group NPS
(1)
+2.0pts
Group eSat
(2)
81 +3.0pts
Revenue growth
(like-for-like)
(2)%
e-waste products collected
for reuse or recycling
8.1m
Reduction in scope 1, 2
& 3 emissions against a
2019/20 baseline
52%
Contributions to and
funds raised for the
Digital Poverty Alliance
>£200,000
Customers
Delivering returns for our
shareholders
During the year we delivered improved
profits and cashflow and finished the
year with a strong balance sheet.
Read more on page 26.
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 page 22.
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 page 16.
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 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 page 32.
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
(1) Net Promoter Score.
(2) Employee satisfaction score.
10 Currys plc Annual Report & Accounts 2023/24
Chair’s statement
A year of strengthening
performance
In the Nordics, our disciplined focus on
margins and costs is getting this business
back on track, with gross margins returning
close to the level of two years ago.
Adjusted EBIT was up 135%, supported
by the increased adoption of our margin
accretive Services as well as our focus on
more profitable sales, with better pricing
discipline and lower promotional activity.
Sale of Kotsovolos, our Greek
business
We successfully completed the sale of
our Greek business, Kotsovolos, on 10 April
2024 for net cash proceeds of £156m.
The sale further simplifies the Group
whilst driving significant value for our
shareholders. The sale multiple achieved
of 14x EV/EBIT represents a significant
premium to the Group’s current trading
multiple. The proceeds have been used to
reduce net debt and so further build our
balance sheet resilience.
Sustainability commitments
We are focused on three key sustainability
objectives: improving our use of resources
and creating circular business models
that give tech a longer life, eradicating
digital poverty, and achieving net zero
emissions by 2040. We’ve made excellent
progress across all of these priorities in the
year. We now have a team of over 1,400
skilled engineers who work to give tech a
longer life at our repair centres, helping us
complete over 1 million customer repairs
this year.
Our colleagues strive to be a force
for good, evident in our efforts to
combat digital poverty with the Digital
Poverty Alliance in the UK and the Elkjøp
Foundation in the Nordics.
I am also encouraged by our progress
toward achieving net zero emissions by
2040. Over the last four years our efforts
have resulted in a 52% decrease in Scope
1, 2 & 3 emissions, and we’re committed to
continuing to invest in this area.
Review of Performance
In the UK&I, we’ve built on the momentum
of the last couple of years, in particular
selling more of the Services that boost
margins and build customers for life.
Adjusted EBIT was up on an underlying
basis driven by higher gross margins and
our efficiency programme which has now
delivered £268m of cost savings in the
three years to 2023/24.
Customer satisfaction scores were again
outstanding this year, with our Net Promoter
Score rising by +4pts.
I am pleased to report on a year of good
progress in what remained a challenging
economic and consumer environment in
both the UK&I and in the Nordics. Our focus
on margins, costs and cash flow has paid
off with Group adjusted profit before tax
up +10% year-on-year to £118m and net
cash inflow of £193m (including proceeds
from the sale of Kotsovolos). It was also
pleasing to see a return to sales growth in
the four month period post peak trading,
and so we enter the new financial year in
both a stronger financial position and with
real momentum in both businesses.
11
Strategic Report Governance Financial Statements Investor Information
Colleagues
Much of our progress this year was made
possible by the passion and dedication
shown by our colleagues every day. It
is their technical expertise, drive, and
ambition that enable us to meet our
customer expectations and help deliver
our strategy. This has been driven by
exceptional colleague engagement, which
reached a new high and ranks us among
the top 10% of global businesses
(1)
. On
behalf of the Board, I would like to extend
my sincere gratitude to everyone at Currys
for another year of incredible commitment
and hard work.
Board
I am delighted to welcome Octavia Morley
as Senior Independent Director (SID) and
Chair of the Remuneration Committee.
Octavia has a strong retail background
with significant board experience including
as a SID and Remuneration Chair. After the
financial year-end, we also appointed
Steve Johnson as a Non-Executive Director
and member of the Audit Committee.
Steve brings extensive retail and financial
services experience.
I would like to thank Tony DeNunzio, who
stepped down as SID and Chair of the
Remuneration Committee, for his service on
the Board over the last eight years. Tony’s
deep expertise in the European retail
and consumer goods sectors has been
invaluable to the Board during a period
of significant change.
“By concentrating on the factors
we can control and remaining
dedicated to our strategic
vision, I am optimistic about
our potential to generate
sustainable, long-term returns
for our shareholders.”
Ian Dyson
Chair of the Board
I would also like to thank Fiona McBain,
who will step down as Non-Executive
Director and Audit Committee Chair
at the Annual General Meeting on
5 September 2024. Her expertise
and diligent stewardship of the Audit
Committee have been invaluable over
the past seven years. Adam Walker
will succeed her as Chair of the
Audit Committee.
Shareholders
In February we received two takeover
offers from Elliott Advisors, which we
believed significantly undervalued the
long-term prospects of the company
and so were unanimously rejected by the
Board. Subsequently the share price has
climbed above the second Elliott offer
of 67p.
While our financial position has improved
significantly since last year end through
the improved performance of the business
and the sale of Kotsovolos, the Board
has taken the prudent decision not to
declare a dividend to shareholders for this
financial year. However, we are committed
to shareholder returns and, providing
trading is in line with expectations, it
is the Board’s intention to announce a
recommencement of shareholder returns
during the next twelve months.
Looking ahead
I am pleased with the clear progress that
we have made as a result of our focus
on margins, costs and cash generation.
Our ongoing transformation efforts in
the UK&I and the actions taken to rebuild
profitability in the Nordics are bearing fruit
and position us well for a robust growth
in profits and cash flow over the coming
years. By concentrating on the factors we
can control and remaining dedicated to
our strategic vision, I am optimistic about
our potential to generate sustainable,
long-term returns for our shareholders.
Ian Dyson
Chair of the Board
26 June 2024
(1) Viva-Glint, December 2023.
12 Currys plc Annual Report & Accounts 2023/24
Chief Executive’s statement
Delivering on our priorities
adjusted profits climbing +£25m compared
to two years ago, despite a (9)% drop in
revenue over the same period.
These achievements have been built on our
long-term strategy.
Our strategy starts with colleagues, as it
is difficult in a business like ours for the
customer experience to exceed that
of the colleague. We have supported
colleagues with better tools, training
and reward, and now have world class
colleague engagement scores to show
for it, with Group eSat climbing +3 to 81,
putting Currys plc in the top 10% of global
companies. I am lucky enough to see my
colleagues in action every day, and the
calibre of people in our business, from
my immediate leadership team through
to colleagues on the front line, has never
been higher.
Second, we are making our customer
proposition ever easier to shop. We
look to constantly improve on the retail
fundamentals of range, price, and
availability. To this we add solution
selling whereby we seek to sell the
customer everything they need (products,
accessories and services) rather than just
a product on its own. We have seen a
+10pts YoY improvement in UK&I solutions
adoption rates and nearly 30% of eligible
products sold now have ancillary products
alongside, helping customers enjoy the
technology to the full while growing our
profits. We are also doing more to get
it ‘Right First Time’ for customers. This big
business-wide effort improves customer
satisfaction (they like it when the right
washing machine arrives undamaged at
the appointed time, and can be installed
there and then), and so indirectly reduces
customer acquisition costs. It also reduces
the cost of repeat work (by £8m last year),
while boosting margins: customers will pay
more for a better service.
We are doing all this with the benefit of the
omnichannel shopping model. Customers
Our priorities last year were simple: to get
the Nordics back on track, to keep the
UK&I’s encouraging momentum going, and to
strengthen our balance sheet and liquidity
in a turbulent environment. I am pleased
to say that we made good progress in all
three areas, and we can plan confidently
for the future.
In the Nordics, consumer demand remained
weak. Headwinds of inflation and interest
rate rises impacted consumer confidence
and drove a market decline of (3)%
YoY. Against this backdrop, we grew
market share (1H: (90)bps, 2H: +100bps),
recovered our gross margin (+190bps) back
to the level of two years ago, and saw
our profits more than double, despite a
headwind from currency translation.
In the UK&I, the market was similarly soft,
declining (3)% YoY. We maintained our #1
position but lost (70)bps of share, as we
continued to focus on more profitable
sales. This focus saw UK&I gross margin
improve +120bps Yo2Y, and, alongside
significant net cost savings, this resulted in
clearly prefer to use stores as an integral
part of their shopping journey, and we
have invested to continually improve
that experience online and in-store.
This year will see prudent increases to
those investments.
The third leg of our strategy is to create
customers for life. At the heart of this is
our unique range of services that help
customers afford and enjoy amazing
technology to the full.
We help customers afford tech through
credit, and we have seen UK&I adoption
climb +240bps to 20.1%, and active customer
accounts grow +17% to almost 2.3m.
We help customers get tech started,
through installation and set-up. Our
installation services are becoming ever
more valued by customers, and 28% of UK
big box deliveries now include installation,
a rise of +290bps YoY. Our in-home
customer satisfaction is amongst the
highest of all activities we carry out.
Once they have the tech, customers
want to keep it working. We are uniquely
well placed to keep tech working as we
operate repair services in Norway, Sweden
and the UK, where we have Europe’s largest
technology repair centre. We are the only
tech retailer that operates our own repair
facilities, allowing us to offer customers
the protection they want at good value.
The result of this can been seen in the
12m protection plans in place across the
Group. During the year, our team of over
1,400 engineers successfully completed
1.4 million product repairs, both at our
repair centres and in customers’ homes.
When tech has reached the end of its
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 labs. Or we can recycle it.
Currys has worked on responsible recycling
for many years. We provide free in-store
drop off and collect our customers’
unwanted electrical equipment and
13
Strategic Report Governance Financial Statements Investor Information
small electrical appliances for recycling
when we deliver their new technology. In
2023/24, 8.1 million e-waste products were
collected for reuse and recycling across
the Group.
The circularity of trade-in, protection,
repair, refurbishment, reuse and recycling
is not just a PR exercise for Currys, it’s our
business model. Colleagues increasingly
want to work for organisations with
powerful societal benefit, and customers
want to shop there. Customers value
the economic benefit of pre-loved and
repaired products. Currys’ well-invested
capabilities in this area are barriers to
competitors, while our unmatched scale
makes offering the complete set of
activities more profitable for us.
Finally, we help customers get the most
out of their tech, with connectivity being
the greatest enabler of this.
Our mobile business is growing, profitable
and cash generative. iD Mobile, our MVNO
(Mobile Virtual Network Operator) in the
UK, has been the standout performer this
year. It has grown +34% to 1.8m subscribers,
as customers have realised the value in
the deals we offer. iD is an increasingly
valuable asset in the business, one that
we intend to keep growing, targeting at
least 2m subscribers before year end.
Credit, protection plans and connectivity
are all sources of higher margin, recurring
revenue. Our aim is to continue growing
these, so that over time our business mixes
away from single product purchases to
the more predictable, recurring and higher
margin revenue streams of solution sales.
All of this rests on important progress in
collecting, protecting and using data,
evidenced by our Nordics Customer
Club growing to 8.6m members, and 8.9m
Currys Perks members. These memberships
generate over £4bn of customer revenue
per year.
Delivering on our strategy drives improved
customer satisfaction, which has climbed
to record levels this year. It also drives
improved profits.
Our UK&I gross margin is now +240bps higher
than three years ago and our Nordics gross
margin has rebounded strongly, up +190bps
YoY. The drivers of gross margin are the
same across the Group:
a challenging situation in the Nordics,
we have delivered a year without any
surprises and with material progress in all
three priorities of Nordics recovery, UK&I
momentum and financial strength. Our
priority for the year ahead is simple: to
continue doing the same. We are planning
prudently but confidently on this basis.
After three years of revenue declines,
there are also reasons to be more cheerful
about the outlook for topline growth.
First, when we look at what we sell, the
coming wave of AI led technology offers
arguably the most exciting tech cycle since
the Apple iPad in 2010. We are uniquely
placed to help consumers understand
the power of this technology and are
working closely with suppliers on recent
and upcoming product launches. For
example, we were the first retailer globally
to launch Microsoft Copilot+PC. We also
see opportunities in product categories
and services where we’re growing but are
still underweight. Second, in terms of who
we sell to, we are starting to see consumers
in all our markets recover, with confidence
and spending indicators increasing. We
also have an opportunity in B2B, where
we are well placed to serve small and
medium sized enterprises, a market almost
as large as B2C which currently represents
only 6% of our sales. Finally, on how we
sell product, we will continue making
improvements to our websites, and further
judicious investments in our stores.
We remain focussed on generating
improved free cash flow through improved
operating performance, tight working
capital management and increasing
capital expenditure back to normalised
levels to support profitable growth and
the long-term success of this business.
Combined with our proactive actions
to strengthen the balance sheet, this
will enable resumption and growth of
shareholder returns. We will then see
a business that’s increasingly valuable
for shareholders as well as colleagues,
customers and society.
Alex Baldock
Group Chief Executive
26 June 2024
• Better bundling of products – Selling
customers a complete solution enhances
customer satisfaction and our margins
• Higher adoption of services – Our services
are higher margin than our product sales,
and produce recurring revenues
• Monetising the improved experience
– As our strategy has improved the
customer experience we have been
able to charge more for it
• Focus on higher margin sales – Our
enhanced data and analytics have
provided a better understanding of
end-to-end profitability, which we have
used not to chase sales that fall below
internal margin thresholds
• Cost savings – We have delivered
significant cost savings in our supply
chain and service operations through
outsourcing and efficiencies
Cost savings have also reduced our
operating costs, and in the UK&I we have
delivered £268m of total cost reductions
over the last three years as a result
of actions in supply chain and service
operations, stores, central operations and
IT. Cost saving processes and culture are
now embedded across the Group. There is
more cost to go after, with more we can do
on Group synergies, and through process
improvement enhanced by Artificial
Intelligence (AI) technology. We are in the
early phases of exploring Generative AI
and, having identified over 60 potential use
cases, we are focussing, with our partners
Accenture and Microsoft, on opportunities
in aftersales returns and repairs.
Alongside improved profitability, we have
been prudent in deploying cash. Last year,
our capital expenditure was deliberately
reduced and working capital was tightly
controlled. In April, we completed the
disposal of our Greece business for net
proceeds of £156m, allowing us to focus
on our larger businesses in the UK&I and
Nordics and further strengthening our
balance sheet. We finished the year with
£96m net cash and a pension deficit of
£(171)m. This £(75)m net position is £700m
better than it was four years ago at the
start of the pandemic.
We are the clear #1 brand in all our
markets, with a diversified revenue base
and a strategy that is working. After
a volatile five years that have been
impacted by the legacy issues in UK
Mobile, the pandemic disruption, and
14 Currys plc Annual Report & Accounts 2023/24
Our strategy
Overview
Strategic priorities Highlights Progress in 2023/24 Focus in 2024/25
81
+3pts YoY
Group eSat score
84
+3pts YoY
UK&I eSat score
78
+4pts YoY
Nordics eSat score
• Increased colleague engagement across Currys, with our teams
among the most engaged globally. Our UK&I engagement score
puts Currys in the top 5% of Global businesses.
(1)
• Reduced attrition rates, helping retain talented and valuable
colleagues, and generating resource and cost savings.
• Delivered >230,000 hours of online colleague training across
the Group.
• Continued to build an inclusive and diverse culture where everyone
feels like they belong.
• Sustain high level of colleague engagement across the business.
• Design and launch general manager and sales manager
academies, aimed at strengthening our colleagues’ commercial
capabilities, developing sales leaders, and driving overall
group performance.
• Refresh our inclusion and diversity strategy and build on our
reputation as a great employer.
• Optimise our operating model and capabilities, with the support
of our expanded Global Business Services (GBS), in partnership
with Infosys, to drive profitable growth.
+4
pts YoY
UK&I NPS
-40
bps YoY
UK&I repeat visit rate
+10
pts YoY
UK&I ‘Sold With’ adoption
rate
+0.2
pts YoY
Nordics online
Happy or Not
-60
bps YoY
Nordics missed deliveries
• UK&I NPS increased 4pts to a record level, with customer.
satisfaction rising at all key points in customer journey.
• Nordics Happy or Not maintained market leading score of more
than 90pts.
• Maintained our commitment to getting it ‘Right First Time’ for
customers and colleagues, leveraging enhanced reporting and
performance tracking to eliminate duplicate costs from missed
deliveries and wrong products, resulting in a cost reduction of £8m
in 2023/24.
• Optimised customer journeys have led to increased bundle and
higher margin product sales. In the UK&I, the adoption rate of
‘Sold With’ solutions increased +10pts YoY.
• In the UK&I our online orders delivered to store increased by
+11% YoY, showcasing the power of our omnichannel platform.
• Double down on getting it ‘Right First Time’, improving first contact
resolution and refund processes.
• Further drive the profitability of our omnichannel model, achieving
increased value through online excellence, space optimisation,
megastores and more time to sell.
• Implement improved processes for selling complete solutions to
customers, supporting higher margins.
• Continued focus on ensuring we have the right range, price,
availability and merchandising for our products.
20.1%
+240bps YoY
UK&I Credit adoption
9.8m
+13% YoY
UK&I Care & Repair plans
1.8m
+34% YoY
iD Mobile subscribers
11.9%
+20bps YoY
Nordics Credit adoption
8.6m
+13% YoY
Nordics Customer Club
members
• Credit adoption increased +240bps to 20.1% in the UK&I and by
+20bps to 11.9% in the Nordics.
• 12 million total active protection plans, up +12% year-on-year.
• In the UK, our Care & Repair adoption climbed +190bps to 20.6%,
with improvements in-store and online as customers look to benefit
from our improved proposition.
• Nordic customer club grew +13% to 8.6 million customers.
• iD Mobile grew +34% to 1.8 million subscribers.
• Continue to build our customer analytics, building further insights
and refining customer segmentation.
• Maintain adoption of Credit at >20% in the UK&I.
• Enhance our Care & Repair services to improve adoption through
increased promotion and education.
• Grow our iD Mobile subscription base, with a target of more than
2 million subscribers before the 2024/25 year end.
£118m
+10% YoY
Group adjusted PBT
+240bps
Yo3Y
UK&I gross margin
£268m
cumulative since 2021/22
Uk&I cost savings
+190bps
YoY
Nordics gross margins
• Gross margin increased +240bps over the last three years in the
UK&I with improvements across all levers. This is the result of a focus
on more profitable sales, higher adoption of services and bundled
solutions, better monetisation of improved proposition, as well as
cost savings in supply chain and services.
• Gross margin increased +190bps in the Nordics, driven by a better
balance of trading, despite subdued consumer spending.
• Achieved total cost savings of £268m in the UK&I with efficiencies
across supply chain, stores, goods not for resale and IT, this has
helped offset inflation and cost.
• Expand our B2B operations with a focus on small and medium-
sized businesses.
• Enhance both our in-store and online product range and sales
capacity while extending our service offerings.
• Continue to prioritise cost efficiencies via various initiatives,
including getting it ‘Right First Time’, improved workforce
management, and cloud migration.
• Maintain our focus on areas of profitable growth, adding
products and services that enhance our offering to consumers
at attractive margins.
(1) Glint 2024.
Our Capable and Committed Colleagues are our greatest
asset. Technology is exciting but can be confusing and
expensive. Our colleagues help customers discover, choose,
afford and enjoy amazing technology. Our colleague
engagement is world class, and we’re going to keep it that
way. We are building high performing teams with the best
talent and a business that’s flexible and affordable.
Read more about Our Colleagues on page 16.
We will continue to build a better end-to-end experience
for customers, however they choose to shop with us.
This means combining expert advice with seamless,
convenient and easy shopping experiences, helping
customers choose and buy the full solution for their needs.
Read more about Easy to Shop on page 20.
We want to build long-term, valuable relationships with
our customers, and this means doing more than selling
them a box. We will continue to help customers afford and
enjoy (as well as choose) their technology for life. We will
do this through our credit and unique service propositions
and harnessing our data to create more relevant and
personalised content, offers and touchpoints.
Read about Customers for Life on page 22.
We will continue to grow profits, by growing revenue
through increasing share of wallet and new sources of
profitable growth, managing margins and reducing costs.
Read about Grow Profits on page 26.
Capable and Committed Colleagues
Easy to Shop
Customers for Life
Grow Profits
15
Strategic Report Governance Financial Statements Investor Information
Strategic priorities Highlights Progress in 2023/24 Focus in 2024/25
81
+3pts YoY
Group eSat score
84
+3pts YoY
UK&I eSat score
78
+4pts YoY
Nordics eSat score
• Increased colleague engagement across Currys, with our teams
among the most engaged globally. Our UK&I engagement score
puts Currys in the top 5% of Global businesses.
(1)
• Reduced attrition rates, helping retain talented and valuable
colleagues, and generating resource and cost savings.
• Delivered >230,000 hours of online colleague training across
the Group.
• Continued to build an inclusive and diverse culture where everyone
feels like they belong.
• Sustain high level of colleague engagement across the business.
• Design and launch general manager and sales manager
academies, aimed at strengthening our colleagues’ commercial
capabilities, developing sales leaders, and driving overall
group performance.
• Refresh our inclusion and diversity strategy and build on our
reputation as a great employer.
• Optimise our operating model and capabilities, with the support
of our expanded Global Business Services (GBS), in partnership
with Infosys, to drive profitable growth.
+4
pts YoY
UK&I NPS
-40
bps YoY
UK&I repeat visit rate
+10
pts YoY
UK&I ‘Sold With’ adoption
rate
+0.2
pts YoY
Nordics online
Happy or Not
-60
bps YoY
Nordics missed deliveries
• UK&I NPS increased 4pts to a record level, with customer.
satisfaction rising at all key points in customer journey.
• Nordics Happy or Not maintained market leading score of more
than 90pts.
• Maintained our commitment to getting it ‘Right First Time’ for
customers and colleagues, leveraging enhanced reporting and
performance tracking to eliminate duplicate costs from missed
deliveries and wrong products, resulting in a cost reduction of £8m
in 2023/24.
• Optimised customer journeys have led to increased bundle and
higher margin product sales. In the UK&I, the adoption rate of
‘Sold With’ solutions increased +10pts YoY.
• In the UK&I our online orders delivered to store increased by
+11% YoY, showcasing the power of our omnichannel platform.
• Double down on getting it ‘Right First Time’, improving first contact
resolution and refund processes.
• Further drive the profitability of our omnichannel model, achieving
increased value through online excellence, space optimisation,
megastores and more time to sell.
• Implement improved processes for selling complete solutions to
customers, supporting higher margins.
• Continued focus on ensuring we have the right range, price,
availability and merchandising for our products.
20.1%
+240bps YoY
UK&I Credit adoption
9.8m
+13% YoY
UK&I Care & Repair plans
1.8m
+34% YoY
iD Mobile subscribers
11.9%
+20bps YoY
Nordics Credit adoption
8.6m
+13% YoY
Nordics Customer Club
members
• Credit adoption increased +240bps to 20.1% in the UK&I and by
+20bps to 11.9% in the Nordics.
• 12 million total active protection plans, up +12% year-on-year.
• In the UK, our Care & Repair adoption climbed +190bps to 20.6%,
with improvements in-store and online as customers look to benefit
from our improved proposition.
• Nordic customer club grew +13% to 8.6 million customers.
• iD Mobile grew +34% to 1.8 million subscribers.
• Continue to build our customer analytics, building further insights
and refining customer segmentation.
• Maintain adoption of Credit at >20% in the UK&I.
• Enhance our Care & Repair services to improve adoption through
increased promotion and education.
• Grow our iD Mobile subscription base, with a target of more than
2 million subscribers before the 2024/25 year end.
£118m
+10% YoY
Group adjusted PBT
+240bps
Yo3Y
UK&I gross margin
£268m
cumulative since 2021/22
Uk&I cost savings
+190bps
YoY
Nordics gross margins
• Gross margin increased +240bps over the last three years in the
UK&I with improvements across all levers. This is the result of a focus
on more profitable sales, higher adoption of services and bundled
solutions, better monetisation of improved proposition, as well as
cost savings in supply chain and services.
• Gross margin increased +190bps in the Nordics, driven by a better
balance of trading, despite subdued consumer spending.
• Achieved total cost savings of £268m in the UK&I with efficiencies
across supply chain, stores, goods not for resale and IT, this has
helped offset inflation and cost.
• Expand our B2B operations with a focus on small and medium-
sized businesses.
• Enhance both our in-store and online product range and sales
capacity while extending our service offerings.
• Continue to prioritise cost efficiencies via various initiatives,
including getting it ‘Right First Time’, improved workforce
management, and cloud migration.
• Maintain our focus on areas of profitable growth, adding
products and services that enhance our offering to consumers
at attractive margins.
16 Currys plc Annual Report & Accounts 2023/24
Our strategy
Capable and Committed Colleagues
Highly engaged colleagues, who are
happy to work at Currys, create happy
customers, drive performance and
profitability, and help to attract and retain
the best talent. Our On the Pulse survey
measures engagement for our 24,000
colleagues twice a year
(1)
.
Colleague engagement has increased
across Currys, and our teams are among
the most engaged worldwide. Our Group
eSat score (how happy you are to work
at Currys) is 81, (+3pts YoY and +4pts since
2021/22). This puts the Group in the top
10% of global businesses
(2)
.
In the UK&I, our eSat score increased to 84
(+16pts since October 2020), putting Currys
in the top 5% of global businesses. Our
eSat score in the Nordics also increased,
rising to 78, demonstrating world class
engagement across the Group.
Highly engaged, high performing
teams, with the best talent
Our capable and committed colleagues are our greatest asset.
Technology is exciting, but can be confusing and expensive.
Our colleagues help customers discover, choose, afford and
enjoy amazing technology. Our colleague engagement is world
class, and we’re going to keep it that way. We are building high
performing teams with the best talent and a business that’s
flexible and affordable.
Capable and
Committed Colleagues
We deliver results for our
people – and our business –
through the three pillars of
our people strategy:
• Highly engaged, high
performing teams, with the
best talent
• Working as one business,
flexible and affordable
• Living our vision and values,
in a great place to work
“Happy colleagues
create happy customers.
Our amazing colleague
engagement underpins
the expertise and
experience they offer
our customers.”
Paula Coughlan
Chief People, Communications and Sustainability Officer
17
Strategic Report Governance Financial Statements Investor Information
+4pts
YoY
+3pts
YoY
+3pts
YoY
+81
+78
+77
10
2021/22
2020/21
2022/23
2023/24
+84
+81
+77
10
2021/22
2020/21
2022/23
2023/24
+78
+74
+75
10
2021/22
2020/21
2022/23
2023/24
201,985
hours
116,250
hours
Our highly engaged, high performing
teams drive commercial performance and
increased customer satisfaction across the
business and our Group NPS score is
up +2pts year on year. In the UK&I our stores
NPS has increased +6pts since 2021/22 and
in the Nordics we achieved a strong Happy
or Not score of 94.0%.
Capable and
Committed Colleagues
Happy colleagues
Group Employee Satisfaction
UK&I Nordics
(1) On The Pulse was introduced in the UK&I in 2020 and in the Nordics in 2022.
(2) Viva-Glint, December 2023.
(3) Figure includes franchise employees.
Our colleagues are our magic ingredient,
and we are creating a culture that cannot
be beaten. We are continuing to double
down on making Currys the number one
destination for talent, through world
class engagement, high performing
teams, personal growth and professional
development, enabling everyone to thrive
in the future of work.
Our reputation as an employer is already
strong, and our refreshed Employee Value
Proposition will articulate the unique benefits
of a career with Currys, further strengthening
our employer brand. Elkjøp’s Employee
Value Proposition is established in the
Nordics, and we worked with colleagues
in the UK&I to develop our new people
promise ‘Welcome to Amazing’ in 2023/24.
This year we have reduced attrition rates,
helping to retain talented and valuable
colleagues, and generating resource and
cost savings. We are investing in careers to
support colleagues to grow and progress
and have seen a +7pts increase in positive
response to the ‘career goals’ question on
our engagement survey across the Group
this year. This reflects an +11pts increase
in the UK&I and a +12pts increase in the
Nordics since 2021/22. Approximately
50% of our new hires in 2023/24 were
filled internally, with 20% coming from
our colleagues in stores, supply chain
and service operations.
To navigate predicted labour shortages,
we have adapted our emerging talent
programmes to drive broader talent growth
and retention strategies. In 2023/24, 20
graduates and 371 apprentices were in
our programmes across the UK&I.
Investment in skills 2023/24
318,235
hours of combined
learning in the UK&I
19,610
Total number of colleagues
trained in the UK&I
11,515
(3)
Total number of colleagues
trained in the Nordics
Hours of classroom learning
(virtual and face to face)
Hours of online learning
(eLearning)
18 Currys plc Annual Report & Accounts 2023/24
Our strategy
Capable and Committed Colleagues continued
Store colleagues in the UK&I complete our
comprehensive ‘What’s in Store’ induction
to sell, serve and support customers in
store. Delivered from our newly refurbished
Learning Academy at Fort Dunlop in
Birmingham, colleagues complete our
L.I.F.E. selling model and get hands-on
with the latest tech. In the Nordics, new
colleagues complete our ‘All on Board’
onboarding programme.
Colleagues received pay increases across
the Group. We have raised minimum hourly
pay by 29% in the UK over the last three
years and in 2023 we introduced ‘Pay for
Skills’, a new two tier pay framework that
differentiates between new starters and
multi-skilled store colleagues who have
passed their induction.
Minimum pay rates for UK colleagues
increased by 9.5% in 2024 and including
bonus, this increased average earnings
to £12.33 per hour and £13.95 per hour
for our top performing colleagues. Pay
increases varied by country in the Nordics
and ranged from 2 to 5%. Due to financial
performance, bonus payments were not
awarded in the Nordics in 2023/24.
We publish gender pay reports
(1)
for both
the UK and Ireland, and median and mean
Gender pay gap figures track well below
national averages. In the UK our median
gender pay gap is 5.1% (against a national
average of 14.3%)
(2)
, and in Ireland our
mean is 0.5% (against a national average
of 9.6%
(3)
).
Gender pay gap reporting is also completed
in the Nordics with the following results:
• 4.7% in Norway
• 3.7% in Finland
• 0.0% for store based and 8.0% for
office based employees in Denmark
• 1.2% for office based employees in
Sweden
Working as one business, that’s flexible
and affordable
Always working as one business, we are
committed to putting the right people, in the
right place at the right time; in stores and
supply chain – to delight our customers, or
corporate teams – to define the future of
work. We will create a flexible, affordable
workforce that’s right for colleagues,
customers and shareholders.
Teams work together as one business
across the Group to identify opportunities
for collaboration, improvement and
learning. Our Group-wide engagement
score (we work together as one business)
has increased to 71 (+1pt YoY). This is an
increase of 18pts in the UK&I since October
2020 and +2pts in the Nordics since
2021/22. Nordics colleagues answer an
additional question on collaboration and
this score increased to 70 (+5pts YoY).
Expert face-to-face help is at the heart of
why customers shop with us, and that takes
flexible, skilled and dedicated colleagues.
In the UK&I, store colleagues are now
multi-skilled as part of our ‘One Team’
approach. This has included learning for
store colleagues in digital selling and the
omnichannel customer journey so all store
colleagues can flexibly sell, serve and
support our customers. As a result, customer
facing hours in store have increased by 19
points over the past two years.
Our priority is to maximise the time our
colleagues have with customers in-store,
in a way that is flexible and affordable.
By improving how we assess, report and
communicate resource needs in our stores
and through initiatives in the UK like our
Student Job Board, (which enables us to
match students working in our stores with
opportunities close to where they are
studying or post graduation), we have
increased colleague availability. We will
continue this work to improve availability
and flexibility in our Home Delivery teams
next year.
Flexibility is key to driving inclusion,
engagement, wellbeing and productivity,
and helps to create happy colleagues
and customers. We offer hybrid and remote
working options and we are focussing
on behaviours and culture to drive the
future of work across the Group – creating
stronger opportunities for colleagues to
connect, collaborate and to learn from
each other.
19
Strategic Report Governance Financial Statements Investor Information
(1) Full information is available in our UK Gender Pay Report 2024 and ROI Gender Pay Report 2023.
(2) 2023 ONS Gender pay gap in the UK.
(3) 2022 CSO Structure of Earnings Survey.
(4) Viva-Glint, December 2023.
Number of employees as at 27/4/2024 Total Female Male
PLC Board 9 4 44% 5 56%
Executive Committee 8 2 25% 6 75%
Direct Reports of Executive Committee 59 16 27% 43 73%
All Employees 24,462 6,878 28% 17,584 72%
Living our vision and values, a great place to work
Our values are the glue that binds us
together. They enable us to deliver our
vision and are integral to our commercial
success. While our values in the UK&I and
the Nordics are distinct, colleagues across
the group are united by common principles.
In the UK&I our values are:
• We put our customers first
• We win together
• We own it
In the Nordics, Elkjøp’s values are:
• Responsible
• Engaged
• Efficient
We continue to embed our values throughout
our businesses, and confidence in our values
is high. Our Group score for ‘senior leaders
live our values’ is 78 (+5pts YoY).
We are committed to creating a diverse
and inclusive place to work, where
everyone feels like they belong. This is
important not just for our colleagues, but so
we can represent our customers and help
everyone to enjoy amazing technology.
Our new Women’s Network launched
in October 2023, attracting over 380
members in the UK&I. We will use learnings
from our Pride and Women’s Network in
the UK&I to develop our Disability Network
and to launch Embrace – our new Race
Network. Our Group engagement score
for authenticity (I feel comfortable being
myself at work) is 87 (+6pts above global
companies benchmark
(4)
), and we have
seen a +4pt increase YoY in colleagues
feeling a sense of belonging across the
Group, (+18pts in the UK&I since October
2020, +5pts in the Nordics since 2021/22).
61% of colleagues in the UK&I have
volunteered diversity and demographic
data through our ‘Count Me In’ census (up
from 46% last year) since it was launched
in 2021. A similar census is planned in the
Nordics, and these insights will inform our
plans to create an even more diverse and
inclusive culture throughout the Group.
Colleague health and wellbeing remains a
top priority across the Group. Colleagues
have access to a range of wellbeing
resources, benefits and tailored support.
We have trained over 1,400 colleagues in
Mental Health and have over 200 Mental
Health First Aiders in the UK&I and hosted a
wellbeing day at our Nordics headquarters
in Oslo. Our Group engagement score for
wellbeing has increased to 75 (+3pts YoY).
This reflects an increase of +22pts in the
UK&I since October 2020 and an increase
of +6pts in the Nordics since 2021/22.
Table for reporting on gender or sex
Table for reporting on ethnic background
Number of
board members
Percentage
of the board
Number of senior positions
on the board (CEO, CFO,
SID and Chair)
Number
in executive
management
Percentage
of executive
management
White British or other White
(including minority-white groups) 8 89% 4 8 100%
Mixed/Multiple Ethnic Groups - - - - -
Asian/Asian British 1 11% - - -
Black/African/Caribbean/Black British - - - - -
Other ethnic group, including Arab - - - - -
Not specified/prefer not to say - - - - -
20 Currys plc Annual Report & Accounts 2023/24
Our strategy
Easy to Shop
We will continue to build a better end-to-end experience
for customers, however they choose to shop with us. This
means combining expert advice with seamless, convenient
and easy shopping experiences, helping customers choose
and buy the full solution for their needs.
We put the customer first in everything we do. We are clear on our promises, 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, making it easier for them to shop with us. 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 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 is
helping us grow sales and improve gross margins.
Customers prefer omnichannel
(1)
(1) Source: Company information – Customer survey of 10,314 UK&I customers in April 2024. Question: Which of the following best describes how you have browsed/shopped
for electricals in the last 12 months?
31%
Online
only
19%
In-store
only
49%
Both online
and
in-store
Easy to Shop
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.
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
23%
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.
21
Strategic Report Governance Financial Statements Investor Information
-60
bps
YoY
-100
bps
YoY
2021/22
2020/21
April 2022/23
April 2023/24
6
2021/22
2020/21
2022/23
2023/24
+5
pts
Yo2Y
+3
pts
Yo2Y
2023/24
2023/24
2021/22
2021/22
2023/24
2023/24
2021/22
2021/22
A network of stores that is close to customers
Our scale surpasses that of our closest competitors with 298 stores in the UK and Ireland, and 421 in the
Nordics. These locations serve as more than mere logistics points, they are the most expedient avenues for
customers to access the products they need. With 75% of the UK population within 15 minutes of a Currys store
and 96% within 30 minutes, this extensive network ensures efficiency and a great customer experience.
UK and Ireland stores Nordic stores
Easy to Shop requires very
good retail fundamentals
Easy to Shop means we offer the best
customer experience, both online and
in store. This starts by getting retail
fundamentals right. We make continuous
improvements to increase the range
and availability of products, while
maintaining our price promise and
working hard to create an easy
customer experience.
Getting it ‘Right First Time’
In the past year, we have significantly
improved our execution on delivery
and installation, evidenced by our
increased success in getting it ‘Right
First Time’ for our customers. We’ve
diligently addressed key failure areas
like incorrect product deliveries,
customer availability, product damage
and technical failures. The reduction
in repeat visits has resulted in record
level customer satisfaction, driving
improved installation adoption and
lower customer acquisition costs as
customers recommend us. The positive
impact has also been significant for
our profitability, resulting in annual cost
savings of £8 million.
UK&I repeat visit rate Nordics missed deliveries
UK&I Nordics
Deliver an easier experience
Delivery CSAT Home Delivery
Happy or Not
22 Currys plc Annual Report & Accounts 2023/24
8.6
7.6
6.8
5.4
2021/22
2020/21
2022/23
2023/24
Currys
Perks
Care &
Repair
Your Plan
credit
8.9
10.1
2.3 1.0
1.8
Our strategy
Customers for Life
We want to build long-term,
valuable relationships with
our customers, and this
means doing more than
selling them a box.
We will continue to help customers afford
and enjoy (as well as choose) their
technology for life. We will do this through
our Credit and unique service propositions,
and harnessing our data to create more
relevant and personalised content, offers
and touchpoints.
Making customers happy is not just about
helping them choose a product, it is much
more than that. It is helping them to afford
and enjoy their technology, for life. 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. Our Services, including Credit, help us
build longer-lasting and more valuable
relationships with customers. 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.
Customers for Life
Customer data
We are building a large and useful dataset on customers through our growing loyalty
programmes and subscriptions. By leveraging our data insights, we can offer more
personalised, targeted solutions, driving customer loyalty, retention and lifetime value.
Our loyalty programme customers are happier, shop more frequently, have higher
average order values and greater adoption rate of credit and other services than
non-loyalty programme customers.
Nordics customer club members (m) UK&I customers (m)
Equivalent to more than 50% of Nordic
households being club members
But we only get a ~30% share of
their wallet
30%
~80% of UK households shop
for electricals with us
(1)
80%
…and significant headroom remains to grow
share of wallet with our existing customers
(1) Unique identifiable households who have shopped for electricals with Currys in the past three years.
23
Strategic Report Governance Financial Statements Investor Information
1.76
1.31
1.16
1.08
2021/22
2020/21
2022/23
2023/24
+34%
(1) 2023/24 figures.
We offer a wide range of Services, including connectivity
Our Services help everyone enjoy
amazing technology
(1)
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. Services enable us to keep talking
to customers and are a significant source
of revenue in their own right. They drive
higher in year profits and long term
recurring revenue.
3.8m
+6% YoY
Credit customers
20.1%
+240bps YoY
UK&I credit adoption
11.9%
+20bps YoY
Nordics credit adoption
4.7m
+8% YoY
Orders collected
9.5m
(14)% YoY
Big-box deliveries
1.6m
+170bps YoY
Installation adoption rate
3.7m
+1% YoY
Protection plans sold
12m
+12% YoY
Total active protection plans
8.1m
e-waste products collected
for reuse or recycling
1.8m
+34% YoY
iD Mobile subscribers
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
iD Mobile is our award winning mobile
virtual network operator in the UK. 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. In both 2023 and 2024, it was
recognised by Which? as a Great Value
Network for our SIM only plans. It also
won ‘Best Network for Data’ and ‘Best
Contract Value for Money’ at the Uswitch
Telecoms awards in 2024. This value has
been recognised by consumers with active
subscriber numbers growing +34% to 1.8.
By offering customers a post pay contract,
which includes a handset device and the
desired airtime, iD Mobile represents an
important source of growing, recurring and
predictable revenue.
iD Mobile subscribers (m)
iD Mobile – a rapidly growing asset
24 Currys plc Annual Report & Accounts 2023/24
Case study:
Our repair and recycling
capabilities for a circular
economy
Our strategy
Customers for Life continued
Our relationship with tech needs to change and as the leading 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 communities, better
for the planet and better for us. And that better way is to give
technology a longer life.
Recycle
We repair products for customers
Refurbish and resell
or reuse products
Repurpose the parts
from end-of-life
products
Keeping products complete and
closer to customer maximises
value to ecosystem
Our capabilities in the UK revolve around
our facility in Newark, which hosts Europe’s
largest repair centre. Almost three million
products pass through its doors every year
to be repaired, refurbished or recycled.
When it’s reached the end of life, we make
it easy for everyone to bring their old or
unwanted tech into our stores to be reused
or recycled for free. With 298 stores in the
UK&I, we offer free in-store drop off for all
tech and also offer home pick-ups when
customers buy new tech from us.
We give tech a longer life by repairing
products for our customers who want a
repair. For those who do not want a repair,
and if the product can still be fixed, we
repair or refurbish it so that it can be
enjoyed by someone else.
And if the technology can no longer be
used, we harvest for parts that can help
repair other tech, whilst recovering the raw
materials including plastic and metal that
can be manufactured into new products.
25
Strategic Report Governance Financial Statements Investor Information
£220k
Tech donated to low-income
families in the UK
1,437
Skilled colleagues giving tech longer life,
with 1,000 in our repair lab in Newark
1.4m
Repairs carried
out in 2023/24
In the UK, we facilitate the recycling of
around 50,000 tonnes of used tech
every year.
A significant number of the products we
receive are donated to charity, making
these products available to low-income
families to help reduce poverty in the UK.
In the Nordics, we acquired Infocare
Workshops in 2015, now rebranded as
Elcare Nordic, to establish an independent
and scalable repair operation. Our
objective was to enhance our local repair
capabilities in the region, benefitting our
customers, suppliers, and the environment
by minimising product transport across
Europe. We repair over 500,000 products
annually and operate as one of the
largest tech spare part shops in the region,
encouraging customers to perform simple
fixes themselves.
This year alone, approximately 6 million
products returned as e-waste were
recycled, demonstrating our commitment
to sustainable practices and circular
economy initiatives.
26 Currys plc Annual Report & Accounts 2023/24
2021/22
2020/21
2022/23
2023/24
2017/18
2018/19
2019/20
2021/22
2020/21
2022/23
2023/24
2017/18
2018/19
2019/20
-40bps
+190bps
Our strategy
Grow Profits
We will continue to grow profits by growing revenue though increasing share
of wallet and new sources of profitable growth, managing margins and
reducing costs.
We need to make more profit. More profit means we can make distributions to our shareholders and invest more
in colleagues and customers.
Grow Profits
Gross margins
We are confident in sustaining our UK&I
gross margin improvement and continue to
reverse the recent decline in the Nordics.
We are focussed on five main areas to
drive improved gross margins.
Firstly, we have strengthened our
performance in ‘Sold With’ solutions and
Services, capitalising on an enriched
customer experience and unlocking
monetisation opportunities.
We have also sharpened our focus and
are not chasing less profitable sales,
leveraging a comprehensive understanding
of our end-to-end profitability. This has
been supported by improved marketing
and promotional efficiency, alongside
enhanced pricing efficiency.
We are also streamlining our supply chain
and service operations costs by prioritising
accuracy in our customer interactions.
By getting it ‘Right First Time’ more often,
we are minimising costly repeat visits and
ensuring efficiency and improved customer
satisfaction. This has resulted in annual
cost savings of £8 million.
Drivers of gross margin:
• Solution selling
• Higher Services adoption
• Monetising the improved
customer experience
• Not chasing less profitable
sales
• Reduce supply chain and
service operation costs
Gross margin showing continued improvements
Gross margins decreased (40)bps. The non-repeat of £30m
mobile revaluations impacted margins by (60)bps. The underlying
improvement of +20bps reflects the investment in long-term
transformation activities which has yielded higher adoption rate
of Credit and other services and allowed us to better monetise
the improvements in our customer proposition.
Gross margin recovered strongly, growing +190bps YoY, almost
back to level of two years ago. This was driven through a better
balance of trading in a market where the inventory position and
competitive intensity have normalised, but consumer spending
remains subdued.
UK&I Nordics
27
Strategic Report Governance Financial Statements Investor Information
Costs
We must take costs out of the business to reverse the impact of inflation and to increase our profits. Our savings initiatives are spread
across several areas including procurement where we are renegotiating contracts with existing suppliers and retendering contracts with
telecom providers. We’ve also focused on improving marketing efficiency, streamlining IT expenditure through system consolidation,
optimising logistics and operations, managing consultant fees as well as store and head office payroll.
