H1 Results - Performance Continues to Strengthen

We Help Everyone Enjoy Amazing Technology

Summary

• Group delivered adjusted EBIT £41m, +52% YoY
• Group free cash flow £50m, +£46m YoY
• UK&I revenue growth +6%, based on market share growth and strategic initiatives performing well - including Services, B2B and iD Mobile subscribers +32% to 2.0m
• Nordics adjusted EBIT +50% YoY driven by growth in market share in a continuing difficult market
• Balance sheet further strengthened

Financial performance

• Group revenue £3,918m, +1% YoY (currency neutral +2%), driven by LFL revenue +2%
• Group adjusted profit before tax £9m, +£25m YoY; reported loss before tax £(10)m, +£34m YoY
• UK&I LFL revenue +5%, adjusted EBIT £23m, +53% YoY - strong sales and improved gross margin more than offset both investment and inflationary cost increases
• Nordics LFL revenue (2)%, adjusted EBIT £18m, +50% YoY - gross margins up +80bps with reduced operating costs
• Period end net cash of £107m - first-half cash inflow of £11m, compared to £(32)m outflow in prior year
• Period end IAS 19 pension deficit £(143)m, from £(171)m at year end

Current year outlook

• Trading since the period end has been consistent with the Board's expectations
• Full year guidance unchanged - the Group continues to expect growth in profits and free cash flow for the year

Alex Baldock, Group Chief Executive

"We're very encouraged by our progress. Currys' performance continues to strengthen, with profits and cashflow growing significantly, and the Group's balance sheet is strong.

In the UK&I, we made big improvements to both Online and Stores channels, customers continued to take more of the solutions and services that are valuable to them and to us, and such growth drivers as B2B and iD Mobile performed well. All this showed in growing sales, market share, gross margins and profits. In the Nordics, we gained market share, increased gross margins, tightly controlled costs and grew profits in a still-tough consumer environment.

Underpinning our progress in both markets is strong customer satisfaction, which increased again, and colleague engagement now firmly established in the top 10% of companies worldwide.

We were well prepared for our Peak trading period, with healthy stock and market-beating, best-ever deals that show our unmatched importance to suppliers. We're trading in line with expectations. One highlight is rising demand for AI laptops, where we enjoy over 75% market share in the UK. AI is a trend with a lot further to run.

Looking ahead, we're confident of continuing our progress, and expect to grow profits and cashflow as promised this year. This is despite new and unwelcome headwinds from UK government policy. These will add cost quickly and materially, depress investment and hiring, boost automation and offshoring, and make some price rises inevitable.

Still, there's plenty we can control, including mitigating much of this headwind. We'll keep colleague engagement world class, customer satisfaction increasing, cashflow growing for shareholders, and playing an ever-bigger role in society. We have growing momentum at Currys. As ever, I'm hugely grateful to the tens of thousands of colleagues whose brilliant work makes all this possible, and who are building this ever-stronger Currys."

Performance Summary

Group sales increased +2% on a like-for-like basis with growth in UK&I offset by a weak Nordics environment. The Group grew market share and saw good growth from strategic initiatives.

In the UK&I, adjusted EBIT increased +53% YoY. The core technology market1 declined (1.4)% YoY and we stabilised market share at +20bps YoY. Alongside this, we saw strong performance from Mobile and our B2B business that further boosted growth, resulting in like-for-like revenue growth of +5%. Gross margin continued to climb, growing +10bps YoY. Operating costs increased as inflationary pressures were not all offset by cost savings, while we increased investment spending and there was additional marketing to drive sales.

In the Nordics, adjusted EBIT increased +50% to £18m despite the difficult consumer demand environment. The continued high interest rates and low consumer confidence drove a market decline of (3.4)% YoY. Our business grew market share +40bps, gross margin increased +80bps and costs were kept under tight control.

As a result, Group adjusted EBIT increased +52% to £41m and operating cashflow grew +11% to £61m. Free cash inflow of £50m for the period was a +£46m improvement on last year due to the better operating cashflow coupled with lower exceptional cash costs and a much larger working capital inflow. Alongside the slight increase in pension contributions, this resulted in cash inflow for the period of £11m, a +£43m improvement compared to the same period last year.

1 Market refers to UK B2C market for consumer electronics, computing and domestic appliances, as defined by GfK

Outlook

Current year guidance

Trading during the six weeks since the period end has remained in line with the Board's expectations and the Group expects to see growth in profits and free cash flow for the year. This is after taking into account the in-year impact of the UK Government budget measures which will be effective for the last five weeks of the Group's financial year.

Further guidance on current year profits will be provided in the Peak trading statement on 15 January 2025.

All aspects of cashflow guidance are unchanged, except capital expenditure which is now expected to be lower than previously forecast:

• Capital expenditure of around £80m (previously around £90m) as a higher proportion of project spending is expensed
• Net exceptional cash outflow of around £30m
• Pension contributions of £50m

Other technical guidance:

• Depreciation & amortisation around £290m
• Cash payments of leasing costs, debt & interest around £260m
• Cash tax around £10m
• Cash interest of around £20m

Additional income statement guidance:

Total interest of around £70m (compared to £85m in 2023/24)

2024/25 is a 53-week year. This will have a small impact on sales but immaterial impact on profits and cashflows.