Through these actions we delivered £268m of annualised cost savings in the UK&I by the end of 2023/24. In the Nordics, these actions
will remove around £25m of costs from the business.
£m Gross Margin
Combined
Operating Expense Total
Wages (32) (37) (69)
Energy (5) (13) (18)
Shipping costs (15) 0 (15)
Other (16) (4) (20)
Total Inflation (68) (54) (122)
Business rates tax 0 (54) (54)
Total cost headwinds (68) (109) (177)
Supply chain 90 – 90
Stores 3 63 66
GNFR 2 9 11
IT & Central 0 74 74
Marketing 0 27 27
Total cost savings 95 173 268
Supply chain Stores Goods not
for resale
IT & central
Our efforts are concentrated on four areas:
£268m delivered through our cost programme
36 months cumulative to 27/04/24
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.
Simplifying processes,
removing duplication
and low value add,
moving IT to the cloud.
28 Currys plc Annual Report & Accounts 2023/24
Our stakeholders
S172 Statement
Stakeholder management
Section 172(1) statement
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
into its decision-making including two case
studies and, for each of the Company’s key
stakeholder groups, the key matters that
the Board considered during the year.
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.
How the Board gains feedback on stakeholder views and considers 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 and set out in the Colleague
Code of Conduct. 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 stakeholders and
through regular reports from the management
team, including updates on 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 meetings, while another non-executive
director attends the Leadership Inclusion
Forum meetings.
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 regularly 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 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,
the Company Secretary ensures
that Board and committee
papers include appropriate
consideration of the impact
on each stakeholder group
before papers are circulated
to the directors.
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.
29
Strategic Report Governance Financial Statements Investor Information
Case study:
Sale of Kotsovolos
Case study:
Nordics business
During the year, the Group completed a strategic review of Kotsovolos. On 10 April 2024,
the Group completed the sale of Dixons South East Europe A.E.V.E., the holding company
of Currys’ entire Greece and Cyprus retail business, trading as Kotsovolos, to Public Power
Corporation S.A. for an enterprise value of €200m (£175m).
The cash proceeds received by Currys
were £156m (€179m) after taking into
account transaction and separation
costs, intercompany balances and cash
in the business. During the year 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
agreed that simplification of the Group
would better enable the management
team to focus on the larger Nordics and
UK&I markets. The proceeds from the sale
would increase flexibility to further invest in
the business including projects to enhance
the customer experience.
The Board considered the impact on our
colleagues. The disposal would not result
in any redundancies for colleagues in
Greece while the strengthened balance
sheet would likely enable further growth
of the business in UK&I and Nordics.
The Board considered feedback from our
shareholders and agreed that there was
a strong strategic rationale for this sale.
The sale would strengthen the Group and
improve long-term shareholder returns.
The directors agreed that the sale would
not be detrimental to our suppliers and
partners as there were limited synergies
between Kotsovolos and the rest of
the Group.
The Board considered our communities
and environment and agreed that the
sale would help demonstrate Kotsovolos’s
value while enabling the Group to focus on
and invest in the UK&I and Nordics markets.
This would include 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.
Oversight and synergies
During the year the Board considered
the appropriate oversight model for the
Nordics business following a period of
weaker performance in Nordics due to
a tough consumer environment, high cost
inflation and unrelenting competitive
intensity. A new leadership team was
put in place in March 2023 as part of
a plan to restore the Nordics business
to its previously healthy levels of profit
and cash generation.
The Board visited Norway in June 2023,
Sweden in October 2023 and Denmark
in March 2024. These visits included store
visits, meeting with head office and store
colleagues and a visit to the Nordics
distribution centre in Sweden. The Board
put in place regular deep-dive updates
on the Nordics business at scheduled
meetings. The Nordics Leadership Team
joined a Group Leadership Team meeting
in London during February 2024.
During the year, the Board oversaw Group
synergies delivered across IT, offshoring
and procurement. This included combining
the UK&I and Nordics Technology functions
into a single team led by the Group Chief
Information Officer.
The Procurement team made strong
progress aligning Goods-Not-For-Resale
(GNFR) procurement across the Group,
renegotiating contracts with the Group’s
top 20 suppliers in the Nordics, aligning
IT procurement across the Group and
developing approaches to significantly
improve efficiency of spend across
marketing and logistics.
The Board considered the needs and
expectations of our customers. The new
structure would enable UK&I and Nordics
teams to benefit from synergies and
share best practice to help enhance the
customer experience in both businesses.
The Board challenged the possible
impacts on our colleagues. The directors
agreed that increased collaboration
across UK&I and Nordics would be
beneficial to colleagues, and help
demonstrate externally the importance
of Nordics within the Currys Group.
The Board considered the impact of the
Group synergies on our shareholders.
The synergies would deliver significant
cost efficiencies, enable the sharing of
knowledge and best practice and help
accelerate profitable growth for the Group.
The Board considered the impact on the
Group’s suppliers and partners and
agreed that all would benefit from the
rationalisation of commercial agreements
in place and that this would deliver cost,
logistics and efficiency improvements and
allow a clearer governance structure.
The Board challenged the possible
impacts on our communities and
environment and noted that the aligned
governance across the Group would better
support the delivery of the Group’s ESG
commitments, in particular the delivery of
emissions targets.
30 Currys plc Annual Report & Accounts 2023/24
Our stakeholders
S172 Statement continued
How we engage Stakeholder focus How we engaged in 2023/24 How we engaged in 2023/24 Future priorities
Our customers
• In store
• Online
• ShopLive
• RepairLive
• Customer app
• Customer centres
• Email
• Post-sales customer satisfaction 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
• In July 2023 the Board received an update on the
Customer Sales & Service (CSS) team including
initiatives that had been completed to deliver
improvements in customer satisfaction scores and
increased adoption of services and credit.
• In September 2023, the Board received an update
on customer experience including the key contact
points in the customer journey and a summary of
active initiatives to enhance each stage.
• The Board visited stores in Jönköping, Sweden in
October 2023 and in Copenhagen, Denmark in
March 2024.
• Customer feedback is collected from thousands of customers each week. A Voice of the Customer
dashboard is in place for the UK & Ireland. Nordics currently has a separate ‘Happy or Not’ satisfaction
measure but will transition to Voice of Customer to have a consistent customer satisfaction measure
across the Group. Customer feedback is used 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 comments. This information is reviewed internally and used to generate improvements to
the customer experience. The Board receives regular updates on this customer feedback including in
the Group Chief Executive’s report at each Board meeting.
• Continue to help customers
discover, choose, afford and enjoy
the right technology for them through
competitive pricing, growing Services
and giving them access to responsible
credit.
• Respond to customers’ ever-increasing
concerns on sustainability.
• Use data to build Customers for
Life to build valuable customer
relationships and enhance the
customer experience.
Our colleagues
• Intranet
• Emails
• Hybrid working arrangements
• Online training including on diversity
topics
• 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
• Colleague forums and Group
International Colleague Forum
• 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
attend a training event before they start work serving
customers in stores. A separate 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. Nordics and UK & Ireland use the
same engagement survey. During the year surveys were
used to measure colleague engagement and seek
feedback on topics including diversity and inclusion.
• Directors visit stores and meet colleagues in person.
The Board visited stores in Sweden and Denmark and
the Company’s distribution centre in Sweden during the
year and this included meeting many colleagues from
stores and Supply Chain teams.
• Colleagues that prepare Board and committee papers include their contact details and directors
frequently contact them directly when they would like further detail.
• An International Colleague Forum is in place as a single listening and engagement forum for all
colleagues. During the year, Tony DeNunzio, the Deputy Chair and Senior Independent Director,
attended these meetings with the Chief People, Communications and Sustainability Officer. Non-
executive directors met privately with representatives from the International Colleague Forum in
January 2024 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.
• Continue to support colleagues
including guidance and tools such as
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
• The Board has an ESG Committee to enable increased
Board level focus on ESG activities in the Group
for internal and external stakeholders and our
communities. More information is available on
page 107.
• The Company has a Sustainable Business team which
oversees the Group’s charitable partnerships and
environment initiatives including engagement with
these external stakeholders.
• The Board receives regular updates on ESG at Board meetings, including from the Chair of the ESG
Committee, via the CEO report, through deep dive updates such as on circular economy and by
way of an annual Board update on ESG.
• 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 and partnerships in Nordics
that fight digital exclusion.
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 Investor Relations team manages a programme of
regular meetings with the Group’s largest 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 sought shareholder feedback during the year on matters including the takeover offers
received by the Company in February 2024, on remuneration following the Remuneration Policy
receiving slightly below 80% support at the Company’s annual general meeting in September 2023,
and on the proposed sale of the Group’s business in Greece.
• 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 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 2024.
• 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
• During the year, the Audit Committee received
an update on the Group’s supplier management
programme to consolidate commercial agreements
across the Nordics and UK&I businesses and ensure
effective governance and oversight is in place for
each key supplier and partner relationship.
• The Board receives regular feedback on substantive
supplier and partner matters via the Group Chief
Executive and the Chief Commercial Officer.
• A formal engagement strategy is in place for each key 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 53.
• 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.
• 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.
31
Strategic Report Governance Financial Statements Investor Information
How we engage Stakeholder focus How we engaged in 2023/24 How we engaged in 2023/24 Future priorities
Our customers
• In store
• Online
• ShopLive
• RepairLive
• Customer app
• Customer centres
• Email
• Post-sales customer satisfaction 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
• In July 2023 the Board received an update on the
Customer Sales & Service (CSS) team including
initiatives that had been completed to deliver
improvements in customer satisfaction scores and
increased adoption of services and credit.
• In September 2023, the Board received an update
on customer experience including the key contact
points in the customer journey and a summary of
active initiatives to enhance each stage.
• The Board visited stores in Jönköping, Sweden in
October 2023 and in Copenhagen, Denmark in
March 2024.
• Customer feedback is collected from thousands of customers each week. A Voice of the Customer
dashboard is in place for the UK & Ireland. Nordics currently has a separate ‘Happy or Not’ satisfaction
measure but will transition to Voice of Customer to have a consistent customer satisfaction measure
across the Group. Customer feedback is used 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 comments. This information is reviewed internally and used to generate improvements to
the customer experience. The Board receives regular updates on this customer feedback including in
the Group Chief Executive’s report at each Board meeting.
• Continue to help customers
discover, choose, afford and enjoy
the right technology for them through
competitive pricing, growing Services
and giving them access to responsible
credit.
• Respond to customers’ ever-increasing
concerns on sustainability.
• Use data to build Customers for
Life to build valuable customer
relationships and enhance the
customer experience.
Our colleagues
• Intranet
• Emails
• Hybrid working arrangements
• Online training including on diversity
topics
• 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
• Colleague forums and Group
International Colleague Forum
• 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
attend a training event before they start work serving
customers in stores. A separate 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. Nordics and UK & Ireland use the
same engagement survey. During the year surveys were
used to measure colleague engagement and seek
feedback on topics including diversity and inclusion.
• Directors visit stores and meet colleagues in person.
The Board visited stores in Sweden and Denmark and
the Company’s distribution centre in Sweden during the
year and this included meeting many colleagues from
stores and Supply Chain teams.
• Colleagues that prepare Board and committee papers include their contact details and directors
frequently contact them directly when they would like further detail.
• An International Colleague Forum is in place as a single listening and engagement forum for all
colleagues. During the year, Tony DeNunzio, the Deputy Chair and Senior Independent Director,
attended these meetings with the Chief People, Communications and Sustainability Officer. Non-
executive directors met privately with representatives from the International Colleague Forum in
January 2024 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.
• Continue to support colleagues
including guidance and tools such as
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
• The Board has an ESG Committee to enable increased
Board level focus on ESG activities in the Group
for internal and external stakeholders and our
communities. More information is available on
page 107.
• The Company has a Sustainable Business team which
oversees the Group’s charitable partnerships and
environment initiatives including engagement with
these external stakeholders.
• The Board receives regular updates on ESG at Board meetings, including from the Chair of the ESG
Committee, via the CEO report, through deep dive updates such as on circular economy and by
way of an annual Board update on ESG.
• 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 and partnerships in Nordics
that fight digital exclusion.
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 Investor Relations team manages a programme of
regular meetings with the Group’s largest 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 sought shareholder feedback during the year on matters including the takeover offers
received by the Company in February 2024, on remuneration following the Remuneration Policy
receiving slightly below 80% support at the Company’s annual general meeting in September 2023,
and on the proposed sale of the Group’s business in Greece.
• 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 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 2024.
• 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
• During the year, the Audit Committee received
an update on the Group’s supplier management
programme to consolidate commercial agreements
across the Nordics and UK&I businesses and ensure
effective governance and oversight is in place for
each key supplier and partner relationship.
• The Board receives regular feedback on substantive
supplier and partner matters via the Group Chief
Executive and the Chief Commercial Officer.
• A formal engagement strategy is in place for each key 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 53.
• 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.
• 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.
32 Currys plc Annual Report & Accounts 2023/24
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, fit, 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 and driving
meaningful difference through long-term
objectives. We are focused on three
strategic priorities:
• We will improve our use of resources and
create circular business models.
• We will achieve net zero emissions by
2040.
• We will help eradicate digital poverty.
We’re acutely aware that electronic waste
is the world’s fastest growing waste stream
and is expected to grow to nearly 82
million tonnes by 2030. We have to face
facts: we can’t keep throwing stuff away.
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 have invested heavily over the past
decade in our services operations. Our
business has significant repair capabilities
including Europe’s largest tech repair lab.
We help make it easy for customers to
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.
Giving tech a longer life also supports our
aim to achieve net zero emissions by 2040
and to help eradicate digital poverty.
This approach, whether experienced
in-store or online, is supported by all our
brands – Currys, Elkjøp, Elgiganten and
Gigantti.
We determined our strategic priorities by
undertaking a materiality assessment in
2021/22. This included considering our
performance on key sustainability issues,
the connection between our strategy and
our Group vision, and the capabilities of
our organisation. We also reflected on
the views of investors, colleagues and
customers. We conducted benchmarking,
competitor analysis and horizon scanning
on the external context for macro trends as
well as disruption and innovation examples
in the marketplace. Our three strategic
priorities emerged as a result of using all
these insights to determine how important
issues were to our stakeholders and how
significant an impact we had as a business.
We regularly review our performance,
reflect on stakeholder views and undertake
benchmarking and horizon scanning to
ensure our strategy remains relevant.
In 2024/25 we will undertake a double
materiality assessment for the Group and
we will use the outputs to inform our future
strategy and reporting.
Governance
The Environment, Social and Governance
(‘ESG’) Committee of the Board approves
the Group’s ESG strategy and oversees 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 107.
Our strategy is driven and delivered by our
colleagues – subject matter experts that
are fully integrated across our business. Their
work is led and championed 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 on sustainability is available on page
59. Climate change is included within the
Group Emerging Risk Radar. These risks 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.
33
Strategic Report Governance Financial Statements Investor Information
Our strategic priorities
Read more about our strategic priorities,
achievements, and next steps on pages
34-35.
Engagement
Read more about our stakeholder
engagement activities on pages 28-31.
Governance
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/4jwnkiiy/esg-committee-tor-
approved-16-january-2024.pdf
Management systems
Certifications of our energy and
environmental management systems
can be viewed on our website,
www.currysplc.com
Policy
Details of our sustainability policies and
standards, which are reviewed regularly,
can be viewed on our website,
www.currysplc.com
TCFD
Read our TCFD disclosures on pages 40-49.
Tax
Read our Tax strategy on our website,
www.currysplc.com
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 more on pages 16-19 about how we are
focused on:
• Highly engaged, high performing teams,
with the best talent.
• Working as one business, that’s flexible
and affordable.
• Living our vision and values, a great place
to work.
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 pages 128-129.
We’re proud of our achievements. Our
performance has been recognised in a
number of ratings and assessments of
our business, including:
• During the financial year we improved
our score in the MSCI ESG Ratings
assessment, achieving an ‘A’ rating
in April 2024.
• Currys received an ESG Risk Rating of
13.8 in March 2024 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’.
Social
Impact
We will help
eradicate digital
poverty
Circular
Economy
We will give tech
a longer life
Climate
Action
We will achieve
net zero emissions
by 2040
We help everyone enjoy amazing technology
Good Governance
Responsible sourcing
Being a good employer
• As of 14 March 2024, Currys performed
in the top quartile in the RTS Retailing
industry in the S&P Global Corporate
Sustainability Assessment with a score
of 41.
Stakeholder input
Stakeholder input
34 Currys plc Annual Report & Accounts 2023/24
Sustainable business
Our strategic 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
and giving technology a longer life on
pages 36-39.
• 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.
How our activities support key targets:
8.4 – We help customers to make more sustainable
buying decisions, enabling them to live more resource
efficient lifestyles.
12.5 – Our work to give tech a longer life is helping
change people’s relationship with tech and reduce
waste generation through incentivising and enabling
more recycling and reuse.
13.1 – Through our marketing, communications and
touchpoints with customers, we are focussed on
helping raise awareness of environmental impacts.
• Continued to sell refurbished tech, with
Elkjøp launching its refurbished smartphones
proposition ‘NewStart’.
• Currys launched Green Friday to drive
awareness and incentivise customers to
purchase refurbished tech and recycle
e-waste.
• Increased our marketing focus, offering
and take up of trade-in.
• Launched our very own ‘Trash Tycoon’ map
within the video game Fortnite to promote
environmental responsibility via a gamified
learning experience.
• Extended the use of secure collect containers.
12m
active care services and tech insurance plans
across the Group
1.4m
repairs across our Group to keep tech working
8.1m
units of e-waste collected across our Group
for reuse or recycling
• Developing our long-term plans for growing
our circular share of business throughout the
Group.
• Increasing uptake of repairs by making it an
easy and attractive option for customers.
• 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 and making the journey even
easier for customers.
• Continue to roll out our refurbished product
programme and expand the range of
refurbished products we offer.
Climate action
Objective: We will achieve
net zero
(1)
by 2040.
Read about our focus on climate action
on pages 40-49.
• 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 innovate and
introduce new products
and propositions that
help customers reduce
their energy consumption
and carbon footprint.
How our activities support key targets:
7.2 and 7.3 – Our approach to reducing the impact of
the energy we use includes using renewable sources
and increasing energy efficiency.
12.6 – We report our energy and greenhouse gas
(‘GHG’) emissions publicly and work with our suppliers
to support and encourage them to measure and
report on their own activities.
13.2 – We are embedding climate change matters into
our business strategy and increasing our institutional
capacity on climate change mitigation, adaptation
and impact reduction, and we work with suppliers to
support and encourage them to do the same.
• Continued to take steps to reduce operational
emissions, including introducing new electric
vehicles (‘EV’), optimising and upgrading
lighting and heating, ventilation and air-cooling
(‘HVAC’) systems.
• We have increased our range and sales of
products with high energy label.
• Conducted a supplier engagement trial on
Scope 3 emissions.
• Formalised our TCFD Steering Group who
have helped us further embed climate
considerations into our business and
increase our climate-related disclosures.
15.8%
year-on-year reduction in Scope 1 & 2
market-based emissions
12.7%
year-on-year reduction in Scope 3 emissions
2nd
retailer in the Financial Times Climate
Leaders 2024 rankings for Europe
• Continue to install LED lighting, replace
gas-powered HVAC systems and roll out
smart meters.
• Review our EV trials and look to expand
our use of vehicles powered by electric
or alternative fuels.
• Continue to work with key partners to improve
knowledge and awareness with vehicle
manufacturers and Government policies
on EV and alternative fuels.
• Enhance our supplier engagement plan to
collaborate with more suppliers and to gather
more product level carbon footprint data.
• Collaborate with our industry counterparts
to make data gathering from suppliers
more efficient by agreeing common
reporting principles.
• Conduct scenario analysis to assess
the impacts of climate change on our
supply chains.
• Publish a net zero roadmap and climate
transition plan.
Our communities
Objective: We will help eradicate
digital poverty.
Read about our communities on pages
50-52.
• 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.
How our activities support key targets:
4.4 – Our Tech4Families programme provides laptops
for school aged children and their families to support
their education and digital skills competence at home.
10.2 – Tech4Families supports greater inclusivity in
the digital world, promoting increased education and
social inclusivity. And by supporting the Digital Poverty
Alliance’s advocacy work, we are helping compel
government to do more to support those facing
digital poverty.
11.5 – The need to prepare for a world of unexpected
disasters and emergencies has become clearer than
ever. Through our membership of the British Red Cross
Disaster Fund, we help enable local communities
and first responders to prepare for, respond to,
and recover from crisis.
• Continued to raise awareness of digital
poverty and the Digital Poverty Alliance,
including by supporting the inaugural End
Digital Poverty Day on 12 September.
• Expanded Tech4Families into Northern Ireland
and the Lincolnshire Coast.
• Joined the British Red Cross Disaster Fund which
helps teach communities first aid, how to stay
safe, how to act early and how to respond
during an emergency.
• Stores across the Nordics supported local
causes to help with combating digital poverty.
3
On average, each day we raise enough
money in the UK to provide three families
with a much-needed device through
Tech4Families
• Enabling colleagues to volunteer their time
to work with organisations supporting those
living in digital poverty.
• Adding the ability to make micro-donations to
charity for customers shopping with us online.
• Supporting the launch of the Tech4Families
proof of concept study to demonstrate the
value of a keyboarded device.
• Continue to identify opportunities to support
people to enjoy amazing technology through
our annual Tech Trouble survey and our
support of local causes.
Unless otherwise indicated data in the Sustainable Business section excludes the discontinued operations of Kotsovolos.
(1) Net zero is defined in the Glossary and definitions section on page 227.
35
Strategic 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
and giving technology a longer life on
pages 36-39.
• 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.
How our activities support key targets:
8.4 – We help customers to make more sustainable
buying decisions, enabling them to live more resource
efficient lifestyles.
12.5 – Our work to give tech a longer life is helping
change people’s relationship with tech and reduce
waste generation through incentivising and enabling
more recycling and reuse.
13.1 – Through our marketing, communications and
touchpoints with customers, we are focussed on
helping raise awareness of environmental impacts.
• Continued to sell refurbished tech, with
Elkjøp launching its refurbished smartphones
proposition ‘NewStart’.
• Currys launched Green Friday to drive
awareness and incentivise customers to
purchase refurbished tech and recycle
e-waste.
• Increased our marketing focus, offering
and take up of trade-in.
• Launched our very own ‘Trash Tycoon’ map
within the video game Fortnite to promote
environmental responsibility via a gamified
learning experience.
• Extended the use of secure collect containers.
12m
active care services and tech insurance plans
across the Group
1.4m
repairs across our Group to keep tech working
8.1m
units of e-waste collected across our Group
for reuse or recycling
• Developing our long-term plans for growing
our circular share of business throughout the
Group.
• Increasing uptake of repairs by making it an
easy and attractive option for customers.
• 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 and making the journey even
easier for customers.
• Continue to roll out our refurbished product
programme and expand the range of
refurbished products we offer.
Climate action
Objective: We will achieve
net zero
(1)
by 2040.
Read about our focus on climate action
on pages 40-49.
• 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 innovate and
introduce new products
and propositions that
help customers reduce
their energy consumption
and carbon footprint.
How our activities support key targets:
7.2 and 7.3 – Our approach to reducing the impact of
the energy we use includes using renewable sources
and increasing energy efficiency.
12.6 – We report our energy and greenhouse gas
(‘GHG’) emissions publicly and work with our suppliers
to support and encourage them to measure and
report on their own activities.
13.2 – We are embedding climate change matters into
our business strategy and increasing our institutional
capacity on climate change mitigation, adaptation
and impact reduction, and we work with suppliers to
support and encourage them to do the same.
• Continued to take steps to reduce operational
emissions, including introducing new electric
vehicles (‘EV’), optimising and upgrading
lighting and heating, ventilation and air-cooling
(‘HVAC’) systems.
• We have increased our range and sales of
products with high energy label.
• Conducted a supplier engagement trial on
Scope 3 emissions.
• Formalised our TCFD Steering Group who
have helped us further embed climate
considerations into our business and
increase our climate-related disclosures.
15.8%
year-on-year reduction in Scope 1 & 2
market-based emissions
12.7%
year-on-year reduction in Scope 3 emissions
2nd
retailer in the Financial Times Climate
Leaders 2024 rankings for Europe
• Continue to install LED lighting, replace
gas-powered HVAC systems and roll out
smart meters.
• Review our EV trials and look to expand
our use of vehicles powered by electric
or alternative fuels.
• Continue to work with key partners to improve
knowledge and awareness with vehicle
manufacturers and Government policies
on EV and alternative fuels.
• Enhance our supplier engagement plan to
collaborate with more suppliers and to gather
more product level carbon footprint data.
• Collaborate with our industry counterparts
to make data gathering from suppliers
more efficient by agreeing common
reporting principles.
• Conduct scenario analysis to assess
the impacts of climate change on our
supply chains.
• Publish a net zero roadmap and climate
transition plan.
Our communities
Objective: We will help eradicate
digital poverty.
Read about our communities on pages
50-52.
• 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.
How our activities support key targets:
4.4 – Our Tech4Families programme provides laptops
for school aged children and their families to support
their education and digital skills competence at home.
10.2 – Tech4Families supports greater inclusivity in
the digital world, promoting increased education and
social inclusivity. And by supporting the Digital Poverty
Alliance’s advocacy work, we are helping compel
government to do more to support those facing
digital poverty.
11.5 – The need to prepare for a world of unexpected
disasters and emergencies has become clearer than
ever. Through our membership of the British Red Cross
Disaster Fund, we help enable local communities
and first responders to prepare for, respond to,
and recover from crisis.
• Continued to raise awareness of digital
poverty and the Digital Poverty Alliance,
including by supporting the inaugural End
Digital Poverty Day on 12 September.
• Expanded Tech4Families into Northern Ireland
and the Lincolnshire Coast.
• Joined the British Red Cross Disaster Fund which
helps teach communities first aid, how to stay
safe, how to act early and how to respond
during an emergency.
• Stores across the Nordics supported local
causes to help with combating digital poverty.
3
On average, each day we raise enough
money in the UK to provide three families
with a much-needed device through
Tech4Families
• Enabling colleagues to volunteer their time
to work with organisations supporting those
living in digital poverty.
• Adding the ability to make micro-donations to
charity for customers shopping with us online.
• Supporting the launch of the Tech4Families
proof of concept study to demonstrate the
value of a keyboarded device.
• Continue to identify opportunities to support
people to enjoy amazing technology through
our annual Tech Trouble survey and our
support of local causes.
Unless otherwise indicated data in the Sustainable Business section excludes the discontinued operations of Kotsovolos.
(1) Net zero is defined in the Glossary and definitions section on page 227.
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, 2 and 3 (Category 1 & 11) GHG emissions which
have been highlighted with a
†
. 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
Approach
Read more about our
approach on pages 32-33.
UN Sustainable
Development Goals
Read more about the 17 UN
Sustainable Development
Goals at: https://sdgs.
un.org/goals
36 Currys plc Annual Report & Accounts 2023/24
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 not only is the
total amount of materials consumed by
the global economy continuing to rise
(1)
but
electronic waste is also the world’s fastest
growing waste stream and is expected to
grow to nearly 82 million tonnes by 2030
(2)
.
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 better for the planet, it’s also great
for your pocket.
As the leading technology retailer in all
our markets, with repair capabilities that
include Europe’s largest tech repair lab
and 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.
We know our customers are looking to
reduce their impact on the environment, and
it’s our job to make that easier. From energy
efficient washing machines and ovens to
water efficient dishwashers, we’re working
with our suppliers to support customers to
make decisions about products in a number
of ways, including through inspiration
and tools that enable transparency and
comparability between products.
Customers in the UK & Ireland, either online
or in our stores, can utilise the YourEko tool
to understand the lifetime cost and carbon
footprint of each of our major domestic
appliances. The tool is designed to help
customers identify the best performing
product over its lifetime.
This year we held a Green Friday event
before Black Friday, bringing together more
than 140 products with a strong energy
efficiency or circularity performance and
provided discounts, including providing free
collection for the recycling of unwanted
products. This effort was supported by
considerable marketing. Green Friday
took inspiration from our long standing Go
Greener campaign, launched in the UK &
Ireland in September 2021 to promote the
attributes of the products and services
we sell that can help customers save
energy, reduce waste and save water.
Through the years this has become more
and more important for customers, with
cost of living pressures also driving higher
demand for energy-efficient products.
For example, higher demand for energy
efficient products and changes to the
assortment we retail has seen the share
of large domestic appliances with energy
label A-C increase from 40% to 46% in
the Nordics, helping reduce our scope
3 emissions as these products use less
energy throughout their lifetime.
As part of our move towards circular
business models, Currys and Elkjøp continue
to sell refurbished tech through their online
platforms. Elkjøp Norway sell refurbished
white goods through their online platform
in partnership with Norsk Ombruk. And this
year Elkjøp Nordic launched NewStart in
all markets – our refurbished smartphones
proposition where products are sold with
the same warranties as new products.
The offering has been well received by
customers with demand for popular models
higher than expected. Meanwhile Currys, in
the UK, has built on its successful trial last
year and sold over 15,000 refurbished
tech items in 2023/24. The volume has been
driven prominently through mobiles, laptops
and Chromebooks.
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 12 million
of our customers are getting peace of mind
and giving their new technology longer life.
Our plans are a promise that we’ll help
customers give technology longer life if
something goes wrong.
(1) The Circularity Gap Report 2024. (2) The global E-waste Monitor 2024.
Image: Colleagues from our Parts Harvesting Team based at our Customer Repair Centre in Newark
37
Strategic Report Governance Financial Statements Investor Information
When you need help
to repair it
We recognise that making repairs a
natural choice requires convenience,
competitive pricing and communicating
the services available. With a
significant grey market for repairs,
with unauthorised players and parts,
as leading retailers in all our markets
we can be trusted advisors for repairs
and change consumer behaviour.
We’ve been repairing tech since the 80s.
Last year, we made 1.4 million repairs
across the Currys Group. We have over
1,400 skilled colleagues working to give
tech a longer life across the Group, 1,000
of whom work in Europe’s largest tech
repair lab, our Customer Repair Centre in
Newark, along with 217 dedicated field
engineers carrying out repairs in customer
homes. This year we’ve assessed over
590,000 products for customer repairs in
Newark and we facilitated over 270,000
customer in home repairs. Elkjøp also have
repair centres, Elcare, that employ 220
skilled repairers in Norway, Sweden and
Finland, with service advisors in all stores.
Our repair experts also help customers
in the UK & Ireland identify the cause of a
fault, undertake DIY fixes and assist with
arranging a repair through our RepairLive
service, an on demand service, available
via video call for laptops and TVs. This
year has seen RepairLive grow in volume,
taking over 12,000 customer calls with 43%
of customer issues being resolved during
the call, avoiding the need for a return –
a great win for customer convenience that
also reduces the costs and environmental
impact of logistics.
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 over
13,000 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
£1.4m 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 harvested over 125,000 spare
parts in the UK and this has enabled Currys
to repair, refurbish and reuse thousands of
tonnes of tech a year. Our Newark Parts
Harvesting Team won the prestigious ‘Green
Initiative of the Year Award’ at the Retail
Week Awards 2024.
In order to create awareness of repairs
being an attractive option for customers,
Elkjøp has introduced marketing and
communication on being a destination
for repairs. For example in-store signage
encourages customers to consider
whether an item can be repaired
instead of replaced.
A new Nordic survey carried out by YouGov
on behalf of Elkjøp found that 4 out of 10
people lack knowledge about maintaining
electronics. To address this, Elkjøp Nordic
ran a content campaign on social media
on how to give tech a longer life. The
campaign messaging centred around using
your senses to detect, for example if sour
tasting coffee or a smelly dishwasher
meant your tech was trying to tell you
something. Tips and tricks were provided to
help avoid or resolve common tech issues.
Elkjøp customers in the Nordics, can
choose from a variety of new insurance
plans that feature enhanced, flexible
coverage options, low access fees, and
repair-first solutions that can help increase
the lifespan of devices. Elkjøp insurance
plans for mobiles, tablets and laptops,
with repair-first solutions are designed
to extend the product life – saving
customers money while helping reduce
environmental impact. All plans feature a
repair-first policy whereby a damaged or
malfunctioning device is repaired rather
than replaced whenever possible. Repair
options include fast repairs in selected
stores, through Elcare’s repair service
centres. Replacements are offered in
instances where a device has been
stolen or is beyond repair.
As well as providing repair services, Currys
and Elkjøp also make spare parts available
to customers via online platforms.
We believe reducing VAT on repair services
would incentivise more customers to repair
their tech, as prices are one of the main
reasons why people choose not to seek
repairs. Elkjøp has raised its voice on the
topic of removing VAT on repair work and
spare parts in the media, with politicians
and through collaboration with industry
associations. This year we were proud
to welcome the Norwegian Prime minister
Jonas Gahr Støre to our Elkjøp Nordics
repair centre Elcare in Kongsvinger, Norway,
to see how our capable colleagues give
tech longer life. In the UK, Prime Minister
Rishi Sunak visited our Repair and Customer
Service centres in Newark, to see our repair
capabilities first-hand and meet our
colleagues who help customers and
our fight against e-waste.
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.
82m
number of tonnes e-waste is
expected to grow to globally
by 2030.
1.4m
repairs to customers tech
completed across our Group.
8.1m
items of e-waste collected
for reuse and recycling across
our Group.
38 Currys plc Annual Report & Accounts 2023/24
Sustainable business
Circular economy continued
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 have continued trade-ins, where we
offer gift cards or money for old devices
and we have online trade-in calculators
available to determine the value of
products. In the UK & Ireland, we support
most of our existing categories with a
trade-in proposition and 65k products
have been traded in, with an average value
of £145 being given to customers this year.
In the Nordics we also offer trade-in and,
by improving the customer journey and
making trade-in a natural part of the sales
process in stores, we expect a significant
step change on trade-ins next year.
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 9,284
households save £1.74m in 2023/24. We
also work with the UK’s largest independent
recycler of e-waste and provider of re-use
Enva Recycling, who provide refurbished
white goods from Currys e-waste to major
UK charities with over 6,000 refurbished
white goods sold last year.
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. In 2023/24 8.1 million pieces
of e-waste were collected for reuse and
recycling across our Group, equivalent
to 87,000 tonnes, meeting our bonus
scorecard target for the year. Our
discontinued operations collected 485k
pieces of e-waste, bringing the total
collected to 8.6 million
†
in 2023/24.
We’re proud of our achievements but we
know there is more to do. In the Global
E-Waste Monitor report 2024, it states
that the UK is one of the world’s largest
producers of e-waste, with 24.5kg
generated on average, per person. And
in the Nordics, Norway generated 26.8kg
and Sweden 21kg e-waste on average,
per person.
While larger electronic products such as
washing machines and TVs are commonly
collected for recycling, smaller electronic
devices such as cables and power
banks are more likely to end up being
† We engaged KPMG LLP to undertake independent limited assurance under ISAE (UK) 3000 for e-waste data which has been highlighted with a
†
. 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
39
Strategic Report Governance Financial Statements Investor Information
Product packaging
We’re prioritising a number of ways to help reduce,
recycle and reuse plastics and packaging.
We’ve achieved our aim to make all our
own label and licensed brand packaging
reusable or recyclable. At the end of
2023/24, 99.95% was recyclable, with
85% recyclable at kerbside based on UK
infrastructure. 88% of the remaining 15%
of plastic that cannot be recycled at
kerbside is expanded polystyrene (‘EPS’).
In the UK & Ireland, we provide an in-store
takeback scheme for TV packaging,
including EPS, and we offer our customers
a free packaging recycling service when
we deliver and unbox large household
appliances. We also offer packaging
recycling services in the Nordics.
We proactively work with suppliers of
own label and licensed brand products
to reduce packaging. In 2023/24 we
continued our collaborative work to
remove plastic packaging and have
removed EPS altogether where possible,
such as in some of our microwave ovens,
saving over 41 tonnes.
We remain committed to finding
solutions that reduce environmental
impact whilst also protecting the
product from damage by conducting
trials to understand the lifecycle
impacts of packaging changes.
In 2024/25 we will continue to work
with our suppliers and look to 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
Data on product packaging includes the
discontinued operations of Kotsovolos.
discarded with general waste. Similarly,
mobile phones, tablets and other devices
with stored data remain with customers
due to fear of private data going astray.
New research undertaken by Currys this
year found that over a third of people
put off recycling e-waste due to a lack
of information and three in four people
hoard unwanted tech in their homes,
despite having no use for it. In Norway it is
estimated that there are 10 million mobile
phones lying in cupboards and drawers.
To help address this, we continue to offer
our Cash for Trash proposition, which
enables customers in the UK to get £5 off
future purchases when they recycle with us
in-store. We’ve increased exposure of this
offer in-store, online and via our owned
marketing channels, as well as working with
our suppliers to give even bigger discounts
across TV’s, Laptops, Mobiles, Games
Consoles & Small Domestic appliances
at various points throughout the year.
Customer awareness of Cash for Trash
has grown by +53%, and redemptions by
+59% like for like year-on-year with 260k
redemptions this year, saving customers
a whopping £1.3m. We have collected
colleagues’ e-waste from our own supply
chain sites, trialled collecting customers’
e-waste whilst making deliveries, and
supported our partners Material Focus with
Cash for Trash vouchers at their University
Repair Fair events.
We’ve even launched our very own ‘Trash
Tycoon’ map within the video game Fortnite
to promote environmental responsibility via
a gamified learning experience. Cash for
Trash was shortlisted in the Business Green
Awards for Recycling Project of the Year.
We’ve also been working to incentivise
recycling in the Nordics too. In Norway we
have introduced a deposit scheme on
e-waste, creating a small fiscal incentive
to bring back old tech. Elgiganten Sweden
did a campaign to get people to get rid
of their old tech by using humour to create
awareness on the importance of recycling
old tech. And, as we know that fear of
personal data getting into the wrong hands
is a key reason for people not recycling
their old tech, Elkjøp have extended the
use of secure collect containers in stores in
the Nordics. These are sealed containers
where people can safely drop off their old
gadgets knowing that personal data will
be handled safely.
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 their project to create
a circular electronics guide.
40 Currys plc Annual Report & Accounts 2023/24
Board
ESG
Committee
Audit
Committee
Risk
Committee
Executive
Committee
Reporting on progress
against climate targets
Prinicipal Risk reporting
including Sustainability
Reporting as part of Principal Risk
reporting including Sustainability
We will achieve net zero by 2040
The climate crisis remains one of the greatest threats to our planet and we recognise the
impact this has on businesses and supply chains, including our own. Addressing our climate
risks and opportunities is embedded into our business as well as our Sustainability and
Social Impact Strategy. From the new products and propositions we are launching, to the
circular business models we are growing and the carbon reduction investments we are
making; climate change impacts are integrated in what we do.
Sustainable business
Climate action
Climate Governance
Our ESG Committee, chaired by Eileen
Burbidge, Independent Non-Executive
Director, leads 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 and Nordics, 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 Risk Committee, Executive Committee
and Board.
We have formalised a TCFD Steering Group
to support the business in continuing to
develop and embed a well-informed
strategy that can meet the needs of the
Paris Agreement.
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 40-49. We
align our disclosures with the TCFD’s
recommendations and recommended
disclosures and have considered the
relevant guidance including Section C of
the TCFD Annex. We comply with nine of
the recommendations and continue to
work on providing fuller disclosure on the
resilience of our strategy and processes
for managing climate risk:
• 2c – The pilot exercise in May 2022
described on pages 42-43 included
various scenarios including 2°C or
lower. We need to conduct further
work to assess the resilience of our
strategy for our wider value chain.
• 3b – Whilst we have identified
our material climate-related risks
we need to further develop our
processes for managing new and
emerging climate related risks.
We have omitted disclosing against UK-
CFD (f) as there is no material impact in
the short-term horizon and therefore we
do not believe this information is required
for an understanding of Currys’ business
at this time. We will continue to report our
progress annually, will conduct further
scenario analysis work in 2024/25 and
intend to demonstrate full alignment
with all recommendations in our
2025/26 disclosures.
41
Strategic Report Governance Financial Statements Investor Information
(1) Net zero is defined in the Glossary and definitions section on page 227.
The Group also supports work to continue
utilising climate scenario analysis and
embed this into our governance, risk
management and strategic approach.
See a diagram of our governance structure
on page 40. A report from the ESG
Committee is available on page 107.
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 Risk
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 ESG 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 Board fully support Currys’ science-
based targets and commitment to net
zero
(1)
by 2040 across our Scope 1, 2 and
3 emissions and is continuously seeking
to increase their knowledge on climate-
related risks and opportunities. We have
assessed our Board members skills,
experience and expertise on environment
issues including climate change; the results
are available on page 75.
In 2023/24, emissions-related KPIs were
again included in the annual bonus
scorecard for employees and will continue
to be a KPI for 2024/25 (see pages 110-
111). We have committed to introduce an
ESG related metric to Long Term Incentive
Plans during the course of the current
Remuneration Policy period.
The Executive Committee reviewed and
approved the capital investments and
operational expenditure required to
deliver emissions reduction in the next three
years as part of our longer-term net zero
objectives. These investments are integrated
into our three-year strategic plan and our
annual budget, which were reviewed and
formally approved by the Board.
Further information
More information on our Sustainability
and Social Impact strategy and material
issues is on pages 32.
Read about our energy and greenhouse
gas emissions data on pages 48-49.
Read about our bonus scorecard target
on emissions on page 110.
Our Environmental Policy is available
on our website, www.currysplc.com/
sustainable-business/policies-
disclosures
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 near-
term 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.
Following the disposal of Kotsovolos
on 10 April 2024, in accordance with the
GHG Protocol Corporate Accounting
and Reporting Standard recommended
materiality threshold and SBTi Criteria and
Recommendations guideline (criteria R12),
the materiality of this change triggers a
recalculation of our target boundary and
baseline which we will undertake in 2024/25.
2023/24 represented the third 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 2023/24, as shown on
page 128. This KPI will be present again in
the 2024/25 bonus scorecard.
Our emissions reporting is based on the
GHG protocol. Our Scope 1, 2 and 3
(Category 1 and 11) emissions have
been assured against the ISAE 3410
and ISAE (UK) 3000 standards by KPMG.
An update on our data and progress
against our targets is included on pages
48-49. 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 including energy
MWh/1,000 sq ft, the use of renewable
electricity and the number of vehicles
powered by electric or alternative fuels
in our fleet (see pages 46 and 49). We
also report our Scope 3 emissions, the
recyclability of product packaging and
the volume of e-waste we collect for
recycling and reuse.
We have reviewed the key physical and
transition risks for our operations and the
opportunities for our wider value chain.
The risk, opportunities and potential
financial impacts are quantified in the
strategy section below. We are actively
addressing climate-related risks and
opportunities and report on the key
data we use to monitor our progress,
for example moving towards circular
business models (see pages 36-39).
We will continue to review our targets and
metrics and focus on disclosing recognised
cross-industry metrics where these align to
the risk and opportunities we identify.
42 Currys plc Annual Report & Accounts 2023/24
Risk management and
opportunities
Climate change risks are managed
within Currys risk management approach
detailed on pages 90-91. 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 32, through the
ESG Committee and GSLT and associated
governance we continue to monitor
and report on changes to risk (increase,
decrease or no change), assess climate
change as part of our Sustainability
principal risk within the business and
identify new and emerging risks. We will
continue to publicly 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. We identify
climate-related risks through twice yearly
bottom-up risk assessments via the GSLT
and these may also be highlighted as part
of emerging risk identification completed by
Group Risk. Each risk is assigned a business
owner who is responsible for monitoring
and mitigating the risk. Climate-related risks
and mitigations are monitored throughout
the year by the GSLT and ESG Committee.
Risk reviews are conducted at various levels
including the GSLT, Executive Committee
and the ESG Committee.
Risk assessments include the identification
and documentation of climate-related
risks and the review and consideration of
appropriate risk responses which provides
an input to our review of the Group risk
profile. The process manages our ability
to deliver our progress towards our Scope
1, 2 and 3 targets and consideration
of physical and transition climate risks
impacting our operations, including existing
and emerging regulatory requirements.
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 in order to create long-term
value for our stakeholders. Read about how
we created value in 2023/24 on page 9.
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. 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 recognise that climate-related risks
and opportunities cannot be assessed
through traditional risk management
processes only. We undertook a pilot
scenario analysis in May 2022 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 Intergovernmental Panel
for Climate Change (‘IPCC’
(1)
) - RCP 4.5
Low, RCP 4.5 High and RCP 8.5 – using NEX-
GDDP and EnerData datasets, across three
different time horizons.
Climate change is anticipated to impact
our business over the short, medium and
long-term, see pages 44-45.
For physical risk, extreme precipitation,
extreme heat and wildfire were assessed
in detail. Our modelling uses scenarios
based on 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.
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
Sustainable business
Climate action continued
(1) 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.
43
Strategic Report Governance Financial Statements Investor Information
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. The region most
likely to be affected by transition risk is the
UK due to hard-to-abate fleet emissions.
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.
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 and helps us build
effective mitigation plans, stress test our
organisational resilience and improve
the execution of our net zero strategy.
The tables on pages 44-45 capture the
key strategic climate-related risks and
opportunities impacting our business,
identified through our risk management
and scenario analysis, as well as
potential mitigations.
In time, we intend to expand our approach
to other areas of our value chain to
further assess business resilience under
different scenarios.
Extreme precipitation
In November 2023, Storm Ciaran
delivered high winds and extreme
rainfall for large parts of the UK.
The Currys store in Chesterfield was
flooded, with flood water rising to over
1m inside the store causing extensive
damage and an extended interruption
to trading. The flooding caused direct
damage to the store
of around £1m, in addition to the loss of
circa £2m in damaged stock.
Our Facilities and Property teams
worked quickly to limit further damage
and to ensure the store was repaired
and reopened. The store, adjacent
to the river Hipper, is of particular
flood risk. Currys has an active flood
management strategy, with analysis
demonstrating flood risk for each of our
sites, which informs
our emergency plans for at-risk
stores and our long term retail planning
strategy.
Improving our understanding of
future water-related risks will help us
assess the need for future building
adaptations and reduce potential
financial impacts.
44 Currys plc Annual Report & Accounts 2023/24
Risk mitigation and further strategic opportunities
Sustainable business
Climate action continued
Type Opportunity Potential financial impacts
Physical –
opportunities to
offset operational
costs
Use of more efficient modes of transport. Reduced operating costs.
Use of lower-emission sources of energy. Reduced exposure to future fossil fuel prices.
Reduction in energy usage to reduce consumption. Reduced energy-associated operating costs.
Transitional
– commercial
opportunities
resulting from
market and
changing consumer
preferences
Ability to diversify business practices. Reputational benefits resulting in increased demand for
goods and services.
Shift in consumer preferences. Better competitive position to reflect shifting consumer
preferences, resulting in increased revenues.
Increased footfall from consumers seeking air-conditioning for some
regions on extreme heat days.
Upside in revenue sales from cooling customers.
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.
Transitional -
resilience and
reputation
opportunities
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.
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.
Participation in renewable energy programmes and adoption of
energy efficiency measures.
Increased market valuation through resilience planning
(e.g. infrastructure, land, buildings).
Diversified supply chain. Increased reliability of supply chain and ability to operate
under various conditions.
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.
Strategic risks and quantitative scenario analysis summary
Type Risk Scenario*
Potential financial impact**
2025*** 2030 2040
Physical
Extreme heat: Increased costs incurred due to managing
infrastructure and operations under extreme heat, including
increased energy demand and increased stock damage along
with increased lost sales due to reduced store footfall.
<2ºC Minor >£10m >£10m
2-4ºC Minor >£10m >£10m
4ºC Minor >£10m >£10m
Extreme precipitation: Increased costs incurred due to managing
infrastructure and operations impacted by extreme precipitation,
including property and/or vehicle repairs or replacements
along with increased stock damage and impaired abilities to
generate sales.
<2ºC Minor <£1m <£10m
2-4ºC Minor <£10m <£10m
4ºC Minor <£10m <£10m
Extreme fire risk: Increased costs incurred due to managing
infrastructure and operations impacted by extreme fire risk days
(wildfire), including property repairs, stock damage and impaired
abilities to generate sales.
<2ºC Minor <£1m <£1m
2-4ºC Minor <£1m <£1m
4ºC Minor <£1m <£1m
Transitional
Policy and market changes result in increased costs for energy
and compliance with environmental legislation and taxes.
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.
** Potential financial impacts assessed prior to the disposal of Kotsovolos. These impacts are incremental operational and capital costs including loss of sales.
*** For 2025 only the potential financial impact is on profits arising from Physical risks where Minor means a profit impact of less than 5% EBIT.
45
Strategic Report Governance Financial Statements Investor Information
To address the effect of climate change,
Currys has set climate targets, aligned to
a 1.5°C pathway, and has committed to
achieving net zero across Scopes 1, 2 and
3 by 2040. These targets are underpinned
by plans, with oversight through our GSLT
and ESG Committee. Our progress on
the delivery of our strategy is recognised
externally. We have responded to the
CDP questionnaire on climate change
since 2016, scoring a B in the latest 2023
disclosure and we were rated the 2nd
highest retailer in the Financial Times (‘FT’)
European 2024 ‘Climate Leaders Rankings’.
Climate-related risks and opportunities are
considered as part of both our Business
Strategy and our Sustainability and Social
Impact strategy. The table below shows
how our strategy supports climate-related
matters.
Strategy Description Benefits
Growing circular business models
This links to our
transitional risks
and commercial
opportunities.
Read more on
pages 36-39
Growing our circular share of business is a core
strategic priority throughout the Group and a key
lever in our long-term plan. We already offer an
extensive range of services that extend the life cycle
of products and reduce waste, including repairs,
trade-in re-commerce, rental and recycling, but we
recognise there is substantial opportunity to do more.
These services help customers save money, access
quality products, and dispose of unwanted items easily
and responsibly. They also help Currys grow customers
for life through building ongoing relationships, grow
profits through tapping into new value pools and do
the right thing for the planet and society.
Developing new products and propositions
This links to our
transitional risks
and commercial
opportunities.
Read more on
page 36
We are constantly innovating and introducing new
products and propositions that help customers reduce
their energy consumption and carbon footprint such as
energy-efficient appliances and smart home devices.
They are a key component in our strategy to develop
new sources of profitable growth for Currys. We
continue to explore and expand our offer in the area,
including an ongoing solar panel trial in the Nordics.
These products and propositions help customers save
money on their energy bills, improve their comfort and
convenience, and generate clean energy. They also
help us differentiate ourself from competitors, increase
market share, enhance brand reputation and access
new markets.
Investing in reducing operational greenhouse gas emissions
This links to reducing
our physical risks.
Read more on
page 46
Currys is investing in various initiatives that reduce its
own emissions and support the transition to a low-
carbon economy. This includes converting to use
electric and alternative fuels in our fleet, deploying
new Heating, Ventilation and Air conditioning (‘HVAC’)
systems, managing and reducing energy demand, and
sourcing renewable energy.
These initiatives can help lower operational costs,
improve energy efficiency, mitigate the potential
impacts of extreme heat and comply with regulatory
requirements. They also help us demonstrate
responsibility, attract and retain talent, and engage
with stakeholders.
Working with suppliers to reduce value chain emissions
This links to reducing
our physical risks
and commercial
opportunities.
Read more on
page 47
Scope 3 emissions from across our value chain account
for over 99% of our total emissions, with the most material
impacts being from purchased goods and services and
the use of sold products. We are working with our suppliers
and manufacturers to drive an open and transparent
approach to Scope 3 management, sharing best practice
across value chains and raising awareness. We are using
information from our suppliers to help colleagues and
customers understand the opportunities and benefits of
lower-carbon lifestyle choices.
Our approach will help customers live a lower carbon
lifestyle through the use of more energy-efficient
products as well as our services that help give tech
a longer life. Products which are more profitable to
Currys and better for our customers’ pocket too due
to lower lifetime costs.
Reporting our progress and collaborating with others
This links to our
commercial
opportunities.
As a leading business, we recognise the influence that
sharing our progress can have on helping and inspiring
others to take action. We have responded to the CDP
questionnaire on climate change since 2016 and were
rated the 2nd highest retailer in the Financial Times (‘FT’)
European 2024 ‘Climate Leaders Rankings’. We recognise
the importance of collaborative action; we support
the EV100 and the British Retail Consortium’s (‘BRC’)
Climate Action Roadmap. We proactively support policy
changes and recommendations through our memberships
of EV100, BRC and the UK Electric Fleets Coalition.
Collaborating with others helps us to increase
our impact and accelerate industry change.
Greater regulatory certainty and oversight of the net
zero agenda gives greater confidence to businesses
and investors to invest in low carbon technologies.
46 Currys plc Annual Report & Accounts 2023/24
Investing in reducing
operational emissions
Energy
We continue to take action to reduce
our use of energy, which leads to cost
efficiencies and emissions reductions.
Our energy consumption across the
Group (including discontinued operations
but excluding transport) has reduced by
4.7% year-on-year. See more data on
pages 48-49.
We have continued certification of our
Energy Management standard with
ISO50001:2018 for our UK & Ireland
estate and fleet. Elkjøp Nordic, and
our UK Customer Repair Centre in Newark
are all ISO 14001 certified, and we
use the Environmental Management
system to continuously improve our
environmental performance.
We continue to optimise our Building
Management system control for Heating,
Ventilation and Air conditioning (‘HVAC’)
systems, increase the use of LEDs and
optimise lighting levels, and improve
our reporting and monitoring of energy
consumption. This year we have:
• Removed the demand for natural
gas at five retail sites by replacing
HVAC systems and utilising new heat
pump installations.
• Undertaken Building Management
System optimisation of HVAC systems
to reduce the energy used in a further
16 stores with an electricity saving of
338,458kWh.
• Reduced energy consumption at night
in 16 stores saving 244,699kWh.
• Held a competition between stores
in Norway and Sweden to promote
awareness and engagement of
all employees.
To further reduce the impact of our
energy usage, we continue to have
100% of our properties in the UK,
Ireland, Sweden, Finland and Denmark
powered with renewable electricity either
through supplier contracts or backed
by purchased REGOs. We have 15 sites
across the Group with Solar PV installed
and continue to explore opportunities to
introduce Solar PV onto more buildings.
Transport
Our transport related energy consumption
across the Group (including discontinued
operations) has reduced by 3.7%, reducing
our transport related emissions by 5.8%.
We continue 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. See more data
on pages 48-49.
We are a signatory to the Climate Group’s
EV100 initiative which brings together
companies committed to accelerating the
transition to EVs. We 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.
Moving to electric or alternative fuelled
vehicles continues to present 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 also 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.
We have 16 EVs and one vehicle running
on alternative fuels in service across
the Group. Whilst this represents a small
proportion of the total vehicles in our
owned fleet, we plan to invest over £3m
in the next three years to progress our
transition away from diesel vehicles.
In the UK & Ireland we introduced three
fully electric 4.05 tonne vans into our
home delivery and installation services
operations in 2023/24 and our 7.2 tonne
delivery van powered by compressed
natural gas (‘CNG’) continues to operate
successfully. Solar panels are now
operating on 307 of our 7.2 tonne Iveco
Daily vans used for home delivery in the
UK. In 2023/24 these vans avoided 178
tonnes of CO
2
e and generated 34,820kWh
of solar energy and saved 69,500 litres
of diesel. Elkjøp Nordic has worked hard
to optimise transport routes and increase
vehicle utilisation, reducing the number of
deliveries to stores and in May 2024, we
opened a new warehouse extension in
Jönköping, which is expected to reduce
emissions by consolidating all warehousing
operations for our Epoq kitchen range to a
single location.
We are also committed to working with our
third party logistics partners. By working
with Freightliner and utilising biodiesel we
reduced the emissions from transporting
products from UK ports to our warehouses
by over 50% this year. And in May 2024
we worked with Maersk to introduce an
electric truck for the ‘final mile’ of the
journey between the Port of Gothenburg
and the Elgiganten NDC in Jönköping –
making this route now fully electric – a
journey that can be made up to eight times
a day. This change has reduced emissions
and operational waiting times, and has
been cost neutral.
Sustainable business
Climate action continued
47
Strategic Report Governance Financial Statements Investor Information
Working with suppliers to
reduce value chain emissions
Our Scope 3 emissions include the
indirect emissions from across our value
chain which account for 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.
We are 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. Including discontinued
operations, we have achieved a 51.9%
reduction to date with an in-year reduction
of 15.0%. This in-year 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 towards more energy
efficient products and away from more
carbon intensive products. See more data
on page 48.
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 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.
But whilst challenging, this increases the
imperative to act.
Our cross functional, Group-wide working
group continues to drive our approach
and is led by our UK & Ireland Commercial
team. We have made progress this year on
a number of fronts including implementing
a supplier engagement trial, improving
primary data mapping, introducing climate
related questions into our Goods Not
for Resale (‘GNFR’) tender process and
developing a Scope 3 scorecard to
measure our progress internally.
We continue to use 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, collaborate
to improve performance, and benefit
wider society.
This year we initiated a supplier
engagement trial using carbon maturity
ratings from EcoVadis’ Carbon Action
Module. We segmented our supply
base into five groups from ‘Advanced’ to
‘Beginner’ and contacted a group of 25
suppliers, five from each group. We asked
them to complete a short questionnaire
and provided useful links and supporting
documents to help those who were at the
beginner end of the spectrum.
We were pleased with the engagement
we had from this group of suppliers, with
almost 70% responding, and we are using
the results and insights to inform the next
steps of our supplier engagement and
collaboration on Scope 3 emissions.
Alongside this, we have introduced
climate related questions within all UK
& Ireland GNFR tenders that we put out
to organisations. As part of this we are
mandating that the suppliers we work
with must enrol with EcoVadis and provide
details of their EcoVadis rating if already
enrolled. This is a big step forward in the
right direction to ensure that when we start
working with new businesses they are as
serious about reducing their climate impact
as we are.
We have also continued to increase the
accuracy of our data by working with our
Business Information and Data teams to
gather and access more of the energy
consumption data that we hold on the
products we sell. As a result, we have
improved our use of primary data to
calculate the emissions associated with the
use of our products from last year’s 35% in
the UK & Ireland to 46% and from 22% to
34% for Elkjøp Nordic. We plan to establish
more regular internal reporting to monitor
our progress through the year.
Our progress has helped us build on our
short-term plan for Scope 3 emissions
and begin to embed this in our business
planning processes.
48 Currys plc Annual Report & Accounts 2023/24
Sustainable business
Climate action continued
Energy and GHG
emissions data
This section details the energy consumption
and GHG emissions from the activities
of Currys for the period 30 April 2023
to 27 April 2024, 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’).
For the mandatory Scope 1 and 2 emission
reporting requirements, 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, Republic of Ireland, Greece,
Sweden, Norway, Finland, Denmark,
Czechia, Cyprus and Hong Kong. Data
includes Kotsovolos up to the point
of disposal (10 April 2024), data will
be restated in 2024/25 alongside a
baseline recalculation. There are no
material omissions.
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. Scope 1
and 2 emissions have been calculated
using conversion factors provided by the
Department of Business, Energy & Industrial
Strategy for emissions, Association of
Issuing Bodies (‘AIB’) and International
Energy Agency (‘IEA’).
We engaged KPMG LLP to undertake
independent limited assurance under ISAE
(UK) 3000 and ISAE 3410 for selected
energy consumption, e-waste, Scope 1,
2 and Scope 3 (Category 1 and 11) GHG
emissions which have been highlighted
with a
†
. 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 2023/24.
Read more about measures taken to
improve energy and fuel efficiency on
page 46. Read more about measures
taken to improve value chain emissions
on page 47. Progress against our net zero
target is positive, with a 51.8% reduction
(1)
in Scope 1, 2 and 3 emissions achieved in
2023/24 against a 2019/20 baseline.
Information on our energy and emissions
data methodology is available on our
website, www.currysplc.com
Information on external assurance
on our energy and emissions data
is available on our website,
www.currysplc.com/sustainable-
business/policies-disclosures
(1) Data includes Kotsovolos up to the point of
disposal (10 April 2024).
GHG emissions
Tonnes of
CO
2
e emitted
2023/24
(1)
% change
Tonnes of
CO
2
e emitted
2022/23
(1)
Tonnes of
CO
2
e emitted
2019/20
(2)
Scope 1 16,479
†
-5.0% 17,352 20,742
Scope 2 (location-based) 27,775
†
-7.0% 29,865 51,131
Scope 2 (market-based) 1,221
†
-65.1% 3,499 16,121
Scope 3, category 1: Purchased goods and services 2,610,143
†
-8.8% 2,861,970 4,300,532
Scope 3, category 3: Fuel- and energy-related activities 14,795 -8.7.% 16,200 15,905
Scope 3, category 4: Upstream transportation and distribution 67,900 15.5% 58,765 165,115
Scope 3, category 5: Waste generated in operations 2,447 -5.9% 2,599 972
Scope 3, category 6: Business travel 4,836 35.3% 3, 574 2,754
Scope 3, category 7: Employee commuting 39,492 -6.4% 42,206 27,275
Scope 3, category 9: Downstream transportation and distribution 18,324 -6.0% 19,495 35,906
Scope 3, category 11: Use of sold products 14,089,417
†
-16.1% 16,784,068 30,425,451
Scope 3, category 12: End-of-life treatment of sold products 6,990 -4.8% 7,339 9,843
Total: scope 1, scope 2 market-based, scope 3 (all categories
(3)
) 16,872,044 -14.9% 19,817,066 35,020,616
GHG emissions performance versus targets
Tonnes of
CO
2
e emitted
2023/24
% change
from 2019/20
baseline
Tonnes of
CO
2
e emitted
2022/23
Tonnes of
CO
2
e emitted
2019/20
Scope 1 and Scope 2 market-based emissions
(1)
17,700 52.0% 20,851 36,863
Purchased goods and services and use of sold products emissions
(Category 1 and 11)
(1)
16,699,560 51.9% 19,646,037 34,725,983
Discontinued operations scope 1 and 2 market-based 1,141 Not available 1,178 Not available
Discontinued operations scope 3 (all categories) 4,804,577 Not available 6,000,081 Not available
49
Strategic Report Governance Financial Statements Investor Information
Global Energy consumption (kWh) 2023/24
(1)
% change 2022/23
(1)
2019/20
(2)
Transport (including diesel, petrol, LPG) 55,842,008 -3.7% 57,960,124 71,261,546
Natural gas 14,140,307 -11.0% 15,888,132 22,142,355
Heating (district heating, oil and LPG) 13,092,620 12.7% 11,612,545 214,868
Electricity 169,472,806 -5.3% 178,872,412 236,971,131
Total 252,547,741
†
-4.5% 264,333,212 330,589,900
of which UK 140,568,565 -5.5% 148 ,746 ,06 0 214,964,357
Intensity ratio: MWh/1,000 sq ft occupied floor area
(4)
11.60
†
-4.0% 12.08 16.24
Total renewable energy purchased or generated 169,389,094
†
-3.8% 175,996,303 Not available
The Company-wide kWh energy consumption for the reporting period 30 April 2023 to 27 April 2024, are as follows:
Emissions on location basis 2023/24
(1)
% change 2022/23
(1)
2019/20
(2)
Scope 1 16,479
†
-5.0% 17,352 20,742
of which combustion of fuel
(6)
15,501 -5.8% 16,462 19,868
of which operation of facilities
(7)
978 10.0% 890 874
Scope 2
(5),(6)
27,775
†
-7.0% 29,865 51,131
Total 44,254 -6.3% 47,217 71,873
of which UK 30,160 -3.5% 31,241 51,866
Intensity ratio: tCO
2
e/1,000 sq ft occupied floor area
(4)
2.03
†
-5.8% 2.16 3.53
The Company-wide emissions for the reporting period 30 April 2023 to 27 April 2024, are as follows:
Emissions on market basis 2023/24
(1)
% change 2022/23
(1)
2019/20
(2)
Scope 1 16,479
†
-5.0% 17,352 20,742
of which combustion of fuel
(6)
15,501 -5.8% 16,462 19,868
of which operation of facilities
(7)
978 10.0% 890 874
Scope 2
(5),(6)
1,221
†
-65.1% 3,499 16,121
Total 17,700 -15.1% 20,851 36,863
of which UK 14,605 -5.2% 15,399 21,762
Intensity ratio: tCO
2
e/1,000 sq ft occupied floor area
(4)
0.81
†
-14.4% 0.95 1.81
† 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, 2 & 3
(Category 1 & 11) GHG emissions which have been highlighted with a
†
. 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) Data includes Kotsovolos up to the point of disposal (10 April 2024), data will be restated in 2024/25 alongside a baseline recalculation.
(2) Baseline data has not been recalculated to reflect the divestment of Kotsovolos, recalculation will be completed in 2024/25.
(3) Our Basis of Reporting, available on our website, www.currysplc.com, includes an assessment of the relevant Scope 3 categories for Currys.
(4) Overall floor area of the Currys plc for 2023/24 is estimated to be 21,765,936sq ft.
(5) The electricity consumption figure includes Scope 2 generation emissions but not Scope 3 transmission and distribution losses.
(6) 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.
(7) 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.
50 Currys plc Annual Report & Accounts 2023/24
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.
Key facts
Up to 19m
people aged 16+ are
experiencing some
form of digital poverty
(Deloitte, 2023).
2m
young people in the UK lack
access to a device suitable
for their education (Nominet
Digital Youth, 2023).
1 out of 4
people in the Nordics find it
difficult to keep up with the
changes in technology.
Working to tackle digital
poverty
We are one of three founding partners of
the DPA (part of the Learning Foundation,
registered charity number 1086306)
alongside the Institution of Engineering
and Technology (‘IET’). 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. We continue to be
an active and engaged member of the
DPA’s work, providing advice and support
on strategy, events and reports.
We want everyone to be able to
enjoy equal access to the benefits of
technology. Operating across six countries,
our approach is tailored to meet the
needs of each region and their relevant
socioeconomic conditions. During the year
we have continued to embed the Group
Social Impact Principles and provided
further support and guidance
for colleagues to get involved.
Read our Social Impact Principles on our
website, www.currysplc.com
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.
Defining 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.
Digital poverty is a pervasive issue that
impacts not only the oldest in society
who have been unable to keep pace
with technological advancements, or
those with acute affordability issues,
but individuals of all ages and socio-
economic backgrounds.
Through our annual research, Tech Trouble,
we 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. Our latest survey found one out
of four people in the Nordics find it difficult
to keep up with the changes in technology
and one out of two say technology has
become so expensive they were prevented
from buying it because of economic reasons.
Almost one out of three say the language of
technology has become so complicated it is
hard to keep up.
In the UK, research prepared for the Digital
Poverty Alliance (‘DPA’)
(1)
found that up to
19 million people aged 16+ are experiencing
some form of digital poverty, but that
billions of pounds in benefits for individuals,
government and businesses could be
unlocked each year by eliminating digital
poverty and ensuring basic digital needs
are met for all individuals.
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.
Read more on our support to the DPA’s
National Delivery Plan, which sets six
missions to eradicate digital poverty
by 2030, on their website at https://
digitalpovertyalliance.org/uk-national-
delivery-plan
(1) Digital Poverty in the UK A socio-economic assessment of the implications of digital poverty in the UK, September 2023.
51
Strategic Report Governance Financial Statements Investor Information
This year we contributed to and supported
the DPA launch of its National Delivery Plan.
With six key missions and a set of clear
actions, the Plan sets out a roadmap for
how to end digital poverty by 2030 and
serves as a vital framework for ensuring
digital technology is integrated into all
our lives in a way that builds a stronger
and more equal society. We were also
delighted to support the DPA’s inaugural
End Digital Poverty Day on 12 September to
fundraise for and raise awareness of the
issue of digital poverty in the UK.
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 we
continue with our Tech4Families programme
in partnership with the DPA in the UK and our
local initiatives in the Nordics.
Raising awareness
We continue to take action to raise
awareness of the challenges of digital
poverty and the opportunities presented
by fixing it once and for all. During the
year we achieved this through a range of
activities including:
• The DPA exhibited at our Peak
conference event in Birmingham, where
almost 1,000 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 the till.
• We supported the DPA on the inaugural
End Digital Poverty Day in September. We
match-funded customer donations from
Pennies and colleagues raised funds
for the DPA through their participation
in the Great North Run and the Thames
Moonlight 10km, together raising over
£12,000 as well as vital awareness.
• We were one of the first companies to
join the DPA’s Industry Forum, following
hosting their first industry round table
event.
• We sponsored the DPA to host fringe
events at the Labour and Conservative
party conferences in autumn 2023.
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.
• We invited the DPA and key suppliers
to join us in a specially created digital
poverty social insight and innovation
series hosted by Three Hands to join
the dots between the needs of those
living in digital poverty and businesses
delivering solutions in and around the
technology industry.
• We conducted our annual research,
Tech Trouble, to identify those that find
themselves on the wrong side of the
technological divide in the Nordics.
A map showing the
Tech4Families areas
in the UK
52 Currys plc Annual Report & Accounts 2023/24
Sustainable business
Our communities continued
This laptop has opened up so many opportunities
for her. It is helping with her homework and to
improve her maths skills.”
Anonymous, mother of a beneficiary of Tech4Families
Tech4Families in the UK
It’s never been more important to make
sure families can get online. Two million
young people in the UK lack access to a
device suitable for their education so we’re
helping 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 almost £245k through
Pennies. 10% of the donations made at
the point of sale in Currys stores directly
support Pennies to grow the microdonation
movement, the remaining 90% funds
Tech4Families.
On average, each day we now raise
enough money to provide three 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 1,168 devices to families in
2023/24. And thanks to the generosity of
Currys’ customers, this year we were able
to expand the scheme into two new areas:
students in vulnerable areas to pass
primary school and get a high school
qualification. In 2023/24, we donated
computers to a loan pool so that students
who don’t have their own can borrow one
so that they can participate in the digital
Homework Help programme.
Twice a year in Denmark, Elgiganten partner
with the Danish People’s Aid and assist
with financial aid and product donations.
Elgiganten collect funds instore to support
vulnerable families with children during their
Christmas aid campaign and Elgiganten
Denmark donated over £120k in 2023/24.
Northern Ireland and the Lincolnshire
Coast. The scheme won Gold at the Social
Mobility awards in October 2023 and
was shortlisted for a Retail Week award
in early 2024.
Fighting digital exclusion in
the Nordics
Elkjøp Nordic is using our position and role
in society to fight digital exclusion. We work
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 we support organisations and
associations with products and guidance
– in addition to financial resources. The
support we provide is based both on an
open application process and long-
term partnerships for local, national and
global initiatives, including a key focus on
combating digital poverty.
For example, our Elgiganten stores
in Sweden are the main partner of
the nonprofit organisation Stiftelsen
Läxhjälpen, supporting their Homework
Help programme in Sweden, which helps
Humanitarian aid
At Currys, we are united by our
values, with colleagues showing
care, compassion, and concern
when we’ve heard about crises
and suffering in the world.
Over the last few years, we have
been building a relationship with
the British Red Cross and helping
support their vital work responding
to humanitarian crises around the
world. This year we have committed
to making an annual donation to
the British Red Cross Disaster Fund.
This means that our support can
be allocated immediately and
flexibly to people affected by
those disasters and emergencies –
both those that hit the headlines as
well as crises that go unheard. This
new, ongoing support will help us
forge a deeper and more enduring
relationship with the British Red
Cross and will help to make a real
difference for people facing disaster
and crises all over the world.
53
Strategic Report Governance Financial Statements Investor Information
Sustainable business
Our suppliers
Responsible sourcing
Bringing amazing and more sustainable tech to our customers isn’t something we do alone.
Our partnerships with suppliers make a big difference too.
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 over
6,500 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
have our own Standards for Responsible
Sourcing which, together with our Child
Labour Remediation and Conflict Minerals
policies, 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.
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 2023. The full policy is
reviewed by the Board periodically.
Our policies and standards
Read our policies and standards on our
website, www.currysplc.com
Modern slavery
Read our Modern Slavery statement on
our website, www.currysplc.com
Modern slavery
We’re committed to eradicating all forms
of modern slavery and human trafficking.
We continue to take action to tackle the
issue and we report our progress annually
in our Modern Slavery Statement.
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.
Our progress
Almost 90% of Commercial and
Procurement colleagues in the UK & Ireland
and Nordics completed our Responsible
Sourcing training and we rolled out an
enhanced version for colleagues working
with own label and licensed brand
suppliers, achieving 100% completion.
We also launched a refresh of our modern
slavery ‘Spot the signs’ training with almost
600 colleagues working in supply chain
and service operations in UK & Ireland.
We have worked with Bright Future to
provide secure employment and help
another person find a way out of modern
slavery. In total we have now hosted
placements for seven survivors and
helped five find safe paid work within our
business. We also collaborated with the
Slave Free Alliance, part of the global
anti-slavery charity Hope for Justice, to
review our recruitment processes at our
Nordic Distribution Centre in Sweden.
They spoke with workers, contracted
staff and our recruitment agency to
help identify potential risks and provide
recommendations.
We completed audits on 68 of our own
label and licensed brand suppliers this
year, continuing to drive further reductions
in working hours. We have set suppliers a
target for continuous improvement and we
review corrective action plans and re-audit
as necessary.
We have also continued to invite
suppliers to join the EcoVadis platform to
enable us to measure their sustainability
performance, with nearly 60% of Group
spend now assessed for sustainability
and 50% for carbon maturity. This year
we have also used EcoVadis IQ+ to help
monitor supplier risk. We calculated risk
ratings for over 98% of supplier spend
and this information helped us identify
priority suppliers where a full EcoVadis
assessment is appropriate. In addition,
Elkjøp convened 300 suppliers to explain
our approach to sustainability and
encourage them to help us make it easier
for customers to make informed choices
and to give tech a longer life.
Through our membership of the Responsible
Business Alliance (‘RBA’), we have been
exploring the mineral risks associated with
our industry, starting with batteries and
printed circuit boards, gaining greater insight
into the supply chain stages, composition
and ESG issues of these technologies.
Looking ahead
In 2024/25 we will:
• Publish updated Standards for
Responsible Sourcing and review our
Modern Slavery, Conflict Minerals and
Child Labour Remediation policies.
• Continue our work with EcoVadis and
the RBA to develop our approach for
mapping and assessing risk in our supply
chain for tier two and beyond.
• Work with the Slave Free Alliance
to review high risk areas of our store
network, including security and cleaning.
• Share learnings with our own label and
licensed brand suppliers and develop
our understanding of their sourcing
practices for high-risk minerals.
Scope 3 emissions
Read more about our work on Scope
3 emissions from our supply chain and
products in use on page 47.
54 Currys plc Annual Report & Accounts 2023/24
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. To provide 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 Risk 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 81 to 93 The risks are linked to the
strategic priorities on pages 14 to 15.
55
Strategic Report Governance Financial Statements Investor Information
RISK PROFILE
Likelihood Impact
Increased
6
Decreased
No change
1
2
3
4
5
7
8
9
10
11
12
13
1
2
3
4
5
6
7
8
9
10
11
12
13
New
Principal risks
1
Business continuity/IT disaster recovery
2
Business transformation
3
Crystallisation of legacy tax issues
4
Data protection
5
Financial, liquidity and treasury
6
Financial services regulation
7
Health and Safety
8
Information security
9
IT systems and infrastructure
10
Macroeconomic environment
11
Product safety
12
Supply chain resilience
13
Sustainability
Colour Key
Strategic
Regulatory
Technology
Operational
Financial
Key changes to the risk profile
During 2023/24 a number of changes were made to the Group risk profile,
these included:
• The supply chain logistics risk has been removed as a principal risk due
to being consistently assessed as low, and aspects such as rising costs/
inflation forming part of the macroeconomic environment risk. The remaining
supply chain sourcing risk has been renamed to supply chain resilience.
• The financial services regulation risk has increased in likelihood due to the
heightened regulatory landscape and associated increase in regulation
and legislation.
56 Currys plc Annual Report & Accounts 2023/24
1 Business Continuity/IT disaster recovery
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 to manage
response to significant events.
• Major risks insured.
• Business Continuity Policy.
Changes since
last report
This risk has remained
stable over 2023/24.
2 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
a business model that
enables the business
to compete against
a broad 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 omnichannel
capability.
• Transformation Programme office
established and delivering key
strategic objectives.
• Development of customer credit
propositions.
• Enhancement of data analytics
capabilities.
• Robust portfolio governance.
Changes since
last report
This risk has remained
stable over 2023/24.
3 Crystallisation of legacy tax issues
Risk owner:
Chief Financial Officer
Risk category:
Financial
Risk movement:
Link to strategy
Considered in the
Viability statement:
No
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 2023/24.
4 Data protection
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.
Inadequacy 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
advantag.e
• Customer
compensation.
• The operation of a data management
function to ensure compliance with GDPR
operational processes and controls.
• The operation of a data protection
office to ensure appropriate governance
and oversight of 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 2023/24.
Principal risks
and uncertainties
57
Strategic Report Governance Financial Statements Investor Information
Risk movement
Increased
Stable
Decreased
Link to strategy
Colleagues
Easy to shop
5 Financial, liquidity and treasury
Risk owner:
Chief Financial Officer
Risk category:
Financial
Risk movement:
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 at the Tax and
Treasury Committee.
• Bank facility and covenant cover.
levels are reviewed and negotiated.
• Capex prioritisation sessions are
undertaken by the Executive Committee
to identify cost saving initiatives.
• Triennial pensions revaluation process.
Changes since
last report
This risk has remained
stable over 2023/24.
6 Financial services regulation
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
insurance operations
and consumer credit
activities.
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
focuses on good customer outcomes.
• Regulatory Compliance Committee,
Product Governance and other internal
governance structures.
• Financial Services Risk Management
Framework in place.
• Compliance monitoring and internal
audit review of the operation and
effectiveness of compliance standards
and controls.
Changes since
last report
This risk has increased
in likelihood over
2023/24.
7 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.
How we manage it
• Group Health and Safety strategy.
• Comprehensive Health and Safety
policies and standards supporting
continued improvement.
• Operational Health and Safety teams
located across business units.
• 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 2023/24.
Customers for life
Grow profits
58 Currys plc Annual Report & Accounts 2023/24
8 Information security
Risk owner:
Chief Information Officer
Risk category:
Technology
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.
• 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.
Changes since
last report
This risk has remained
stable over 2023/24.
9 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 impacting our
ability to trade and
continue operations.
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.
• A mature IT service design and transition
process controls and manages the
transition of new and changed services
into production.
Changes since
last report
This risk has remained
stable over 2023/24.
10 Macroeconomic environment
Risk owner:
Chief Financial Officer
Risk category:
Strategic
Risk movement:
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.
• 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.
Changes since
last report
This risk has remained
stable over 2023/24.
Principal risks
and uncertainties continued
59
Strategic Report Governance Financial Statements Investor Information
Risk movement
Increased
Stable
Decreased
Link to strategy
Colleagues
Easy to shop
11 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 penaltie.
• 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 has remained
stable over 2023/24.
12 Supply chain resilience
Risk owner:
Chief Operating Officer
Risk category:
Operational
Risk movement:
Link to strategy
Considered in the
viability statement:
No
What is the risk?
Failure to actively
understand, manage and
deepen key supplier and
brand relationships who
contribute materially to
our business weakens
our ability to respond to
external shocks.
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 and 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 programme.
• Ethical supply chain due diligence over
our supplier base.
• Control structures to ensure appropriate
supplier relationship management for
GFR, GNFR and OEM.
Changes since
last report
This risk has remained
stable over 2023/24.
13 Sustainability
Risk owner:
Chief People, Communications and
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
• Roadmap to Net Zero by 2040.
• Commitment to EV100.
• Oversight from the Group Sustainability
Leadership Team, ESG Committee, ExCo
and the Board.
• Group ESG strategy regularly reviewed.
• Independent reviews on environmental
practices e.g. CDP.
• Partnerships with reputable external
agencies Circular Electronics Partnership
(on circular economy), British Retail
Consortium (on climate change), Digital
Poverty Alliance.
• Management reporting on progress
against target for e-waste and emissions
with metrics for both included in annual
bonus scorecard.
Changes since
last report
This risk has remained
stable over 2023/24.
Customers for life
Grow profits
60 Currys plc Annual Report & Accounts 2023/24
Going concern and
viability statement
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 four-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
2024/25, 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 high
interest rates and energy costs, 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 16 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.
61
Strategic Report Governance Financial Statements Investor Information
+77
+78
+81
2023/24
2022/23
2021/22
+66
+68
+70
2023/24
2022/23
2021/22
22,991
19,673
16,558
2023/24
2022/23
2021/22
£126m
£(462)m
£28m
2022/23
2023/24
2021/22
£72m
£(92)m
£82m
2
023/24
2
022/23
2
021/22
12.4p
7.4p
7.9p
2023/24
2022/23
2021/22
£192m
£107m
£118m
2023/24
2022/23
2021/22
6.3p
(43.6)p
14.9p
2023/24
2021/22
2022/23
Key Performance
Indicators
Financial
Adjusted profit before tax*
(1)
£118m
Adjusted EPS
7.9p
Statutory profit/(loss) before tax
(1)
£28m
Statutory EPS
14.9p
Free cash flow*
(1)
£82m
Our 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.
* 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 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 216 to 227.
(1) 2022/23 figures have been restated following the disposal of Greece. 2021/22 figures have not been restated.
Non-financial
Net zero by 2040
(Scope 1 & 2 tonnes CO
2
e)
52%
Net promoter
score
(1)
+70
Colleague
engagement
+81
62 Currys plc Annual Report & Accounts 2023/24
Performance summary
Group like-for-like sales decreased (2)% with a decline in both segments as high inflation and rising interest rates caused weak
consumer confidence and depressed demand.
Revenue
2023/24
£m
2022/23
£m
Year-on-year
Reported
% change
Currency
neutral
% change
Like-for-Like
% change
- UK & Ireland 4,970 5,067 (2)% (2)% (2)%
- Nordics 3,506 3,807 (8)% (2)% (3)%
Continuing operations 8,476 8 , 874 (4)% (2)% (2)%
UK&I adjusted EBIT decreased (16)% YoY. This reflects a positive underlying performance, offset by the non-repeat of c.£30m of mobile
revaluations in the prior year. Underlying improvements to gross margin were driven through higher adoption of services and solutions,
better monetisation of our improved customer experience, a focus on more profitable sales, and cost savings. Operating costs fell in
absolute terms as savings across property, marketing, central and IT costs more than offset inflationary cost pressures.
Nordics adjusted EBIT increased +135% YoY. Despite a challenging consumer spending environment, our disciplined focus on margins and
costs is getting this business back on track. A year-on-year gross margin increase of +190bps has returned margins to the level of two
years ago while cost savings have largely offset the impact of inflation.
Group operating cash flow was broadly flat YoY as the small improvement in adjusted EBIT was offset by lower depreciation. Free
cash flow was an inflow of £82m, a +£174m improvement YoY, largely reflecting lower capital expenditure and a much-improved working
capital outflow. Total cash inflow of £193m was £334m better YoY due to the higher free cash flow, lower dividend, reduced pension
payments and the proceeds from the disposal of Kotsovolos.
Profit and Cash Flow Summary
2023/24
£m
2022/23
£m
2023/24
Adjusted
£m
2022/23
Adjusted
(restated)
£m
Reported
% change
Currency
neutral
% change
Segmental EBIT
- UK & Ireland 88 (353) 142 170 (16)% (16)%
- Nordics 29 (11) 61 26 +135% +163%
EBIT on continuing operations 117 (364) 203 196 +4% +8%
EBIT Margin 1.4% (4.1%) 2.4% 2.2% +20bps +20bps
Net interest expense on leases (59) (6 3) (59) (63) n/a
Other net finance costs (30) (35) (26) (26) n /a
Profit/(loss) before tax on continuing
operations 28 (462) 118 107 +10% +16%
Tax on continuing operations (1) (30) (31) (25)
Profit/(loss) after tax on continuing
operations 27 (492) 87 82
Profit after tax on discontinued operations 138 11
Profit after tax 165 (4 81 )
Earnings/(loss) per share on continuing
operations 2.4p (44.6)p 7.9p 7.4p +7%
Operating cash flow 246 244 +1% +5%
Operating cash flow margin 2.9% 2.7% +20bps +20bps
Cash generated from continuing operations 419 342
Free cash flow 82 (92) n/a
Net cash/(debt) 96 (97) n/a
63
Strategic Report Governance Financial Statements Investor Information
Balance sheet and capital allocation
The Group has a clear capital allocation framework:
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.
Trading over the last year, combined with the successful disposal of the Greece business, means that the Group has finished the year
with £96m net cash and a pension deficit of £171m, a net position of £(75)m. This is a more than £700m improvement compared to
before the pandemic and represents a healthy position from which the company can pay required pension contributions, invest in future
success and return cash to shareholders.
Currently, the Group continues to benefit from the relaxed bank covenants and lower pension contributions that were negotiated in
spring 2023, although pension contributions will increase to £50m this year, and capital expenditure will rise back towards normalised
levels. In this context, the Board has taken a prudent decision not to declare a dividend at this year-end. Providing trading is in line with
expectations, it is the Board’s intention to announce a recommencement of shareholder returns during the next twelve months.
Current year guidance
The Group expects to see growth in profits and free cash flow.
• Capital expenditure of around £90m, doubling YoY and returning to normalised levels.
• Net exceptional cash costs around £30m, due to lower restructuring costs.
• Pension contributions of £50m, in line with scheduled increase from £36m in 2023/24.
Other technical cashflow items:
• Depreciation & amortisation around £290m.
• Cash payments of leasing costs, debt & interest around £260m.
• Cash tax around £10m.
• Cash interest of around £20m.
2024/25 is a 53-week year. This will have a small impact on sales but immaterial impact on profits and cashflows.
Longer term guidance
The Group is continuing to target at least 3% adjusted EBIT margin. This, combined with maintained leading market share, tight discipline
on capital expenditure, controllable exceptional cash costs and working capital, is expected to deliver improving free cash flow.
The Group pension contributions are scheduled to rise to £78m in 2025/26 and for the following two years, before a final payment of
£43m in 2028/29. Pension contributions will cease ahead of schedule if the deficit falls to zero on a defined basis agreed between the
Group and the scheme trustees. The next triennial valuation date is March 2025 and the Group will work proactively with the scheme
trustees through this process to maximise value for all stakeholders.
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. 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. Further
information and definitions can be found in the Notes to the Financial Information of this report.
Unless otherwise stated, 2022/23 figures have been restated throughout this report to exclude discontinued operation.
64 Currys plc Annual Report & Accounts 2023/24
Performance review
2023/24
The business is managed and evaluated across two reporting segments, UK & Ireland and Nordics. The table below shows the combined
Group results, with further explanation following under each of the individual segments.
Following the disposal of Kotsovolos on 10 April 2024, the Greece reporting segment has been removed from current and prior year results.
Income statement
2023/24
£m
2022/23
(restated)
£m
Reported
% change
Currency
neutral
% change
Revenue 8,476 8,874 (4)% (2)%
Adjusted EBITDA 479 481 -% +3%
Adjusted EBITDA margin 5.7% 5.4% +30bps +3 bps
Depreciation on right-of-use assets (178) (179)
Depreciation on other assets (41) (46)
Amortisation (57) (60)
Adjusted EBIT 203 196 +4% +8%
Adjusted EBIT margin 2.4% 2.2% +20bps +20bps
Interest on lease liabilities (59) (6 3)
Finance income 4 2
Adjusted finance costs (30) (28)
Adjusted PBT 118 107 +10% +16%
Adjusted PBT margin 1.4% 1.2% +20bps +20bps
Adjusted tax (31) (25)
Adjusted Profit after tax on continuing operations 87 82
Adjusted EPS 7.9p 7.4p
Statutory Reconciliation
Adjusting items to EBITDA (63) (537)
EBITDA 416 (56) n/a n /a
Adjusting items to depreciation and amortisation (23) (23)
EBIT 117 (364) n /a n/a
EBIT Margin 1.4% (4 .1%) +550bps +550bps
Adjusting items to finance costs (4) (9)
PBT 28 (4 6 2) n/a n/a
Adjusting items to tax 30 (5)
Profit after tax on continuing operations 27 (492)
EPS – total 14.9p (43 . 6) p
65
Strategic Report Governance Financial Statements Investor Information
Cash flow
2023/24
£m
2022/23
(restated)
£m
Reported
% change
Currency
neutral
% change
Adjusted EBITDAR 483 491 (2)% +2%
Adjusted EBITDAR margin 5.7% 5.5% +20bps +20bps
Cash payments of leasing costs, debt & interest (247) (261)
Other non-cash items in EBIT 10 14
Operating cash flow 246 244 +1% +5%
Operating cash flow margin 2.9% 2.7% +20bps +20bps
Capital expenditure (48) (103)
Adjusting items to cash flow (48) (40)
Free cash flow before working capital 150 101 +49% +55%
Working capital (34) (127)
Segmental free cash flow 116 (26) n/a n /a
Cash tax paid (7) (40)
Cash interest paid (27) (26)
Free cash flow 82 (92) n/a n/a
Dividend – (35)
Purchase of own shares – share buyback – –
Purchase of own shares – employee benefit trust (12) (4)
Pension (36) (78)
Disposals including discontinued operations 162 22
Other (3) 46
Movement in net cash/(debt) 193 (141) n/a n/a
Net cash/(debt) 96 (97) n/a n/a
66 Currys plc Annual Report & Accounts 2023/24
Performance review
2023/24 continued
UK & Ireland
Number of stores 2023/24 2022/23
UK 282 285
Ireland 16 16
Total UK&I 298 301
Selling space ‘000 sq ft
UK 5,223 5,262
Ireland 207 207
Total UK&I 5,430 5,469
Income statement
2023/24
£m
2022/23
£m
Reported
% change
Currency
neutral
% change
Revenue 4,970 5,067 (2)% (2)%
Adjusted EBITDA 294 325 (10)% (10)%
Adjusted EBITDA margin 5.9% 6.4% (50)bps (50)bps
Depreciation on right-of-use assets (97) (98)
Depreciation on other assets (18) (21)
Amortisation (37) (36)
Adjusted EBIT 142 170 (16)% (16)%
Adjusted EBIT margin 2.9% 3.4% (50)bps (50)bps
Adjusting items to EBIT (54) (523)
EBIT 88 (353) n/a n/a
EBIT margin 1.8% (7.0%) +880bps +880bps
Cash flow
Adjusted EBITDAR 298 332 (10)% (10)%
Adjusted EBITDAR margin 6.0% 6.6% (60) bps (60)bps
Cash payments of leasing costs, debt & interest (150) (161)
Other non-cash items in EBIT 8 10
Operating cash flow 156 181 (14)% (14)%
Operating cash flow margin 3.1% 3.6% (50)bps (50)bps
Capital expenditure (22) (58)
Adjusting items to cash flow (32) (36)
Free cash flow before working capital 102 87 +17% +17%
Working capital (19) (71)
Segmental free cash flow 83 16 +419% +419%
67
Strategic Report Governance Financial Statements Investor Information
Total reported and like-for-like UK&I sales declined (2)% and the online share of business was 45%, flat YoY.