Looking forward

The Group has assessed the impact of recent changes to Government policy including the recent budget. The full year aggregated impact is expected to be an incremental cost to the Group of £32m, including:

• £9m increase in wages due to National Living Wage increases. This includes the direct impact and the indirect impact of protecting (at least in part) wage differentials. All UK colleagues of the same band are paid the same, so the larger increase in NLW for 18-20 year olds has no impact
• £12m increase in National Insurance contributions, of which £4m is due to the increase in the Employer NI rate to 15.0% (from 13.8%) and £8m is due to the decrease in the NI threshold from £9,100 to £5,000
• £9m impact from the pass through of these costs from some of our outsource partners
• £2m increase from the inflation-based increase in business rate taxes.

Around half of these cost increases were anticipated and there are plans in place to offset their impact. The Group will seek to mitigate the remaining impact as much as possible through further cost saving measures, including process improvement, automation, offshoring, outsourcing and overhead efficiencies. Some price rises are also inevitable.

Despite these unexpected headwinds, the Group expects the P&L to benefit from lower interest costs, and is continuing to target at least 3% adjusted EBIT margin.

Alongside this, the Group will remain focused on free cash flow generation. The Group expects to keep annual capital expenditure below £100m, for exceptional cash costs to fall and to be below £10m by 2026/27, and to keep working capital at least neutral despite continued growth of the Mobile business.

The next triennial pension valuation date is March 2025 and the current IAS 19 deficit of £143m compares to scheduled contributions of £277m across 2025/26 to 2028/29. The contributions will cease when the deficit reaches zero on a prudent technical basis and the Group is continuing to work proactively with the scheme trustees to maximise value for all stakeholders.

As we announced on 27 June 2024, providing trading continues to be in line with expectations, the strengthened balance sheet and the improving cashflow dynamics underpin the Board's intention to announce a recommencement of shareholder returns no later than the full year results on 3 July 2025.

Unless otherwise stated, 2023/24 figures have been restated throughout this report to exclude discontinued operations.

We Help Everyone Enjoy Amazing Technology

Chief Executive's Review

The first half of the year saw our performance continuing its upward trajectory with significantly improved cashflow driven by a >50% adjusted EBIT improvement in both Nordics and UK&I.

In the Nordics, we controlled what we can control. The consumer demand environment remains weak but we grew market share, improved gross margin and kept costs under tight control. The business is well invested and is expected to generate materially improved cashflow this year.

In the UK&I, we stabilised (and slightly grew) our market share, and saw strong performance from Mobile and our B2B business that further boosted growth. Gross margin continued to climb, growing +10bps YoY. Operating costs reduced as a proportion of sales as cost increases were more than offset by operating leverage.

This progress continues to be built on our long-term strategy.

Our strategy starts with "capable and committed 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, while fostering a collaborative culture of success. In the Nordics we launched our new values "We win together, play together, grow together and are proud to be different together" to a very warm reception from colleagues. Our latest colleague engagement survey saw 78% participation across the Group and saw us maintain a score of 80, which places us firmly in the top 10% of global companies2.

Next, we want to provide an "easy to shop" experience for our customers. We saw some notable improvements to both of our channels. In the UK, we re-engineered more than 80 stores, to dedicate more space to categories that are more profitable, and to allow more room for expansion into new categories. We also added electronic shelf edge labelling (ESEL) to 60 UK stores. This is an innovation that has been successful in the Nordics and creates a better customer experience, allows more nimble pricing and saves colleagues' time. We expect to re-engineer a further 33 stores and add ESEL to 40 stores in the second half of the year. Our largest online site, currys.co.uk, which receives over 250m visits per year, has seen over 60 changes that are designed to improve the shopping journey, from easier navigation, searching and filtering, through to an easier checkout, where we now accept all payment types including Apple Pay and Google Pay digital wallets. We have improved the online journey for order & collect, which alongside better store processes has seen order & collect sales grow +15% YoY (and +55% Yo2Y), to over 27% of our online revenue.

To fulfil this easy to shop experience, we continually improve our already excellent logistics network. In October, the long-term investment in our new Nordics distribution centre started to pay back, as the facility became fully operational. Adding 91,000m2 of new capacity allows us to stock kitchens in Jönköping in Sweden instead of Brno in the Czech Republic. This will lead to better lead times and fewer issues for customers, lower costs for the Group and lowers our carbon emissions for kitchens by 75%.

The third leg of our strategy is to create "customers for life" through stickier and more valuable customer relationships. At the heart of this is our unique range of services that help customers afford and enjoy amazing technology to the full, that build us valuable recurring revenue streams, and encourage repeat shopping.

We help customers afford tech through credit, and we have seen UK&I adoption climb +140bps to 21.7%, and active customer accounts grow +15% to over 2.4m. This growth has been helped by launch of Currys flexpay, as well as giving colleagues the tools to sell through credit using their in-store tablets.

We help customers get tech started, through installation and set-up. Our installation services are becoming ever more valued by customers, and 32% of UK big box deliveries now include installation, a rise of +410bps YoY.

Once they have the tech, customers want to keep it working and we give over 12m of them peace of mind through protection plans. As the only tech retailer that operates its own repair facilities, we can offer customers the protection they want at good value. Our circular capabilities enable us to do this efficiently, and during the period over 25% of the parts used in the UK's central repairs had been previously harvested by our operation.

Finally, we help customers get the most out of their tech, with connectivity being the biggest 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 +32% YoY to 2.0m subscribers, achieving our year-end target well ahead of plans. The recent CMA ruling on the proposed Vodafone-Three merger provides additional confidence in sustaining our excellent trajectory in Mobile.

Our aim is to continue growing sources of higher margin, recurring revenue such as credit, protection plans and connectivity 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.

Delivering on our strategy helps customers, as seen in higher customer satisfaction and increased market share, and helps us through higher gross margins.