The UK market shrank (3)% during the year with the store channel reducing by around (6)% and the online market reducing by (3)%. Our
market share was down (70)bps compared to the previous year, in line with our focus on profitable sales. In higher margin areas, our
market share is stable. Mobile and services were the strongest performing categories, in line with our plans to grow our mix of recurring
revenue. Sales of major domestic appliances fell slightly, while consumer electronic and computing sales declined more steeply.
Gross margins decreased (40)bps (1H: +10bps, 2H: +(80)bps). The non-repeat of £30m mobile revaluations impacted margins by (60bps.
The underlying improvement of +20bps reflects the investment in long-term transformation activities which has yielded higher adoption
rate of credit and other services and allowed us to better monetise the improvements in our customer proposition. Alongside this,
improved understanding and analysis of the end-to-end profitability has allowed for more selective promotional activity and we have
driven £35m of cost savings within supply chain. Operating costs fell in absolute terms as wage and other inflation was offset by savings in
stores, IT, central and marketing costs. The operating expense to sales ratio worsened by (10)bps due to operating deleverage.
Adjusted EBIT decreased to £142m at 2.9% EBIT margin, down (50)bps YoY.
In the period, adjusting items to EBIT totalled £(54)m mainly due to £(11)m of restructuring charges, £(17)m of impairment losses and new
provisions related to historical regulatory matters. The cash costs in the period primarily relate to ongoing strategic change and leases
on closed properties.
2023/24
£m
2022/23
£m
P&L Cash P&L Cash
Acquisition/disposal related items (11) – (11) –
Strategic change programmes (11) (26) (8) (36)
Impairment losses and onerous contracts (17) (2) (511) –
Regulatory (13) (3) 7 –
Other (2) (1) – –
Total (54) (32) (523) (36)
Operating cash flow was down (14)% to £156m due to lower operating profit, slightly offset by lower lease costs. Capital expenditure
was down significantly compared to last year due to deliberate decision to reduce spend during the year, with £22m spent on a variety
of small-scale IT and systems upgrades. Adjusting items are described above. Working capital cash outflow was driven by iD Mobile,
offset by small inflows in the rest of the business because of internal efficiencies and sales growth in the final few months of the year.
In combination, this resulted in segmental free cash inflow of £83m, £67m higher than last year.
68 Currys plc Annual Report & Accounts 2023/24
Performance review
2023/24 continued
Nordics
Number of stores
2023/24
2022/23
Own stores Franchise stores Total Own stores Franchise stores Total
Norway 80 64 144 87 63 150
Sweden 96 76 172 99 76 175
Denmark 47 – 47 44 – 44
Finland 20 22 42 21 21 42
Other Nordics – 16 16 – 15 15
Nordics 243 178 421 251 175 426
Selling space ’000 sq ft
Own stores Franchise stores Total Own stores Franchise stores Total
Norway 1,062 654 1,716 1,100 616 1,716
Sweden 1,150 389 1,539 1,182 389 1,571
Denmark 788 – 788 734 – 734
Finland 508 196 704 520 184 704
Other Nordics – 106 106 – 105 105
Nordics 3,508 1,345 4,853 3,536 1,294 4,830
Income statement
2023/24
£m
2022/23
£m
Reported
% change
Currency
neutral
% change
Revenue 3,506 3,807 (8)% (2)%
Adjusted EBITDA 185 156 +19% +29%
Adjusted EBITDA margin 5.3% 4.1% +120bps +130bps
Depreciation on right-of-use assets (81) (81)
Depreciation on other assets (23) (25)
Amortisation (20) (24)
Adjusted EBIT 61 26 +135% +163%
Adjusted EBIT margin 1.7% 0.7% +100bps +120bps
Adjusting items to EBIT (32) (37)
EBIT 29 (11) n/a n /a
EBIT margin 0.8% (0.3%) +110bps +120bps
Cash flow
Adjusted EBITDAR 185 159 +16% +26%
Adjusted EBITDAR margin 5.3% 4.2% +110bps +120bps
Cash payments of leasing costs, debt & interest (97) (100)
Other non-cash items in EBIT 2 4
Operating cash flow 90 63 +43% +58%
Operating cash flow margin 2.6% 1.7% +90bps +100bps
Capital expenditure (26) (4 5)
Adjusting items to cash flow (16) (4)
Free cash flow before working capital 48 14 +243% +273%
Working capital (15) (56)
Segmental free cash flow 33 (4 2) n /a n/a
69
Strategic Report Governance Financial Statements Investor Information
Revenue declined by (2)% on a currency neutral basis, due to a like-for-like sales decline of (3)%.
Compared to last year, the Nordic market declined around (3)%. Our market share was 27.7%, +10bps higher than last year, with
improving trajectory throughout the year (1H: (80)bps, 2H: +100bps). Mobile and service revenues saw growth, with all other product
categories experiencing a sales decline, particularly computing and consumer electronics.
Gross margin recovered strongly, growing +190bps YoY, almost back to level of two years ago. This was driven through a better balance
of trading in a market where the inventory position and competitive intensity have normalised, but consumer spending remains subdued.
The operating expense to sales ratio worsened by (90)bps as cost inflation meant that costs increased slightly, despite the impact of
cost savings delivered across marketing, procurement, and IT expenditure.
As a result, adjusted EBIT increased +135% to £61m.
In the period, adjusting items to EBIT totalled £(32)m, with £(12)m due to the amortisation of acquisition intangibles and £(15)m of asset
impairments which have no cash impact, as well as £(5)m of restructuring costs. The cash cost of restructuring was £(16)m in the year.
2023/24
£m
2022/23
£m
P&L Cash P&L Cash
Acquisition/disposal related items (12) – (12) –
Strategic change programmes (5) (16) (18) (4)
Impairment losses and onerous contracts (15) – (7) –
Total (32) (16) (37) (4)
Operating cash flow increased by +43% to £90m, driven by the higher profit outturn. Capital expenditure was £26m, a (42)% reduction YoY
as investment was reduced in line with group policy. Significant areas of expenditure included store refits, IT transformation and the upgrades
to our Nordic Distribution Centre expansion in Jönköping. Working capital outflow was £(15)m, driven mainly by the lower sales volumes.
70 Currys plc Annual Report & Accounts 2023/24
Performance review
2023/24 continued
Finance costs
Interest on lease liabilities was £(59)m, lower than last year and in line with our overall lease commitment. 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 lower than last year due to lower interest on lease liabilities. The net cash impact of these costs
was £(27)m from £(26)m in the prior year.
The finance cost on the defined benefit pension scheme is an adjusting item and increased by £4m compared to the prior year due to
higher average interest rates.
2023/24
£m
2022/23
(Restated)
£m
Interest on lease liabilities (59) (6 3)
Finance income 4 2
Finance costs (30) (28)
Adjusted net finance costs (85) (89)
Finance costs on defined benefit pension schemes (11) (7)
Other finance costs 7 (2)
Net finance costs on continuing operations (89) (98)
Tax
The full year adjusted effective tax rate of 27% was higher than the previous year rate of 23% due to the impact of the increase of the
UK tax rate from 19% to 25% in April 2023 on current year profits. Taxation payments of £7m (2022/23: £40m) were lower due to the
settlement of previously deferred payments in the Nordics in the prior year. The cash tax rate of 6% is lower than the adjusted effective
rate of 27% primarily due to the tax impact of adjusting items, which reduce taxes payable.
2023/24
£m
2022/23
(restated)
£m
Reported
% change
Currency
neutral
% change
Operating cash flow 246 244 +1% +5%
Capital expenditure (48) (103)
Adjusting items to cash flow (48) (40)
Free cash flow before working capital 150 101 +49% +55%
Working capital and network receivables (34) (127)
Segmental free cash flow 116 (26) n/a n /a
Cash tax paid (7) (40)
Cash interest paid (27) (26)
Free cash flow 82 (92) n/a n/a
Dividend – (35)
Purchase of own shares – share buyback – –
Purchase of own shares – employee benefit trust (12) (4)
Pension (36) (78)
Disposals including discontinued operations 162 22
Other (3) 46
Movement in net cash 193 (141) n /a n/a
Opening net cash/(debt) (97) 44 n/a
Closing net cash/(debt) 96 (97) n/a n/a
Segmental free cash flow was an inflow of £116m (2022/23: outflow of £(26)m) mainly due to improvements in working capital and
lower capital expenditure as described in segmental performance above. Interest and tax outflows totalled £(34)m as described
above, resulting in free cash flow of £82m (2022/23: outflow of £(92)m).
During this period, the Group disposed of its Greece business, Kotsovolos, generating cash proceeds of £162 million, with funds received
upon completion in the final month of the year. Fees associated with the transaction were paid after the year end.
The employee benefit trust acquired £12m worth of shares to satisfy colleague share awards.
71
Strategic Report Governance Financial Statements Investor Information
Pension contributions of £36m (2022/23: £78m) were in line with the contribution plan agreed with the pension fund trustees at the
previous triennial review.
Other movements relate to currency translation differences due to movements on foreign net debt across multiple currencies.
The closing net cash position was £96m, compared to a net debt position of £(97)m at 29 April 2023.
Balance sheet
The prior year balance sheet is shown including and excluding Greece. The commentary below refers to the balance sheet movements
excluding any impact from the disposal of Greece.
27 April 2024
Group
£m
29 April 2023
Group
excluding
Greece
£m
29 April 2023
Group
£m
Goodwill 2,237 2,270 2,270
Other fixed assets 1,156 1,385 1,500
Working capital (163) (220) (230)
Net cash/(debt) 96 (170) (97)
Net lease liabilities (999) (1,143) (1,228)
Pension (171) (248) (249)
Deferred tax 8 4 8
Provisions (72) (48) (4 8)
Income tax payable (20) (33) (34)
Net assets 2,072 1,797 1,892
Goodwill decreased £(33)m as currency revaluations impacted goodwill allocated to Nordics.
Other fixed assets decreased by £(229)m, as reduced capital expenditure and lease additions were more than offset by impairments,
depreciation and amortisation.
27 April 2024
Group
£m
29 April 2023
Group
excluding
Greece
£m
29 April 2023
Group
£m
Inventory 1,034 1,004 1,151
Trade Receivables 195 261 299
Trade Payables (1,180) (1,248) (1,439)
Trade working capital 49 17 11
Network commission receivables and contract assets 66 116 116
Network accrued income 187 105 105
Network receivables 253 221 221
Other Receivables 269 207 259
Other Payables (743) (675) (731)
Derivatives 9 10 10
Working capital (163) (220) (230)
At year-end, total working capital was £(163)m (29 April 2023: £(220)m). Group inventory was £1,034m, +3% higher than last year, due
primarily to an increase in mobile stock to support strong demand. Stock days remained flat year-on-year at 61. Trade payable days
slightly improved to 74 (2022/23: 73) since 29 April 2023, trade payables decreased by £68m to £(1,180)m (29 April 2023: £(1,248)m).
Total network receivables increased £32m due to growth of iD Mobile.
The majority of the movement in other receivables and other payables is due to a reclassification between the two balances, with the
net payable increase of £(6)m driven by lower contract assets and an increase in accruals.
Lease liabilities have reduced by £(144)m against 29 April 2023 due to the closure of stores and reduction in rents at lease renewals.
72 Currys plc Annual Report & Accounts 2023/24
Performance review
2023/24 continued
The IAS 19 accounting deficit of the defined benefit pension scheme amounted to £171m (30 April 2023: £248m). The reduction of £77m
during the period was primarily driven by £36m of contributions and £46m due to updated assumptions on longevity and commutation.
The application of a higher discount rate was favourable for the deficit, but this was entirely offset by a lower return on assets as the
asset portfolio is structured to materially hedge the scheme’s funding position against movements in the discount rate.
As agreed during the last triennial valuation, pension contributions will rise to £50m in 2024/25 and to £78m per annum for the following
three years, 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 £12m for
2024/25 and above £60m for 2025/26 onwards will be matched by additional contributions to the pension scheme.
27 April 2024
£m
29 April 2023*
£m
30 April 2022*
£m
Net cash/(debt) 96 (97) 44
Restricted cash (36) (30) (30)
Net lease liabilities (999) (1,228) (1,263)
Pension liability (171) (249) (257)
Total closing indebtedness (1,110) (1,604) (1,506)
Less: year-end net cash/(debt) (96) 97 (4 4)
Add: average net cash/(debt) (69) (96) 290
Total average indebtedness (1,275) (1,603) (1,260)
27 April 2024
£m
29 April 2023*
£m
30 April 2022*
£m
Operating cashflow 246 268 375
Cash payments of leasing costs, debt & interest 247 283 263
Operating cash flow plus cash payments of leasing 493 551 638
Bank covenant ratios
Fixed charges (cash lease costs + cash interest) 274 309 280
Fixed charge cover 1.80x 1.78x 2.28x
Net cash excluding restricted funds 60 (127) 14
Net debt leverage (0.24)x 0.47x (0.04)x
Net indebtedness ratios
Fixed charges (cash lease costs + cash interest + pension contributions) 310 387 358
Total indebtedness fixed charge cover 1.59x 1.42x 1.78x
Total closing indebtedness (1,110) (1,604) (1,506)
Total indebtedness leverage 2.25x 2.91x 2.36x
* The prior year figures have not been restated for the disposal of Kotsovolos as these calculations are consistent with the covenants in place at the time
At 27 April 2024 the Group had a net cash position of £96m (2022/23: net debt £(97)m) and average net debt for the year of £(69m
(2022/23: average net debt £(96)m). The Group has access to £493m across two longer term revolving credit facilities that expire in
April 2026, and two additional short-term credit facilities totalling £134m that expire in October 2024, taking total available credit from
revolving credit facilities to £627m. The covenants on the debt facilities are net debt leverage <2.5x and fixed charge cover >1.75x. In April
2023 the Group’s supportive lending syndicate agreed to relax the fixed charge cover covenant to >1.5x until after the October 2024
measurement date.
The deferred tax asset remained at £8m in the year and related primarily to the Nordics business. The potential UK deferred tax asset
remained de-recognised in the year, which has been prudently assessed based on the current macroeconomic uncertainty.
Provisions primarily relate to property, reorganisation and sales provisions. The balance increased by £24m during the year due to
additions for new provisions related to historical regulatory matters, and reclassification of balances related to insurance claim
liabilities and commercial clawbacks.
73
Strategic Report Governance Financial Statements Investor Information
Comprehensive income/changes in equity
Total equity for the Group increased from £1,892m to £2,072m in the period, driven by profit after tax of £165m, the actuarial gain (net of
taxation) on the defined benefit pension deficit for the UK pensions scheme of £57m, hedging gains of £4m and movements in relation to
share schemes of £8m. This was partially offset by £(42)m for the translation of overseas operations and purchase of own shares by the
EBT of £(12)m.
Share count
The weighted average number of shares used for basic earnings increased by 2m to 1,106m due to 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 increased as some schemes improved performance against
vesting conditions.
27 April 2024
Million
29 April 2023
Million
Weighted average number of shares
Average shares in issue 1,133 1,133
Less average holding by Group EBT and treasury shares held by Company (27) (29)
For basic earnings/(loss) per share 1,106 1,104
Dilutive effect of share options and other incentive schemes 22 20
For diluted earnings/(loss) per share 1,128 1,124
Approval of Strategic Report
This Strategic Report was approved by the Board and
signed on its behalf by:
Alex Baldock
Group Chief Executive
26 June 2024
74 Currys plc Annual Report & Accounts 2023/24
Compliance with the UK Corporate
Governance Code 2018 (the ‘Code’)
The Board confirms that throughout the year ended 27 April 2024
and as at the date of this report, the Company applied the
principles of, and was fully compliant with the provisions of
the Code.
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 81
Division of Responsibilities Page 85
Composition, Succession and Evaluation Page 87
Audit, Risk and Internal Control Page 90
Remuneration Page 109
Board highlights from 2023/24
• Conducted a strategic review and approved the sale of the
Company’s Greek and Cyprus business, Kotsovolos, to Public
Power Corporation S.A.
• Continued enhanced focus on the Nordics business with
increased frequency of deep dive updates and country visits.
• Received updates from the Nominations Committee on Board
succession planning and recruitment and approved the
appointment of Octavia Morley, Senior Independent Director.
• Oversight of the strategic partnership with Infosys to continue to
develop a world class business services capability.
• Received deep dive updates including on the Company’s
Nordic business, credit strategy, customer experience, talent and
leadership succession planning, circular business and services.
• Evaluated strategic profit levers, cost savings and new sources
of growth.
• Received updates from the Company’s brokers on shareholder
feedback, market sentiment and takeover offers received.
Governance
at a glance
Board meeting attendance in 2023/24
Directors Meetings attended
Alex Baldock
Eileen Burbidge MBE
(1)
Ian Dyson
Magdalena Gerger
(1), (2)
Bruce Marsh
Fiona McBain
(1), (2)
Octavia Morley
(3)
Gerry Murphy
(1)
Adam Walker
(1),(4)
Company Secretary Meetings attended
Nigel Paterson
(1) Five directors were absent from a Board meeting that was scheduled at very short
notice to consider the takeover offer received from Elliot Advisors (UK) Limited on
15 February 2024. The five directors that were unable to attend the meeting each
provided their input to the Chair of the Board in advance of the meeting.
(2) Fiona and Magdalena were absent from a Board meeting convened at short notice
to approve the final transaction documents for the disposal of the Company’s
business in Greece. Both provided their input on the approval request to the Chair in
advance of the meeting and attended all other Board meetings that considered the
sale of Kotsovolos.
(3) Octavia Morley attended the only scheduled Board meeting since her appointment
on 1 April 2024.
(4) Adam Walker attended all scheduled Board meetings since his appointment on
8 June 2023.
Steve Johnson (52)
Independent Non-Executive
Director
After the end of the financial year, Steve
Johnson joined the Board as a non-executive
director and a member of the Company’s Audit
Committee on 1 June 2024.
Steve has been CEO of N Brown Group Plc
(‘N Brown’) since February 2019 and Interim
Executive Chair since May 2024. He joined
N Brown in February 2016, was appointed as
CEO of the Finance Services Operating Board
in November 2017 and then as Interim CEO in
September 2018. He joined N Brown from Shop
Direct Group Limited where he was Financial
Services Marketing and Product Director. Prior
to that, he held various senior executive roles
at Sainsbury’s and Halifax.
Steve has strong online retail and financial
services expertise and will seek election by
shareholders at the Company’s Annual General
Meeting in September 2024.
75
Strategic Report Governance Financial Statements Investor Information
2
22.2%
1
11.1%
6
66.7%
5
55.6%
4
44.4%
2
28.6%
4
57.1%
1
14.3%
1
11.1%
8
88.9%
0-3 years
3-6 years
Over 6 years
Female
Male
Executive
Chair of the Board
Non-executive directors
Ethnic minority group
White ethnic group
Balance of the BoardBoard diversity by gender Non-executive director tenureBoard diversity by ethnicity
Board composition at 27 April 2024
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
Magdalena Gerger
Independent Non-Executive
Director
Steve Johnson
Independent Non-Executive
Director
Fiona McBain
Independent Non-Executive
Director and Audit Committee
Chair
Octavia Morley
Senior Independent Director and
Remuneration Committee Chair
Gerry Murphy
Independent Non-Executive
Director
Adam Walker
Independent Non-Executive
Director
Alex Baldock
Group Chief Executive
Bruce Marsh
Group Chief Financial Officer
General retailing experience
3 2 3 3 3 3 2 1 3 3
E-commerce
2 2 2 3 2 2 3 2
Commercial/supplier management
1 1 3 2 1 3 1 1 2 2
Supply chain/logistics
1 1 2 2 2 1 1 2 2
Environment including climate change
2 2 2 2 1 1 1 1 2 1
Social impact in communities
1 3 3 2 2 1 2
Strategy (development and implementation)
3 2 3 3 3 3 3 3 3 3
Accounting, finance and audit
3 1 1 2 3 2 3 3 2 3
Corporate transactions
3 3 2 3 1 3 3 3 2
Risk management
3 2 3 3 2 3 3 3 2
Listed company governance
3 2 2 3 3 2 3 2 2
Remuneration
2 1 2 2 3 2 2 2 2
Compliance/Regulatory
2 2 2 3 1 2 2 2 1
People/corporate culture/organisational
design
2 3 3 2 2 3 1 2 2 2
IT and technology
1 3 1 2 2 1 2 2 2 2
Marketing/advertising
1 2 3 2 2 2 1 1 2 1
Consumer financial services
1 3 3 3 2 2 3 2
International businesses
2 2 3 1 1 1 1 3 3 1
Current executive leadership
N Y N Y N N N N Y Y
76 Currys plc Annual Report & Accounts 2023/24
Board of directors
Ian Dyson (62)
Chair of the Board
C
Octavia Morley (56)
Senior Independent
Director
C
Alex Baldock (53)
Group Chief Executive
Bruce Marsh (56)
Group Chief
Financial Officer
C
Magdalena Gerger (60)
Independent
Non-Executive Director
Eileen Burbidge MBE (52)
Independent
Non-Executive Director
C
Fiona McBain (63)
Independent
Non-Executive Director
C
Gerry Murphy (71)
Independent
Non-Executive Director
Adam Walker (56)
Independent Non-
Executive Director
Nigel Paterson (57)
General Counsel and
Company Secretary
Appointed
September 2022
Appointed
April 2024
Appointed
April 2018
Appointed
July 2021
Appointed
May 2023
Appointed
January 2019
Appointed
March 2017
Appointed
April 2014
Appointed
June 2023
Appointed
April 2015
Current external roles
Non-executive director of JD
Sports Fashion plc.
Current external roles
Senior independent director
and remuneration committee
Chair of Crest Nicholson
Holdings plc and Marstons plc,
non-executive director
of Ascensos Limited and chair
of Banner Group Limited.
Current external roles
Non-executive director
of RS Group plc including
membership of the audit and
remuneration committees.
Current external roles
None.
Current external roles
Non-executive director of
Peab AB and Investor AB, chair
of Nefab Group and Colart
Group Holdings Limited, and
Chair of the British Swedish
Chamber of Commerce.
Current external roles
Eileen co-founded Passion
Capital in 2011 where she is a
partner and represents as non-
executive/investor director at
Monzo Bank and Marshmallow
along with several other
Passion Capital portfolio
companies.
Current external roles
Non-executive director and
investment committee chair of
Direct Line Insurance Group
plc and senior independent
director and audit committee
chair at Monzo Bank Limited.
Current external roles
Non-executive director and
audit committee chair of
Capital & Regional plc and
non-executive board member
of the Department of Health
and Social Care.
Current external roles
Non-executive director and
chair of the Audit Committee
of J Murphy & Sons Limited.
Non-executive chairman
of Indra Renewables
Technology Limited.
Current external roles
None.
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 non-
executive roles include chair
of ASOS plc, non-executive
director, and audit committee
chair, of InterContinental Hotels
Group plc, non-executive
director of SSP Group plc
and senior independent non-
executive director of Flutter
Entertainment plc.
Ian was 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.
Skills: Octavia has extensive
experience in the retail sector
in chief executive officer,
non-executive director and
chair of the remuneration
committee roles.
Experience: Octavia formerly
held non-executive director
roles at Card Factory plc and
John Menzies PLC. She has
held various senior operational
and strategic roles across all
areas of retail at companies
including Asda Stores Limited,
Laura Ashley Holdings plc and
Woolworths plc. Octavia was
chief executive officer, and
then chair, of LighterLife UK
Limited, chief executive of
OKA Direct Limited and
managing director of Crew
Clothing Co Limited.
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. His past
roles include chief executive
officer of Shop Direct,
managing director of Lombard,
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’s past roles
include finance director, UK &
Ireland at Tesco plc, managing
director of Kingfisher Future
Homes and group strategy
director at Kingfisher plc.
Previously, Bruce held several
senior finance roles at Dixons
Retail plc.
Skills: Magdalena has an
MBA from Stockholm School
of Economics. She has over
20 years’ non-executive
director experience, strong
marketing experience and
extensive international business
knowledge, particularly of the
Nordics markets.
Experience: Magdalena’s
past roles include president
and chief executive officer
of Systembolaget, senior
vice president of Arla Foods,
category head for Nescafe
and Retail Coffee at Nestle
UK, UK marketing director at
Tambrands (now Proctor &
Gamble) and ICI Paints. Her
past roles include chair of
the Business Council of The
Royal Swedish Academy of
Engineering Sciences, and
non-executive director of Ingka
Holding BV (IKEA), Husqvarna
AB and Ahlsell AB.
Skills: Eileen has a strong
technology background and
is a leader in the development
of the UK’s fintech and broader
digital technology industries.
She brings a constructive,
challenging, and balanced
perspective to the Board with
a focus on tech innovation,
value creation and an informed
perspective on the digital
consumer and ESG matters.
Eileen is a strong advocate
for a range of social impact
issues including increasing the
number of females and other
under-represented groups in
business, 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, 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
40 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 chief executive
officer and chair.
Experience: Fiona’s past
roles include chair of Scottish
Mortgage Investment Trust
plc and several senior roles
including chief executive officer
of Scottish Friendly Group.
Fiona 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’s past
roles include non-executive
director then senior
independent director of
Capital & Counties Properties
PLC. 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: Adam is a chartered
accountant. He brings to
the Board his extensive
finance experience and is an
experienced executive and
non-executive board director.
Experience: Adam past
executive roles include
executive vice president and
chief financial officer of IHS
Holdings Limited (IHS Towers),
chief financial officer of GKN
plc, group finance director
at Informa PLC, and finance
director at National Express
Group plc. His past non-
executive roles include non-
executive and audit committee
chair of Tritium DCFC and
non-executive director and
chair of the audit committee
of Kier Group plc. Adam is also
Deputy Chairman of the Matt
Hampson Foundation, a charity
focused on young people who
have undergone a life changing
injury through sport.
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
10/10
Board Meeting Attendance
1/1
Octavia was appointed shortly
prior to the end of the financial
year and attended the April
2024 Board meeting.
Board Meeting Attendance
10/10
Board Meeting Attendance
10/10
Board Meeting Attendance
8/10
Absent from two Board
meetings scheduled at short
notice to consider a takeover
offer received and to approve
final transaction documents for
the disposal of Kotsovolos. She
provided input to the Chair in
advance of the meetings.
Board Meeting Attendance
9/1 0
Eileen missed one Board
meeting scheduled at short
notice to consider a takeover
offer received. She provided
input on the proposal to the
Chair of the Board in advance
of the meeting.
Board Meeting Attendance
8/10
Absent from two Board
meetings scheduled at short
notice to consider a takeover
offer received and to approve
final transaction documents for
the disposal of Kotsovolos. She
provided input to the Chair in
advance of the meetings.
Board Meeting Attendance
9/1 0
Gerry missed one Board
meeting scheduled at short
notice to consider a takeover
offer received. He provided
input on the proposal to the
Chair of the Board in advance
of the meeting.
Board Meeting Attendance
8/9
Adam attended all scheduled
Board meetings following his
appointment. Absent from
one Board meeting scheduled
at short notice to consider a
takeover offer received. He
provided input to the Chair in
advance of the meeting.
Board Meeting Attendance
10/10
Committee membership
Audit Committee
Disclosure Committee
Nominations Committee
Remuneration Committee
ESG Committee
C
Committee Chair
77
Strategic Report Governance Financial Statements Investor Information
Ian Dyson (62)
Chair of the Board
C
Octavia Morley (56)
Senior Independent
Director
C
Alex Baldock (53)
Group Chief Executive
Bruce Marsh (56)
Group Chief
Financial Officer
C
Magdalena Gerger (60)
Independent
Non-Executive Director
Eileen Burbidge MBE (52)
Independent
Non-Executive Director
C
Fiona McBain (63)
Independent
Non-Executive Director
C
Gerry Murphy (71)
Independent
Non-Executive Director
Adam Walker (56)
Independent Non-
Executive Director
Nigel Paterson (57)
General Counsel and
Company Secretary
Appointed
September 2022
Appointed
April 2024
Appointed
April 2018
Appointed
July 2021
Appointed
May 2023
Appointed
January 2019
Appointed
March 2017
Appointed
April 2014
Appointed
June 2023
Appointed
April 2015
Current external roles
Non-executive director of JD
Sports Fashion plc.
Current external roles
Senior independent director
and remuneration committee
Chair of Crest Nicholson
Holdings plc and Marstons plc,
non-executive director
of Ascensos Limited and chair
of Banner Group Limited.
Current external roles
Non-executive director
of RS Group plc including
membership of the audit and
remuneration committees.
Current external roles
None.
Current external roles
Non-executive director of
Peab AB and Investor AB, chair
of Nefab Group and Colart
Group Holdings Limited, and
Chair of the British Swedish
Chamber of Commerce.
Current external roles
Eileen co-founded Passion
Capital in 2011 where she is a
partner and represents as non-
executive/investor director at
Monzo Bank and Marshmallow
along with several other
Passion Capital portfolio
companies.
Current external roles
Non-executive director and
investment committee chair of
Direct Line Insurance Group
plc and senior independent
director and audit committee
chair at Monzo Bank Limited.
Current external roles
Non-executive director and
audit committee chair of
Capital & Regional plc and
non-executive board member
of the Department of Health
and Social Care.
Current external roles
Non-executive director and
chair of the Audit Committee
of J Murphy & Sons Limited.
Non-executive chairman
of Indra Renewables
Technology Limited.
Current external roles
None.
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 non-
executive roles include chair
of ASOS plc, non-executive
director, and audit committee
chair, of InterContinental Hotels
Group plc, non-executive
director of SSP Group plc
and senior independent non-
executive director of Flutter
Entertainment plc.
Ian was 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.
Skills: Octavia has extensive
experience in the retail sector
in chief executive officer,
non-executive director and
chair of the remuneration
committee roles.
Experience: Octavia formerly
held non-executive director
roles at Card Factory plc and
John Menzies PLC. She has
held various senior operational
and strategic roles across all
areas of retail at companies
including Asda Stores Limited,
Laura Ashley Holdings plc and
Woolworths plc. Octavia was
chief executive officer, and
then chair, of LighterLife UK
Limited, chief executive of
OKA Direct Limited and
managing director of Crew
Clothing Co Limited.
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. His past
roles include chief executive
officer of Shop Direct,
managing director of Lombard,
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’s past roles
include finance director, UK &
Ireland at Tesco plc, managing
director of Kingfisher Future
Homes and group strategy
director at Kingfisher plc.
Previously, Bruce held several
senior finance roles at Dixons
Retail plc.
Skills: Magdalena has an
MBA from Stockholm School
of Economics. She has over
20 years’ non-executive
director experience, strong
marketing experience and
extensive international business
knowledge, particularly of the
Nordics markets.
Experience: Magdalena’s
past roles include president
and chief executive officer
of Systembolaget, senior
vice president of Arla Foods,
category head for Nescafe
and Retail Coffee at Nestle
UK, UK marketing director at
Tambrands (now Proctor &
Gamble) and ICI Paints. Her
past roles include chair of
the Business Council of The
Royal Swedish Academy of
Engineering Sciences, and
non-executive director of Ingka
Holding BV (IKEA), Husqvarna
AB and Ahlsell AB.
Skills: Eileen has a strong
technology background and
is a leader in the development
of the UK’s fintech and broader
digital technology industries.
She brings a constructive,
challenging, and balanced
perspective to the Board with
a focus on tech innovation,
value creation and an informed
perspective on the digital
consumer and ESG matters.
Eileen is a strong advocate
for a range of social impact
issues including increasing the
number of females and other
under-represented groups in
business, 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, 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
40 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 chief executive
officer and chair.
Experience: Fiona’s past
roles include chair of Scottish
Mortgage Investment Trust
plc and several senior roles
including chief executive officer
of Scottish Friendly Group.
Fiona 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’s past
roles include non-executive
director then senior
independent director of
Capital & Counties Properties
PLC. 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: Adam is a chartered
accountant. He brings to
the Board his extensive
finance experience and is an
experienced executive and
non-executive board director.
Experience: Adam past
executive roles include
executive vice president and
chief financial officer of IHS
Holdings Limited (IHS Towers),
chief financial officer of GKN
plc, group finance director
at Informa PLC, and finance
director at National Express
Group plc. His past non-
executive roles include non-
executive and audit committee
chair of Tritium DCFC and
non-executive director and
chair of the audit committee
of Kier Group plc. Adam is also
Deputy Chairman of the Matt
Hampson Foundation, a charity
focused on young people who
have undergone a life changing
injury through sport.
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
10/10
Board Meeting Attendance
1/1
Octavia was appointed shortly
prior to the end of the financial
year and attended the April
2024 Board meeting.
Board Meeting Attendance
10/10
Board Meeting Attendance
10/10
Board Meeting Attendance
8/10
Absent from two Board
meetings scheduled at short
notice to consider a takeover
offer received and to approve
final transaction documents for
the disposal of Kotsovolos. She
provided input to the Chair in
advance of the meetings.
Board Meeting Attendance
9/1 0
Eileen missed one Board
meeting scheduled at short
notice to consider a takeover
offer received. She provided
input on the proposal to the
Chair of the Board in advance
of the meeting.
Board Meeting Attendance
8/10
Absent from two Board
meetings scheduled at short
notice to consider a takeover
offer received and to approve
final transaction documents for
the disposal of Kotsovolos. She
provided input to the Chair in
advance of the meetings.
Board Meeting Attendance
9/1 0
Gerry missed one Board
meeting scheduled at short
notice to consider a takeover
offer received. He provided
input on the proposal to the
Chair of the Board in advance
of the meeting.
Board Meeting Attendance
8/9
Adam attended all scheduled
Board meetings following his
appointment. Absent from
one Board meeting scheduled
at short notice to consider a
takeover offer received. He
provided input to the Chair in
advance of the meeting.
Board Meeting Attendance
10/10
78 Currys plc Annual Report & Accounts 2023/24
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 73, the Corporate Governance Report
on pages 81 to 93, together with this Directors’ Report on pages 78 to 80. 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 as at the date of
this report are provided on pages 74, 76 and 77. During the year,
Andrea Gisle Joosen stepped down as a non-executive director
of the Board on 6 July 2023. On 1 May 2023, Magdalena Gerger
was appointed as a non-executive director of the Board and on
8 June 2023, Adam Walker was appointed as a non-executive
director of the Board.
Octavia Morley was appointed as non-executive director of
the Board and a member of the Remuneration, Nominations
and ESG Committees on 1 April 2024. Octavia then succeeded
Tony DeNunzio as Senior Independent Director and Chair of the
Remuneration Committee when he stepped down from the Board
on 25 April 2024.
After the end of the financial year, Steve Johnson was appointed
as a non-executive director on 1 June 2024.
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, 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 141.
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 142.
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 141. 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
27 April 2024. Details of the final and interim dividends for the
year are included in the below table.
As at 26 June 2024, the Company’s Employee Benefit Trust (‘EBT’)
held 41,928,860 ordinary shares. The right to receive dividends
is waived by the trustees of the EBT each year and for 2023/24
would have been waived in respect of the balance of shares
held as at the final dividend record date in August 2024.
Year ended
27 April 2024
Year ended
29 April 2023
Interim dividend nil 1.00p
Final dividend nil nil
Total dividends nil 1.00p
79
Strategic 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 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 141.
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 32 to 53. 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 20 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 27 April 2024, the EBT held
41,958,176 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.
80 Currys plc Annual Report & Accounts 2023/24
Directors’
report continued
Significant shareholdings
As at 27 April 2024, 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 158,247,622 13.96%
Frasers Group Plc 126,655,579 11.17%
Cobas Asset Management 104,105,111 9.18%
Schroders plc 59,677,996 5.26%
Ruane Cunniff (Wishbone
Management LP) 57,000,000 5.03%
Artemis Investment Management LLP 56,419,795 4.98%
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 42,958,662 3.79%
Odey Asset Management LLP 31,851,616 2.81%
The Goldman Sachs Group, Inc. 42,934,022 3.78%
On 18 June 2024, The Goldman Sachs Group, Inc disclosed a
holding of 35,349,774 shares or 3.12%.
On 24 June 2024, Frasers Group Plc disclosed a holding of
123,655,000 shares or 10.90% and Ruane Cunniff (Wishbone
Management LP) disclosed that their holding had fallen below 5%.
On 26 June 2024, 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 124
to 141.
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 2023, 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 28 October 2024, or, if earlier,
until the conclusion of the Company’s Annual General Meeting
(‘AGM’) in 2024. The Company will seek the usual renewal of this
authority at the AGM 2024.
Purchase of own shares
Authority was given by the shareholders at the annual general
meeting in 2023 to purchase a maximum of 113,349,465 shares,
such authority remaining valid until 28 October 2024, or, if earlier,
until the conclusion of the Company’s AGM in 2024. 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 2024.
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 28 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 2023/24
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 2024.
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
26 June 2024
81
Strategic Report Governance Financial Statements Investor Information
Corporate governance
report
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 (the ‘Code’).
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 73. 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 2024, non-executive directors met privately with
representatives of the UK & Ireland and International Colleague
Forum to learn more about the key 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 in UK and the Kampus event in Nordics. The Board also visit
key sites and stores. The June and October 2023 and March
2024 Board meetings were held in the Nordics and included store
visits and the opportunity to meet office and 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 –
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.
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. A wider Group Leadership
Team of approximately 85 colleagues support the Executive
Committee in driving the management agenda.
The Risk Committee comprises the members of the Executive
Committee and oversees the management of principal and
emerging risks (see page 90 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 ESG Committee (see
page 107 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.
82 Currys plc Annual Report & Accounts 2023/24
Currys plc Board Audit Committee
Disclosure Committee
Nominations Committee
Remuneration Committee
ESG Committee
Executive Committee
Main operating
subsidiaries
Group Sustainability
Leadership Team
Risk Committee
Regulatory Compliance Committee
Product Governance Committee
Corporate governance
report continued
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 16 January 2024 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
• Conducted a strategic review and approved the sale of the
Company’s Greek and Cyprus business, Kotsovolos, to Public
Power Corporation S.A.
• Continued enhanced focus on the Nordics business with
increased frequency of deep dive updates and country visits.
• Received updates from the Nominations Committee on Board
succession planning and the process to recruit a new Senior
Independent Director and approved the appointment of
Octavia Morley.
• Oversight of the strategic partnership with Infosys to continue
to develop a world class business services capability.
• Received deep dive updates including on the Company’s Nordic
business, credit strategy, customer experience, talent and
leadership succession planning, circular business and services.
• Evaluated strategic profit levers, cost savings and new sources
of growth.
• Received updates from the Company’s brokers on shareholder
feedback, market sentiment and takeover offers received.
The Board and committees structure
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Strategic Report Governance Financial Statements Investor Information
Board activities during 2023/24
Strategy
• Oversight of Group performance against
strategy and delivery of transformation
projects.
• Strategic review of the Group’s business
in Greece.
• Nordics business deep dives.
• Services business deep dive.
• Credit business deep dive.
• Global Business Services updates.
• Online update.
• Generative AI training and 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.
• Tax strategy.
• Budget approval.
• Three-year plan approval.
• New sources of profitable growth
updates.
• Capital expenditure approvals.
• Financing and capital allocation update.
Committee updates
• Detailed updates from each Committee Chair – Audit, Disclosure, ESG, Nominations and
Remuneration – following committee meetings.
Stakeholders
Customers
• Customer experience deep dive.
• Customer feedback and metrics.
• Consumer Duty updates.
Shareholders
• Annual general meeting documents.
• Investor Relations updates.
• Updates from the Company’s brokers on
market sentiment and investor feedback.
• Feedback from the Chair on meetings with
the Company’s major shareholders.
• General Meeting held on 21 November
2023 for approval of the sale of
Kotsovolos, the Company’s business in
Greece – 99.99% support received.
• Feedback from shareholder consultation
on Directors’ Remuneration Report
(following receiving below 80% support
for the resolution at the annual general
meeting in September 2023).
Colleagues
• Meeting of the non-executive directors
with UK & Ireland and International
Colleague Forum representatives in
January 2024.
• Health and safety update.
• Talent, succession planning and
leadership.
• Inclusion, diversity, culture and values
update.
• Colleague engagement and colleague
listening updates.
• Gender pay gap reporting.
Communities and
environment
• Modern slavery update and statement.
• ESG update.
• Update on the Circular business plans
and strategy.
• ESG measures in bonus scorecard metrics
for 2024/25.
Governance and risk
• Risk framework and internal control review.
• Principal risks and uncertainties review.
• 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.
84 Currys plc Annual Report & Accounts 2023/24
Corporate governance
report continued
Communication with investors
The Board supports the initiatives set out in the Code and the
UK Stewardship Code 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. 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.
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. 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 16 to 19.
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.
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Division of
responsibilities
Board structure
At the end of the financial year, the Board was comprised of two
executive directors, six independent non-executive directors and
the Chair of the Board.
During the financial year, Andrea Gisle Joosen and Tony DeNunzio
stepped down from the Board on 6 July 2023 and 25 April 2024
respectively. Magdalena Gerger, Adam Walker and Octavia
Morley joined the Board on 1 May 2023, 8 June 2023, and 1 April
2024 respectively.
The Board size temporarily increased to ten twice during the
financial year as part of the execution of an orderly succession
plan including the handover of the Senior Independent Director
and Chair of the Remuneration Committee roles to Octavia Morley.
After the end of the financial year, Steve Johnson joined the
Board on 1 June 2024. On 5 September 2024 the Board size will
reduce back to nine directors with Fiona McBain stepping down
from the Board after serving over 7 years as a director.
There is a clear division of responsibilities between the executive
leadership of the business and the leadership of the Board and
no individual or group is able to dominate Board decision-making.
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
16 January 2024 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.
86 Currys plc Annual Report & Accounts 2023/24
Corporate governance
report continued
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 2023/24 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 74. There were no absences from
any scheduled Board or committee meetings during the year. Five
directors were unable to attend a meeting convened at very short
notice to consider a takeover offer received by the Company and
two directors were unable to attend a meeting to approve the
final transaction documents for the disposal of the Company’s
business in Greece, but each of these directors provided their input
to the Chair of the Board prior to these meetings.
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 at least 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 June 2023 Board meeting was held at the Group’s offices
in Oslo, Norway and the visit included dinner with the then newly
appointed Nordics CEO, Fredrik Tønnesen. The October 2023
Board meeting was held at the Group’s distribution centre in
Jönköping, Sweden and the visit included a dinner with the local
management team and tour of the warehouse facilities. The
March 2024 Board meeting was held at the Company’s offices in
Copenhagen, Denmark and included a store visits, presentations
from store colleagues and lunch with the Danish leadership team.
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Strategic Report Governance Financial Statements Investor Information
Composition, succession
and evaluation
Board composition and independence
At year end, the Board comprised nine members: the Chair of
the Board, two executive directors and six independent non-
executive directors. At the date of this report, Gerry Murphy
has been a director for over nine years. The Nominations
Committee considers the criteria set out in the Code when
considering independence, including that exceeding a nine-
year tenure can potentially impact independence. However,
the Nominations Committee and Board considered the Code,
director performance as well as contributions made during Board
deliberations during the year. The Board concluded that each
non-executive director, including Gerry Murphy, is independent in
character and judgement and provides effective challenge to the
Board. Biographical information for Board members is available
on pages 74,76 and 77.
More than half of the Board (excluding the Chair of the Board,
Ian Dyson) 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 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 Fiona
McBain will stand for re-election or election at the Company’s
AGM 2024. Biographical information for each of the directors
submitting themselves for election or re-election is shown on
pages 74, 76 and 77.
Board succession and changes to the Board
During the year, Andrea Gisle Joosen stepped down from the
Board on 6 July 2023, Magdalena Gerger joined the Board on
1 May 2023, Adam Walker joined the Board on 8 June 2023,
Octavia Morley joined the Board on 1 April 2024 and Tony
DeNunzio stepped down from the Board on 25 April 2024. Steve
Johnson, was appointed as a non-executive director after the
end of the financial year on 1 June 2024 and his biography is on
page 74.