Our gross margins climbed again during the period driven by better bundling of complete solutions, a higher adoption rate of services, continued monetisation of the improved customer experience, discipline on sales stimulation and cost savings.

Our operating costs rose in the UK&I as there was some cost inflation that was not fully offset by savings, we spent more on marketing to drive incremental sales, and we increased investment spend as planned. Over time, a greater proportion of our investment spend has moved into operating rather than capital expenditure, and we evaluate the paybacks and returns generated based on the total spend.

Alongside improved profitability, we have been focussed on cash discipline. Our capital expenditure guidance is £10m lower as we have focussed on executing our plans to maximise returns, and we saw substantial improvements in exceptional expenditure. Our working capital improved despite headwinds of iD Mobile growth and sales decline in the Nordics, as UK&I sales growth and process improvements drove significant working capital inflow. We finished the period with £107m net cash and a pension deficit of £(143)m. This £(36)m net position is by far the strongest balance sheet the Group has had in the decade since the merger.

Overall, we entered our Peak trading period in a robust position with great deals enabled by our strong supplier relationships.

Looking to next year, the UK Government budget is likely to add around £32m of annual cost to our business. We will seek to mitigate as much of this as possible through cost saving measures including process improvement, automation, offshoring, outsourcing and other overhead efficiencies. Some price rises are also inevitable. We will further update on this in due course.

Despite this unwelcome and material headwind, we remain confident. We are the clear #1 brand in all our markets, with a diversified revenue base and a strategy that is working. We remain focussed on generating more free cash flow through improved operating performance, tight working capital management and disciplined capital expenditure to support profitable growth and the long-term success of this business.

Combined with the stronger balance sheet, this will enable resumption and growth of shareholder returns. We will be a business that's increasingly valuable for shareholders as well as colleagues, customers and society.

2 Colleague engagement survey, Glint October 2024

Results call

The presentation slides will be available via the following link: https://brrmedia.news/CURY_IR_24

To participate in the live audio Q&A session, please use the following participant access details:

UK: +44 (0) 33 0551 0200, please quote 'Currys Interim Results' when prompted by the operator

Next scheduled announcement

The Group is scheduled to publish its Peak trading update, covering the 10 weeks to 4 January 2025, on Wednesday 15 January 2025.

Performance Review

The business is managed and evaluated across two reporting segments: UK & Ireland, and the Nordics. The table below shows the combined Group results, with fuller explanations following under each of the individual segments.

Following the disposal of Kotsovolos on 10 April 2024, the Greece reporting segment has been removed from the prior period results.

1 APM defined in Glossary. 2 Prior period restated to exclude discontinued operation costs

Total UK&I sales increased +6%, driven by like-for-like sales growth of +5%. The online share of business increased +2%pts to 45%.

Mobile was the strongest performing category, growing double digits YoY, with growth in iD Mobile and handset-only sales. Consumer electronics saw good growth, boosted by England's performance in EURO 2024 and Computing sales were also positive, with AI technology sales building momentum. This was all assisted by additional marketing to drive sales. Domestic appliance sales declined in a weak market.

The UK market (excluding Mobile) declined (1.4)% during H1 and our market share grew +20bps compared to last year as we grew share in the store channel by +180bps while our online market share was broadly stable at (10)bps YoY.

Gross margins increased +10bps compared to last year, and +180bps compared to three years ago as a result of the ongoing strategic focus. Operating costs increased as inflationary pressures on wages and business rates were not fully offset by cost saving, there was additional marketing to drive profitable sales and an increased level of investment spending, with additional investment planned for the second half of the year. The investment spend is broadly evenly split between capital and operating expenditure, which is a significant change to even a few years ago when the majority was capitalised. Although absolute costs were higher year-on-year, operating leverage meant that the operating expense to sales ratio improved by +20bps.

Adjusted EBIT increased to £23m at 1.0% margin, up +30bps YoY.

In the period, adjusting items to EBIT totalled £(6)m, this was mainly the amortisation of acquisition intangibles from the 2014 merger, which is a non-cash item. The cash costs mainly relate to the ongoing costs of non-trading properties within the strategic change programme.

2 Prior period restated to exclude discontinued operation costs

Operating cash flow increased +21% YoY largely due to higher profits. Capital expenditure rose slightly YoY, but was still significantly below the level of two years ago, as continued investment discipline was coupled with a shift toward more operating expense expenditure on projects. Adjusting items are described above. Working capital cash inflow of £54m was a significant improvement YoY as the natural benefit of sales growth and internal process improvements more than offset the headwinds from higher mobile sales. In combination, this resulted in segmental free cash inflow of £64m, +£79m better than last year.

Nordics

1 APM defined in Glossary

Revenue declined by (3)% on a currency neutral basis, with a like-for-like sales decline of (2)%. Online share of business increased slightly to 26%.

In a market that continued to trade poorly, all product categories except consumer electronics experienced a sales decline. Computing and domestic appliances were the worst performing categories, while mobile proved more resilient.

Compared to last year, the Nordic market declined around (3.4)%. Our market share was 27.9% during the half, up +40bps compared to last year as we maintained or took share in every market except Finland.

Gross margin increased +80bps YoY to a level that is +60bps higher than three years ago. Operating expenses decreased slightly as inflationary cost increases were more than offset by savings and efficiencies.

Adjusted EBIT increased to £18m at 1.1% margin, up +40bps YoY.

In the period, adjusting items to EBIT totalled £(6)m from the amortisation of acquisition intangibles which had no cash impact. The cash costs of £(1)m related to the strategic cost saving initiatives. EBIT increased to £12m.