Andrea Gisle Joosen had been on the Board since August 2014
and had served for over nine years. Tony DeNunzio had been
on the Board since December 2015, and had served for over
eight years.
At the end of the financial year, the average director tenure was
three years.
The Board, with the support of the Nominations Committee,
completed searches during the year to identify suitable candidates
that had significant experience of the Nordics markets, financial
services expertise, and appropriate experience to take over
as Senior Independent Director and Chair of the Remuneration
Committee. The board composition discussions included considering
longer-term succession plans and the Board skills matrix.
After the year end, Fiona McBain will step down as a director at
the Company’s Annual General Meeting on 5 September 2024 by
which time Fiona will have served for over seven years.
Further information on Board succession planning is available in
the Nominations Committee report on pages 104 to 106.
In respect of senior management succession planning, the Board
received a detailed talent review updates at the Board meetings
in July and December 2023. 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
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 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.
Each of the follow up actions from 2022/23 has been successfully
implemented. The Board completed two extra Nordics visits in
June 2023 and March 2024 and now receives business updates
that cover UK&I and Nordics at each meeting. Three new non-
executive directors including a new Senior Independent Director
were recruited during the year and the Board was updated on
progress with the search. During the year, directors received training
on Generative AI, the wholesale business model in Nordics and on
directors duties under the UK Listing Rules.
88 Currys plc Annual Report & Accounts 2023/24
Corporate governance
report continued
2023/24 process
The 2023/24 process was also conducted internally and 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.
In conclusion, 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 and respond effectively to
any problems or challenges that emerge;
• the Board is provided with the secretarial support, policies,
processes and resources required to be able to function
effectively;
• communications between the Board and the management
team are appropriate and effective;
• 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.
The Board considered the results of the process at the meeting
held on 25 April 2024. The following actions were agreed:
• ensure the Board continue to have increased oversight of
the Nordics;
• ensure the Board continue to spend sufficient time on
management succession planning;
• increase the consistency of the format and quality of board
and committee papers and ensure the level of detail included
in meeting papers is appropriate; and
• continue to provide appropriate Director training and updates.
The Code recommends that the performance of the Board be
reviewed externally every three years and the last external
evaluation of the Board was carried out in 2021/22. In compliance
with the Code, an externally facilitated Board effectiveness
review will be completed during the 2024/25 financial year.
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. Octavia Morley, as the new
Senior Independent Director, will meet privately with the non-
executive directors as part of a dinner in September 2024 to
further discuss the Chair’s performance. The directors provided
positive feedback on the Chair of the Board’s leadership. 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 four female
directors (44.4% of the Board), one director that is resident
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. A table showing the
gender diversity and ethnic diversity of the Board and senior
management team is on page 19.
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. 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 have specific targets on gender balance or ethnicity in
place but the management team is working to collate workforce
diversity data to be able to share insights with the Board and
develop a proposal for appropriate targets. 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.
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 2023.
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 and with several
of the Group’s largest shareholders. 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.
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Strategic Report Governance Financial Statements Investor Information
The directors are invited to nominate topics that they would like to
receive training on. During the year, the directors received training
on Directors’ Responsibilities, the Wholesale model of the Nordics
business and Generative Artificial Intelligence (AI). 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 and Nordics.
• The UK&I Distribution Centre in Newark.
• The store colleague training centre The Academy@FortDunlop.
90 Currys plc Annual Report & Accounts 2023/24
Assurance provision
Board
Responsible for risk management and internal control
Defines Currys’ risk appetite
Reviews and approves the risk profile
Risk Committee
• Reviews Group risk profile.
• Monitors the management of principal
risks.
• Considers new and emerging risks.
Audit Committee
• Reviews Group risk profile.
• Monitors the management
of principal risks.
• Considers new emerging risks.
• 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
Steering Committee
Technology Risk
Forum
Business unit
and functional
risk experts
Corporate governance
report continued
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 Risk Committee, the Regulatory Compliance Committee,
business unit risk committees and the Group 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 Risk 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 Risk 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 the 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 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 Risk 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.
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
Group risk management structure
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Strategic Report Governance Financial Statements Investor Information
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 54 to 59.
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 2023/24, which were approved by the
Audit Committee and the Board.
The diagram on page 90 shows the governance structure in place
over the Group’s risk management activities, as at 26 June 2024.
Risk appetite
The Company faces a broad range of risks reflecting the
business environment in which it operates. The risks arising from
the Company’s 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. If
levels of risk in excess of appetite are being taken, mitigating actions
are identified to bring the risk back within an acceptable level.
The Company’s 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. The Company 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 94 to 102 and the Board has considered the controls
findings raised in the Independent Auditor’s report on pages 143 to
152. No significant failings or weaknesses were identified during the
period ending 27 April 2024. 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 54 to 60.
Controls, by their very nature, are designed to manage rather than
eliminate risk and can only provide reasonable assurance against
material misstatement or loss.
92 Currys plc Annual Report & Accounts 2023/24
Corporate governance
report continued
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 key controls framework is in place defining the financial controls that are expected to operate
across the businesses core processes and activities.
• Training and development is provided to colleagues to cover their responsibilities for risk management
as part of the broader, compliance activities, 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 ensuring compliance with potential legislation changes relating to
financial controls, as part of changes in the UK Corporate Governance Code.
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Strategic 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.
• A Financial Services Risk Management Framework identifies control objectives for activities that
underpin the delivery of good customer outcomes in our financial services regulated activities.
• The Group risk profile 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 Group Risk Management Framework operates across the business with key business units
undertaking risk assessment and risk management activities.
• The Risk team undertakes horizon scanning reviews to identify emerging risks and opportunities that
may impact the business.
• The Risk 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 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 2024/25 internal
audit plan in April 2024, having considered the audit priorities.
The Audit Committee receives all reports issued by the internal
audit department, which detail material findings from testing
performed and any recommendations for improvement. The Audit
Committee reviews audit reports with a summary provided by the
Group Director of Internal Audit, Risk and Insurance at each meeting,
along with an update of progress against the annual internal
audit plan and on management’s progress towards implementing
recommendations agreed during internal audits. Actions taken by
management to close internal audit recommendations are reviewed
by Internal Audit to determine whether any new controls and
procedures have been implemented effectively.
An External Quality Assessment (EQA) of the internal audit
department was completed in September 2023. The department
was rated highly effective and compliant with the International
Professional Practices Framework (IPPF). Several best practices in
addition to some improvement areas were identified.
The Audit Committee considered the effectiveness of the internal
audit department by considering; the September 2023 EQA
results, 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; the results of the work of internal audit; and feedback
obtained from sponsors of specific internal audits, ExCo and
Board Members. The Audit Committee concluded that the internal
audit department 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 78 to 80. Such
information is incorporated into this Corporate Governance
Statement by reference and is deemed to be part of it.
Further financial and business information is available on the
Group’s corporate website, www.currysplc.com.
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.
Ian Dyson
Chair of the Board
26 June 2024
94 Currys plc Annual Report & Accounts 2023/24
2023/24 Highlights
• Consideration of accounting and
management judgements.
• Business deep dives including
on delivery partner oversight,
controls and strategy, supplier
management, point of sale
strategy and Cyber.
Chair’s statement
I am pleased to present the Audit Committee (the ‘Committee’) Report for the year
ended 27 April 2024. 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 as
part of the ongoing review of their effectiveness.
This year, the Committee has considered the significant accounting and management
judgements including the accounting treatment of the sale of the Company’s business
in Greece. The Committee reviewed the annual report and accounts to ensure that the
report as a whole is fair, balanced and understandable and recommended that this
be approved by the Board. The Committee has continued to oversee the cyber security
programmes and to have oversight across the international footprint of the Group.
There have not been any significant changes to the responsibilities and role of the
Committee during this financial year. 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 (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 28 to 31.
Meetings and membership
The Committee met seven times during the period under review, six of these were scheduled
meeting. One additional meeting was arranged with KPMG during the year to review and
approve the fee proposal from the external Auditor in respect of the 2023/24 Group
external audit and half year review. 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.
Number of meetings
7
Audit Committee topics coverage 2023/24
Anti money
laundering: 1
Bribery and
corruption: 1
Compliance: 4
Litigation: 4
Fraud and loss: 1
Information and
cyber security: 2
Internal controls: 2
Risk register review: 3
Whistleblowing: 5
Committee members Meeting attendance
Fiona McBain (Chair) 7/ 7
Eileen Burbidge 7/ 7
Gerry Murphy 7/7
Adam Walker 6/6*
* Adam has attended all Committee meetings since
his appointment on 8 June 2023.
Audit
committee report
www.currysplc.com
Committee Terms of Reference last
approved: 16 January 2024 and
available on www.currysplc.com
The biographical details for each
Committee member are available
on pages 74, 96 and 77.
FURTHER
INFORMATION
95
Strategic Report Governance Financial Statements Investor Information
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.
During the financial year, Adam Walker was appointed as a
director and member of the Committee on 8 June 2023. There
have not been any further changes to the membership of the
Committee during the year.
After the financial year end, Steve Johnson was appointed as
a director and member of the Committee. As part of an orderly
succession plan, I will step down from the Board at the Company’s
AGM on 5 September 2024 and Adam Walker will become the
Committee Chair.
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 Adam Walker, also a member of the
ICAEW, meets 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 74, 76 and 77. 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 continue to oversee that Consumer Duty
requirements have been embedded across the business.
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 2023/24 included:
• considering significant accounting and reporting judgements,
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 2023/24, when taken as a whole, are fair, balanced
and understandable;
• reviewing the interim results in December 2023;
• 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;
• reviewing results of an Internal Audit External Quality
Assessment (EQA), completed in September 2023, which rated
the function as highly effective;
• 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;
• appointing a new Group Director of Internal Audit, Risk and
Insurance;
• 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 cyber controls, supplier management, delivery
partner strategy, regulatory compliance, minimum control
standards assessments, whistleblowing and procedures in
place to prevent bribery and corruption.
96 Currys plc Annual Report & Accounts 2023/24
Audit
committee report continued
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 27 April 2024,
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.
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Strategic 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 60 of the Annual Report and Accounts
2023/24.
In particular, the Committee considered:
• the impact in respect of uncertainties including macroeconomic downturn 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 four-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 54 to 59 of
the ARA 2023/24, 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 60 of the ARA 2023/24
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. 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 2023/24 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. The Committee considered the use of APMs and
additional information on those APMs used by the Group is provided in the glossary on pages
216 to 227.
The Committee concluded that the Annual Report and Accounts 2023/24, 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.
98 Currys plc Annual Report & Accounts 2023/24
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 an 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
high inflation, climate risk and the level of sensitivities applied by management in determining
reasonably possible changes to cash flows. No impairment of Goodwill was recognised in
the period and further detail is provided in note 8 to the Group financial statements.
In addition, the assumptions and approach to calculating the value in use (‘VIU’) of the
Company’s investment were reviewed in detail. This included assessing the components of
the subsidiaries’ value in use and ensuring consistency with the Goodwill impairment models.
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 £50m (2022/23: £59m).
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.
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Strategic 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 81 to 93. 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 2023/24 and agreed the statements contained in the Annual Report and
Accounts 2023/24. 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.
100 Currys plc Annual Report & Accounts 2023/24
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 Currys
strategy and the key risks facing the business.
• During the period, internal audits included coverage of the following significant risk areas
of the business in the UK&I and Nordics:
– Cyber and data;
– Business transformation;
– Relationships with major suppliers and third-party contracts;
– Business continuity and disaster recovery;
– Sustainability;
– 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
progress on delivery of 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:
– Reviews across Group (UK&I and Nordics) operations relating to cloud computing
governance and controls, GDPR compliance, whistleblowing, treasury operations and risk
management, financial reporting, cash flow forecasting and TCFD reporting;
– Specific UK&I reviews including B2B operations, Infosys contract and service governance,
and pricing master data controls; and
– Specific Nordics reviews including gross margin accounting and IT general 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 reviewed observations and recommendations of an external quality
assessment (EQA) completed by BDO, which rated the function as highly effective across
all elements of people, process and technology.
• 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;
– the results of the work of internal audit; and
– Feedback received from key sponsors in the business, stakeholders and Board members.
• 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.
101
Strategic 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 143 to 152.
• 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 2024.
The Committee specifically considered the findings of the FRC’s Audit Quality Review team’s assessment of KPMG’s 2023 audit of the
Group. The Committee discussed these with the Auditor and separately with management, noting the observations raised and KPMG’s
proposed responses. The Committee will monitor progress of the Auditor’s proposals over the forthcoming year and consider these as
part of its annual review of the effectiveness of the external audit.
102 Currys plc Annual Report & Accounts 2023/24
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 £1m (2022/23: £0.4m)
compared with £2.2m (2022/23: £2.0m) of audit fees. The non-
audit fees as a percentage of audit fees was 45% in 2023/24
(2022/23: 20%), which reflects the restrictive policy governing the
use of the appointed external Auditor for non-audit services.
Consideration of external Auditor appointment
and independence
The Committee considers the appropriateness of the
reappointment 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 2024/25. The Committee’s recommendation that a
resolution to reappoint KPMG be proposed at the Company’s
Annual General Meeting in September 2024 has been accepted
and endorsed by the Board.
Fiona McBain
Chair of the Audit Committee
26 June 2024
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Strategic Report Governance Financial Statements Investor Information
Chair’s statement
I am pleased to present the Disclosure Committee (the
‘Committee’) Report for the year ended 27 April 2024. 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.
Tony DeNunzio stepped down from the Board on 25 April 2024
and Octavia Morley took over as an alternate member of the
Committee. 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 12 Committee meetings during 2023/24 and two
additional meetings were held after the end of the financial year.
Committee meetings are scheduled in advance of preliminary and
interim results announcements and scheduled trading updates.
Meetings can be convened by the Company Secretary, or 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 Investor Relations
Director 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 27 April 2024 the Committee met to
consider the following matters:
• an assessment as to whether the Company was in possession
of inside information including as a result of progress with
the strategic review of the Group’s business in Greece and
takeover offers received;
• the pre-close trading update and preliminary results for the
financial year ended 29 April 2023;
• the trading update for 17 weeks ended 26 August 2023;
• the interim results for the 26 weeks ended 28 October 2023; and
• the Peak trading update for the ten weeks to 6 January 2024.
After the year end, the Committee met twice to consider the pre-
close and full year trading updates.
Bruce Marsh
Chair of the Disclosure Committee
26 June 2024
Number of meetings
12
Committee members Meeting attendance
Bruce Marsh (Chair) 12/12
Alex Baldock 12/12
Nigel Paterson 12/12
Alternate members:
Ian Dyson, Chair of the Board and Tony DeNunzio, Senior
Independent Director were alternate members during
the year but were not required to attend any meetings.
The biographical details for each
Committee member are available on
pages 76 and 77.
FURTHER
INFORMATION
Disclosure
committee report
2023/24 Highlights
• Assessments of whether the Company was in possession
of inside information following takeover offers.
• Decision to notify the market that there would be
a strategic review of the Group’s Greek business.
• Preliminary results for the financial year ended
29 April 2023.
• Trading updates.
• Interim results for the half year ended 28 October 2023.
104 Currys plc Annual Report & Accounts 2023/24
Chair’s statement
I am pleased to present the Nominations Committee (the
‘Committee’) Report for the year ended 27 April 2024. 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
2023. 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 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 supports the FTSE Women Leaders Review target for
Board to be comprised of 40% females by 2025 and the Parker
Review target to have at least one director from an ethnic minority
background by 2024. The Company is compliant with these targets
but is not complacent about diversity and will continue to seek
opportunities to further increase all forms of diversity on the Board
as part of board succession planning. Further information on the
gender and ethnic diversity of the Board and senior management
team is available on page 19. A Leadership Inclusion Forum is in
place to focus on increasing the diversity of the workforce. All
Number of meetings
3
Committee members Meeting attendance
Ian Dyson (Chair) 3/3
Tony DeNunzio* 3/3
Magdalena Gerger 3/3
Octavia Morley* 0/0
* Tony DeNunzio stepped down from the Board on
25 April 2024 and Octavia Morley was appointed
as a director and member of the Committee on
1 April 2024.
www.currysplc.com
Committee Terms of Reference last
approved: 16 January 2024 and
available on www.currysplc.com
The biographical details for each
Committee member are available
on pages 74, 76 and 77.
FURTHER
INFORMATION
Nominations
committee report
2023/24 Highlights
• Considered succession planning for key Board roles.
• Led and completed the process to recruit a new
Senior Independent Director and recommended the
appointment of Octavia Morley to the Board.
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
regular updates during the year including a comprehensive talent
review update in December 2023 and a deep dive on culture,
values, diversity and inclusion in April 2024.
Meetings and membership
The Committee meets as and when required and at least twice a
year. The Committee held three meetings during the financial year
and a further meeting was held after the end of 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 a new Senior Independent Director.
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.
105
Strategic Report Governance Financial Statements Investor Information
Key matters considered
The principal activities of the Committee during 2023/24 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 Senior Independent
Director then consideration of candidates and recommendation
of the appointment of Octavia Morley;
• oversight of the process to recruit a non-executive director with
financial services and online retail expertise and recommendation
of the appointment of Steve Johnson after the end of the
financial year;
• 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 2024;
• confirmation that the Board composition was compliant with
applicable diversity targets;
• approval 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 2023/24 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 88.
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.
Octavia Morley joined the Board as a non-executive director and
member of the Remuneration, Nominations and Environment, Social
& Governance Committees on 1 April 2024. She was appointed
Senior Independent Director and Chair of the Remuneration
Committee once Tony DeNunzio stepped down on 25 April 2024.
The process to recruit the new Senior Independent Director was
led by the Chair of the Board and supported by executive search
firm, Korn Ferry. The Committee agreed a role profile, taking into
consideration the collective knowledge, skills and experience of the
Board, together with the skills and expertise of the existing Senior
Independent Director who was 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 the search
included candidates with diverse characteristics. Octavia was the
candidate who best met the criteria in the role profile for the Senior
Independent Director and Chair of the Remuneration Committee.
The Committee kept the Board updated during the search
processes and recommended the appointment of Octavia.
Steve Johnson joined the Board as a non-executive director and
member of the Audit Committee after the end of the financial
year on 1 June 2024. The same search process was followed, with
the support of Korn Ferry, to identify a candidate with extensive
experience of online retail and financial services.
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
or nine directors is appropriate and effective for the leadership
of the Group although increasing to a Board size of ten in the short
term is appropriate to enable succession planning for key Board
and committee roles. During the year, the Committee considered
Board tenure, noting in particular, that three directors, including 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 2024, but will continue to monitor
board composition and regularly challenge whether the Board
has the collective skills and expertise necessary to provide
effective leadership of the Group.
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 CEO updates the Board at each
meeting on any key role changes or appointments that have
taken place in the senior management team during the period.
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.
106 Currys plc Annual Report & Accounts 2023/24
Nominations
committee report continued
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 44.4% of the Board (4 directors out of 9), 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. Further gender and ethnic diversity data is available on
page 19.
At the end of the financial year, the Board was 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 held by a female. The Board was
not compliant with this requirement prior to the appointment of
Octavia Morley as a director on 1 April 2024 and as the Senior
Independent Director on 25 April 2024.
The Board and Committee will remain cognisant of diversity
requirements for all future appointments. The Board was mindful
of the benefits of board diversity during the recruitment of a new
Senior Independent Director and a director with financial services
expertise. In both cases, the candidate long list and short list both
included candidates with a range of diverse characteristics, including
gender. Following careful consideration by the Board, Octavia
Morley was selected for appointment as she best met the criteria
for the Senior Independent Director and Chair of the Remuneration
Committee roles and her appointment was considered to be in the
best interests of the long-term sustainable success of the Company.
Steve Johnson was selected for appointment as a non-executive
director and Audit Committee member as he best fit the criteria for
this role. In particular due to his strong financial services and online
retail expertise.
The Board is strongly supportive of enhancing all forms of diversity
across the Board and wider workforce as a matter of priority. The
Board has been very mindful of the benefits of greater diversity
of gender, social and ethnic backgrounds, and cognitive and
personal strengths during the recruitment of all new directors.
The Board have also worked to increase the number of diverse
candidates included in search processes. However, to date, the
Board has not set specific internal targets on gender balance or
ethnicity for the Board or the wider colleague population. During
2023/24, work has started to collect colleague data to enable
an informed view of the diversity characteristics of colleagues. The
Committee and the Board will monitor the work in this area and
keep this under review as insights become available. A Leadership
Inclusion Forum is in place and oversees a programme of work to
enhance all forms of 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 2023. 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
2024, all directors as listed on pages 74, 76 and 77 will present
themselves for re-election other than Fiona McBain who will step
down from the Board on 5 September 2024.
Octavia Morley and Steve Johnson will present themselves for
election and their biographical information is available on pages
76 and 74 and in the Notice of AGM.
At the date of this report, Gerry Muphy has served on the Board
for over nine years. A tenure exceeding nine years is one of the
examples listed in the Code as a factor that can potentially
impact director independence. The Committee considered
director independence during the year and continues to classify
Gerry Murphy as an independent director due to his character,
judgement and the rigorous challenge he continues to contribute
to Board deliberations.
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 74, 76 and
77 and in the Notice of AGM.
Ian Dyson
Chair of the Board
26 June 2024
107
Strategic Report Governance Financial Statements Investor Information
Committee members Meeting attendance
Eileen Burbidge
(Chair) 4/4
Andrea Gisle Joosen* 1/1
Tony DeNunzio* 4/4
Magdalena Gerger* 4/4
Octavia Morley* 0/0
www.currysplc.com
Committee Terms of Reference last
approved: 16 January 2024 and
available on www.currysplc.com
The biographical details for each
Committee member are available on
pages 76 and 77.
FURTHER
INFORMATION
Environmental, Social and Governance (‘ESG’)
committee report
2023/24 Highlights
• Review of the Group’s Sustainability strategy and 3 Year
Plan.
• Oversight of the development of the Circular Economy
strategy.
• Review of ESG disclosures in the Annual Report and
Accounts 2023/24 including the assurance process.
Chair’s statement
I am pleased to present the ESG Committee (the ‘Committee’)
Report for the year ended 27 April 2024. The Committee was
established as a committee of the Board during 2022/23 to
enhance the focus on and elevate ESG matters at Board level.
ESG activities are increasingly important to each of the Company’s
main stakeholder groups and essential to deliver the Company’s
vision – We Help Everyone Enjoy Amazing Technology. The remit of
the Committee includes the approval of the Group’s ESG strategy,
the oversight of the delivery of this strategy and monitoring of ESG
risks and opportunities. The Committee has approved the Group’s
ESG priorities – growing our circular business, achieving net zero
by 2040 on climate, and alleviating digital poverty.
The Committee oversees the work of the Group Sustainability
Leadership Team (‘GSLT’). The GSLT co-ordinates the delivery
of the Group’s sustainability agenda and metrics which requires
substantial cross-functional collaboration and reports into the
Executive Committee. 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. During the year, the GSLT progressed each of the
Group’s ESG priorities including raising funds and awareness
to tackle digital poverty, finalising clear plans to deliver the
necessary reduction in Scope 1 & 2 emissions, developing a
deeper understanding of the drivers of the Group’s Scope 3
emissions and evolving our engagement with suppliers.
The Committee receives detailed updates from each GSLT
meeting and I also attended a GSLT meeting during 2023/24.
On behalf of all Committee members, past and present, I am
thrilled with the Group’s progress on the agreed ESG priorities,
as well as other initiatives which are reflected in colleagues’
positive morale and our ever-improving customer experiences. I
wholeheartedly commend the GSLT and all colleagues in their
commitment to ESG responsibilities and look forward to continued
progress towards realising the Company’s ESG strategy.
Meetings and membership
The Committee meets as and when required and at least twice
a year. As a newly established Committee, there were four
Committee meetings during the financial year 2023/24. A further
Committee meeting was held after the financial year end in June
2024. All three members of the Committee are independent non-
executive directors. Andrea Gisle Joosen stepped down from
the Board on 6 July 2023 and was replaced on the Committee
by Magdalena Gerger, who was appointed on 1 May 2023.
Both Andrea and Magdalena attended the first Committee
meeting of the financial year held in June 2023. Tony DeNunzio
attended all Committee meetings during the year and stepped
down from the Board on 25 April 2024. Octavia Morley joined
the Board and the Committee on 1 April 2024 and will attend the
Committee meetings in 2024/25. 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 Board completed an internal effectiveness review process
during 2023/24 and this included the Board and all its committees.
This process found that the Committee is operating effectively
and there were no specific actions identified to further enhance
the Committee’s effectiveness. The Committee will review its
performance, constitution and procedures at least annually in
accordance with its terms of reference.
Number of meetings
4
* Andrea Gisle Joosen stepped down from the Board on 6 July 2023 and Tony
DeNunzio stepped down from the Board on 25 April 2024. Magdalena Gerger joined
the Board and the Committee on 1 May 2023 and Octavia Morley joined the Board
and the Committee on 1 April 2024.
108 Currys plc Annual Report & Accounts 2023/24
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: We
help 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 on Responsible Sourcing and the operation of
processes and controls in place to ensure compliance with the
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 the 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
its remit.
Key matters considered
During the year ended 27 April 2024, the Committee considered
the following key matters:
• Group Sustainability Strategy and 3 Year Plan;
• ESG KPIs and the progress made against these;
• People Plan updates for UK&I and Nordics, including colleague
well-being, inclusion and diversity;
• achievements and plans for moving to circular business models;
• achievements and plans for net zero emissions;
• external best practice on ESG including legislative change and
evolving market practices;
• oversight of ESG risks;
• ESG disclosures in the Annual Report and Accounts 2023/24; and
• the operation of the Committee, including its terms of reference;
and ESG policies and procedures.
Eileen Burbidge, MBE
Chair of the ESG Committee
26 June 2024
Environmental, Social and Governance (‘ESG’)
committee report continued
109
Strategic Report Governance Financial Statements Investor Information
Remuneration
committee report
Committee members Meeting attendance
Octavia Morley
(Chair)
(1)
1/1
Tony DeNunzio
(Chair)
(2)
6/6
Magdalena Gerger
(3)
6/6
Andrea Gisle
Joosen
(4)
1/1
Gerry Murphy 6/6
Adam Walker
(5)
6/6
www.currysplc.com
Committee Terms of Reference last
approved: 16 January 2024 and
available on www.currysplc.com
The biographical details for each
Committee member are available
on pages 76 and 77.
FURTHER
INFORMATION
Chair’s statement
On behalf of the Board, I am pleased to present my first Directors’
Remuneration Policy (the ‘Policy) and Director’s Remuneration
Report (the ‘Report’), setting out our philosophy on directors’
remuneration together with the activities of the Remuneration
Committee (the ‘Committee’) for 2023/24. Our current Policy
was approved by shareholders at the annual general meeting
in September 2022, and the 2022/23 Report was approved by
shareholders at the annual general meeting in September 2023.
The Board welcomed the 78.9% vote in favour of our Report and
I would like to thank shareholders for their engagement during the
financial year as the Committee consulted further to discuss the
specific rationale for the votes against our Report. The concerns
expressed by those shareholders that provided feedback related
to the level of bonus payments for 2022/23 given the assessment
of business performance and the choice of measures included in
both the short and long-term incentives. Our shareholders have
diverse views and offer a range of different perspectives on our
approach, and the Committee welcomed the opportunity to have
constructive discussions on remuneration during this year. As part
of my induction, I look forward to meeting with many shareholders
over the next year and to continuing this constructive dialogue.
The Committee will continue to consider shareholder feedback
when evaluating future incentive outcomes and their alignment
to performance achieved and will take into consideration the
experience of all our key stakeholders as part of this process.
Remuneration in context
Corporate performance
This has been a year of good progress in what remained a
challenging economic and consumer environment in both the UK
and in the Nordics. At the start of the year, we set out to keep up
our momentum in the UK&I, to get the Nordics back on track, and
to make sure we stay financially strong, and we’ve done all three.
We ended the year significantly ahead of the expectations at the
start of the year.
Read more about our performance in the Performance Review
section from page 62.
Stakeholder experience
Our colleagues
Colleague engagement has continued to increase during the year.
The Group eSat score (how happy you are to work at Currys)
increased to 81 (+3 pts YoY) putting Currys in the top 10% of
global businesses. Colleagues have also received pay increases
across the Group during the year. Pay increases in Nordics varied
by country and ranged from 2 to 5%. Minimum pay rates for UK
colleagues increased by 9.5% in 2024 and minimum hourly pay
has increased by 29% over the last three years. Elkjøp has an
established Employee Value Proposition in the Nordics. During the
year the team worked with colleagues in the UK and Ireland to
develop a new people promise ‘Welcome to Amazing’ in 2023/24.
Another area of focus has been to reduce colleague attrition
rates by supporting colleagues to learn and develop within the
business. We are investing in careers to support colleagues to
grow and progress and have seen a 7 point increase in positive
response to the ‘career goals’ question on our engagement
survey across the Group this year. This reflects a 11 point increase
in the UK&I and 12 point increase in the Nordics. In 2023/24
approximately 50% of our new hires were filled internally, with
20% coming from our colleagues in stores, supply chain and
service operations.
Number of meetings
6
(1) Octavia Morley joined the Board and Remuneration Committee on 1 April 2024
and then became Remuneration Committee Chair from 25 April 2024.
(2) Tony DeNunzio stepped down from the Board and as Chair of the Remuneration
Committee on 25 April 2024.
(3) Magdalena Gerger joined the Board and Remuneration Committee on 1 May 2023.
(4) Andrea Gisle Joosen stepped down from the Board and Remuneration
Committee on the 6 July 2023.
(5) Adam Walker joined the Board and Remuneration Committee on 8 June 2023.
110 Currys plc Annual Report & Accounts 2023/24
Remuneration
committee report continued
Our customers
Customer satisfaction metrics have continued to improve this year.
The team has focused on enhancing the customer experience
and resolving customer pain points. In the UK&I, there were
improvements in customer satisfaction at every measurable stage
of the customer journey, resulting in NPS climbing a further +4pts.
In the Nordics, the ‘Happy or Not’ measure improved slightly on its
already very high levels, with a notable improvement in the online
experience because of the improvement in our websites. During
the year, more customers have benefited from responsible credit,
protection, and the Nordics customer club grew, helping build more
valuable customer relationships.
Our shareholders
During the year, the Board and shareholders approved the
disposal of the Company’s business in Greece. The net disposal
proceeds of £156m have contributed to a strengthened balance
sheet and improved liquidity and provide the opportunity for
the Group to invest in the larger business in UK&I and Nordics.
The initiatives in UK&I and Nordics to increase sales and margins
have delivered results, seeing a return to sales growth in the four
month period post peak and Group PBT growth for the benefit of
shareholders and the long term sustainable success of the Group.
Our communities
This year we continued to raise awareness of digital poverty and
the Digital Poverty Alliance. Tech4Families provides technology
to children to support their education and digital skills. During
the year Tech4Families was expanded into Northern Ireland and
stores across the Nordics supported local causes to help combat
digital poverty.
Our environment
We continue to facilitate recycling of more e-waste than any other
retailer in the UK, and, prior to the sale of Kotsovolos, the largest
in Greece. During the financial year we received recognition for
our improved sustainability performance including our score in the
MSCI ESG Ratings assessment, achieving an ‘A’ rating in April 2024.
We continued to progress towards our climate goals including
introducing new electric vehicles and continuing the programme
to move to LED lighting and upgrading heating and air ventilation
systems. The Group continued to sell refurbished tech, with Elkjøp
launching its refurbished smartphones proposition ‘NewStart’ and
in the UK, Currys launched Green Friday to drive awareness and
incentivise customers to purchase refurbished tech and recycle
e-waste. In 2023/24, emissions-related KPIs were again included
in the annual bonus scorecard for employees and will continue
to be a KPI for 2024/25. We have committed to introduce an ESG
related metric to Long Term Incentive Plans and we anticipate that
we will do so for next year’s awards. The current remuneration
structure already measures environmental targets under the
annual performance bonus plan.
2023/24 remuneration
Base salary
The Committee reviewed Alex Baldock’s salary on 21 April 2023 and
applied an increase of 4% taking his salary to £942,650 to take
effect from 31 July 2023. Due to the addition of responsibilities to his
portfolio, Bruce Marsh received an out of cycle salary increase to a
salary of £487,400 in January 2023 and was therefore not eligible
for a further increase during the year.
The average increase for the UK & Ireland corporate head office
population was also 4%, effective 31 July 2023. On 1 April 2024,
UK colleague minimum pay rates were increased again. Multi-
skilled store colleagues who have passed their onboarding had an
increased minimum hourly rate of £11.80 (£12.80 in London). Including
bonus, this pushed average earnings to £12.33 per hour and £13.95
per hour for our Top Squad. The minimum hourly rate increased to
£11.50 (£12.50 in London). These rates represent a 9.5% raise and
along with the various bonus schemes we offer, mean that over
three quarters of our colleagues earn a minimum of £12 per hour.
Pension
Alex Baldock and Bruce Marsh both receive a 3% pension allowance
and this is in line with the wider workforce and the Investment
Association guidelines.
Annual performance bonus
The annual performance bonus in respect of 2023/24 was 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%). As set out in
last year’s Remuneration Report, the EBIT weighting was increased
from 45% to 55% and average net debt was replaced by free cash
flow with the aim of supporting the Company’s increased focus on
driving profitability and cash flow. The reweighting of metrics also
took into account the feedback from our shareholder engagement.
To accommodate the increase in the EBIT weighting, the colleague
and customer measures were reduced from 15% to 10% for each
measure. These metrics remain critically important to the business
and underpin our overall strategy but the Committee was satisfied
that the Company’s improvements in engagement and customer
scores had been demonstrated by the achievements against the
2022/23 annual bonus targets, and now the emphasis should be
on shareholder outcomes with an increased focus on the financial
measures. The environmental measures remained at 10% giving
equal weighting to each of our environment, social and governance
measures, reflecting the core elements of our sustainability strategy.
Profits and the cash position have improved during the year following
continued good momentum in UK&I and success restoring the
trajectory in the Nordics. Following the announcement in November
2023 of the planned sale of the Greek business, the Committee
reviewed the Group targets set at the beginning of the year and took
the decision to remove Greece from all of the Group targets as well
as the out turn. The adjustment was made on the basis that, although
the sale of the Greek business took place on the 10 April 2024, the
decision to sell the business had been made in November 2023
and the focus from that point had been on the sale. Separately, the
Group’s recycling targets were also adjusted to reflect an adjustment
to the Nordic’s methodology for calculating the number of recycled
units (following a local benchmarking exercise). The Committee
agreed the adjustments on the basis that the revised methodology
gave a more accurate reflection of the Nordics achievements and
the targets continued to be both fair and suitably stretching. The
adjustment of the Nordic recycling targets were rolled up into the
Group recycling targets.
On this basis, the formulaic outcome for performance was 94.21
% of maximum for the executive directors. Full details on the
targets set and performance against them can be found on page
128 of this Report. The Committee considered whether or not to
adjust the formulaic outcome and noted that the UK&I bonus will
111
Strategic Report Governance Financial Statements Investor Information
pay out to the majority of UK & Ireland corporate colleagues at
between 92.6% and 94.5%. 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, other
than the technical adjustments in targets to accommodate the
sale of Greece and the Nordic’s recycling.
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 and they will do this again for 2023/24.
Long Term Incentive Plan (‘LTIP’)
Vested Award: The 2020 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 both the TSR and free cash flow
elements were not met. The cumulative cash flow achieved was
£80m against a threshold of £504m. On this basis, the overall LTIP
vesting was 0%.
Full details on the 2020 LTIP targets set and performance against
them can be found on page 131.
Granted Award: At the time of the 2023/24 LTIP grant the
Committee was mindful of aligning the size of the award with
shareholder experience in the context of the market volatility at
the time and the number of shares that would be awarded as a
result of the lower share price. The Committee therefore decided
to apply a 15% scale back to the normal award level, resulting in
awards to the executive directors of 212.5% of salary compared
to the normal award level of 250% awarded in 2022.
As set out in the 2022/23 Director’s Remuneration Report, the
Committee reviewed the performance measures to be applied for
the 2023/24 LTIP awards and took into account feedback received
from shareholder engagement that EPS is a key performance
measure for our shareholders. On this basis, an EPS measure was
introduced alongside the existing free cash flow and relative TSR
measures, the weightings being 30%, 40% and 30% respectively.
The Committee also took the opportunity to review the vesting
schedules and decided to make these all consistent, with 25%
of the relevant portion of the award vesting for a Threshold level
of performance and straight line vesting up to 100% for a Stretch
level of performance. In considering the calibration of targets,
the Committee considered both internal business expectations
and external analyst forecasts and is comfortable that these
represent an appropriate degree of stretch and value creation
for shareholders.
In addition, following the approval of the sale of the Greek
business by shareholders in November 2023, the Committee took
the decision to remove Greece from the free cash flow and EPS
targets as well as the performance outcome for this grant.
Full details on the 2023/24 targets set and performance against
them can be found on pages 129 and 130.
2024/25 remuneration
Base salary
The Committee reviewed Alex Baldock’s and Bruce Marsh’s salary
for 2024/25 and applied an increase of 4%, to both effective
28 July 2024, increasing their salaries to £980,360 and £506,900
respectively. 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 9.5% increase for
hourly paid UK colleagues received with effect from 1 April 2024.
The average increase for the Nordics Head Office population is
5%, effective 1 April 2024.
Annual performance bonus
Following the changes in weighting and substitution of free cash
flow for the previous net debt metric introduced last year, the
Committee has decided to maintain the current bonus structure,
ensuring that the focus remains on driving profitability and cash
flow. Therefore the 2024/25 annual performance bonus 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%).
As the specific targets are regarded as commercially sensitive,
they will not be disclosed on a forward-looking basis and so the
targets and performance against all the scorecard elements will
be fully disclosed in next year’s Remuneration Report.
LTIP
The 2024/25 LTIP award will be subject to three performance
conditions, cumulative free cash flow, cumulative EPS and TSR
measured against the FTSE 250 comparator group, weighted 40%,
30% and 30% respectively. As set out in last year’s Report, the
Committee reviewed the performance measures to be applied
for the 2024/25 LTIP awards and considered introducing an
environmental metric into the 2024/25 LTIP design. The Committee
ultimately concluded, taking into account views expressed by
certain shareholders, that the immediate focus for the participants
should remain on financial performance metrics and therefore
no changes to the current design will be made for the 2024/25
award. Environmental measures continue to be included in the
annual performance bonus design and will be considered as part
of the 2025 Policy Review process and included in the 2025/26
LTIP award design.
As at the date of this Report, the Committee has not yet finalised
the decisions on the calibration of applicable free flow 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 of 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.
112 Currys plc Annual Report & Accounts 2023/24
Remuneration
committee report continued
Non-executive director and committee membership
changes
As announced in March 2023, we confirmed the appointment of
Magdalena Gerger as an independent non-executive director
with effect from 1 May 2023. Magdalena became a member of
the Remuneration, Nominations and ESG Committees. In addition,
Adam Walker also joined the Board as an independent non-
executive director and a member of the Remuneration and Audit
Committees with effect from his appointment on 8 June 2023. The
Company also announced that Andrea Gisle Joosen would be
stepping down as a non-executive director on 6 July 2023.
In addition, Tony DeNunzio stepped down from the Board and as
Chair of the Remuneration Committee on 25 April 2024. I would like
to thank Tony for his contribution to the Committee during his tenure
and for all the support I received from him during my induction and
handover.
I hope you find that the letter and the following Report clearly
explains the remuneration approach we have taken and how we
will implement the Policy in 2024/25. 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. I look
forward to meeting with many of the Company’s shareholders
and stakeholders in my first year as Committee Chair, and look
forward to your continued engagement and thank you for the
feedback provided to date.
Octavia Morley
Chair of the Remuneration Committee
26 June 2024
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Strategic Report Governance Financial Statements Investor Information
Remuneration at a glance
2023/24 2024/25
Base salary
• CEO (Alex Baldock) – £942,650
• CFO (Bruce Marsh) – £487,400
• CEO (Alex Baldock) – £980,360
• CFO (Bruce Marsh) – £506,900
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)
• 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
• 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
• 212.5% of base salary
Note: Scaled back by 15% from 250% maximum, in
recognition of share price movements and shareholder
experience
• 250% of base salary
Performance
metrics
(weighting)
• Cumulative free cash flow (40%)
• Cumulative EPS (30%)
• TSR relative to the FTSE 250 (30%)
• 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 five
years of appointment
• Shares to the value of 250% of salary
must be retained for two years post-
cessation
• 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 2023/24.
Fixed pay
Alex Baldock
On-target Actual
Bruce Marsh
On-target Actual
Annual bonus
LTIP
£3,222
£2,417
£1,627
£1,208
£4,000
£3,000
£2,000
£1,000
0
Remuneration (£'000)
114 Currys plc Annual Report & Accounts 2023/24
Remuneration
policy
The purpose of this Report is to inform shareholders of the
Company’s directors’ remuneration for the year ended 27 April
2024 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’) 2024.
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.
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Strategic 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 122 and 123.
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.
116 Currys plc Annual Report & Accounts 2023/24
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.
Remuneration
policy continued
117
Strategic 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 2024/25 are set out
in the Annual Remuneration Report on page 140 and full details will be disclosed at grant.
118 Currys plc Annual Report & Accounts 2023/24
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 disclosed in the 2022/23 Directors’ Remuneration Report, 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 required shareholding 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 138.
Remuneration
policy continued
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Strategic 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
a one-year period.
Net promoter score Annual performance bonus Captures the overall perception of our business in the eyes of
our 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
a multiyear 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
to other similar companies.
120 Currys plc Annual Report & Accounts 2023/24
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
£1,145
£3,375
£5,066
£6,537
£539
£1,692
£2,567
£3,327
Bruce Marsh
Fixed pay
Annual bonus
Long-term incentives
(1) Fixed pay is based on the base salary payable at 1 August 2024, 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 a
payment 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 2018 UK 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).
Remuneration
policy continued
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Strategic 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
Group, 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.
122 Currys plc Annual Report & Accounts 2023/24
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. In 2023/24, Tony DeNunzio, the
then current Remuneration Committee Chair, attended UK forum
meetings with the Chief People Communications and Sustainability
Officer and non-executive directors also met privately with
representatives from the International Colleague Forum in January
2024 to receive direct feedback on current topics of interest and
priorities for colleagues. This year the Group Reward Director also
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. Feedback from the session was reported to the
Committee at a subsequent Committee 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 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 Group 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.
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
Remuneration
policy continued
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Strategic Report Governance Financial Statements Investor Information
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).
124 Currys plc Annual Report & Accounts 2023/24
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
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 Remuneration
Report on page 136.
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 26 June 2024,
the Company’s dilution position, which remains within the current
Guidelines, was 4.4% for all plans (against a limit of 10%) and
1.2% for the LTIP (against a limit of 5%).
Remuneration
policy continued
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Strategic Report Governance Financial Statements Investor Information
Annual Remuneration Report
for 2023/24
The following sections set out how the Remuneration Policy was
implemented during 2023/24 and how it will be implemented for
the following year.
Remuneration Meetings and membership
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 76 and 77.
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 any 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.
Responsibilities
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.
Key matters considered
The principal activities of the Committee during 2023/24 included:
Executive directors remuneration and governance
• Directors’ Remuneration Report reviewed and approved,
and consulting with shareholders on the annual general
meeting 2023 voting outcome;
• Annual performance bonus:
– 2022/23 – assessed the performance of the executive
directors against targets;
– 2023/24 – agreed the design including the performance
measures and targets;
• LTIP:
– 2020/21 – assessed the performance against targets and
approved the vesting outcome;
– 2023/24 – agreed the design including the performance
measures; and
• monitoring the developments in the corporate governance
environment and shareholder expectations.
Wider workforce across the Group
• approval of the July 2020 and February 2021 Colleague
Shareholder Award vesting;
• approval of the UK Gender Pay Gap reporting and assessing
the international reporting obligations, including the 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;
• approval of the launch of the 2024 Irish and UK Sharesave
Schemes;
• approval of a sale transaction bonus for the Greek Senior
Leadership Team and Good Leaver treatment for the Greek
participants of the Colleague Shareholder and LTIP awards on
the sale of the Greek business;
• approval of the 2023/24 annual performance bonus target
adjustments following the sale of the Greek business prior
to year end and consideration of the effect on inflight LTIP
targets;
• approval of adjustments to the Nordics annual bonus targets
and retention scheme;
• 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.