The operating cash flow was flat YoY at £27m as higher profits were offset by lower depreciation and amortisation. Capital expenditure was £(7)m, with spend relatively evenly spread across our already well-invested store estate, IT infrastructure and distribution facilities. Working capital outflow of £(23)m was driven by lower sales volumes, as payables decreased by more than inventory. Overall, this drove segmental free cash flow of £(4)m, down £(41)m YoY.

Finance Costs

Interest on lease liabilities was £(27)m, a slight decrease on last year due to the fall in our overall lease commitments; 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 as the company moved into an average net cash position. The net cash impact of these costs was £(6)m, from £(13)m in the prior year.

The finance costs on the defined benefit pension scheme is an adjusting item and was broadly flat year-on-year in line with the assumptions used in the valuation of the pension obligations.

Tax

A tax rate of 25% has been applied to the adjusted half year results. This is slightly higher than the prior half year adjusted rate of 24% due to a lower proportion of Nordic losses. The cash tax paid in the half year period was £2m, down from £4m in the prior year which is primarily due to a Nordics rebate received in relation to prior years.

The expected full year adjusted effective tax rate at 25% is slightly lower than the prior full year rate of 27% due to a higher proportion of Nordics profits, which are taxed at a slightly lower rate than the UK.

The half year adjusting items tax credit of £4m includes the tax impact of non-headline items in the Nordics.

Cash flow

Segmental free cash flow was an inflow of £60m (H1 2023/24: inflow of £22m) mainly due to improvements in working capital and a reduction in adjusting items. Interest and tax outflows totalled £(10)m as described above, resulting in a free cash inflow of £50m (H1 2023/24: inflow of £4m).

No dividend was paid in the period, in line with the previous year. The employee benefit trust acquired £10m worth of shares to satisfy colleague share awards.

Pension contributions of £25m (H1 2023/24: £18m) were in line with the contribution plan agreed with the pension fund Trustees.

Other movements in the prior year predominantly relate to currency translation differences, which did not repeat this year.

The closing net cash position was £107m, compared to a net cash position of £96m at 27 April 2024. This included £28m of restricted cash (28 October 2023: £27m).

Balance sheet

Goodwill declined £(36)m during the half-year ended 26 October 2024 due to currency revaluation of the Nordics goodwill.

Other fixed assets decreased by £(91)m since 27 April 2024 as capital expenditure was more than offset by depreciation and amortisation of £(41)m.

At period end, total working capital was £(196)m (28 October 2023: £(231)m). Group inventory was £1,328m, (7)% lower than last year driven almost entirely by lower holdings in the Nordics, due to the lower sales and slightly later timing of promotional periods. The group's stock days increasing from 62 to 63 compared to 28 October 2023. Trade payables decreased by £116m to £(1,633)m (28 October 2023: £(1,749)m) in line with the lower stock holding.

Total network receivables are up by £25m compared to year end with an increase in iD Mobile, driven by higher volume of sales, offset by a decrease in Vodafone. Other receivables are up by £111m year-on-year due to timing of collections from suppliers, as well as higher accrued income with an offsetting decrease in trade receivables. Other payables increased by £65m due to the timing of VAT payable, as well as higher accrued expenses with an offsetting decrease in trade payables.

Lease liabilities are £123m lower than 28 October 2023 due to store exits and the renewal of leases at lower average rent.

The IAS 19 accounting deficit of the defined benefit pension scheme amounted to £143m (27 April 2024: £171m). The reduction of £28m during the period was primarily driven by £25m of contributions.

At 26 October 2024 the Group had net cash of £107m (28 October 2023: net debt of £(182)m) and average net cash for the period of £73m (H1 2023/24: average net debt of £(208)m).

During the period, the Group refreshed its revolving credit facility and now has access to a £525m facility that expires in September 2028 (with an option to extend for an additional year) with a syndicate of six banks. The covenants on the debt facilities are net debt leverage <2.5x (H1 2024/25: (0.31)x) and fixed charge cover >1.5x (H1 2024/25: 1.87x).

Provisions primarily relate to property, reorganisation and sales provisions. The balance reduced by £3m during the year as the utilisation of reorganisation provisions for central operations and property related onerous contract costs for closed stores more than offset additions. Regulatory provisions of £2m were released during the period due to updates to estimated obligations.

Share count

The weighted average number of shares used for basic earnings decreased by 17m to 1,089m since the previous year end due to an increase in the average number of shares held by the Group EBT to satisfy colleague shareholder scheme.

The dilutive effect of share options and other incentive schemes has increased due to improved scheme performance against vesting conditions.

* The prior period has been restated to exclude discontinued operations

Items that may be reclassified to the income statement in subsequent periods:

Cash flow hedges

Items that will not be reclassified to the income statement in subsequent periods:

* The prior period has been restated to exclude discontinued operations

* The prior period has been restated to exclude discontinued operations

1 Accounting policies

Basis of preparation

The interim financial information for the 26 weeks ended 26 October 2024 was approved by the directors on 11 December 2024. The interim financial information, which is a condensed set of financial statements, has been prepared in accordance with the Listing Rules of the Financial Conduct Authority and International Accounting Standard 34 "Interim Financial Reporting" (IAS 34) as adopted by the UK and has been prepared on the going concern basis as described further below and in the section on risks to achieving the Group's objectives.