126 Currys plc Annual Report & Accounts 2023/24
Single figure of directors’ remuneration for the year ended 27 April 2024 (audited information)
Base salary
and fees
£’000
Pension
contributions
(1)
£’000
Taxable
benefits
(2)
£’000
Total fixed
remuneration
£’000
Annual
performance
bonus
(3)
£’000
Deferred
Share Bonus
Plan award
(3)
£’000
LTIP
payments
£’000
Total
variable
remuneration
£’000
Total
remuneration
£’000
Executive
Alex Baldock 934 28 135 1,097 880 440 0 1,320 2,417
Bruce Marsh 487 15 17 519 459 230 0 689 1,208
1,421 43 152 1,616 1,339 670 0 2.009 3,625
Non-executive
Eileen Burbidge 76 0 0 76 0 0 0 0 76
Ian Dyson 300 0 0 300 0 0 0 0 300
Magdalena
Gerger
(4)
75 0 4 79 0 0 0 0 79
Fiona McBain 77 0 4 81 0 0 0 0 81
Octavia
Morley
(5)
8 0 0 8 0 0 0 0 8
Gerry Murphy 71 0 0 71 0 0 0 0 71
Adam Walker
(6)
64 0 1 65 0 0 0 0 65
Former non-
executive
directors
Tony DeNunzio
(7)
140 0 3 143 0 0 0 0 143
Andrea Gisle
Joosen
(8)
14 0 0 14 0 0 0 0 14
825 0 12 837 0 0 0 0 837
2,246 43 164 2,453 1,339 670 0 2,009 4,462
(1) Pension contributions comprise the Company’s contribution or allowance in lieu. The contribution amount was 3% for Alex Baldock and Bruce Marsh.
(2) Taxable benefits for the executive directors include private medical insurance and car allowance or driver benefit amounts. £130,116 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 2024 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 annual performance bonus is deferred into shares for a period of two years.
(4) Magdalena Gerger was appointed to the Board on 1 May 2023.
(5) Octavia Morley was appointed to the Board on 1 April 2024.
(6) Adam Walker was appointed to the Board on 8 June 2023
(7) Tony DeNunzio stepped down from the Board on 25 April 2024.
(8) Andrea Gisle Joosen stepped down from the Board on 6 July 2023.
Annual Remuneration Report
for 2023/24 continued
127
Strategic Report Governance Financial Statements Investor Information
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
(3)
£’000
Deferred
Share Bonus
Plan award
(3)
£’000
LTIP
payments
(4)
£’000
Total
variable
remuneration
£’000
Total
remuneration
£’000
Executive
Alex Baldock 900 67 102 1,069 300 150 527 977 2,046
Bruce Marsh 442 13 13 468 147 74 0 221 689
1,342 80 115 1,537 447 224 527 1,198 2,735
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 2,292 447 224 527 1,198 3,490
(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. For Alex Baldock the remaining two-thirds awarded as immediately available shares.
(4) Share plans vesting represent the value of LTIP awards and associated accrued dividend equivalents where the performance period ends on 29 April 2023. This figure has
been restated from last year’s report to reflect the actual share price on the vesting date of 21 August 2023, being £0.4894. 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 44%.
(5) Ian Dyson was appointed to the Board on 1 September 2022.
(6) Lord Livingston stepped down from the Board on 8 September 2022.
(7) Lord Livingston has a deferred pension in the Dixons Retirement and Employee Security Scheme.
128 Currys plc Annual Report & Accounts 2023/24
Annual performance bonus for 2023/24 (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.
As set out in last year’s Remuneration Report, the EBIT weighting was increased from 45% to 55% and average net debt was replaced
by free cash flow with the aim of supporting the Company’s increased focus on driving profitability and cash flow. The reweighting of
metrics also took into account the feedback from our shareholders. To accommodate the increase in the EBIT weighting, the colleague
and customer measures were reduced from 15% to 10% for each measure. These metrics remain critically important to the business
but the Committee was satisfied that the Company’s improvements in engagement and customer scores had been demonstrated by
the achievements against the 2022/23 annual bonus targets, and that the emphasis should instead be on shareholder outcomes with
an increased focus on the financial measures. The environmental measures remained at 10% giving equal weighting to each of our
environment, social and governance measures, reflecting the core elements of our sustainability strategy.
Following the announcement in November 2023 of the planned sale of the Greek business, the Committee reviewed the Group targets
set at the beginning of the year and took the decision to remove Greece from all of the Group targets as well as the out turn. The
adjustment was made on the basis that, although the sale of the Greek business took place on the 10 April 2024, the decision to sell
the business had been made in November 2023 and the focus from that point had been on the sale. Separately, the Group’s recycling
targets were also adjusted to reflect an adjustment to the Nordic’s methodology for calculating the number of recycled units (following a
local benchmarking exercise). The Committee agreed the adjustments on the basis that the revised methodology gave a more accurate
reflection of the Nordics achievements and the targets continued to be both fair and suitably stretching. The adjustment of the Nordic
recycling targets was rolled up into the Group Recycling targets.
The targets approved by the Committee are confirmed in the table below along with 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.
Measure
As a percentage
of maximum
bonus opportunity Threshold Target Maximum Actual
Potential
bonus
percentage
achieved
Adjusted EBIT 55% £ 174 m £194m £215m £213m
(1)
52.90%
Free Cash Flow 15% £5m £60m £115m £90m
(1)
12.27%
Customer Net Promoter score 10% 67.72 68.70 69.75 69.50 9.04%
Employee engagement score 10% 77 78 79 81 10%
Environmental:
• E-waste take back volumes (units) 5% 6,578,789 6,809,514 6,991,414 8,133,122 5%
• Progress to net zero
(tonnes of CO
2
e emitted) 5% 17,942 17,616 17,423 16,507 5%
Total 94.21%
Total awarded 94.21%
(1) Consistent with previous years, the Adjusted EBIT and Free Cash Flow Targets and Actual figures above are calculated using constant currency rates set in accordance with
the Company target setting and budgeting process (for example NOK:GBP currency rate of £1:11.65NOK). This is to ensure a like-for-like comparison between Target and
Actual outturn. Adjusted EBIT and Free Cash Flow figures disclosed in the rest of the Annual Report and Accounts are based on the rates applicable under IFRS, as set out
in note 1 to the Financial statements (for example average NOK:GBP currency rate of £1:13.42NOK).
Profits and the cash position have improved during the year following continued good momentum in UK&I and success in restoring the
trajectory in the Nordics. Further information on company performance is set out in pages 62 to 73.
Customer satisfaction metrics have continued to improve this year. The team has focused on enhancing the customer experience and
resolving customer pain points. In the UK&I, there were improvements in customer satisfaction at every measurable stage of the customer
journey, resulting in NPS climbing a further +4pts. In the Nordics, the ‘Happy or Not’ measure improved slightly on its already very high levels,
with a notable improvement in the online experience because of the improvement in our websites. During the year, more customers have
benefited from responsible credit, protection, and the Nordics customer club grew, helping build more valuable customer relationships.
Annual Remuneration Report
for 2023/24 continued
129
Strategic Report Governance Financial Statements Investor Information
Colleague engagement has continued to increase during the year. The Group eSat score (how happy you are to work at Currys)
increased to 81 (+3 pts YoY) putting Currys in the top 10% of global businesses.
Currys continued to facilitate recycling of more e-waste than any other retailer in the UK. During the financial year the Group received
recognition for improved sustainability performance, including the score in the MSCI ESG Ratings assessment, achieving an ‘A’ rating in
April 2024. The business continued to progress towards our climate goals including introducing new electric vehicles and continuing the
programme to move to LED lighting and upgrading heating and air ventilation systems. The Group continued to sell refurbished tech, with
Elkjøp launching its refurbished smartphones proposition ‘NewStart’ and in the UK, Currys launched Green Friday to drive awareness and
incentivise customers to purchase refurbished technology and recycle e-waste. Read more about the Group’s activities on e-waste and
our progress against emissions reduction targets on pages 36 to 49.
The Treating Customers Fairly withholding condition applies to the 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 is not met, 10% of the bonus must be withheld.
The Treating Customers Fairly outcome for 2023/24 was 90.1% and therefore no withholding is required.
The Committee considered whether or not to adjust the formulaic outcome of 94.21% 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 109 and 110. Therefore, for the avoidance of doubt, no Committee discretion was exercised in respect of
the formulaic outcome outlined above, other than the technical adjustments in targets to accommodate the sale of Greece and the
Nordic’s recycling.
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. One third of the bonus will be deferred for a period of two years in line with the Policy.
LTIP and other share awards (audited information)
LTIP awards made during 2023/24
Nil cost option awards of 212.5% of base salary were made to the executive directors on 28 July 2023.
At the time of grant the Committee was mindful of aligning the size of the award with shareholder experience in the context of market
volatility and the number of shares that would be awarded as a result of the lower share price. The Committee therefore decided to
apply a 15% scale back to the normal award level, resulting in awards to the executive directors of 212.5% of salary compared to the
normal award level of 250% awarded in 2022.
As set out in the 2022/23 Director’s Remuneration Report, the Committee reviewed the performance measures to be applied for the
2023/24 LTIP awards and took into account feedback received from shareholder engagement that EPS is a key performance measure
for our shareholders. On this basis, an EPS measure was introduced alongside the existing free cash flow and relative TSR measures, the
weightings being 30%, 40% and 30% respectively.
The Committee also took the opportunity to review the vesting schedules and decided to make these all consistent, with 25% of the
relevant portion of the award vesting for a Threshold level of performance and straight line vesting up to 100% for a Stretch level of
performance. In considering the calibration of targets, the Committee considered both internal business expectations and external
analyst forecasts and was comfortable that these represented an appropriate degree of stretch and value creation for shareholders.
In addition, following the approval of the sale of the Greek business by shareholders in November 2023, the Committee took the
decision to remove Greece from the free cash flow and EPS targets and out turns for this grant, and so FCF and EPS targets set out
below have been updated from the targets set out in the 28 July 2023 RNS. The numbers in brackets reflect the targets prior to removal
of Greece.
The performance period for the awards is the three financial years up to the end of the 2025/26 financial year.
The relative TSR condition (30% weighting) measured against the companies ranked in the FTSE 250 at the start of the performance
period, 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%
130 Currys plc Annual Report & Accounts 2023/24
The free cash flow performance condition (40% weighting) 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 2025/26 financial year Percentage of the free cash flow element vesting
Below £204m (£226m) 0%
£204m (£226m) 25%
Between £204m (£226m) and £276m (£306m) Pro rata between 25% and 100% on a straight-line basis
Above £276m (£306m) 100%
The EPS performance condition (30% weighting) is measured cumulatively over the three-year performance period. The percentage of
the award vesting will be as follows:
Adjusted Basic EPS up to the end of the 2025/26 financial year Percentage of the free cash flow element vesting
Below 21.9p (24.4p) 0%
21.9p (24.4p) 25%
Between 21.9p (24.4p) and 29.6p (33.0p) Pro rata between 25% and 100% on a straight-line basis
Above 29.6p (33.0p) 100%
The free cash flow and EPS 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. In considering the calibration of targets, the Committee considered
both internal and external analyst forecasts and were comfortable that these represented an appropriate degree of stretch and value
creation for shareholders.
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 or to use
discretion to adjust for exceptional items during the performance period. If any such discretion was used full and clear disclosure of
what was changed and the rationale for this would be included in the relevant Remuneration Report,
Calculations of the achievement against the targets will be independently performed and approved by the Committee. Free cash flow
and adjusted basic EPS are defined in the Glossary and definitions section on pages 216 to 227.
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.
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.
The table below sets out the LTIP awards made to the executive directors in 2023/24:
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 – 212.5% of salary
(3)
3,642,742 0.5405 1,926,100 2 May 2026 28 July 2026 £492,226
Bruce Marsh – 212.5% of salary
(3)
1,958,817 0.5405 1,035,725 2 May 2026 28 July 2026 £264,685
(1) Due to market volatility, the share price used to determine the number of shares making up each award was calculated using the average mid-market price at the close of
business since the announcement of the Company results on 6 July 2023 to the business day prior to grant, being 27 July 2023 (£0.52875).
(2) The minimum value at threshold vesting is calculated based on a threshold vesting of 25% of maximum. The value is calculated using the share price at the grant date of the
award (54.05p), being 28 July 2023.
(3) Nil cost option awards were made to Alex Baldock and Bruce Marsh on 28 July 2023 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 2023 to the business day prior to grant, being 27 July 2023 (£0.52875).
Deferred Share Bonus Plan awards made during 2023/24
On 3 August 2023 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 288,617 0.5205 150,225 3 August 2025
Bruce Marsh 141,573 0.5205 73,689 3 August 2025
(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 2 August 2023.
(2) The face value is calculated based on the number of options awarded multiplied by the share price used to grant the award.
Annual Remuneration Report
for 2023/24 continued
131
Strategic Report Governance Financial Statements Investor Information
The awards represent one-third of the 2022/23 annual performance bonus entitlement granted in accordance with the Company’s
approved Remuneration Policy, approved by shareholders at the annual general meeting 2022. Details of the 2022/23 annual
performance bonus were disclosed in the 2022/23 Directors’ Remuneration Report.
Being mindful of his 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.
Therefore, in addition to the above, he received the remaining two-thirds of the bonus provided in shares immediately, which must be
retained (net of tax) while he builds towards the 250% of salary shareholding requirement.
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 Bruce Marsh on 2 August 2021. The
performance period for the awards was the three financial years up to the end of the 2023/24 financial year and there were two
equally weighted performance conditions. Half of the awards were 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 27 April 2024.
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.
Cumulative free cash flow
Level of performance Below threshold Threshold Target Maximum Achieved
Cumulative free cash flow over the
performance period Below £504m £504m £593m £682m £80m
Vesting level 0% 10% 25% 100% 0%
Based on the actual level of performance, the threshold required for vesting for both the TSR and FCF elements were not achieved and
therefore overall vesting was 0%.
No adjustment was made to reflect the sale of the Greek business, on the basis that this had been part of the Group for the majority
of the three-year performance period. The Committee reviewed whether any discretion should be applied to the vesting outcomes
and determined that it was satisfied that the outcome was appropriate given the overall performance. On this basis, the Committee
determined that the awards will lapse on reaching the vesting date.
Nil cost options awarded Overall vesting % Overall vesting awards Vesting date
Alex Baldock 1,677,632 0% 0 2 August 2024
Bruce Marsh 803,018 0% 0 2 August 2024
132 Currys plc Annual Report & Accounts 2023/24
Vesting of 2020/21 Deferred Share Bonus Plan awards (audited information)
On 6 July 2021 the following nil cost options were granted to Alex Baldock and Jonny Mason under the Currys Deferred Share Bonus
Plan (‘DSBP’). The awards were granted in respect of one third of the 2020/21 annual bonus entitlement and the award vested two
years from the grant date:
Nil cost options
awarded
Share price
used
to grant
award
(1)
(£)
Face value
(2)
(£) Vesting date
Alex Baldock 278,249 1.371 381,480 6 July 2023
Jonny Mason
(3)
153,856 1.371 210,936 6 July 2023
(1) The share price used to calculate the numbers of shares granted was using the mid-market price on the day prior to grant, being 5 July 2021.
(2) The face value is calculated based on the number of options awarded multiplied by the share price used to grant the award.
(3) Jonny Mason stepped down from the Board on 9 July 2021.
The awards vested on 6 July 2023. Alex Baldock retained all his shares, net of tax and commission, in line with the Executive
Shareholding requirement.
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 were added to each award.
Performance graph
The graph below shows the value, by 27 April 2024, of £100 invested in Currys on 29 March 2014, compared with the value of £100
invested in the FTSE 250 Index on the same date. The other points plotted are the values at intervening financial year ends.
£0
Data is sourced from S&P CapIQ.
This graph shows the value, by 27 April 2024, of £100 invested in Currys on 29 March 2014, compared with the value of £100 invested in the FTSE 250 Index on the same date.
The other points plotted are the values at intervening financial year ends.
29 March
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
27 April
2024
Currys
FTSE 250
£50
£100
£150
£200
The FTSE 250 has been used as it is a broad market which includes the Company and a number of its competitors as well as being the
comparator group used for the relative TSR portion of LTIP awards.
Annual Remuneration Report
for 2023/24 continued
133
Strategic 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
%
2023/24 Alex Baldock 2,417 94.21 0
2022/23 Alex Baldock 2,046
(1)
33.39
(3)
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
(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.
134 Currys plc Annual Report & Accounts 2023/24
Annual percentage change in remuneration
The table below provides the percentage change in the annual remuneration of directors and the average UK colleague from 2019/20
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 2022/23
to 2023/24
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
benefit
(7)
Annual
bonuses
Salary
and
fees
Taxable
benefits
(7)
Annual
bonuses
Salary
and
fees
(2)
Taxable
benefits
(7)
Annual
bonuses
Salary
and
fees
(2)
Taxable
benefits
(7)
Annual
bonuses
Executive Directors
Group Chief Executive –
Alex Baldock 3.8% 32.5% 192.8% 2.7% 35.7% -59.1% 3.9% 123% -3.7% -0.8% -67% 100%
(10)
Group Chief Financial Officer –
Bruce Marsh 10.3% 28.9% 211.5% 30.9% 24.8% -47.2% n/a n/a n/a n/a n/a n/a
Non-Executive Directors
Eileen Burbidge 14.5%
(3)
0.0% n/a 2.3%
(3)
0% n/a 2.8% 0% n/a -1.3% -100% n /a
Tony DeNunzio
(1)
0% 69.8%
(8)
n/a 0.0% 189.9%
(8)
n/a 2.8% 100% n/a -1.3% -100% n/a
Ian Dyson 53.3%
(5)
-53.3%
(8)
n/a n/a n/a n/a n/a n/a n /a n/a n/a n/a
Magdalena Gerger
(1)
n/a n/a n/a
Andrea Gisle Joosen
(1)
-81.2% -96.1%
(8)
n/a 3.6%
(3)
106.9%
(8)
n/a 3.1%
(4)
100% n/a -3.2%
(4)
-100% n/a
Fiona McBain 0% -26.1% n/a 2% 691.1 %
(8)
n/a 2.8% 100% n/a -1.3% -100% n/a
Octavia Morley
(1)
n/a n/a n/a
Gerry Murphy 0% 0% n /a 2% 0% n/a 2.8% 0% n/a -1.3% 0% n/a
Adam Walker
(1)
n/a n/a n/a
Employees 8.5%
(6)
0%
(9)
n/a
(11)
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) Magdalena Gerger, Octavia Morley and Adam Walker joined the Board on 1 May 2023, 1 April 2024 and 8 June 2023, respectively. Andrea Gisle Joosen and Tony
DeNunzio stepped down from the Board on 6 July 2023 and 25 April 2024, respectively.
(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 was 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-
executive directors, who were paid on a monthly payroll cycle up to 10 July 2020. From 11 July 2020 all non-executive directors moved to a four weekly payroll cycle. The
same reduction of 20% was applied for all across the same period.
(5) Ian Dyson joined the Board on 1 September 2022.
(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 126 and 127. 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 2021/22) 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.
Annual Remuneration Report
for 2023/24 continued
135
Strategic 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 2023/24 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 216.
2023/24
£m
2022/23
£m
Change
%
Dividends
(1)
0 35 -100%
Share buybacks
(2)
0 0 0%
Adjusted EBIT
(3)
203 196
(4)
3.57%
Total staff costs
(5)
855 862
(4)
-0.81%
Number Number
Change
%
Average employee numbers 27,778 29,569 -6.06%
(1) Extracted from note 22 to the Group financial statements.
(2) There were no share buybacks in 2022/23 and 2023/24.
(3) Extracted from note A1 to the Glossary and definitions section.
(4) Restated to exclude discontinued operations.
(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)
2023/24 Option A 95:1 88:1 70:1
2022/23
(1)
Option A 86:1 81:1 64:1
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 2023/24 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 126.
136 Currys plc Annual Report & Accounts 2023/24
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)
(£)
2023/24 Base salary 933,787 23,931 25,959 32,352
Total remuneration 2,416,453 25,480 27,508 34,755
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 increased since last year, primarily due to the CEO bonus payout increasing from 33.3% in 2022/23 to 94.21% for
2023/24, offset to some degree by no LTIP vesting.
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 124.
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 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
(1)
16 December 2015
Ian Dyson 1 September 2022
Magdalena Gerger 1 May 2023
Andrea Gisle Joosen
(2)
6 August 2014
Fiona McBain 1 March 2017
Octavia Morley 1 April 2024
Gerry Murphy 6 August 2014
Adam Walker 1 June 2023
(1) Tony DeNunzio stepped down from the Board on the 25 April 2024.
(2) Andrea Gisle Joosen stepped down from the Board on 6 July 2023.
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 £66,277 for the year to 27 April 2024 in respect of his non-executive role of RS Group.
Leavers and joiners
During the year, Andrea Gisle Joosen stepped down as a non-executive director of the Board on 6 July 2023. On 1 May 2023,
Magdalena Gerger was appointed as a non-executive director of the Board and on 8 June 2023, Adam Walker was appointed as a
non-executive director of the Board.
Annual Remuneration Report
for 2023/24 continued
137
Strategic Report Governance Financial Statements Investor Information
Also during the financial year, Octavia Morley was appointed as non-executive director of the Board and a member of the Remuneration,
Nominations and Environment, Social and Governance (‘ESG’) Committees on 1 April 2024. Octavia succeeded Tony DeNunzio as Senior
Independent Director and Chair of the Remuneration Committee when he stepped down from the Board on 25 April 2024.
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 2020/21 DSBP award was not pro-rated and vested on
6 July 2023, further details are set out on page 132 of the Report. The final tranche of the buy-out award vested on 13 August 2023
equivalent to 32,422 shares (including accrued dividend equivalents) equal to a value of £16,616, using a share price of 51.25p being the
share price on the vesting date.
Directors’ interests in LTIP (audited information)
Date of grant
At 30 April
2023
Awarded in
the year
Lapsed or
forfeited in
the year
Exercised in
the year
At 27 April
2024
Date from
which first
exercisable
Expiry of the
exercise
period
Exercise
Price
(p)
Alex Baldock
2016 LTIP 28-Jul-23 0 3,642,742 3,642,742 28-Jul-26 28-Jul-33 —
2022/23 DSPB 03-Aug-23 0 288,617 288,617 3-Aug-25 3-Aug-33 —
2016 LTIP 25-Jul-22 3,083,824 3,083,824 25-Jul-25 25-Jul-32 —
2020/21 DSPB 25-Jul-22 523,659 523,659 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 22,361
(1)
300,610 0 6-Jul-23 6-Jul-31 —
2016 LTIP 19-Aug-20 1,991,959 80,038
(1)
995,979 1,076,018 0 19-Aug-23 19-Aug-30 —
Total (with
performance
conditions) 8,404,198
Total (without
performance
conditions) 812, 276
Bruce Marsh
2016 LTIP 28-Jul-23 0 1,958,817 1,958,817 28-Jul-26 28-Jul-33 —
2022/23 DSPB 03-Aug-23 0 141,573 141,573 3-Aug-25 3-Aug-33 —
2016 LTIP 25-Jul-22 1,454,303 1,454,303 25-Jul-25 25-Jul-32 —
2020/21 DSPB 25-Jul-22 198,979 198,979 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) 4,216,138
Total (without
performance
conditions) 678,225
Jonny Mason
(2)
2020/21 DSPB 6-Jul-21 153,856 12,364
(1)
166,220 0 6-Jul-23 6-Jan-24 —
2016 LTIP 19-Aug-20 326,611 13,123
(1)
163,305 176,429 0 19-Aug-23 19-Feb-24 —
Section 9.4. 2 13-Aug-18 27,145 5,277
(1)
32,442 0 13-Aug-21 13-Feb-24 —
Total (with
performance
conditions) 0
Total (without
performance
conditions) 0
(1) Accrued dividend equivalents were granted on exercise of the relevant awards.
(2) Jonny Mason stepped down from the Board on 9 July 2021.
138 Currys plc Annual Report & Accounts 2023/24
Directors’ interests in Sharesave (audited information)
Date of grant
Exercise
price
(p)
At 30 April
2023
Awarded
in the year
Lapsed or
cancelled
in the year
Exercised
in the year
At 27 April
2024
Date from
which first
exercisable
Expiry of
the exercise
period
Alex Baldock
Sharesave 23-Feb-24 38.60 – 12,116 – – 12,116 1-Apr-29 1-Oct-29
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 – 0 1-Oct-25 1-Apr-26
Sharesave 10-Sept-19 97. 28 13,939 – - – 13,939 1-Oct-24 1-Apr-25
Total 40,843 12,116 6,662 – 46,297
Bruce Marsh
Sharesave 23-Feb-24 38.60 – 12,398 – – 12,398 1-Apr-27 1-Oct-27
Sharesave 25-Aug-22 59. 28 22,530 – – – 22,530 1-Oct-25 1-Apr-26
Total 22,530 12,398 – – 34,928
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 within 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 and commission, 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’
and commission basis and provided that no further performance targets must be met.
Details of directors’ interests in shares of the Company as at 27 April 2024 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
(3)
Alex Baldock
(4)
2,978,473 8,404,198 858,573 3,452,433 225%
Bruce Marsh
(5)
216,892 4,216,138 713,153 608,905 77%
Non-executive directors
Eileen Burbidge 4,200 – – 4,200 n/a
Tony DeNunzio
(6)(7)
480,000 – – 480,000 n/a
Ian Dyson
(8)
350,000 – – 350,000 n /a
Magdalena Gerger
(9)
10,537 10,537
Andrea Gisle Joosen
(10)
24,976 – – 24,976 n/a
Fiona McBain 28,129 – – 28,129 n/a
Octavia Morley
(11)
0 – – 0 n/a
Gerry Murphy 100,000 – – 100,000 n /a
Adam Walker
(12)
102,635 – – 102,635 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 27 April 2024 and an average share price over the month to 27 April 2024 of 61.48p.
(3) Executive directors have five years from their appointment date to reach their shareholding requirement of 250%.
(4) Alex Baldock purchased 304,213 shares at a price of 51.98p per share on 3 August 2023.
(5) Bruce Marsh purchased 65,000 shares at a price of 46.69p per share on 6 July 2023 and 60,000 shares at a price of 49p per share on 18 January 2024.
(6) Tony DeNunzio purchased 200,000 at a price of 49p per share on 19 September 2023.
(7) Tony DeNunzio stepped down from the Board on the 25 April 2024 and the shareholding shown is at that date.
(8) Ian Dyson purchased 150,000 shares at a price of 47.56p per share on 6 July 2023.
(9) Magdalena Gerger purchased 10,537 at a price of 51.1p per share on 16 August 2023.
(10) Andrea Gisle Joosen stepped down from the Board on the 6 July 2023 and the shareholding shown is at that date.
(11) Octavia Morley joined the Board on 1 April 2024.
(12) Adam Walker purchased 102,635 shares at a price of 48.72p per share on 10 July 2023.
Annual Remuneration Report
for 2023/24 continued
139
Strategic Report Governance Financial Statements Investor Information
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. In particular, the Committee notes that, following the recent
increase in share price, at the time of submission of this report, Alex Baldock’s beneficial interest has increased from 225% (as at 27 April
2024) to c.280% of salary, based on a share price of 76.45p. Executive directors are expected to continue to build towards their 250%
of base salary holding requirement via retention of future vesting LTIP awards.
There were no changes in the directors’ share interests between 27 April 2024 and the date of this Report.
Non-executive directors’ and Chair of the Board’s fees
The fees for the independent non-executive directors, including any 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 were reviewed in 2023/24 and following the establishment of the ESG Committee as a committee of the Board, an ESG
Committee Chair fee of £10,000 was introduced along with an associated committee membership fee of £5,100. In addition, on
appointment of Octavia Morley, a Senior Independent Director fee of £15,000 was introduced along with the Remuneration Committee
Chair’s fee of £10,300. These roles were previously included as part of the Deputy Chair’s fee.
All other fees remained unchanged. The Chair of the Board and Deputy Chair received 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.
2023/24
£’000
2022/23
£’000
Chair of the Board
(1)
300 300
Deputy Chair
(2)
140 140
Senior Independent Director 15 –
Chair of Audit Committee
(3)
15.3 15.3
Chair of ESG Committee 10 n/a
Chair of Remuneration Committee 10.3 n /a
Member of Audit Committee 5.1 5.1
Member of Nominations Committee 5.1 5.1
Member of ESG Committee 5.1 n/a
Member of Remuneration Committee 5.1 5.1
Base Board fee 61.2 61.2
(1) The Chair of the Board’s fee includes Chairship of the Nominations Committee.
(2) The Deputy Chair’s fee included the Senior Independent Director, Chairship of the Remuneration Committee, and membership of the Nominations Committee fees. The
Deputy Chair (Tony DeNunzio) stepped down from the Board on the 25 April 2024. No subsequent Deputy Chair has been appointed.
(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 2024/25
Executive directors
i) Base salary
The following salaries will apply during the 2024/25 financial year:
Salary at
27 April 2024
£’000
Increase in
salary in
2024/25
%
Salary at
28 July 2024
£’000
Current directors
Alex Baldock 942.65 4% 980.36
Bruce Marsh 487.4 4% 506.9
The Committee reviewed Alex Baldock’s and Bruce Marsh’s salary for 2024/25 and applied an increase of 4%, to both effective 28 July
2024, increasing their salaries to £980,360 and £506,900 respectively. 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 9.5% increase for hourly paid UK colleagues
received with effect from 1 April 2024. The average increase for the Nordics Head Office population is 5%, effective 1 April 2024.
140 Currys plc Annual Report & Accounts 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.
iii) Annual performance bonus
The maximum annual performance bonus for 2024/25 will be 150% of base salary. Measures are selected to reflect the Group’s key
objectives and for 2024/25 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 2024/25 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%
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 2024/25 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 2024/25 LTIP awards and considered introducing an environmental metric into the 2024/25 LTIP design. The Committee ultimately
concluded that the immediate focus for the participants should remain on financial performance metrics and therefore no changes
to the current design will be made for the 2024/25 award. Therefore the 2024/25 LTIP award will be subject to three performance
conditions, cumulative free cash flow, cumulative EPS and TSR measured against the FTSE 250 comparator group, weighted 40%, 30%
and 30% respectively.
Environmental measures continue to be included in the annual performance bonus design and will be considered as part of the 2025
Policy Review process and included in the 2025/26 LTIP award design.
As at the date of this Report, the Committee has not yet finalised the decision on 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.
The 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.
Annual Remuneration Report
for 2023/24 continued
141
Strategic Report Governance Financial Statements Investor Information
v) Non-executive directors’ and Chair of the Board’s fees
No further increases will be applied to non-executive director fees for 2024/25.
2024/25
£’000
2023/24
£’000
Chair of the Board
(1)
300 300
Deputy Chair
(2)
n/a 140
Senior Independent Director 15 15
Chair of Audit Committee
(3)
15.3 15.3
Chair of ESG Committee 10 n/a
Chair of Remuneration Committee 10.3 10.3
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 included the Senior Independent Director, Chairship of the Remuneration Committee, and membership of the Nominations Committee and ESG
Committee fees. Tony Denunzio stepped down from the Board on 25 April 2024 and this role is no longer applicable.
(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 Annual Remuneration Report resolution put to the annual general meeting 2023:
Resolution Votes for % Votes against % Withheld
Approval of Annual Remuneration Report 722,959,173 78.9 193,926,336 21.2 70,389
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 Report. This engagement included the Chair of the Board meeting with several
shareholders and the Company writing to other shareholders who voted against the Report inviting them to meet with the Chair of the
Remuneration Committee and/or provide feedback.
The concerns expressed by those shareholders that have provided feedback related to:
• the level of bonus payments for 2022/23 given the assessment of business performance; and
• the choice of measures included in both the short and long-term incentives.
The Committee and the Board welcomed the opportunity to have constructive discussions on remuneration with our shareholders
and noted that our shareholders have diverse views and offer a range of different perspectives on our approach. The Committee
considered the feedback received when assessing metrics for the annual bonus and LTIP awards and when evaluating the incentive
outcomes and their alignment to performance achieved.
Advice
The Committee retained Willis Towers Watson throughout 2023/24 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 2023/24 for all remuneration services provided to the Group. Willis Towers Watson received
fees of £75,550 (2022/23: £157,251) 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 to the Company outside the scope of advising the Committee.
Compliance
As required by the Regulations, a resolution to approve this Remuneration Report will be proposed at the AGM 2024.
Octavia Morley
Chair of the Remuneration Committee
26 June 2024
142 Currys plc Annual Report & Accounts 2023/24
The directors are responsible for preparing the annual report and the Group and parent
Company financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare Group and parent
Company financial statements for each financial year. Under that
law, they are required to prepare the Group financial statements
in accordance with UK-adopted international accounting
standards and applicable law and have elected to prepare
the parent Company financial statements in accordance with
UK accounting standards and applicable law, including FRS 101
‘Reduced Disclosure Framework’.
Under company law, the directors must not approve the financial
statements unless they are satisfied that they give a true and fair
view of the state of affairs of the Group and parent Company
and of the Group’s profit or loss for that period. In preparing each
of the Group and parent Company financial statements, the
directors are required to:
• select suitable accounting policies and then apply them
consistently;
• make judgements and estimates that are reasonable, relevant,
and reliable and, in respect of the parent Company financial
statements only, prudent;
• for the Group financial statements, state whether they have
been prepared in accordance with UK-adopted international
accounting standards;
• for the parent Company financial statements, state whether
applicable UK accounting standards have been followed,
subject to any material departures disclosed and explained in
the parent Company financial statements;
• assess the Group and parent Company’s ability to continue as
a going concern, disclosing, as applicable, matters related to
going concern; and
• use 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.
The directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the parent
Company’s transactions and disclose with reasonable accuracy
at any time the financial position of the parent Company and
enable them to ensure that its financial statements comply with
the Companies Act 2006. They are responsible for 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, and have general responsibility for
taking such steps as are reasonably open to them to safeguard
the assets of the Group and to prevent and detect fraud and
other irregularities.
Under applicable law and regulations, the directors are also
responsible for preparing a Strategic Report, Directors’ Report,
Directors’ Remuneration Report and Corporate Governance
Statement that complies with that law and those regulations.
The directors are responsible for the maintenance and integrity
of the corporate and financial information included on the
Company’s website. Legislation in the UK governing the preparation
and dissemination of financial statements may differ from
legislation in other jurisdictions.
In accordance with Disclosure Guidance and Transparency
Rule (‘DTR’) 4.1.16R, the financial statements will form part of the
annual financial report prepared under DTR 4.1.17R and 4.1.18R.
The auditor’s report on these financial statements provides no
assurance over whether the annual financial report has been
prepared in accordance with those requirements.
Responsibility statement
We confirm that to the best of our knowledge:
• the financial statements, prepared in accordance with the
applicable set of accounting standards, 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; and
• the Strategic Report includes a fair review of the development
and performance of the business and the position of the issuer
and the undertakings included in the consolidation taken as
a whole, together with a description of the principal risks and
uncertainties that they face.
We consider the Annual Report and Accounts, 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.
By Order of the Board
Alex Baldock
Group Chief
Executive
26 June 2024
Bruce Marsh
Group Chief
Financial Officer
26 June 2024
Statement of
directors’ responsibilities
143
Strategic 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 27 April 2024 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 27 April 2024
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 FRS
101 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 the shareholders on 8 September 2022. The period of total uninterrupted engagement is for the
two financial periods ended 27 April 2024. 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: £11.0m (2023: £12.5m)
Group financial statements as a whole 0.13% of Revenue from continuing operations (2023: 0.13% of Revenue)
Coverage 98% of Group revenue (2023: 92% of Group revenue)
Key audit matters
Recurring risks Recoverability of Nordics goodwill
Carrying value of Parent Company’s investment in subsidiaries
Contingent tax liabilities
144 Currys plc Annual Report & Accounts 2023/24
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 Nordics
goodwill (Risk vs 2023:
decreased)
(£908m; 2023: £941m)
Impairment charge: £nil (2023:
£nil)
Refer to page 98 (Audit
Committee Report), pages 159
and 172 (accounting policy) and
page 172 (financial disclosures).
Forecast-based assessment
Goodwill associated with the Nordics cash-
generating unit (‘CGU’) is significant and
at risk of irrecoverability due to continuing
weaker demand and pressures from
competitors in the Nordics market 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 this
balance is subjective due to the inherent
uncertainty involved in forecasting estimated
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 revenue
growth rates and operating profit margins.
The effect of these matters is that, as part
of our risk assessment for audit planning
purposes, we determined that VIU had 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. In conducting our final
audit work, we concluded that reasonably
possible changes to VIU would not be
expected to result in material impairment.
We continue to perform procedures over
the Recoverability of goodwill in relation to
UK and Ireland (‘UK&I’). However, following
improved performance of UK&I and the
significant level of headroom, we have not
assessed this as one of the most significant
risks in our current period audit and, therefore,
it no longer forms part of this key audit matter.
Our procedures included:
• Our sector experience: Evaluating
assumptions used, in particular those relating
to forecast revenue growth and profit margin
assumptions with reference to our knowledge
of the Group and industry, including from our
inspection of board approved strategy plans;
• Benchmarking assumptions: Comparing
the Group’s assumptions over revenue growth
and margins to externally derived data such as
projected economic growth, industry growth and
cost inflation forecasts;
• Sensitivity analysis: Performing sensitivity
analysis to stress-test the impairment
calculation to changes in sales growth and
profit margins;
• Historical comparisons: Evaluating the track
record of historical assumptions used against
actual results achieved;
• 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’s disclosures about the sensitivity of
the outcome of the impairment assessment to a
reasonably possible change in key assumptions
reflected the risks inherent in the recoverable
amount of goodwill.
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 Nordics goodwill to be acceptable
(2023: acceptable).
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Strategic Report Governance Financial Statements Investor Information
The risk Our response
Carrying value of Parent
Company’s investment in
subsidiaries (Risk vs 2023:
unchanged)
(£2,559m; 2023: £2,340m)
Impairment charge: £nil; 2023:
£329m
Impairment reversal: £219m
(2023: nil)
Refer to page 98 (Audit
Committee Report), page 209
(accounting policy) and page
210 (financial disclosures).
Forecast-based assessment
At the period end the Directors reviewed
investments in subsidiaries for indicators of
impairment and indicators that impairment
charges recognised in prior periods may no
longer exist or may have decreased. Where
indicators have been identified the Directors
estimated the recoverable amount of the
investment using the higher of value in use
(‘VIU’) or fair value less cost to sell.
The Director’s assessment resulted in a
reversal of an impairment charge of £219m in
relation to the investment in Currys Holdings
Limited which is the intermediate parent to all
trading subsidiaries in the Group.
The carrying amount of the Parent Company’s
investment in subsidiaries and impairment
reversal are significant, and at risk of error
as a result of the estimation involved in
determining the recoverable amount. As
there is no headroom between the carrying
amount of investments and the recoverable
amount, and because impairments booked
in prior periods have not been fully reversed,
the estimation of the recoverable amount is
sensitive to changes in assumptions.
The estimated recoverable amount of this
balance is subjective due to the inherent
uncertainty in forecasting trading conditions
and discounting cash flows used in the
budgets, in particular in the context of
continuing macro-economic pressures
driven by inflation and reduced consumer
spending in both the UK and Ireland (‘UK&I’)
and the Nordics.
The effect of these matters is that, as part of
our risk assessment, we determined that the
recoverable amount of the cost of investment
in subsidiaries and impairment reversal 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
(note C4) disclose the sensitivity estimated
by the Company.
Our procedures included:
• Our sector experience: Evaluating
assumptions used, in particular those relating
to forecast revenue growth and profit margins
assumptions with reference to our knowledge
of the Group, including from our inspection of
board approved strategy plans and assessing
the price of disposal of one of the Company’s
investments in the current period;
• Benchmarking assumptions: Comparing the
Group’s assumptions over revenue growth and
margins to externally derived data such as
projected economic growth, industry growth
and cost inflation forecasts. Assessing the
methodology applied by the Group to derive
its discount rates. With the assistance of our
valuation technology, assessing 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, profit
margins and the discount rates;
• Historical comparisons: Evaluating 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 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 investment in subsidiaries.
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 Parent Company’s investment in
subsidiaries and the related impairment reversal
to be acceptable (2023: we found the Parent
Company’s investment in subsidiaries and the related
impairment charges to be acceptable).
146 Currys plc Annual Report & Accounts 2023/24
Independent Auditor’s Report continued
The risk Our response
Contingent tax liabilities (Risk
vs 2023: unchanged)
Potential range of tax exposure
of £nil to £218m; 2023: £nil to
£211m)
Refer to page 98 (Audit
Committee Report), page 160
(accounting policy) and page
206 (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 the nature of the
contingent liability is not properly explained
in the disclosure.
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 27)
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; and
• 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 (2023: acceptable).
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 £11.0m (2023: £12.5m), determined with reference to a benchmark
of Group revenue from continuing operations (2023: Group revenue), of £8,476, of which it represents 0.13% (2023: 0.13%). We consider
total revenue from continuing operations 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 £8.8m (2023: £10.0m), determined with reference to
a benchmark of Company total assets, of which it represents 0.17% (2023: 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% (2023: 75%) (of materiality for the financial statements as a whole, which equates to £8.3m
(2023: £9.4m) for the Group and £6.6m (2023: £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 (2023: £0.6m),
in addition to other identified misstatements that warranted reporting on qualitative grounds.
2. Key audit matters: our assessment of risks of material misstatement continued
147
Strategic Report Governance Financial Statements Investor Information
Group revenue from
continuing operations
£8,476m
(2023: Group revenue £9,511)
Group materiality
£11.0m
(2023: £12.5m)
£11.0m
Whole financial
statements materiality
(2023: £12.5m)
£8.3m
Whole financial statements
performance materiality
(2023: £9.4)
£9.9m
Range of materiality at
3 components (£8.8m-£9.9m)
(2023: £10.0m - £10.5m)
£0.6m
Misstatements reported
to the audit committee
(2023: £0.6m)
Group revenue from
continuing operations
Group materiality
98%
(2023: 92%)
3
1
97%
(2023: 91%)
3
1
98%
(2023: 94%)
3
1
Group revenue
from continuing
operations
Total profits and losses
that made up Group
profit before tax
Group total assets
Full scope for group audit purposes
Specified risk-focused audit procedures
Residual components
The Group has 9 (2023: 10) 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% (2023: 10%) of Group revenue. We
selected Group revenue because this is the most representative
of the relative size of the components. We identified 2 (2023: 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 an additional 2 (2023: 2) components on which to
perform procedures. Of these components, we performed full
scope audits for 1 (2023: 1) component, and performed specific
risk-focused audit procedures over loans and other borrowings
and associated finance costs on 1 (2023: 1) component. The latter
was not financially significant enough to require a full scope audit
for Group purposes, but did present specific individual risks that
needed to be addressed.
The components within the scope of our work accounted for the
percentages illustrated below. The remaining 2% of total Group
revenue from continuing operations (2023: 8% of Group revenue),
2% (2023: 6%) of the total profits and losses that made up Group
loss before tax from continuing operations and 3% (2023: 9%)
of total Group assets is represented by 5 (2023: 6) reporting
components, none of which individually represented more than
1% (2023: 6%) of any of total Group revenue from continuing
operations, the total profits and losses that made up Group loss
before tax from continuing operations 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 2 individually financially significant
components, the Nordics, was performed by component auditors
in Norway. 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 operated 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
separate reporting component. This service centre is subject to
audit procedures as part of our audit work over the components
subject to full-scope audits, predominantly the testing of
transaction processing.
148 Currys plc Annual Report & Accounts 2023/24
Independent Auditor’s Report continued
3. Our application of materiality and an overview of the scope of our audit continued
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 materiality for the Nordics component and for
components where work was performed by the Group team; these ranged from £8.8m to £9.9m (2023: £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.
• Inspected the 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 restructuring associated costs, and cash and cash equivalents.
4. Impact of climate change on our audit
In planning our audit, we have 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 32 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 held discussions with our own climate change professionals to challenge our risk assessment. 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.
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 during the going concern period.
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.
149
Strategic Report Governance Financial Statements Investor Information
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 Company’s ability to continue as a going concern for the
going concern period; and
• 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 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 28 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 financial and non-financial performance targets for management, and directors.
• Using analytical procedures to identify any unusual or unexpected relationships.
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, 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.
• Evaluating the business purpose of significant unusual transactions.
• Assessing whether the judgements made in making accounting estimates are indicative of a potential bias.
Identifying and responding to risks of material misstatement related to 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.
150 Currys plc Annual Report & Accounts 2023/24
Independent Auditor’s Report continued
6. Fraud and breaches of laws and regulations – ability to detect continued
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.
For the legal matters discussed in notes 18 and 27 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.
151
Strategic Report Governance Financial Statements Investor Information
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 60 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 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 158 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.
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 Statement 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.
152 Currys plc Annual Report & Accounts 2023/24
9. Respective responsibilities
Directors’ responsibilities
As explained more fully in their statement set out on page 142, 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 under Disclosure Guidance and
Transparency Rule 4.1.17R and 4.1.18R. This auditor’s report provides no assurance over whether the annual financial report has been
prepared in accordance with those requirements.
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
26 June 2024
Independent Auditor’s Report continued
153
Strategic Report Governance Financial Statements Investor Information
Consolidated Income Statement
| (Restated)* | |||
| Period ended | Period ended | ||
| 27 April | 29 April | ||
| 2024 | 2023 | ||
| Note | £m | £m | |
| Continuing Operations | |||
Revenue | 2,3 | ||
Profit before impairment of goodwill, interest and tax | 2,3 | ||
Impairment of goodwill | 8 | ( | |
Profit/(loss) before interest and tax | ( | ||
Finance income | |||
Finance costs | ( | ( | |
Net finance costs | 5 | ( | ( |
Profit/(loss) before tax | ( | ||
Income tax expense | 6 | ( | ( |
Profit/(loss) after tax for the period from continuing operations | ( | ||
Profit after tax for the period from discontinued operations | 22 | ||
Profit/(loss) after tax for the period | ( | ||
Earnings per share (pence) | 7 | ||
Basic – continuing operations | ( | ||
Diluted – continuing operations | ( | ||
Basic – total | ( | ||
Diluted – total | ( |
* The prior period has been restated to exclude discontinued operations.
154 Currys plc Annual Report & Accounts 2023/24
Consolidated Statement of Comprehensive Income
| (Restated)* | ||||
| Period ended | Period ended | |||
| 27 April | 29 April | |||
| 2024 | 2023 | |||
| Note | £m | £m | ||
Profit/(loss) after tax for the period | ( | |||
| Items that may be reclassified to the income statement in subsequent periods: | ||||
| Cash flow hedges | ||||
Fair value movements recognised in other comprehensive income | 20 | |||
Reclassified and reported in income statement | 20 | |||
Tax on movements on cash flow hedges | 6 | ( | ||
Loss arising on translation of foreign operations | 20 | ( | ( | |
Reclassification of foreign currency translation differences due to disposal of foreign operations | 20 | ( | ||
( | ||||
| Items that will not be reclassified to the income statement in subsequent periods: | ||||
Actuarial gain/(loss) on defined benefit pension schemes | – UK | 19 | ( | |
– Overseas | 19 | |||
Tax on movements on defined benefit pension schemes | 6 | ( | ||
( | ||||
Other comprehensive income/(expense) for the period (taken to equity) | ( | |||
Total comprehensive income/(expense) for the period – continuing operations | ( | |||
Total comprehensive income for the period – discontinued operations | ||||
Total comprehensive income/(expense) for the period | ( |
* The prior period has been restated to exclude discontinued operations.
155
Strategic Report Governance Financial Statements Investor Information
Consolidated Balance Sheet
| 27 April | 29 April | ||
| 2024 | 2023 | ||
| Note | £m | £m | |
| Non-current assets | |||
Goodwill | 8 | ||
Intangible assets | 9 | ||
Property, plant & equipment | 10 | ||
Right-of-use assets | 11 | ||
Lease receivables | |||
Trade and other receivables | 13 | ||
Deferred tax assets | 6 | ||
| Current assets | |||
Inventory | 12 | ||
Lease receivables | |||
Trade and other receivables | 13 | ||
Income tax receivable | |||
Derivative assets | 23 | ||
Cash and cash equivalents | 14 | ||
Total assets | |||
| Current liabilities | |||
Trade and other payables | 15 | ( | ( |
Derivative liabilities | 23 | ( | ( |
Income tax payable | ( | ( | |
Loans and other borrowings | 16 | ( | ( |
Lease liabilities | 17 | ( | ( |
Provisions | 18 | ( | ( |
( | ( | ||
| Non-current liabilities | |||
Trade and other payables | 15 | ( | ( |
Loans and other borrowings | 16 | ( | |
Lease liabilities | 17 | ( | ( |
Retirement benefit obligations | 19 | ( | ( |
Deferred tax liabilities | 6 | ( | ( |
Provisions | 18 | ( | ( |
( | ( | ||
Total liabilities | ( | ( | |
Net assets | |||
| Capital and reserves | |||
Share capital | 20 | ||
Share premium reserve | |||
Other reserves | 20 | ( | ( |
Accumulated profits | |||
Equity attributable to equity holders of the parent company |
Company registration number: 7105905
156 Currys plc Annual Report & Accounts 2023/24
Consolidated Statement of Changes in Equity
| Share | ||||||
| Share | premium | Other | Accumulated | Total | ||
| capital | reserve | reserves* | profits | equity | ||
| Note | £m | £m | £m | £m | £m | |
At 1 May 2022 | ( | |||||
Loss for the period | ( | ( | ||||
| Other comprehensive income/(expense) | ||||||
recognised directly in equity | ( | ( | ||||
Total comprehensive income/(expense) for the period | ( | ( | ||||
Amounts transferred to the carrying value of inventory purchased during the period | ( | ( | ||||
Net movement in relation to share schemes | ||||||
Purchase of own shares – employee benefit trust | ( | ( | ||||
Equity dividend | ( | ( | ||||
At 29 April 2023 | ( | |||||
Profit for the period | ||||||
| Other comprehensive (expense)/income | ||||||
recognised directly in equity | ( | |||||
Total comprehensive (expense)/income for the period | ( | |||||
Amounts transferred to the carrying value of inventory purchased during the period | ( | ( | ||||
Amounts transferred to accumulated profits | 22 | ( | ||||
Net movement in relation to share schemes | 4 | ( | ||||
Purchase of own shares – employee benefit trust | 4 | ( | ( | |||
Equity dividend | 21 | |||||
At 27 April 2024 | ( |
* A detailed reconciliation of Other reserves is provided in note 20b.
157
Strategic Report Governance Financial Statements Investor Information
| (Restated)* | |||
| Period ended | Period ended | ||
| 27 April | 29 April | ||
| 2024 | 2023 | ||
| Note | £m | £m | |
| Operating activities | |||
Cash generated from operations | 24b | ||
Contributions to defined benefit pension scheme | 19 | ( | ( |
Income tax paid | ( | ( | |
Net cash flows from operating activities – continuing operations | |||
Net cash flows from operating activities – discontinued operations | ( | ||
Net cash flows from operating activities | |||
| Investing activities | |||
Acquisition of property, plant & equipment and other intangibles | ( | ( | |
Net cash flows from investing activities – continuing operations | ( | ( | |
Net cash flows from investing activities – discontinued operations | ( | ( | |
Net cash flows from investing activities – discontinued operations: proceeds on sale of business | 22b | ||
Net cash flows from investing activities | ( | ||
| Financing activities | |||
Interest paid | ( | ( | |
Capital repayment of lease liabilities | ( | ( | |
Purchase of own shares – employee benefit trust | ( | ( | |
Equity dividends paid | ( | ||
(Repayment)/Drawdown of borrowings | ( | ||
Cash (outflows)/inflows from derivative financial instruments | ( | ||
Facility arrangement fees paid | ( | ( | |
Net cash flows from financing activities – continuing operations | ( | ( | |
Net cash flows from financing activities – discontinued operations | ( | ( | |
Net cash flows from financing activities | ( | ( | |
Increase/(decrease) in cash and cash equivalents and bank overdrafts | ( | ||
Cash and cash equivalents and bank overdrafts at the beginning of the period | |||
Currency translation differences | ( | ( | |
Cash and cash equivalents and bank overdrafts at the end of the period | 24a |
* The prior period has been restated to exclude discontinued operations.
Consolidated Cash Flow Statement
158 Currys plc Annual Report & Accounts 2023/24
1 Significant accounting policies
Notes to the Group Financial Statements
159
Strategic Report Governance Financial Statements Investor Information
Average | Closing | |||
2024 | 2023 | 2024 | 2023 | |
Euro | 1.16 | 1.15 | 1.17 | 1.14 |
Norwegian Krone | 13.42 | 12.13 | 13.78 | 13.40 |
Swedish Krona | 13.41 | 12.57 | 13.67 | 12.89 |
US Dollar | 1.26 | 1.20 | 1.25 | 1.26 |
160 Currys plc Annual Report & Accounts 2023/24
Notes to the Group Financial Statements continued
1 Significant accounting policies continued
161
Strategic Report Governance Financial Statements Investor Information
2 Segmental analysis
The Group’s operating segments reflect the segments routinely reviewed by the CODM used to manage performance and allocate
resources. This information is predominantly based on geographical areas which are either managed separately or have similar
trading characteristics.
The Group’s operating and reportable segments have been identified as follows:
• UK & Ireland; comprises the operations of Currys, iD Mobile and B2B operations.
• Nordics; operates both franchise and own stores in Norway, Sweden, Finland and Denmark with further franchise operations in
Iceland, Greenland and the Faroe Islands.
UK & Ireland and Nordics are involved in the sale of consumer electronics and mobile technology products and services, primarily
through stores or online channels.
Transactions between segments are on an arm’s length basis.
a) Segmental results
| Period ended 27 April 2024 | ||||
| UK & Ireland | Nordics | Eliminations | Total | |
| £m | £m | £m | £m | |
External revenue | 4,970 | 3,506 | – | 8,476 |
Inter-segmental revenue | 53 | – | (53) | – |
Total revenue | 5,023 | 3,506 | (53) | 8,476 |
Profit before interest and tax | 88 | 29 | – | 117 |
Finance income | 4 | |||
Finance costs | (93) | |||
Profit before tax on continuing operations | 28 | |||
Depreciation and amortisation | (163) | (136) | – | (299) |
| (Restated)* Period ended 29 April 2023 | ||||
| UK & Ireland | Nordics | Eliminations | Total | |
| £m | £m | £m | £m | |
External revenue | 5,067 | 3,807 | – | 8, 874 |
Inter-segmental revenue | 59 | – | (59) | – |
Total revenue | 5,126 | 3,807 | (59) | 8 , 874 |
Profit/(loss) before interest, tax and impairment of goodwill | 158 | (11) | – | 147 |
Impairment of goodwill | (511) | – | – | (511) |
(Loss) before interest and tax | (353) | (11) | – | (364) |
Finance income | 2 | |||
Finance costs | (100) | |||
(Loss) before tax on continuing operations | (46 2) | |||
Depreciation and amortisation | (166) | (142) | – | (308) |
* The prior period has been restated to exclude discontinued operations.
No individual customer represented more than 10% of the Group’s revenue within the current or preceding period.
Period ended 27 April 2024 | (Restated)* Period ended 29 April 2023 | |||||||||
| UK | Norway | Sweden | Other | Total | UK | Norway | Sweden | Other | Total | |
| £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |
Revenue | 4,784 | 1,039 | 1,140 | 1,513 | 8,476 | 4,897 | 1,157 | 1,289 | 1,531 | 8 , 874 |
Non-current assets | 1,992 | 449 | 399 | 587 | 3,427 | 2,112 | 520 | 437 | 618 | 3,687 |
162 Currys plc Annual Report & Accounts 2023/24
Notes to the Group Financial Statements continued
163
Strategic Report Governance Financial Statements Investor Information
| (Restated)* | ||
| Period ended | Period ended | |
| 27 April | 29 April | |
| 2024 | 2023 | |
| £m | £m | |
Revenue | 8,476 | 8 ,874 |
Cost of sales | (6,920) | (7, 309) |
Gross profit | 1,556 | 1,565 |
Goodwill impairment | – | (511) |
Operating expenses | (1,439) | (1,418) |
Profit/(loss) before interest and tax from continuing operations | 117 | (364) |
| Period ended 27 April 2024 | |||
| UK & Ireland | Nordics | Total | |
| £m | £m | £m | |
Sale of goods | 4,296 | 3,208 | 7, 504 |
Commission revenue | 178 | 165 | 343 |
Support services revenue | 229 | 43 | 272 |
Other services revenue | 267 | 90 | 357 |
Total revenue from continuing operations | 4,970 | 3,506 | 8,476 |
| (Restated)* Period ended 29 April 2023 | |||
| UK & Ireland | Nordics | Total | |
| £m | £m | £m | |
Sale of goods | 4,391 | 3,480 | 7,871 |
Commission revenue | 260 | 195 | 455 |
Support services revenue | 242 | 53 | 295 |
Other services revenue | 174 | 79 | 253 |
Total revenue from continuing operations | 5,067 | 3,807 | 8,874 |
164 Currys plc Annual Report & Accounts 2023/24
Notes to the Group Financial Statements continued
3 Revenue and profit before interest and taxation continued
| (Restated)* | ||
| Period ended | Period ended | |
| 27 April | 29 April | |
| 2024 | 2023 | |
| Total Continuing Operations: | £m | £m |
Depreciation of property, plant & equipment | 41 | 46 |
Depreciation of right-of-use assets | 178 | 179 |
Impairment of right-of-use assets | – | 5 |
Impairment reversal of right-of-use assets | (1) | – |
Amortisation of acquisition intangibles | 23 | 23 |
Amortisation of other intangibles | 57 | 60 |
Impairment of other intangibles | 27 | 4 |
Impairment of goodwill** | – | 511 |
Impairment of inventory | 60 | 71 |
Net impairment on financial assets | – | 1 |
Cost of inventory recognised as an expense | 6,311 | 6,902 |
Cash flow hedge amounts reclassified and reported in income statement | 6 | 3 |
Net foreign exchange gains | (3) | (11) |
Share-based payments expense | 8 | 15 |
Other employee costs (see note 4) | 847 | 847 |
Restructuring costs** | 16 | 20 |
Regulatory costs/(income)** | 13 | (7) |
| Period ended | Period ended | |
| 27 April | 29 April | |
| 2024 | 2023 | |
| £m | £m | |
Fees payable to the Company’s Auditor for the audit of the Company’s annual accounts | 0.1 | 0.1 |
Fees payable to the Company’s Auditor and its associates for the audit of the Company’s subsidiaries | 2.1 | 1.9 |
Total audit fees | 2.2 | 2.0 |
| Audit-related assurance services: | ||
Review of interim statement | 0.2 | 0.2 |
Other assurance services | 0.8 | 0.2 |
Total audit and audit-related assurance services | 3.2 | 2.4 |
Total audit and non-audit fees | 3.2 | 2.4 |
165
Strategic Report Governance Financial Statements Investor Information
| (Restated)* | ||
| Period ended | Period ended | |
| 27 April | 29 April | |
| 2024 | 2023 | |
| £m | £m | |
Salaries and performance bonuses | 724 | 721 |
Social security costs | 92 | 94 |
Other pension costs | 31 | 32 |
847 | 847 | |
Share-based payments | 8 | 15 |
855 | 862 |
| Period ended | Period ended | |
| 27 April | 29 April | |
| 2024 | 2023 | |
| number | number | |
UK & Ireland | 14,972 | 16,106 |
Nordics | 9,803 | 10,386 |
Greece | 3,003 | 3,077 |
27,778 | 29,569 |
Period ended 27 April 2024 | Period ended 29 April 2023 | |||
| Board of | Executive | Board of | Executive | |
| Directors | Committee | Directors | Committee | |
| £m | £m | £m | £m | |
Short-term employee benefits | 4 | 4 | 3 | 3 |
Termination benefits | – | – | – | – |
Share-based payments | 1 | 2 | 3 | 2 |
5 | 6 | 6 | 5 |
166 Currys plc Annual Report & Accounts 2023/24
Notes to the Group Financial Statements continued
4 Employee costs and share-based payments continued
Period ended 27 April 2024 | Period ended 29 April 2023 | |||
| Number | WAEP | Number | WAEP | |
| m | £ | m | £ | |
Outstanding at the beginning of the period | 82 | – | 64 | – |
Granted during the period | 36 | – | 41 | – |
Forfeited during the period | (20) | – | (11) | – |
Exercised during the period | (10) | – | (12) | – |
Outstanding at the end of the period | 88 | – | 82 | – |
Exercisable at the end of the period | 4 | – | 3 | – |
| Period ended | Period ended | |
| 27 April | 29 April | |
| 2024 | 2023 | |
Weighted average market price of options exercised in the period | £0.50 | £0.65 |
Weighted average remaining contractual life of awards outstanding | 8.4 yrs | 8.4 yrs |
Exercise price for options outstanding | £nil | £nil |
Period ended 27 April 2024 | Period ended 29 April 2023 | |||
| Number | WAEP | Number | WAEP | |
| m | £ | m | £ | |
Outstanding at the beginning of the period | 24 | 0.66 | 20 | 0.81 |
Granted during the period | 25 | 0.39 | 17 | 0.59 |
Exercised during the period | – | – | – | 0.66 |
Forfeited during period | (17) | 0.65 | (13) | 0.81 |
Outstanding at the end of the period | 32 | 0.45 | 24 | 0.66 |
Exercisable at the end of the period | – | 0.68 | – | 0.95 |
| Period ended | Period ended | |
| 27 April | 29 April | |
| 2024 | 2023 | |
Weighted average market price of options exercised in the period | £nil | £0.71 |
Weighted average remaining contractual life of awards outstanding | 3.2 yrs | 2.5 yrs |
Range of exercise prices for options outstanding | £0.39 – £0.97 | £0.59 – £1.65 |
167
Strategic Report Governance Financial Statements Investor Information
| Period ended | Period ended | |
| 27 April | 29 April | |
| 2024 | 2023 | |
Exercise price | £nil – £0.39 | £nil – £0.59 |
Dividend yield | 0% – 2.5% | 0% – 5.4% |
Historical and expected volatility | 43% | 44% |
Expected option life | 4 – 10 yrs | 4 – 10 yrs |
Weighted average share price | £0.60 | £0.67 |
27 April 2024 | 29 April 2023 | |||||
| Market | Nominal | Market | Nominal | |||
| value | value | Number | value | value | Number | |
| £m | £m | m | £m | £m | m | |
Investment in own shares | 26 | – | 42 | 15 | – | 27 |
Maximum number of shares held during the period | 20 | – | 43 | 27 | – | 37 |
168 Currys plc Annual Report & Accounts 2023/24
Notes to the Group Financial Statements continued
| (Restated)* | ||
| Period ended | Period ended | |
| 27 April | 29 April | |
| 2024 | 2023 | |
| £m | £m | |
Unwind of discounts on trade and other receivables | 4 | 2 |
Finance income | 4 | 2 |
Interest on bank overdrafts, loans and borrowings | (21) | (18) |
Interest expense on lease liabilities | (59) | (6 3) |
Net interest on defined benefit pension obligations | (11) | (7) |
Amortisation of facility fees | (2) | (2) |
Intercompany interest | (3) | (2) |
Other interest expense | 3 | (8) |
Finance costs | (93) | (100) |
Total net finance costs | (89) | (98) |
169
Strategic Report Governance Financial Statements Investor Information
| (Restated)* | ||
| Period ended | Period ended | |
| 27 April | 29 April | |
| 2024 | 2023 | |
| £m | £m | |
| Current tax | ||
UK corporation tax at 25% (2022/23: 19.5%) | 7 | 14 |
Overseas tax | 5 | 6 |
12 | 20 | |
| Adjustments made in respect of prior periods: | ||
UK corporation tax | (4) | (9) |
Overseas tax | (1) | 3 |
(5) | (6) | |
Total current tax | 7 | 14 |
| Deferred tax | ||
UK corporation tax | (2) | 27 |
Overseas tax | (4) | (16) |
(6) | 11 | |
| Adjustments in respect of prior periods: | ||
UK corporation tax | – | (14) |
Overseas tax | – | 19 |
– | 5 | |
Total deferred tax | (6) | 16 |
Total tax charge | 1 | 30 |
| (Restated)* | ||
| Period ended | Period ended | |
| 27 April | 29 April | |
| 2024 | 2023 | |
| £m | £m | |
Profit/(loss) before taxation | 28 | (4 6 2) |
Tax at UK statutory rate of 25% (2022/23: 19.5%) | 7 | (90) |
| Items attracting no tax relief or liability | 2 | 105 |
| Movement in unprovided deferred tax | (4) | 17 |
Effect of change in statutory tax rate | – | 3 |
Differences in effective overseas tax rates | – | (2) |
Increase/(decrease) in provisions | – | – |
Other tax adjustments | 1 | (2) |
| Adjustments in respect of prior periods | (5) | (1) |
Total tax charge | 1 | 30 |
170 Currys plc Annual Report & Accounts 2023/24
Notes to the Group Financial Statements continued
6 Tax continued
| Accelerated | Retirement | Other | |||
| capital | benefit | Losses carried | temporary | ||
| allowances | obligations | forward | differences | Total | |
| £m | £m | £m | £m | £m | |
At 1 May 2022 | (57) | 55 | 18 | 58 | 74 |
Reclassification | 57 | – | – | (57) | – |
(Charged)/credited directly to income statement | (26) | – | (5) | 16 | (15) |
(Charged) to equity | – | (49) | (2) | – | (51) |
At 29 April 2023 | (26) | 6 | 11 | 17 | 8 |
Sale of Greece business | – | – | – | (4) | (4) |
(Charged)/credited directly to income statement | 5 | – | 1 | – | 6 |
(Charged) to equity | – | (1) | – | (1) | (2) |
At 27 April 2024 | (21) | 5 | 12 | 12 | 8 |
| 27 April | 29 April | |
| 2024 | 2023 | |
| £m | £m | |
Deferred tax assets | 127 | 163 |
Deferred tax liabilities | (119) | (155) |
8 | 8 |
| Period ended | Period ended | |
| 27 April | 29 April | |
| 2024 | 2023 | |
| £m | £m | |
Defined benefit pension schemes | (1) | (49) |
Other temporary differences | (1) | – |
Tax losses | – | (2) |
(2) | (51) |
171
Strategic Report Governance Financial Statements Investor Information
7 Earnings per share
| Period ended | Period ended | |
| 27 April | 29 April | |
| 2024 | 2023 | |
| £m | £m | |
Profit/(loss) for the period attributable to equity shareholders – continued operations | 27 | (492) |
Profit for the period attributable to equity shareholders – discontinued operations | 138 | 11 |
Profit/(loss) for the period – total | 165 | (4 81) |
Million | Million | |
| Weighted average number of shares | ||
Average shares in issue | 1,133 | 1,133 |
Less average holding by Group EBT shares held by Company | (27) | (29) |
For basic earnings per share | 1,106 | 1,104 |
Dilutive effect of share options and other incentive schemes | 22 | 20 |
For diluted earnings per share | 1,128 | 1,124 |
Pence | Pence | |
| Earnings per share | ||
Basic earnings per share – continuing operations | 2.4 | (4 4 . 6) |
Diluted earnings per share – continuing operations | 2.4 | (4 4 . 6) |
Basic earnings per share – discontinued operations | 12.5 | 1.0 |
Diluted earnings per share – discontinued operations | 12.2 | 1.0 |
Basic earnings per share – total | 14.9 | (4 3 . 6) |
Diluted earnings per share – total | 14.6 | (4 3 . 6) |
172 Currys plc Annual Report & Accounts 2023/24
Notes to the Group Financial Statements continued
Cost | £m |
At 30 April 2022 | 3,039 |
Additions | 2 |
Foreign exchange | (35) |
At 29 April 2023 | 3,006 |
Foreign exchange | (33) |
At 27 April 2024 | 2,973 |
Accumulated impairment | £m |
At 30 April 2022 | (225) |
Impairment | (511) |
At 29 April 2023 and 27 April 2024 | (736) |
Carrying amount | £m |
At 30 April 2022 | 2,814 |
At 29 April 2023 | 2,270 |
At 27 April 2024 | 2,237 |
| 27 April | 29 April | |
| 2024 | 2023 | |
| £m | £m | |
UK & Ireland | 1,329 | 1,329 |
Nordics | 908 | 941 |
2,237 | 2,270 |
173
Strategic Report Governance Financial Statements Investor Information
27 April 2024 | 29 April 2023 | |||||||
| Compound | Compound | Compound | Compound | |||||
| annual | annual | annual | annual | |||||
| growth in | growth in | Long-term | Pre-tax | growth in | growth in | Long-term | Pre-tax | |
| sales | costs | growth rate | discount rate | sales | costs | growth rate | discount rate | |
UK & Ireland | 1.9% | 1.7% | 1.5% | 11.9% | 1.4% | 1.3% | 1.6% | 12.2% |
Nordics | 4.2% | 3.8% | 1.7% | 10.2% | 4.4% | 3.6% | 1.5% | 10.8% |
174 Currys plc Annual Report & Accounts 2023/24
Notes to the Group Financial Statements continued
175
Strategic Report Governance Financial Statements Investor Information
| Acquisition intangibles | |||||
| Customer | Software and | ||||
| Brands | relationships | Sub-total | licences | Total | |
| £m | £m | £m | £m | £m | |
Balance at 29 April 2023 | 139 | – | 139 | 211 | 350 |
Additions* | – | – | – | 23 | 23 |
Amortisation | (23) | – | (23) | (61) | (84) |
Disposed with subsidiary | – | – | – | (14) | (14) |
Impairment | – | – | – | (27) | (27) |
Foreign exchange | (1) | – | (1) | (1) | (2) |
Balance at 27 April 2024 | 115 | – | 115 | 131 | 246 |
Cost | 366 | 73 | 439 | 549 | 988 |
Accumulated amortisation and impairment losses | (251) | (73) | (324) | (418) | (742) |
Balance at 27 April 2024 | 115 | – | 115 | 131 | 246 |
| Included in net book value as at 27 April 2024 | |||||
Assets under construction | – | – | – | 6 | 6 |
| Acquisition intangibles | |||||
| Customer | Software and | ||||
| Brands | relationships | Sub-total | licences | Total | |
| £m | £m | £m | £m | £m | |
Balance at 30 April 2022 | 164 | – | 164 | 221 | 385 |
Additions* | – | – | – | 66 | 66 |
Amortisation | (23) | – | (23) | (64) | (87) |
Impairment | – | – | – | (4) | (4) |
Foreign exchange | (2) | – | (2) | (8) | (10) |
Balance at 29 April 2023 | 139 | – | 139 | 211 | 350 |
Cost | 367 | 73 | 440 | 601 | 1,041 |
Accumulated amortisation and impairment losses | (228) | (73) | (301) | (390) | (691) |
Balance at 29 April 2023 | 139 | – | 139 | 211 | 350 |
| Included in net book value as at 29 April 2023 | |||||
Assets under construction | – | – | – | 9 | 9 |
27 April 2024 | 29 April 2023 | |||
| Remaining | Remaining | |||
| Net book | amortisation | Net book | amortisation | |
| value | period | value | period | |
| £m | Periods | £m | Periods | |
Currys | 60 | 6 | 71 | 7 |
Elgiganten | 25 | 6 | 31 | 7 |
Elkjøp | 16 | 6 | 20 | 7 |
Gigantti | 14 | 6 | 17 | 7 |
176 Currys plc Annual Report & Accounts 2023/24
Notes to the Group Financial Statements continued
10 Property, plant & equipment
| Fixtures, fittings | |||
| Land and | and other | ||
| buildings | equipment | Total | |
| £m | £m | £m | |
Balance at 29 April 2023 | 62 | 93 | 155 |
Additions | 8 | 22 | 30 |
Disposals | (1) | (1) | (2) |
Depreciation | (13) | (33) | (46) |
Disposed with subsidiary | (12) | (11) | (23) |
Foreign exchange | (1) | (2) | (3) |
Balance as at 27 April 2024 | 43 | 68 | 111 |
Cost | 112 | 544 | 656 |
Accumulated depreciation | (69) | (476) | (545) |
Balance as at 27 April 2024 | 43 | 68 | 111 |
| Included in net book value as at 27 April 2024 | |||
Assets under construction | – | 10 | 10 |
| Fixtures, fittings | |||
| Land and | and other | ||
| buildings | equipment | Total | |
| £m | £m | £m | |
Balance at 30 April 2022 | 36 | 126 | 162 |
Additions | 18 | 30 | 48 |
Reclassification | 16 | (16) | – |
Depreciation | (8) | (4 4) | (52) |
Foreign exchange | – | (3) | (3) |
Balance as at 29 April 2023 | 62 | 93 | 155 |
Cost | 138 | 578 | 716 |
Accumulated depreciation | (76) | (4 8 5) | (561) |
Balance as at 29 April 2023 | 62 | 93 | 155 |
| Included in net book value as at 29 April 2023 | |||
Assets under construction | – | 4 | 4 |
177
Strategic Report Governance Financial Statements Investor Information
| Land and | Vehicles | ||
| buildings | and equipment | Total | |
| £m | £m | £m | |
Balance at 29 April 2023 | 967 | 28 | 995 |
Additions | 86 | 5 | 91 |
Depreciation | (182) | (11) | (193) |
Disposals | (6) | – | (6) |
Disposed with subsidiary | (70) | (2) | (72) |
Impairment reversal | 1 | – | 1 |
Foreign exchange | (17) | – | (17) |
Balance as at 27 April 2024 | 779 | 20 | 799 |
Cost | 1,433 | 62 | 1,495 |
Accumulated depreciation | (654) | (42) | (696) |
Balance as at 27 April 2024 | 779 | 20 | 799 |
| Land and | Vehicles | ||
| buildings | and equipment | Total | |
| £m | £m | £m | |
Balance at 30 April 2022 | 983 | 25 | 1,008 |
Additions | 192 | 13 | 205 |
Depreciation | (184) | (10) | (194) |
Disposals | (4) | – | (4) |
Impairment | (5) | – | (5) |
Foreign exchange | (15) | – | (15) |
Balance as at 29 April 2023 | 967 | 28 | 995 |
Cost | 1,557 | 65 | 1,622 |
Accumulated depreciation | (590) | (37) | (627) |
Balance as at 29 April 2023 | 967 | 28 | 995 |
178 Currys plc Annual Report & Accounts 2023/24
Notes to the Group Financial Statements continued
12 Inventory
| 27 April | 29 April | |
| 2024 | 2023 | |
| £m | £m | |
Finished goods and goods for resale | 1,034 | 1,151 |
| 27 April | 29 April | |
| 2024 | 2023 | |
| £m | £m | |
Trade receivables | 227 | 341 |
Less expected credit loss allowances | (22) | (27) |
205 | 314 | |
Contract assets | 58 | 104 |
Prepayments | 68 | 74 |
Other receivables | 17 | 67 |
Accrued income | 369 | 220 |
717 | 779 | |
Non-current | 101 | 148 |
Current | 616 | 631 |
717 | 779 |
179
Strategic Report Governance Financial Statements Investor Information
27 April 2024 | 29 April 2023 | |||||
| Expected | Expected | |||||
| Gross trade | credit loss | Net trade | Gross trade | credit loss | Net trade | |
| receivables | allowances | receivables | receivables | allowances | receivables | |
| £m | £m | £m | £m | £m | £m | |
| Ageing of gross trade receivables and expected | ||||||
| credit loss allowances: | ||||||
Not yet due | 150 | (2) | 148 | 255 | (1) | 254 |
| Past due: | ||||||
Under two months | 31 | (2) | 29 | 26 | (1) | 25 |
Two to four months | 13 | (2) | 11 | 16 | (3) | 13 |
Over four months | 33 | (16) | 17 | 44 | (22) | 22 |
77 | (20) | 57 | 86 | (26) | 60 | |
227 | (22) | 205 | 341 | (27) | 314 |
| 27 April | 29 April | |
| 2024 | 2023 | |
| £m | £m | |
Opening balance | (27) | (24) |
Charged to the income statement | (1) | (7) |
Receivables written off as irrecoverable | 5 | 4 |
Amounts recovered during the period | – | – |
Disposal of business | 1 | – |
Closing balance | (22) | (27) |
| 27 April | 29 April | |
| 2024 | 2023 | |
| £m | £m | |
Insurance commission contract assets | 2 | 3 |
Network commission contract assets | 56 | 101 |
58 | 104 |
180 Currys plc Annual Report & Accounts 2023/24
Notes to the Group Financial Statements continued
13 Trade and other receivables continued
181
Strategic Report Governance Financial Statements Investor Information
| 27 April | 29 April | ||
| 2024 | 2023 | ||
| Note | £m | £m | |
Gross network commission receivable and contract asset: opening balance | (i) | 168 | 281 |
Less amounts received in advance from the MNO | (52) | (91) | |
Net network commission receivable and contract asset: opening balance | (ii) | 116 | 190 |
Revenue recognised in respect of current period sales | (iii) | 136 | 247 |
Revaluation of opening network commission contract asset | (iv) | – | 4 |
| Revenue recognised in respect of prior period sales not previously | |||
included in the estimation of revenue recognised | (v) | 14 | 23 |
Revenue recognised in respect of prior period sales | 14 | 27 | |
Revenue recognised in the period | 150 | 274 | |
Cash received from MNOs | (vi) | (204) | (350) |
Movements due to the effect of discounting | 4 | 2 | |
Net network commission receivable and contract asset: closing balance | (vii) | 66 | 116 |
| Comprising: | |||
Net network commission receivable and contract asset in less than one year | 32 | 63 | |
Net network commission receivable and contract asset in more than one year | 34 | 53 | |
66 | 116 | ||
Less amount billed (network commission trade receivable) | (viii) | (10) | (15) |
Net network commission contract asset | (ix) | 56 | 101 |
182 Currys plc Annual Report & Accounts 2023/24
Notes to the Group Financial Statements continued
14 Cash and cash equivalents
| 27 April | 29 April | |
| 2024 | 2023 | |
| £m | £m | |
Cash and cash equivalents | 125 | 97 |
Included within cash and cash equivalents is £36m (2022/23: £30m) of restricted cash and £52m (2022/23: £52m) of credit
card receivable.
27 April 2024 | 29 April 2023 | |||
| Current | Non-current | Current | Non-current | |
| £m | £m | £m | £m | |
Trade payables | 1,167 | 13 | 1,439 | – |
Other taxes and social security | 184 | – | 185 | – |
Other creditors | 1 | – | 1 | – |
Contract liabilities | 193 | 96 | 183 | 94 |
Accruals | 264 | 5 | 259 | 9 |
1,809 | 114 | 2,067 | 103 |
183
Strategic Report Governance Financial Statements Investor Information
| 27 April | 29 April | |
| 2024 | 2023 | |
| £m | £m | |
Opening balance | 277 | 303 |
Revenue recognised in the period that was included in the opening balance | (147) | (169) |
Increase in contract liabilities in the period not yet recognised in revenue | 171 | 143 |
Disposed with subsidiary | (12) | – |
Closing balance | 289 | 277 |
| 27 April | 29 April | |
| 2024 | 2023 | |
| £m | £m | |
| Current liabilities | ||
Bank overdrafts | 29 | 16 |
29 | 16 | |
| Non-current liabilities | ||
Loans and other borrowings | – | 178 |
29 | 194 |
184 Currys plc Annual Report & Accounts 2023/24
Notes to the Group Financial Statements continued
16 Loans and other borrowings continued
17 Lease liabilities
185
Strategic Report Governance Financial Statements Investor Information
| 27 April | 29 April | |
| 2024 | 2023 | |
| £m | £m | |
| Analysed as: | ||
Current | 202 | 213 |
Non-current | 801 | 1,020 |
1,003 | 1,233 |
Total undiscounted future committed payments due are as follows:
| 27 April | 29 April | |
| 2024 | 2023 | |
| £m | £m | |
| Amounts due: | ||
Year 1 | 250 | 266 |
Year 2 | 217 | 254 |
Year 3 | 190 | 217 |
Year 4 | 153 | 188 |
Year 5 | 131 | 153 |
Onwards | 275 | 423 |
1,216 | 1,501 |
The Group does not face a significant liquidity risk with regard to its lease liabilities.
18 Provisions
186 Currys plc Annual Report & Accounts 2023/24
Notes to the Group Financial Statements continued
18 Provisions continued
| 27 April 2024 | |||||
| Reorganisation | Sales | Property | Other | Total | |
| £m | £m | £m | £m | £m | |
Balance at 29 April 2023 | 7 | 10 | 27 | 4 | 48 |
| Reclassifications | – | – | – | 20 | 20 |
Additions | 8 | 25 | 5 | 27 | 65 |
Released in the period | (1) | – | (8) | (1) | (10) |
Utilised in the period | (11) | (25) | (9) | (6) | (51) |
Balance at 27 April 2024 | 3 | 10 | 15 | 44 | 72 |
| Analysed as: | |||||
Current | 3 | 9 | 14 | 38 | 64 |
Non-current | – | 1 | 1 | 6 | 8 |
3 | 10 | 15 | 44 | 72 |
(1)
(1) During the period some balances have been reclassified from Trade and Other Payables to Provisions.
| 29 April 2023 | |||||
| Reorganisation | Sales | Property | Other | Total | |
| £m | £m | £m | £m | £m | |
Balance at 30 April 2022 | 10 | 13 | 24 | 12 | 59 |
Additions | 17 | 54 | 14 | – | 85 |
Released in the period | – | (2) | (6) | (7) | (15) |
Utilised in the period | (20) | (55) | (5) | (1) | (81) |
Balance at 29 April 2023 | 7 | 10 | 27 | 4 | 48 |
| Analysed as: | |||||
Current | 7 | 9 | 23 | 4 | 43 |
Non-current | – | 1 | 4 | – | 5 |
7 | 10 | 27 | 4 | 48 |
Reorganisation
Reorganisation provisions of £3m held at the reporting date relate to redundancy costs for employees who are still employed at the
reporting date but will be departing in the next 12 months. Reorganisation provisions are only recognised when a detailed formal plan
is in place and it has been communicated to those affected. At the beginning of the period, the provision for redundancy with £6m, with
£8m of additions in the period, £10m of utilisation and £1m releases for costs no longer expected to be incurred.
Reorganisation provisions of £1m were held at the period ended 29 April 2023 following management’s decision to stop selling its
credit-based mobile offer. This amount represented the unavoidable costs the Group is obligated to pay for services over the following
two years which are not applicable to its post-pay mobile offer. As at the period ended 29 April 2023, this provision had been utilised.
Sales
Sales provisions relate to product and service warranties provided for up to one year. The anticipated costs of these are assessed by
reference to historical trends and any other information that is considered relevant. Management estimates the related provision for
future related claims based on historical information, as well as recent trends that might suggest that past cost information might differ
from future claims.
Property
Following the previously announced store closure programmes, the Group has a number of present obligations related to its property
portfolio that are explicitly excluded from the measurement of lease liabilities in accordance with IFRS 16. As such, at the reporting
date the Group has onerous contracts for unavoidable store closure costs including service fees, legal costs and dilapidations of £14m
primarily relating to the Currys PC World 3-in-1 programme and Carphone Warehouse store closures in the UK and Ireland.
Provisions for the costs described above are only recognised where there is a definitive business decision to exit a leased property,
it is believed the unavoidable cost of meeting or exiting the obligations exceed the expected benefit to be received and after any
impairment being recorded over right-of-use and store-related assets in accordance with IAS 36.
187
Strategic Report Governance Financial Statements Investor Information
The amounts of future expenditures for store closure costs are reviewed throughout the period and are based on readily available
information at the reporting date as well as management’s historical experience of similar transactions.
Of the £14m related to closure programmes announced in prior periods, utilisation is to be incurred in conjunction with the profile of the
leases to which they relate. The longest lease will unwind over the next six years. Where appropriate and in the interests of the Group,
management will proactively seek to exit any liabilities early. Where there is a substantive expectation that the unavoidable costs
provided for will be reduced as a result of exit negotiations, the provision will be remeasured based on the best available information
and an amount released, as seen in the period.
In addition, a provision of £1m remains in the period end for onerous contracts and unavoidable costs relating to management’s decision
to close or downsize a number of stores in the Nordics, as announced in the previous reporting period. During the period, £4m of the
opening balance of £8m has been utilised and £4m has been released following the progression of the store programme. Additions of
£1m have been made relating to further store closures announced in the current period as part of the same Nordics cost-saving initiative.
Other
Other provisions predominantly relate to regulatory costs and other miscellaneous matters. As at the reporting date, provisions of £17m
were held for potential legal fees and customer redress related to other historical regulatory matters. Management estimates the
related provision based on historical claims information and applies this against any remaining potential claimants using an expected
value approach.
A provision of £6m was held at the reporting date related to onerous contracts for licences that have no further economic use to the
Group but the Group is obligated to pay. This will be utilised throughout the next financial period.
Further amounts in respect to other matters have been reclassed from trade and other payables in the period. As at the reporting date,
the balances held in respect to these matters were as follows:
• £10m for costs related to mobile insurance contracts, which will be utilised in the next period.
• £7m in relation to insurance claims against the Group based on estimate claim settlement, which will be utilised over time as the
claims are resolved.
• £4m in relation to estimated dilapidations for lease equipment which will be utilised at expiry of the lease.
The range of estimation uncertainty across all categories of provisions is not considered to be material.
19 Retirement and other post-employment benefit obligations
188 Currys plc Annual Report & Accounts 2023/24
Notes to the Group Financial Statements continued
19 Retirement and other post-employment benefit obligations continued
| 27 April | 29 April | ||
| 2024 | 2023 | ||
| £m | £m | ||
Retirement benefit obligations | – UK | 170 | 247 |
– Nordics | 1 | 1 | |
– Greece | – | 1 | |
171 | 249 |
The Group operates a defined benefit scheme and provides defined contribution benefits largely through a Master Trust solution.
The defined benefit scheme which operates in the UK holds assets in a separate trustee administered fund. The scheme is managed
by a board of trustees and is valued by a qualified actuary who advises the trustees at least every three years, with contributions
required being assessed in accordance with the actuary’s advice. Since 1 September 2002, the provision of defined benefit pensions
for employees in this scheme has been closed to new entrants and on 30 April 2010 was closed to future accrual with automatic
provision of defined contribution benefits being offered to those active members of the defined benefit section at that time. Defined
contribution benefits are offered to current eligible employees. The Nordic and Greek segments operate small unfunded pension
schemes with characteristics of defined benefit schemes. The liabilities of these schemes are shown above. They also operate defined
contribution schemes.