The accounting policies adopted are those set out in the Group's Annual Report and Accounts 2023/24 which were prepared in accordance with IFRS as adopted by the UK. New accounting standards, amendments to standards and IFRIC interpretations which became applicable during the period were either not relevant or had no impact on the Group's net results or net assets.

The UK Endorsement Board has adopted 'International Tax Reform - Pillar Two Model Rules (Amendments to IAS 12)' which was issued by the International Accounting Standards Board in May 2023. The Amendments introduce a temporary mandatory exception from accounting for deferred taxes arising from the Pillar Two model rules. The Group confirms that this mandatory exception has been applied. Note that the Pillar 2 model rules were effective in the UK from 1 January 2024, and apply to the Group for the first time in the accounting period ended 3 May 2025. The Group does not expect the rules to have a material impact on the financial statements.

Going Concern

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 these condensed financial statements.

In their consideration of going concern, the directors have reviewed the Group's future cash forecasts and profit projections, which are based on market data and past experience. The debt facilities modelled in the base case total £525m, post renewal in September 2024.

As a result of the uncertainties surrounding the forecasts due to the current macroeconomic environment, the Group has also modelled a severe but plausible downside scenario by applying a sales risk of 5% per annum across the 3 year viability period from 2024/25 to 2027/28. This sales risk can be offset with controllable mitigations across various operating expense line items and hence in this severe but plausible downside scenario, the Group does not breach any of the Group's facilities or banking covenants. Finally, the Group has numerous other mitigations available (in addition to those applied to the severe but plausible downside scenario) which are considered controllable should sales drop below the severe but plausible downside, before requiring additional sources of financing in excess of those that are committed. Such a scenario, and the sequence of events which could lead to it, is considered to be remote.

1 Accounting policies (continued)

Basis of preparation (continued)

Alternative performance measures

In addition to IFRS measures, the Group uses certain alternative performance measures that are considered to be additional informative measures of ongoing trading performance of the Group and are consistent with how performance is measured internally. The alternative performance measures used by the Group are included within the glossary and definitions section. This includes further information on the definitions, purpose and reconciliations to IFRS measures of those alternative performance measures that are used for internal reporting and presented to the Group's Chief Operating Decision Maker (CODM). The CODM has been determined to be the Board.

The interim financial information uses definitions that are set out within the glossary and definitions section of this document.

The interim financial information is unaudited and does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006 but has been reviewed by the auditor. The financial information for the year ended 27 April 2024 does not constitute the company's statutory accounts for that period but has been extracted from those accounts which have been filed with the Registrar of Companies and are also available on the Group's corporate website www.currysplc.com.

• Key sources of estimation uncertainty and critical accounting judgements

Critical accounting judgements and estimates used in the preparation of the financial statements are continually reviewed and revised as necessary. Whilst every effort is made to ensure that such judgements and statements are reasonable, by their nature they are uncertain and as such changes may have a material impact.

In preparing the condensed consolidated financial statements, the significant judgements made by management in applying the Group's accounting policies and key sources of estimation uncertainty include the impairment of goodwill as disclosed below. In addition, key sources of estimation uncertainty regarding UK defined benefit pension scheme assumptions and critical accounting judgements related to taxation detailed in the Group's Annual Report and Accounts 2023/24 remain relevant.

Impairment of non-financial assets - Goodwill

As required by IAS 36, goodwill is subject to an impairment review on an annual basis, or more frequently where indicators of impairment exist. The Group has considered if indicators of impairment exist with regard to a number of factors, including the recent changes to interest rates, ongoing uncertainty in the wider macroeconomic environment and internal cash forecasts. Management concluded that none these factors are indicators of impairment and consequently, an impairment review per IAS 36 has not been undertaken in the 26 weeks ended 26 October 2024.

2 Segmental analysis

The Group's operating and reportable segments have therefore been identified as follows:

• UK & Ireland; comprising of Currys, iD Mobile and B2B operations;
• Nordics; operates stores in Norway, Sweden, Finland and Denmark with franchise operations in Norway, Sweden, Finland, Iceland, Greenland and Faroe Islands;

Transactions between segments are on an arm's length basis.

Segmental results

26 weeks ended 26 October 2024

* The prior period has been restated to exclude discontinued operations

52 weeks ended 27 April 2024

* The prior period has been restated to exclude discontinued operations

Seasonality

The Group's business is highly seasonal, with a substantial proportion of its revenue and (loss) / profit before interest and tax generated during its third quarter, which includes Black Friday and the Christmas and New Year season.

Geographical information

Revenues are allocated to countries according to the entity's country of domicile. Revenue by destination is not materially different to that shown by domicile. Non-current assets exclude financial instruments and deferred tax assets.

* The prior period has been restated to exclude discontinued operations

52 weeks ended 27 April 2024

* The prior period has been restated to exclude discontinued operations

52 weeks ended 27 April 2024

* The prior period profit has been restated to exclude discontinued operations

Basic and diluted (loss) / earnings per share are based on the (loss) / profit after tax for the period attributable to equity shareholders.

4 Dividends

There were no dividends paid during the current or comparative periods, and there is currently no proposed interim dividend for the period ending 26 October 2024.

5 Retirement benefit obligations

The Group operates a number of defined contribution and defined benefit pension schemes. The principal scheme operates in the UK and includes a funded defined benefit section, the assets of which are held in a separate trustee administered fund. The defined benefit section of the scheme was closed to future accrual on 30 April 2010. The net obligations of this scheme, calculated in accordance with IAS 19 "Employee Benefits", are analysed as follows:

The value of obligations is particularly sensitive to the discount rate applied to liabilities at the assessment date as well as mortality rates. The defined benefit obligation has increased by £8m since 27 April 2024 primarily as a result of market conditions impacting the discount rate assumption. The value of the plan assets is also sensitive to market conditions and has increased by £36m due to an increase in the value of liability-driven investments (LDI), which are designed to broadly offset movements in the defined benefit obligation. The scheme's investment strategy and its investment objectives remain consistent with those adopted as at 27 April 2024.