189
Strategic Report Governance Financial Statements Investor Information
Risk | Description | Mitigation |
Investment | The IAS 19 defined benefit obligations are calculated | The trustees regularly monitor the funding position and |
| using a discount rate derived from the yield obtained on | consider their long-term plan to implement a diversified | |
| high quality corporate bonds. If the pension scheme’s | investment portfolio that generates sufficient returns | |
| assets underperform relative to this discount rate, the | whilst managing the investment risks posed to the scheme. | |
| accounting deficit will increase. | ||
| The Group regularly engages with the trustees on the | ||
| If the underperformance of assets also results in a larger | scheme’s investment strategy and its management. | |
| deficit for the funding valuation (carried out every 3 | ||
| years as a minimum), the pension scheme may require | ||
| additional contributions from the Group. | ||
Inflation | The IAS 19 defined benefit obligations are in part linked | As part of the investment strategy implemented by the |
| to actual and future expected inflation. Therefore, a | trustees, inflation risk is mitigated through a liability-driven | |
| higher rate of inflation will result in a higher defined | investment (LDI) portfolio. | |
| benefit obligation. | ||
| The LDI portfolio consists of assets that increase/ | ||
| A higher rate of inflation will also increase the | decrease in value in line with inflation expectations. | |
| Scheme’s funding liability, which may require additional | The scheme’s holding in LDI is designed to hedge a large | |
| contributions from the Group, as a part of discussions on | amount of the scheme’s funding liability and thereby | |
| the triennial funding valuation. | mitigate the net impact of any adverse movements in | |
| inflation expectations. | ||
Interest rate | The IAS 19 defined benefit obligations are calculated | As part of the investment strategy implemented by |
| using a discount rate derived from the yields obtained | the trustees, interest rate risk is mitigated through the | |
| on corporate bonds of an appropriate duration. If | investment in a liability-driven investment (LDI) portfolio. | |
| long-term corporate bond yields reduce, the IAS 19 | ||
| defined benefit obligations will increase. | The LDI portfolio consists of assets that increase/decrease | |
| in value in line with interest rate movements. The scheme’s | ||
| Similarly, a reduction in gilt yields (which are used in part | holding in LDI is designed to hedge a large amount of the | |
| to calculate the liabilities for the funding valuation) | scheme’s funding liability and thereby mitigate the impact | |
| will result in a higher funding liability, which may require | of any adverse movements in interest rates. | |
| additional contributions from the Group, as a part of | ||
| discussions on the triennial funding valuation. | However, as the LDI portfolio mitigates the interest risk on the | |
| funding basis, deviations between gilt and corporate bond | ||
| yields can lead to ineffective hedging in respect of the | ||
| IAS 19 defined benefit obligations. The scheme’s credit asset | ||
| allocation helps provide additional hedging in this area. | ||
Liquidity | The scheme is required to meet ongoing cashflows | The scheme operates a collateral adequacy framework |
| requirements, including benefit payments to members | which ensures there are sufficient levels of liquid assets | |
| and collateral calls on the scheme’s leveraged | to meet ongoing cashflows requirements, even in times of | |
| investments. There is therefore a risk that the scheme has | market distress. | |
| insufficient liquid assets to meet these obligations. | ||
| The framework is regularly assessed and appropriately | ||
| managed to ensure it remains robust to respond to | ||
| significant market events. | ||
Longevity | The scheme provides pensions benefits for the duration | The trustees and the Group regularly monitor the outlook |
| of a member’s life and typically to any surviving spouse. | for future life expectancy and the impact this might have | |
| Therefore, an increase in life expectancy will result in | on the defined benefit obligations. | |
| higher IAS 19 defined benefit obligations. | ||
Legislation | The scheme is exposed to the risk that new legislation or | The trustees and the Group regularly monitor this and are |
| regulation could impact the valuation of the scheme’s | kept up to date by their advisors on ongoing changes in | |
| liabilities in the future. | legislation and regulation, including the impact of these | |
| to the scheme and the associated liabilities. |
190 Currys plc Annual Report & Accounts 2023/24
Notes to the Group Financial Statements continued
19 Retirement and other post-employment benefit obligations continued
| 27 April | 29 April | |
| Rates per annum | 2024 | 2023 |
Discount rate | 5.20% | 4.85% |
| Rate of increase in pensions in payment (pre/post April 2006 accrual) | 3.00%/2.00% | 3.05%/2.15% |
| Rate of increase in deferred pensions (pre/post April 2006 accrual) | 3.15% | 3.10% |
Inflation | 3.15% | 3.10% |
| Period ended | Period ended | |
| 27 April | 29 April | |
| 2024 | 2023 | |
| £m | £m | |
Past service cost | – | – |
Net interest expense on defined benefit obligation | 11 | 7 |
Total expense recognised in the income statement | 11 | 7 |
| Period ended | Period ended | |
| 27 April | 29 April | |
| 2024 | 2023 | |
| £m | £m | |
| Remeasurement of defined benefit obligation – actuarial gains/(losses) arising from: | ||
Changes in demographic assumptions | 46 | 15 |
Changes in financial assumptions | 61 | 473 |
Experience adjustments | (4) | (90) |
| Remeasurement of scheme assets: | ||
Actual return on plan assets (excluding amounts included in net interest expense) | (51) | (4 59) |
Cumulative actuarial gain/(loss) | 52 | (61) |
191
Strategic Report Governance Financial Statements Investor Information
| 27 April | 29 April | |
| 2024 | 2023 | |
| £m | £m | |
Present value of defined benefit obligations | (1,125) | (1,222) |
Fair value of plan assets | 955 | 975 |
Net obligation | (170) | (247) |
| 27 April | 29 April | |
| 2024 | 2023 | |
| £m | £m | |
Opening obligation | 1,222 | 1,620 |
Past service cost | – | – |
Interest cost | 58 | 49 |
| Remeasurements in other comprehensive income – actuarial (gains)/losses arising from changes in: | ||
Demographic assumptions | (46) | (15) |
Financial assumptions | (61) | (47 3) |
Experience adjustments | 4 | 90 |
Benefits paid | (52) | (49) |
Closing obligation | 1,125 | 1,222 |
| 27 April | 29 April | |
| 2024 | 2023 | |
| £m | £m | |
Opening fair value | 975 | 1,363 |
Interest income | 47 | 42 |
Employer contributions | 36 | 78 |
| Remeasurements in other comprehensive income: | ||
Actual return on plan assets (excluding interest income) | (51) | (4 59) |
Benefits paid | (52) | (49) |
Closing fair value | 955 | 975 |
| 27 April | 29 April | ||
| 2024 | 2023 | ||
| £m | £m | ||
Credit funds | – Listed | 164 | 143 |
– Unlisted | 228 | 221 | |
Private equity | – Unlisted | 2 | 8 |
Liability driven investments (‘LDIs’)* | – Listed | 681 | 713 |
– Unlisted | (253) | (256) | |
Synthetic equity* | – Unlisted | 117 | 122 |
Cash and cash instruments | – Listed | – | – |
– Unlisted | 15 | 24 | |
Other | – Unlisted | 1 | – |
955 | 975 |
192 Currys plc Annual Report & Accounts 2023/24
Notes to the Group Financial Statements continued
19 Retirement and other post-employment benefit obligations continued
Net finance costs impact | Liability impact | |||
| Period ended | Period ended | Period ended | Period ended | |
| 27 April | 29 April | 27 April | 29 April | |
| 2024 | 2023 | 2024 | 2023 | |
| Positive/(negative) effect | £m | £m | £m | £m |
Discount rate: 1% increase | 7 | 9 | 150 | 161 |
Inflation rate: 1% increase* | (9) | (7) | (133) | (182) |
Life expectancy: 1-year increase | (2) | (2) | (45) | (49) |
193
Strategic Report Governance Financial Statements Investor Information
20 Share capital, retained earnings and reserves
| 27 April | 29 April | 27 April | 29 April | |
| 2024 | 2023 | 2024 | 2023 | |
| million | million | £m | £m | |
Authorised, allotted, called-up and fully paid ordinary shares of 0.1p each | 1,133 | 1,133 | 1 | 1 |
| 27 April | 29 April | 27 April | 29 April | |
| 2024 | 2023 | 2024 | 2023 | |
| million | million | £m | £m | |
Ordinary shares of 0.1p each in issue at the beginning and end of the period | 1,133 | 1,133 | 1 | 1 |
Issued during the period | – | – | – | – |
Repurchased and cancelled during the period | – | – | – | – |
Ordinary shares of 0.1p each in issue at the beginning and end of the period | 1,133 | 1,133 | 1 | 1 |
| Investment in | |||||
| Hedging | own shares | Translation | Demerger | ||
| reserve | reserve | reserve | reserve | Total | |
| £m | £m | £m | £m | £m | |
As at 30 April 2022 | 3 | (39) | (17) | (750) | (803) |
| Other comprehensive income and expense recognised directly | |||||
in equity | 14 | – | (5) | – | 9 |
| Amounts transferred to the carrying value of inventory | |||||
purchased during the period | (19) | – | – | – | (19) |
Amounts transferred to accumulated profits | – | 13 | – | – | 13 |
Purchase of own shares – EBT | – | (4) | – | – | (4) |
As at 29 April 2023 | (2) | (30) | (22) | (750) | (804) |
| Other comprehensive income and expense recognised directly | |||||
in equity | 9 | – | (41) | – | (32) |
| Amounts transferred to the carrying value of inventory | |||||
purchased during the period | (5) | – | – | – | (5) |
Amounts transferred to accumulated profits | – | 10 | (1) | – | 9 |
Purchase of own shares – EBT | – | (12) | – | – | (12) |
As at 27 April 2024 | 2 | (32) | (64) | (750) | (844) |
194 Currys plc Annual Report & Accounts 2023/24
Notes to the Group Financial Statements continued
21 Equity dividends
| 27 April | 29 April | |
| 2024 | 2023 | |
| £m | £m | |
Final dividend for the period ended 30 April 2022 of | – | 24 |
Interim dividend for the period ended 29 April 2023 of | – | 11 |
| Amounts recognised as distributions to equity shareholders in the period – | ||
on ordinary shares of 0.1p each | – | 35 |
The final dividend proposed for the period ended 27 April 2024 is nil:
| £m | |
Final dividend for the period ended 27 April 2024 of nil per ordinary share | – |
22 Discontinued operations
On 10 April 2024, Currys plc (Currys) announced that it has completed the sale of Dixons South East Europe A.E.V.E., the holding
company of Currys entire Greece and Cyprus retail business, trading as Kotsovolos, to Public Power Corporation S.A. Consequently,
Kotsovolos has been accounted for as a discontinued operation for all periods up to 27 April 2024, from the date the transaction
completed, the results of which are detailed below.
a) Profit after tax – discontinued operations
| Period ended | Period ended | |
| 10 April 2024 | 29 April 2023 | |
| £m | £m | |
Revenue | 579 | 637 |
Expenses | (577) | (625) |
Profit before tax | 2 | 12 |
Income tax expense | (2) | (1) |
Profit after income tax of discontinued operations | – | 11 |
Gain on sale of the subsidiary after income tax | 138 | – |
Profit for the period from discontinued operations | 138 | 11 |
195
Strategic Report Governance Financial Statements Investor Information
b) Details of the sale of the Kotsovolos business
| Period ended | ||
| 27 April 2024 | ||
| Note | £m | |
Cash consideration received | 24d | 202 |
Carrying amount of net assets sold | (61) | |
Transaction fees unpaid at date of sale | (4) | |
Gain on sale before income tax and reclassification of foreign currency translation reserve | 137 | |
Reclassification of foreign currency translation reserve | 1 | |
| 138 | ||
| Gain on sale before income tax | ||
Income tax expense on gain | 6 | – |
Gain on sale after income tax | 138 |
Total transaction fees associated with the sale of the Kotsovolos business were £7m, with £4m unpaid as at the date of sale. The £3m
paid are included in the £202m consideration received figure above. See note 24d for further details on the consideration.
Accumulated foreign currency translation of £1m held in reserves that relate to the translation from EUR to GBP of the Kotsovolos
business were transferred to the income statement upon disposal of the subsidiary.
The carrying amount of assets and liabilities as at the date of sale, 10 April 2024, were:
| 10 April | |
| 2024 | |
| £m | |
| Non-current assets | |
Intangible assets | 14 |
Property, plant & equipment | 23 |
Right-of-use assets | 72 |
Trade and other receivables | 12 |
Deferred tax assets | 4 |
| 125 | |
| Current assets | |
Inventory | 147 |
Trade and other receivables | 89 |
| 236 | |
Total assets | 361 |
| Current liabilities | |
Trade and other payables | (208) |
Income tax payable | (1) |
Loans and other borrowings | (1) |
Lease liabilities | (13) |
| (223) | |
| Non-current liabilities | |
Trade and other payables | (6) |
Loans and other borrowings | (3) |
Lease liabilities | (67) |
Retirement benefit obligations | (1) |
| (77) | |
Total liabilities | (300) |
Net assets | 61 |
196 Currys plc Annual Report & Accounts 2023/24
Notes to the Group Financial Statements continued
197
Strategic Report Governance Financial Statements Investor Information
Accounting policies continued
| 27 April | 29 April | |
| 2024 | 2023 | |
| £m | £m | |
| Lease receivables | 4 | 5 |
| Cash and cash equivalents | 125 | 97 |
| Trade and other receivables | 591 | 601 |
| Derivative financial assets | 13 | 23 |
| Derivative financial liabilities | (4) | (13) |
| Trade and other payables | (1,327) | (1,606) |
| Loans and other borrowings | (29) | (194) |
| Lease liabilities | (1,003) | (1,233) |
198 Currys plc Annual Report & Accounts 2023/24
Notes to the Group Financial Statements continued
23 Financial risk management and derivative financial instruments continued
| 27 April 2024 | |||||
| Gross amounts | |||||
| of recognised | |||||
| financial | Net amounts of | Financial | |||
| Gross amounts | liabilities set off | financial assets | instruments not | ||
| of recognised | in the balance | presented in the | set off in the | Net | |
| financial assets | sheet | balance sheet | balance sheet | amount | |
| £m | £m | £m | £m | £m | |
Forward foreign exchange contracts* | 13 | – | 13 | (4) | 9 |
13 | – | 13 | (4) | 9 |
| 29 April 2023 | |||||
| Gross amounts | |||||
| of recognised | |||||
| financial | Net amounts of | Financial | |||
| Gross amounts | liabilities set off | financial assets | instruments not | ||
| of recognised | in the balance | presented in the | set off in the | Net | |
| financial assets | sheet | balance sheet | balance sheet | amount | |
| £m | £m | £m | £m | £m | |
Forward foreign exchange contracts* | 23 | – | 23 | (12) | 11 |
23 | – | 23 | (12) | 11 |
| 27 April 2024 | |||||
| Gross amounts | Net amounts | ||||
| Gross amounts | of recognised | of financial | Financial | ||
| of recognised | financial assets | liabilities | instruments not | ||
| financial | set off in the | presented in the | set off in the | Net | |
| liabilities | balance sheet | balance sheet | balance sheet | amount | |
| £m | £m | £m | £m | £m | |
Forward foreign exchange contracts* | (4) | – | (4) | 4 | – |
(4) | – | (4) | 4 | – |
199
Strategic Report Governance Financial Statements Investor Information
| 29 April 2023 | |||||
| Gross amounts | Net amounts | ||||
| Gross amounts | of recognised | of financial | Financial | ||
| of recognised | financial assets | liabilities | instruments not | ||
| financial | set off in the | presented in the | set off in the | ||
| liabilities | balance sheet | balance sheet | balance sheet | Net amount | |
| £m | £m | £m | £m | £m | |
Forward foreign exchange contracts* | (13) | – | (13) | 12 | (1) |
(13) | – | (13) | 12 | (1) |
Period ended 27 April 2024 | Period ended 29 April 2023 | |||
| Effect on profit | Effect on total | Effect on profit | Effect on total | |
| before tax* | equity | before tax* | equity | |
| £m | £m | £m | £m | |
10% movement in the US Dollar exchange rate | – | 7 | – | 7 |
10% movement in the Euro exchange rate | – | 23 | – | 25 |
10% movement in the Norwegian Krone exchange rate | – | 12 | – | 15 |
10% movement in the Swedish Krona exchange rate | – | 12 | – | 9 |
10% movement in the Danish Krone exchange rate | – | 8 | – | 7 |
10% movement in the Chinese Yuan Offshore exchange rate | – | 5 | – | 5 |
200 Currys plc Annual Report & Accounts 2023/24
Notes to the Group Financial Statements continued
23 Financial risk management and derivative financial instruments continued
| Period ended | Period ended | |
| 27 April | 29 April | |
| 2024 | 2023 | |
| Increase/(decrease) on profit before tax | £m | £m |
1% increase in the GBP interest rate | – | – |
1% increase in the NOK interest rate | – | (1) |
| 27 April 2024 | ||||
| In more than | ||||
| one year but | ||||
| Within | not more than | In more than five | ||
| one year | five years | years | Total | |
| £m | £m | £m | £m | |
Lease liabilities | (250) | (691) | (275) | (1,216) |
| Derivative financial instruments – gross cash outflows: | ||||
Forward foreign exchange contracts | (1,474) | – | – | (1,474) |
| Derivative financial instruments – gross cash inflows: | ||||
Forward foreign exchange contracts | 1,484 | – | – | 1,484 |
Loans and other borrowings | (29) | – | – | (29) |
Trade and other payables | (1,314) | (13) | – | (1,327) |
(1,583) | (704) | (275) | (2,562) |
201
Strategic Report Governance Financial Statements Investor Information
| 29 April 2023 | ||||
| In more than | ||||
| one year but | ||||
| Within | not more than | In more than | ||
| one year | five years | five years | Total | |
| £m | £m | £m | £m | |
Lease liabilities | (266) | (812) | (4 2 2) | (1,500) |
| Derivative financial instruments – gross cash outflows: | ||||
Forward foreign exchange contracts | (2,088) | – | – | (2,088) |
| Derivative financial instruments – gross cash inflows: | ||||
Forward foreign exchange contracts | 2,098 | – | – | 2,098 |
Loans and other borrowings | (30) | (202) | – | (232) |
Trade and other payables | (1,602) | (4) | – | (1,606) |
(1,888) | (1,018) | (42 2) | (3,328) |
| 27 April | 29 April | |
| 2024 | 2023 | |
| Counterparty credit rating | £m | £m |
AAA to AA- | 82 | 45 |
A+ to A- | 41 | 37 |
BBB+ to BBB- | 2 | 1 |
Cash held for short-term operational requirements within Greece | – | 14 |
125 | 97 |
202 Currys plc Annual Report & Accounts 2023/24
Notes to the Group Financial Statements continued
23 Financial risk management and derivative financial instruments continued
27 April 2024 | 29 April 2023 | |||
| Gross carrying | Expected credit | Gross carrying | Expected credit | |
| amount | loss | Amount | loss | |
| £m | £m | £m | £m | |
UK & Ireland – Business to Business | 5 | 3 | 11 | 5 |
UK & Ireland – Main Sales Ledger | 72 | 14 | 72 | 16 |
UK & Ireland – Concessions | – | – | – | – |
UK & Ireland – iD Mobile | 210 | 24 | 122 | 16 |
Nordics – Business to Business | 22 | 1 | 25 | 1 |
Nordics – Franchise Debtors | 29 | 2 | 29 | 1 |
Nordics – Main sales ledger | 46 | 2 | 96 | 3 |
Greece – Business to Business | – | – | 7 | – |
Greece – Franchise Debtors | – | – | 2 | 1 |
Greece – Consumer Credit | – | – | 14 | 2 |
Greece – Main Sales Ledger | – | – | 13 | – |
384 | 46 | 391 | 45 |
| 27 April | 29 April | |
| 2024 | 2023 | |
| Gross amounts of recognised financial assets | £m | £m |
Not yet due | 304 | 340 |
0 – 90 days | 44 | 24 |
91 – 180 days | 18 | 5 |
180+ days | 18 | 22 |
384 | 391 |
203
Strategic Report Governance Financial Statements Investor Information
Period ended 27 April 2024 | Period ended 29 April 2023 | |||||
| Maturing | Change in fair | Maturing | Change in fair | |||
| hedges | Weighted | value used to | hedges | Weighted | value used to | |
| in the next | average | calculate hedge | in the next | average | calculate hedge | |
| 12 months | hedge rate | ineffectiveness | 12 months | hedge rate | ineffectiveness | |
| £m | £m | £m | £m | |||
Hedging USD purchases into GBP (UK) | 48 | 1.2636 | – | 112 | 1.2220 | (1) |
Hedging EUR purchases into GBP (UK) | 27 | 1.1516 | – | 34 | 1.1331 | – |
Hedging CNY purchases into GBP (UK) | 63 | 8.9378 | – | 55 | 8.3136 | (2) |
Hedging EUR purchases into NOK (Nordics) | 306 | 11.5477 | 7 | 296 | 11.1352 | 16 |
Hedging USD purchases into NOK (Nordics) | 46 | 10.6233 | 2 | 31 | 10.2237 | 1 |
Hedging SEK sales into NOK (Nordics) | 133 | 0.9812 | 1 | 99 | 1.0080 | (4) |
Hedging DKK sales into NOK (Nordics) | 90 | 0.6455 | (2) | 76 | 0.6692 | (4) |
Hedging GBP purchases into EUR (Ireland) | 77 | 1.1517 | 1 | 71 | 1.1314 | – |
790 | 9 | 774 | 6 |
204 Currys plc Annual Report & Accounts 2023/24
Notes to the Group Financial Statements continued
23 Financial risk management and derivative financial instruments continued
24 Notes to the cash flow statement
a) Reconciliation of cash and cash equivalents and bank overdrafts at the end of the period
| Period ended | Period ended | |
| 27 April | 29 April | |
| 2024 | 2023 | |
| £m | £m | |
Cash at bank and on deposit | 125 | 97 |
Bank overdrafts | (29) | (16) |
Cash and cash equivalents and bank overdrafts at end of the period | 96 | 81 |
b) Reconciliation of operating profit to cash generated from continuing operations
| (Restated)* | ||
| Period ended | Period ended | |
| 27 April | 29 April | |
| 2024 | 2023 | |
| £m | £m | |
Profit/(loss) before interest and tax | 117 | (364) |
Depreciation and amortisation | 299 | 308 |
Share-based payment charge | 8 | 14 |
Profit on disposal of fixed assets | – | – |
Impairments and other non-cash items | 28 | 520 |
Operating cash flows before movements in working capital | 452 | 478 |
| Movements in working capital: | ||
(Increase)/Decrease in inventory | (43) | 126 |
(Increase)/Decrease in receivables | (36) | 40 |
Increase/(Decrease) in payables | 21 | (286) |
Increase/(Decrease) in provisions | 25 | (16) |
(33) | (136) | |
Cash generated from continuing operations | 419 | 342 |
* The prior period has been restated to exclude discontinued operations.
205
Strategic Report Governance Financial Statements Investor Information
c) Changes in liabilities arising from financing activities
The table below details changes in the Group’s liabilities arising from financing activities, including both cash and non-cash changes.
Liabilities arising from financing activities are those for which cash flows were, or future cash flows will be, classified in the Group’s
consolidated cash flow statement as cash flows from financing activities.
| Lease | ||||||
| additions, | ||||||
| 29 April | Financing | modifications | Foreign | 27 April | ||
| 2023 | cash flows | and disposals | exchange | Interest | 2024 | |
| £m | £m | £m | £m | £m | £m | |
Loans and other borrowings (note 16) | (178) | 197 | 4 | (1) | (22) | – |
| Lease liabilities (note 17) | (1,233) | 275 | 1 | 18 | (64) | (1,003) |
| Total liabilities from financing activities | (1,411) | 472 | 5 | 17 | (86) | (1,003) |
(i)
(iii)
(ii)
| Lease | ||||||
| additions, | ||||||
| 30 April | Financing | modifications | Foreign | 29 April | ||
| 2022 | cash flows | and disposals | exchange | Interest | 2023 | |
| £m | £m | £m | £m | £m | £m | |
Loans and other borrowings (note 16) | (80) | (92) | – | 11 | (17) | (178) |
| Lease liabilities (note 17) | (1,267) | 285 | (198) | 15 | (68) | (1,233) |
| Total liabilities from financing activities | (1,347) | 193 | (198) | 26 | (85) | (1,411) |
(i)
(ii)
i) Lease liabilities are secured over the Group’s right-of-use assets.
ii) In addition to the amounts shown above, facility arrangement fees of £1m (2022/23: £1m) are included within cash flows from financing activities in the consolidated cash
flow statement.
iii) This figure includes the disposal of lease liabilities related to Greece of £80m.
The consolidated cash flow statement presents the drawdown and repayment of loans and other borrowings on a net basis as these
loans and other borrowings are used as a key part of the Group’s daily cash management, with daily deposits and repayments, and the
entire balance revolving within a matter of days.
d) Proceeds on sale of business
On 10 April 2024, the Group announced that it has completed the sale of Dixons South East Europe A.E.V.E., the holding company of
Currys entire Greece and Cyprus retail business, trading as Kotsovolos, to Public Power Corporation S.A. Total consideration received
was £237m and £32m of cash was held in Dixons South East Europe A.E.V.E. at the disposal date, resulting in a net cash inflow on
disposal of £205m. A further £3m of transaction fees associated with the sale were paid during FY24, resulting in net proceeds on
disposal of £202m. Further details about the disposal of the subsidiary can be found in note 22.
| 27 April | 29 April | |
| 2024 | 2023 | |
| £m | £m | |
Revenue from sale of goods and services | 14 | 13 |
Amounts owed to the Group | 1 | 1 |
206 Currys plc Annual Report & Accounts 2023/24
Notes to the Group Financial Statements continued
| 27 April | 29 April | |
| 2024 | 2023 | |
| £m | £m | |
Intangible assets | 1 | 3 |
Property, plant & equipment | 5 | 4 |
Contracted for but not provided for in the accounts | 6 | 7 |
28 Events after the balance sheet date
There were no material events after the balance sheet date.
207
Strategic Report Governance Financial Statements Investor Information
Note
27 April
2024
£m
29 April
2023
£m
Non-current assets
Investments in subsidiaries C4 2,559 2,340
2,559 2,340
Current assets
Cash and cash equivalents 30 1
Debtors C5 362 3,369
Derivative assets C7 16 35
408 3,405
Current liabilities
Creditors C6 (227) (3,282)
Derivative liabilities C7 (16) (31)
Income tax payable (7) –
Net current assets/(liabilities) 158 92
Total assets less current liabilities 2,717 2,432
Net assets 2,717 2,432
Capital and reserves
Share capital C8 1 1
Share premium reserve C8 2,263 2,263
Profit and loss account 453 168
2,717 2,432
The Company’s profit for the period was £289m (2022/23: £204m loss).
The financial statements of the Company were approved by the Board on 27 June 2024 and signed on its behalf by:
Alex Baldock Bruce Marsh
Group Chief Executive Group Chief Financial Officer
Company registration number: 7105905
Company Balance Sheet
208 Currys plc Annual Report & Accounts 2023/24
Company Statement of Changes in Equity
Share
capital
£m
Share premium
reserve
£m
Profit and loss
account
£m
Total
equity
£m
At 30 April 2022 1 2,263 395 2,659
Total comprehensive income 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
Total comprehensive (expense) for the period – – 289 289
Purchase of own shares – employee benefit trust – – (12) (12)
Purchase of own shares – share buyback – – – –
Share-based payments – – 8 8
Equity dividend – – – –
At 27 April 2024 1 2,263 453 2,717
209
Strategic Report Governance Financial Statements Investor Information
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 27 April 2024 (2022/23: 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 or impairment reversal exist. The Company has considered a number of factors including the
carrying value of the investment in subsidiaries in relation to the market capitalisation of the Group. While the carrying value remains
higher than the market capitalisation, the market capitalisation has increased in the period due to an increase in the Company’s share
price. Management concluded that some of these factors were an indicator of impairment reversal and consequently, an impairment
review was undertaken per IAS 36 which resulted in a reversal of a prior period non-cash impairment of £219m being recognised in 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 profit recognised for the period ended 27 April 2024 was £289m (2022/23: £204m loss). 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 21 of the Group
financial statements.
Notes to the Company Financial Statements
210 Currys plc Annual Report & Accounts 2023/24
C4 Investments in subsidiaries
27 April
2024
£m
29 April
2023
£m
Opening balance 2,340 2,670
Disposals – (1)
Impairments – (329)
Reversal of impairments 219 –
Closing balance 2,559 2,340
Cost 2,676 2, 676
Accumulated impairments (117) (336)
Net carrying amount 2,559 2,340
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 27 April 2024 the excess of the carrying amount of the net assets of the Company, which primarily
consists of investments in subsidiaries, above the market capitalisation of Currys plc had decreased in the period. This was considered to
be an indicator of impairment reversal 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 as at 27 April 2024 based on the aggregate of the value in use
calculations for each identifiable CGU as the Company hold its material investments through one intermediate holding company, Currys
Holdings Limited. Management have prepared discounted cash flows based on the latest four-year strategic plan 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 values attributed to these key assumptions in the
calculation of the value-in-use for each CGU are as follows:
27 April 2024 29 April 2023
Compound
annual
growth in
sales
Compound
annual
growth in
costs
Long-term
growth rate
Pre-tax
discount rate
Compound
annual
growth in
sales
Compound
annual
growth in
costs
Long-term
growth rate
Pre-tax
discount rate
UK & Ireland 1.9% 1.7% 1,5% 11.8% 1.4% 1.3% 1.6% 12.2%
Nordics 4.2% 3.8% 1,7% 10.0% 4.4% 3.6% 1.5% 10.8%
Greece n/a n /a n/a n/a 0.3% 0.1% 1.3% 12.5%
Upon performing the impairment testing described above, it was determined that the recoverable amount of the investment was higher than
the carrying amount, and a reversal of impairments recognised in prior periods of £219m (2022/23: £329m impairment) was recognised over
the investment balance. This reversal primarily relates to a material decrease in discount rate reflecting reduced market risk and volatility
and stabilising interest rates. In accordance with IAS 36, impairments 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 (2022/23: £nil) 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 accumulated impairment recognised is below:
Key assumption Sensitivity applied
Headroom/
(Impairment)
£m
Movement
£m
Operating profit in final year of plan
Increase of 20% 426 543
Decrease of 10% (388) (271)
Long-term growth rate
Increase of 0.2% (53) 64
Decrease of 0.2% (178) (61)
Pre-tax discount rate
Increase of 2.0% (74 3) (627)
Decrease of 2.0% 857 974
During the prior period investments with £1m carrying value were disposed of, relating to interests no longer held by the Company.
Notes to the Company Financial Statements continued
211
Strategic Report Governance Financial Statements Investor Information
C5 Debtors
27 April
2024
£m
29 April
2023
£m
Amounts owed by Group undertakings 362 3,368
Other debtors – 1
Amounts falling due within one year 362 3,369
During the period the Company completed a simplification of its intragroup lending structure resulting in a reduction in both amounts
owed by and to other Group undertakings, with the net position largely unchanged. 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 period an increase in expected credited losses of £3m (2022/23: £nil) 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
27 April
2024
£m
29 April
2023
£m
Amounts owed to Group undertakings 223 3,255
Accruals 4 –
Overdrafts – 27
Amounts falling due within one year 227 3,282
During the period the Company completed a simplification of its intragroup lending structure resulting in a reduction in both amounts
owed by and to other Group undertakings, with the net position largely unchanged.
C7 Derivatives
27 April
2024
£m
29 April
2023
£m
Foreign exchange contracts 16 35
Derivative assets 16 35
Foreign exchange contracts (16) (31)
Derivative liabilities (16) (31)
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 27 April 2024 the Company has external forward and swap foreign exchange contracts in place with a notional value of £1,474m
(2022/23: £2,088m) and a fair value of £13m asset (2022/23: £23m) and £4m liability (2022/23: £13m). These derivatives will mature in
between one month and one year.
Derivatives with a notional value of £790m (2022/23: £774m) and a fair value of £12m asset (2022/23: £18m) and £3m liability
(2022/23: £12m) 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.
212 Currys plc Annual Report & Accounts 2023/24
C7 Derivatives continued
Derivatives with a notional value of £145m (2022/23: £259m) and a fair value of £nil asset (2022/23: £1m) and £nil of liability (2022/23:
£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 £539m (2022/23: £1,055m) and a fair value of £1m asset (2022/23: £4m) and £1m liability (2022/23:
£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.
C8 Share capital and share premium
Details of movements in share capital and share premium are disclosed in note 20 to the Group financial statements.
C9 Subsidiary undertakings
a) Subsidiaries as at 27 April 2024
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 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
Currys CoE s.r.o (in liquidation) Příkop 843/4, Zábrdovice, 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
Notes to the Company Financial Statements continued
213
Strategic Report Governance Financial Statements Investor Information
Name Registered office address
Country of
incorporation or
registration Share class(es) held % held
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 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
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 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 Modrǐ ce 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
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.
214 Currys plc Annual Report & Accounts 2023/24
C9 Subsidiary undertakings continued
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
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 Overseas Investments Limited 02734677
Simplify Digital Limited 06095563
The Carphone Warehouse (Digital) Limited 03966947
The Phone House Holdings (UK) Limited 03663563
iD Mobile Limited 09304672
Currys Retail Limited 02142673
Notes to the Company Financial Statements continued
215
Strategic Report Governance Financial Statements Investor Information
2023/24
£m
(Restated)*
2022/23
£m
2021/22
£m
2020/21
£m
2019/20
£m
Adjusted results (continuing operations)
Revenue 8,476 8 , 874 10,144 10,330 10,217
EBIT 203 196 280 262 214
Interest (85) (89) (88) (106) (98)
Profit before tax 118 107 192 156 116
Tax (31) (25) (52) (33) (38)
Profit after tax 87 82 140 123 78
Earnings per share
– Basic 7.9p 7.4p 12.4p 10.7p 6.7p
– Diluted 7.7p 7.3p 11.9p 10.3p 6.7p
* Figures in 2022/23 have been restated to exclude discontinued operations, no restatement has been made for other comparatives.
Five Period Record (Unaudited)
216 Currys plc Annual Report & Accounts 2023/24
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 discontinued
operations and certain items that are significant in size or volatility or by nature are non-trading or highly infrequent.
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.
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, except for 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 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 based on 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.
217
Strategic Report Governance Financial Statements Investor Information
Impairment losses and onerous contracts
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 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.
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 Group’s 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 circumstances 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 unrecognised 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.
218 Currys plc Annual Report & Accounts 2023/24
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 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.
A1 Reconciliation from statutory profit before interest and tax to adjusted EBIT and adjusted PBT
(continuing operations)
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 27 April 2024
Total
profit
£m
Acquisition
/disposal
related
items
£m
Strategic
change
programmes
£m
Impairment
losses and
onerous
contracts
£m
Regulatory
costs
£m
Other
£m
Interest
£m
Adjusted
profit
£m
UK & Ireland 88 11 11 17 13 2 – 142
Nordics 29 12 5 15 – – – 61
EBIT from continuing operations 117 23 16 32 13 2 – 203
Finance income 4 – – – – – – 4
Finance costs (93) – – – – – 4 (89)
Profit before tax from continuing
operations 28 23 16 32 13 2 4 118
(Restated)* Period ended 29 April 2023
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 (353) 11 8 511 (7) – – 170
Nordics (11) 12 18 7 – – – 26
EBIT from continuing operations (364) 23 26 518 (7) – – 196
Finance income 2 – – – – – – 2
Finance costs (100) – – – – – 9 (91)
(Loss)/profit before tax from
continuing operations (4 62) 23 26 518 (7) – 9 107
* The prior period has been restated to exclude discontinued operations.
Glossary and definitions continued
219
Strategic Report Governance Financial Statements Investor Information
A2 Reconciliation from statutory profit before interest and tax to EBITDA (continuing operations)
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
27 April
2024
£m
(Restated)*
Period ended
29 April
2023
£m
Profit/(loss) before interest and tax from continuing operations 117 (364)
Depreciation 219 225
Amortisation 80 83
EBITDA 416 (56)
* The prior period has been restated to exclude discontinued operations.
A3 Reconciliation from adjusted EBIT to adjusted EBITDA and adjusted EBITDAR
(continuing operations)
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
27 April
2024
£m
(Restated)*
Period ended
29 April
2023
£m
Adjusted EBIT 203 196
Depreciation 219 225
Amortisation 57 60
Adjusted EBITDA 479 481
Leasing costs in EBITDA 4 10
Adjusted EBITDAR 483 491
* The prior period has been restated to exclude discontinued operations.
220 Currys plc Annual Report & Accounts 2023/24
A4 Further information on the adjusting items between IFRS measures to adjusted profit measures
noted above (continuing operations)
Note
Period ended
27 April
2024
£m
(Restated)*
Period ended
29 April
2023
£m
Included in profit before interest and tax (continuing operations):
Acquisition/disposal related items (i) 23 23
Strategic change programmes (ii) 16 26
Impairment losses and onerous contracts (iii) 32 518
Regulatory cost/(income) (iv) 13 (7)
Other (v) 2 –
Included in net finance costs (continuing operations) 86 560
Net non-cash finance costs on defined benefit pension schemes
Other interest
(vi)
(vii)
11
(7)
7
2
Total impact on profit before tax (continuing operations) 90 569
Tax on adjusting items (viii) (30) 5
Total impact on profit after tax (continuing operations) 60 574
* The prior period has been restated to exclude discontinued operations.
(i) Acquisition/disposal related items
A charge of £23m (2022/23: £23m) relates primarily to amortisation of acquisition intangibles arising on the Dixons Retail Merger.
(ii) Strategic change programmes
During the period, costs of £16m have been incurred as the Group continues to deliver the long-term strategic plan. The costs incurred
relate to the following strategic change programmes:
• £12m (2022/23: £10m) of one-off implementation costs related to transferring service centre operations to a third party;
• £4m (2022/23: £17m) of additional restructuring costs in relation to the restructure of the Nordics central operations and retail
business as announced in the prior period.
In addition, in the period ended 29 April 2023 restructuring costs of £3m were recognised related to central operations and UK & Ireland
retail operations.
Property rationalisation
Included within strategic change programmes in the prior period is a credit of £4m that primarily related 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 was 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. Amounts recognised in the current period in relation to property
programmes have been net £nil.
(iii) Impairment losses and onerous contracts
Following the announcement in the period of the strategic decision to restructure elements of the Nordics segment in the prior period,
fixed asset impairment charges of £15m (2022/23: £7m) were recognised over assets held in the Nordics component of the Group. This
includes £16m of impairments of inefficient intangible software assets with a view to achieving long-term efficiencies with alternative
assets. This is partially offset by a £1m net credit from reversals of right-of-use asset impairments following some additional store
closures and some planned closures from the prior period not executed.
During the period the Group also recognised £10m of impairments over intangible software assets in the UK & Ireland segment that
became obsolete due to system replacements that took place in the year. In addition, during the period the Group undertook a strategic
review of the IT licensing portfolio which resulted in £1m of intangible impairments and a provision for onerous contracts of £6m in relation
to unavoidable future costs of licensing agreements.
During the period ended 29 April 2023, a non-cash impairment charge of £511m was recognised over the goodwill recognised in the UK &
Ireland operating segment. No impairment charge over goodwill has been recognised in the period ending 27 April 2024, as described in
note 8 to the consolidated statements.
Glossary and definitions continued
221
Strategic Report Governance Financial Statements Investor Information
(iv) Regulatory costs
During the current period the Group has provided for £13m of costs related to historic regulatory matters.
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. 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 current period the Group has recognised £2m of FX impact upon translation of an exceptional underlying intra-group balance
that has since been capitalised. A further £2m has been recognised for professional fees incurred in relation to open tax cases and
other non-operating matters. These costs are offset by £2m of income from intra-group balance adjustments, which is offset in total
statutory profit by a corresponding cost in discontinued operations.
(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 1d), 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 £50m as at 27 April 2024 (comprising the amount of tax payable and interest
up to 27 April 2024) (2022/23: £59m). During the period, interest of £7m was recorded in relation to these cases which arose from the
downward remeasurement of the risks based on their most recent based on their most recent weighted average probability of occurring.
(viii) Tax on other adjusting items
The effective tax rate on adjusting items is 34%. The rate is higher than the UK statutory rate of 25% predominantly due to the downward
remeasurement of the provisions for uncertain tax positions relating to the legacy Carphone Warehouse Group tax cases referred to at
(vii) above.
A5 Reconciliation from statutory net finance costs to adjusted net finance costs
(continuing operations)
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
27 April
2024
£m
(Restated)*
Period ended
29 April
2023
£m
Total net finance costs (89) (98)
Net interest on defined benefit pension obligations 11 7
Other interest (7) 2
Adjusted total net finance costs (85) (89)
* The prior period has been restated to exclude discontinued operations.
222 Currys plc Annual Report & Accounts 2023/24
A6 Adjusted tax expense (continuing operations)
a) Tax expense
The income tax charge comprises:
Period ended 27 April 2024 (Restated)* Period ended 29 April 2023
Adjusted
£m
Adjusting
items
£m
Statutory
£m
Adjusted
£m
Adjusting
items
£m
Statutory
£m
Current tax
UK corporation tax at 25% (2022/23: 19.5%) 16 (9) 7 14 – 14
Overseas tax 6 (1) 5 7 (1) 6
22 (10) 12 21 (1) 20
Adjustments made in respect of prior periods:
UK corporation tax – (4) (4) – (9) (9)
Overseas tax (1) – (1) 1 2 3
(1) (4) (5) 1 (7) (6)
Total current tax 21 (14) 7 22 (8) 14
Deferred tax
UK corporation tax 10 (12) (2) 18 9 27
Overseas tax – (4) (4) (14) (2) (16)
10 (16) (6) 4 7 11
Adjustments made in respect of prior periods:
UK corporation tax – – – – (14) (14)
Overseas tax – – – (1) 20 19
– – – (1) 6 5
Total deferred tax 10 (16) (6) 3 13 16
Total tax charge 31 (30) 1 25 5 30
* The prior period has been restated to exclude discontinued operations.
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 27 April 2024 (Restated)* Period ended 29 April 2023
Adjusted
£m
Adjusting
items
£m
Statutory
£m
Adjusted
£m
Adjusting
items
£m
Statutory
£m
Profit/(loss) before taxation 118 (90) 28 107 (569) (4 62)
Tax at UK statutory rate of 25% (2022/23: 19.5%) 30 (23) 7 21 (111) (90)
Items attracting no tax relief or liability
(i)
2 – 2 5 100 105
Movement in unprovided deferred tax
(ii)
– (4) (4) (2) 19 17
Effect of change in statutory tax rate – – – 4 (1) 3
Differences in effective overseas tax rates (1) 1 – (1) (1) (2)
Increase in provisions – – – – – –
Other tax adjustments 1 – 1 (2) – (2)
Adjustments in respect of prior periods
(iii)
(1) (4) (5) – (1) (1)
Total tax charge 31 (30) 1 25 5 30
* The prior period has been restated to exclude discontinued operations.
The effective tax rate on adjusted earnings for the period ended 27 April 2024 is 27% (2022/23: 23%). The effective tax rate on
adjusting items is 34% (2022/23: (1)%). 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 remain recognised due to the macroeconomic uncertainty built into
the Group’s business plans (see note 6c) in the Group financial statements).
(iii) The provisions for uncertain tax positions relating to the legacy Carphone Warehouse tax cases outlined at note 1d) were remeasured during the period.
Glossary and definitions continued
223
Strategic Report Governance Financial Statements Investor Information
A7 Adjusted earnings per share (continuing operations)
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. We consider 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
27 April
2024
£m
(Restated)*
Period ended
29 April
2023
£m
Profit after tax for the period (continuing operations)
Total 27 (492)
Adjustments 60 574
Adjusted profit after tax (continuing operations) 87 82
Million Million
Weighted average number of shares
Average shares in issue 1,133 1,133
Less average holding by Group EBT and Treasury shares held by Company (27) (29)
For basic earnings per share 1,106 1,104
Dilutive effect of share options and other incentive schemes 22 20
For diluted earnings per share 1,128 1,124
Pence Pence
Basic earnings per share
Total 2.4 (44 . 6)
Adjustments 5.5 52,0
Adjusted basic earnings per share (continuing operations) 7.9 7.4
Diluted earnings per share
Total 2.4 (44 . 6)
Adjustments 5.3 51.9
Adjusted diluted earnings per share (continuing operations) 7.7 7.3
* The prior period has been restated to exclude discontinued operations.
Basic and diluted EPS are based on the profit for the period attributable to equity shareholders. Adjusted EPS is presented 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 (continuing operations)
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 with 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.
224 Currys plc Annual Report & Accounts 2023/24
A8 Reconciliations of cash generated from operations to free cash flow (continuing operations)
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
27 April
2024
£m
(Restated)*
Period ended
29 April
2023
£m
Cash generated from continuing operations 419 342
Capital repayment of leases cost and interest (255) (264)
Less adjusting items to cash flow 48 40
Less movements in working capital presented within the Performance review (note A10) 34 127
Other – (1)
Operating cash flow 246 244
Capital expenditure (48) (103)
Add back adjusting items to cash flow (48) (40)
Taxation (7) (40)
Cash interest paid (27) (26)
Sustainable free cash flow 116 35
Add back movements in working capital presented within the Performance review (note A10) (34) (127)
Free cash flow 82 (92)
* The prior period has been restated to exclude discontinued operations.
Reconciliation of adjusted EBIT to free cash flow and sustainable free cash flow
Period ended
27 April
2024
£m
(Restated)*
Period ended
29 April
2023
£m
Adjusted EBIT (note A1) 203 196
Depreciation and amortisation (note A3) 276 285
Working capital presented within the Performance review (note A10) (34) (127)
Capital expenditure (48) (103)
Taxation (7) (40)
Interest (27) (26)
Repayment of leases** (243) (251)
Other non-cash items in EBIT*** 10 14
Free cash flow before adjusting items to cash flow 130 (52)
Adjusting items to cash flow (48) (40)
Free cash flow 82 (92)
Less working capital presented within the Performance review (note A10) 34 127
Sustainable free cash flow 116 35
* The prior period has been restated to exclude discontinued operations.
** 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.
Glossary and definitions continued
225
Strategic Report Governance Financial Statements Investor Information
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.
27 April
2024
£m
29 April
2023
£m
Loans and other borrowings (note 16) – (178)
Lease liabilities* (note 17) (1,003) (1,233)
Total liabilities from financing activities (note 24c) (1,003) (1,411)
Cash and cash equivalents less restricted cash (note 14) 89 67
Overdrafts (note 16) (29) (16)
Lease receivables* 4 5
Pension liability (171) (249)
Total indebtedness (1,110) (1,604)
Restricted cash 36 30
Add back pension liability 171 249
Add back lease liabilities 1,003 1,233
Less lease receivables (4) (5)
Net cash 96 (97)
* Net lease liabilities within the Performance review relates to lease liabilities less lease receivables.
Within the Performance review management also refers 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 £(34)m (2022/23: £(127)m) differs to the statutory working capital balance of £(29)m (2022/23: £(136)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
27 April
2024
£m
(Restated)*
Period ended
29 April
2023
£m
Movements in working capital (note 24b) (33) (136)
Adjusting items provisions (1) 10
Facility arrangement fees – (1)
Working capital presented within the Performance review (34) (127)
* The prior period has been restated to exclude discontinued operations.
226 Currys plc Annual Report & Accounts 2023/24
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 £(163)m
(2022/23: £(230)m). The below table provides a breakdown of how the summary working capital balance ties through to the
statutory balance sheet.
Note
27 April
2024
£m
29 April
2023
£m
Non-current assets
Trade and other receivables 13 101 148
Current assets
Inventory 12 1,034 1,151
Trade and other receivables 13 616 631
Derivative assets 23 13 23
Current liabilities
Trade and other payables 15 (1,809) (2,067)
Derivative liabilities 23 (4) (13)
Non-current liabilities
Trade and other payables 15 (114) (103)
Working capital presented within the Performance review (163) (230)
A12 Restatement of prior year balance sheet
Within the Performance review a summary Group balance sheet is provided which includes a comparative column for April 2023 that
excludes balances as at this date that were held by Dixons South East Europe A.E.V.E. Whilst under IFRS requirements the prior period
balance sheet is not restated for discontinued operations, this additional comparator has been included to aid comparability between
periods.
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 His 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.
Glossary and definitions continued
227
Strategic Report Governance Financial Statements Investor Information
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 6 January 2024 as reported in the Group’s Christmas
Trading statement on 18 January 2024. Post-Peak refers to the trading period from 7 January 2024 to the
Group’s period end on 27 April 2024.
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.
228 Currys plc Annual Report & Accounts 2023/24
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 are 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
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Currys plc
1 Portal Way
London
W3 6RS
United Kingdom
E: ir@currys.co.uk
www.currysplc.com
Currys Annual Report & Accounts 2023/24