The assumptions used in the valuation of obligations are listed below:

Mortality rates are based on historical experience and standard actuarial tables and include an allowance for future improvements in longevity. Sensitivity testing over life expectancy is not performed at the half year as it is not considered as variable as discount rates and inflation.

If the discount rate assumption increased by 1.0% the defined benefit obligation would decrease by approximately £157m. If the assumption decreased by 1.0% the defined benefit obligation would increase by approximately £176m.

If the inflation assumption increased by 1.0% the defined benefit obligation would increase by approximately £132m. If the assumption decreased by 1.0% the defined benefit obligation would decrease by approximately £122m.

In June 2023, the High Court handed down a decision in the case of Virgin Media Limited v NTL Pension Trustees II Limited and others relating to the validity of certain historical pension changes due to the lack of actuarial confirmation required by law. In July 2024, the Court of Appeal dismissed the appeal against aspects of the June 2023 decision. The conclusions reached by the court in this case may have implications for other UK defined benefit plans. The Trustees of the Scheme received legal advice to consider the implications of the case for the Scheme. Based on the legal advice received, the case does not expose the Scheme to any new risks and, as such, there is no allowance for the ruling in the results at 26 October 2024.

6 Note to the cash flow statement

* The prior period has been restated to exclude discontinued operations

Restricted funds, which predominantly comprise funds held by the Group's insurance business for regulatory reserve requirements, were £28m (28 October 2023: £27m; 27 April 2024: £36m). These restricted funds are included within cash and cash equivalents on the face of the consolidated balance sheet.

Cash flows from discontinued operations comprise £4m of transactions fees related to the sale of Dixons South East Europe A.E.V.E that were paid in the period (28 October 2023: £2m). In the period ended 27 April 2024 there is a £202m cash inflow from discontinued operations which is comprised of £205m disposal proceeds and £3m of transaction fees paid.

Changes in liabilities arising from financing activities

• This figure includes the disposal of lease liabilities related to Greece of £81m

Lease liabilities are secured over the Group's right-of-use assets.

Committed facilities

In September 2024, the Group refinanced its existing debt with one revolving credit facility which is due to expire in September 2028. This facility replaced the two facilities which were due to expire in April 2026 and the two short-term facilities which were due to expire in October 2024. As at 26 October 2024 the available facilities totalled £525m (28 October 2023: £632m, 27 April 2024: £627m) and the Group had no drawings (28 October 2023: £216m, 27 April 2024: £nil).

The interest rate payable for drawings under the revolving credit facility is at a margin over risk free rates (or other applicable interest basis) for the relevant currency and for the appropriate period. The actual margin applicable to any drawing depends on the fixed charges cover ratio calculated in respect of the most recent accounting period. A non-utilisation fee is payable in respect of amounts available but undrawn under this facility and a utilisation fee is payable when aggregate drawings exceed certain levels.

Uncommitted facilities

The Group also has overdrafts and short-term money market lines from UK and European banks denominated in various currencies, all of which are repayable on demand. Interest is charged at the market rates applicable in the countries concerned and these facilities are used to assist in short term liquidity management. Total available facilities are £56m (28 October 2023: £93m, 27 April 2024: £62m). At 26 October 2024 the Group had drawn down on the uncommitted facilities by £2m (28 October 2023: £5m, 27 April 2024: £nil).

7 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, the results of which are detailed below. See note 6 for related cash flows.

8 Contingent liabilities

The Group continues to cooperate with HMRC in relation to open tax cases arising from pre-merger legacy corporate transactions in the former Carphone Warehouse Group. It is possible that a future economic outflow will arise from one of these matters, and therefore a contingent liability has been disclosed. This determination is based on the strength of third-party legal advice on the matter and therefore the Group considers it 'more likely than not' that these enquiries will not result in an economic outflow. The potential range of tax exposures relating to this enquiry is estimated to be approximately £nil - £218m excluding interest and penalties. Interest is £94m up to 26 October 2024. Penalties could range from nil to 30% of the principal amount of any tax. Any potential cash outflow would occur in greater than one year and less than five years.

The Group received a Spanish tax assessment connected to a business that was disposed of by the legacy Carphone Warehouse Group in 2014. This issue is in litigation and is likely to take a minimum of two years to reach resolution. The Group considers that it is not probable the claim will result in an economic outflow based on third-party legal advice. The maximum potential exposure as a result of the claim is £11m.

9 Related party transactions

The Group had the following transactions and balances with its associates:

All transactions entered into with related parties were completed on an arm's length basis.

10 Events after the balance sheet date

There were no material events after the balance sheet date.

The updated risks and uncertainties are listed below:

• Supply Chain Resilience risk covers broad external supply chain related challenges for sourcing which, if not managed adequately, could result in a deterioration of financial performance;
• Failure to deliver an effective business transformation programme in response to a changing consumer environment and competitive landscape could result in a loss of competitive advantage impacting financial performance;
• Failure to safeguard sensitive colleague, customer, or business information, or a failure to comply with legislation could result in reputational damage and financial penalties;
• Inadequate investment and integration of the Group's IT systems and infrastructure could impact business operations, resulting in restricted growth and poor financial performance;
• Failure to appropriately safeguard against cyber risks and associated attacks could result in operational disruption and an inability to trade, giving rise to reputational damage, customer compensation, financial penalties and lost sales;
• Inappropriate Health and Safety measures resulting in injury could give rise to reputational damage and financial penalties;
• Business continuity plans are not effective and major incident response is inadequate resulting in reputational damage, operational disruption, and an inability to trade;
• Crystallisation of potential tax exposures resulting from legacy corporate transactions, employee and sales taxes arising from periodic tax audits and investigations across various jurisdictions in which the Group operates may impact cash flows for the Group;
• Failure to either deliver or adequately communicate our commitment to sustainability and being a good corporate citizen could result in reputational damage and loss of competitive advantage;
• Failure to successfully navigate an increasingly pervasive set of externally driven macroeconomic factors, and cost of living pressures could result in a deterioration in financial performance; and
• Failure to manage Currys' access to sufficient liquidity at any given time may impact the Group's ability to meet its financial obligations and support business growth plans.

The directors confirm that to the best of their knowledge:

• the interim financial information has been prepared in accordance with IAS 34 as adopted by the UK;
• the financial highlights, performance review and interim financial information include a fair review of the information required by DTR 4.2.7R (indication of important events during the first 26 weeks and description of principal risks and uncertainties for the remaining 26 weeks of the year); and
• the financial highlights and performance review includes a fair review of the information required by DTR 4.2.8R (disclosure of related party transactions and changes therein).

At the date of this statement, the directors are:

Alex Baldock

Bruce Marsh

Ian Dyson

Octavia Morley

Eileen Burbidge

Magdalena Gerger

Steve Johnson

Gerry Murphy

Adam Walker

By order of the Board

To Currys plc

Conclusion

We have been engaged by Currys plc to review the condensed set of financial statements in the half-yearly financial report for the 26 weeks ended 26 October 2024 which comprises the consolidated income statement, the consolidated balance sheet, the consolidated statement of changes in equity, the consolidated cash flow statement and the related explanatory notes.

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the 26 weeks ended 26 October 2024 is not prepared, in all material respects, in accordance with IAS 34 Interim Financial Reporting as adopted for use in the UK and the Disclosure Guidance and Transparency Rules ("the DTR") of the UK's Financial Conduct Authority ("the UK FCA").

Basis for conclusion

Conclusions relating to going concern

Directors' responsibilities

Our responsibility

The purpose of our review work and to whom we owe our responsibilities

Mark Flanagan

for and on behalf of KPMG LLP

Chartered Accountants

15 Canada Square

London, E14 5GL

Alternative performance measures ('APMs')

Management consider these additional measures to provide additional information on the performance of the business and trends to shareholders. The below, and supplementary notes to the APMs, provides further information on the definitions, purpose and reconciliations to IFRS measures of those APMs that are used internally in order to provide parity and transparency between the users of this financial information and the CODM in assessing the core results of the business in conjunction with IFRS measures.

Adjusted results

Included within our APMs the Group reports a number of adjusted profit and earnings measures, all of which are described throughout this section. The Group subsequently refers to adjusted results as those which reflect the in-period trading performance of the ongoing omnichannel retail operations (referred to below as underlying operations and trade) and excludes from IFRS measures certain items that are significant in size or volatility or by nature are non-trading or highly infrequent.

Adjusting items

When determining whether an item is to be classified as adjusting, and the departure from IFRS measures is more useful for the users of the financial statements than the additional disclosure requirements for material items under IAS 1, the project or item must:

• 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 not reflect the underlying trading performance of the business.

Items excluded from adjusted results can evolve from one financial year to the next depending on the nature of exceptional items or one-off type activities.

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 periods 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, with the exception of the amortisation of intangibles, such as brands, that would not have been recognised prior to their acquisition. Where practically possible amounts are restated in comparative periods to reflect where a business operation has subsequently been disposed.

Alternative performance measures ('APMs') (continued)

Strategic change programmes

Primarily relate to material one-off 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 one-off in nature and to cause a significant change in the underlying business operations; and implementation costs for strategic change delivery projects that are considered one-off in nature. Such costs incurred do not reflect the Group's underlying trading performance. Results are therefore adjusted to exclude such items in order to aid comparability between periods.

Regulatory costs

The Group includes material costs related to data incidents and regulatory challenge within adjusting items so far as on the basis of internal or external legal advice, it has been determined that it is more than possible that a material outflow will be required to settle the obligation (legal or constructive) and subsequently recognised a provision in accordance with IAS 37.

Impairment losses and onerous contracts

In order to aid comparability, costs incurred for material non-cash impairments (or reversals of previously recognised impairments) and onerous contracts are included within adjusting items where they have a significant impact on amounts presented in either the statutory income statement or statutory cash flow statement in any set of annual Group financial statements. When considering the threshold, management will consider whether the gross impairment charge and gross reversal of previously recognised impairment in any one reportable operating segment is above the material threshold for that financial year.

While the recognition of such is considered to be one-off in nature, the unavoidable costs for those contracts considered onerous is continuously reviewed and therefore based on readily available information at the reporting date as well as managements historical experience of similar transactions. As a result, future cash outflows and total charges to the income statement may fluctuate in future periods. If these changes are material they will be recognised in adjusting items.

Other items

Other items include those items that are 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 finance income / (costs)

Included within adjusting finance income / (costs) are 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).

Tax

Included within taxation is the tax impact on those items defined above as adjusting. The exclusion from adjusted results ensures that users, and management, can assess the overall performance of the Groups underlying operations.

Alternative performance measures ('APMs') (continued)

Tax (continued)

The Group also includes the movement of un-recognised deferred tax assets relating to unused tax losses and other deductible temporary differences within adjusting items. Management considers that the exclusion from adjusted results aids users in the determination of current period performance as the recognition and derecognition of deferred tax is impacted by management's forecast of future performance and the ability to utilise unused tax losses and other deductible temporary differences.

Definitions, purpose and reconciliations

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 / (loss) for the year before deducting interest and tax, termed as EBIT; and profit / (loss) for the year before deducting interest, tax, depreciation, and amortisation, termed as EBITDA. These metrics are further explained and reconciled within notes A2 and A3 below.

Currency neutral

Some comparative performance measures are translated at constant exchange rates, called 'currency neutral' measures. This restates the prior period results at a common exchange rate to the current year in order to provide appropriate year-on-year movement measures without the impact of foreign exchange movements.

Like-for-like (LFL) % change

Like-for-like revenue is calculated based on adjusted store and online revenue (including Order & Collect, Online In-Store and ShopLive) using constant exchange rates consistent with the currency neutral % change measure detailed above. New stores are included where they have been open for a full financial year both at the beginning and end of the financial period. Revenue from franchise stores is 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 like-for-like 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 (loss) / 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 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.

The below reconciles (loss) / profit before tax and (loss) / profit before interest and tax, which are considered to be the closest equivalent IFRS measures to adjusted EBIT and adjusted PBT.

26 weeks ended 26 October 2024

* The prior period has been restated to exclude discontinued operations

A1 Reconciliation from (loss) / profit before interest and tax to adjusted EBIT and adjusted PBT (continuing operations) (continued)

52 weeks ended 27 April 2024

A2 Reconciliation from statutory profit / (loss) 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 as it is a commonly used metric to compare profitability between businesses that have differing capital asset structures.

The below reconciles profit before interest and tax, which is considered to be the closest equivalent IFRS measures, to EBITDA.

* The prior period has been restated to exclude discontinued 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 as well as depreciation and amortisation expense noted in A2.

The depreciation adjusted within adjusted EBITDA includes right-of-use asset depreciation on leased assets in accordance with IFRS 16. Some leasing costs, including those on short-term or low value leases, or variable lease payments not included in the measurement of the lease liability, are also included within EBITDA. A similar measure, EBITDAR, provides a measure of profitability based on the above EBITDA definition as well as deducting for leasing costs in EBITDA.

A3 Reconciliation from adjusted EBIT to adjusted EBITDA and adjusted EBITDAR (continuing operations) (continued)

The below reconciles adjusted EBIT to adjusted EBITDA and adjusted EBITDAR. The closest equivalent IFRS measures are considered to be profit / (loss) before interest and tax, the reconciliation of such from adjusted EBIT can be found in note A1.

* The prior period has been restated to exclude discontinued operations

* The prior period has been restated to exclude discontinued operations

Acquisition / disposal related items:

A charge of £12m (26 weeks ended 28 October 2023: £12m, 52 weeks ended 27 April 2024: £23m) relates to amortisation of acquisition intangibles arising on the Dixons Retail Merger.

Strategic change programmes:

During the period £1m of costs have been incurred as the Group continues to deliver the long-term strategic plan. The charges incurred in the period to date relate to property rationalisation programmes (26 weeks ended 28 October 2023: £1m credit, 52 weeks ended 27 April 2024: £nil).

In the period ended 28 October 2023 cost were also incurred in relation to the following programmes:

• £10m one off implementation costs of transferring service centre operations to a third-party (52 weeks ended 27 April 2024: £12m).
• £1m credit from a provision release related to the restructuring of Nordics central operations and retail business due to successful contract negotiations (52 weeks ended 27 April 2024: £4m cost).
• Impairment losses and onerous contracts:

No impairment charges have been recognised during the 26 weeks ended 26 October 2024 (26 weeks ended 28 October 2023: £nil).

During the 52 weeks ended 27 April 2024 a non-cash impairment charge of £15m was recognised over assets held in the Nordics component of the group following the strategic decision to restructure elements of the segment. This included £16m of impairments of inefficient software assets and was partially offset by a £1m net credit related to property closures.

Furthermore, in the 52 weeks ended 27 April 2024 fixed asset impairment charges of £10m were recognised over intangible software assets held in the UK & Ireland segment that became obsolete due to system replacements that took place during the year. In addition, 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.

Regulatory income:

In the 52 weeks ended 27 April 2024, £13m of costs were provided for in relation to regulatory matters. In the current period, £2m of these costs have been reversed following updated provision estimates.

In the 26 weeks ended 28 October 2023, a £1m credit was recognised in relation to the release of a provision related to a provision put in place for regulatory matters in the period ended 29 April 2023.

Other:

During the period ended 26 October 2024, costs of £1m have been recognised for professional fees in relation to open tax cases (26 weeks ended 28 October 2023: £nil, 52 weeks ended 27 April 2024: £2m).

During the 26 weeks ended 28 October 2023, £2m of foreign exchange losses were recognised in relation to the translation of a historic non-operating intercompany balance which was capitalised in the period (52 weeks ended 27 April 2024: £2m). This was is offset in the 52 weeks ended 27 April 2024 by £2m of income from intra-group balance adjustments, which was offset in total statutory profit by a corresponding cost in discontinued operations (26 weeks ended 28 October 2023: £nil).

• 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 year to the net defined benefit obligation.

Other interest:

Included in the charge to 26 October 2024 is £3m of arrangement fees relating to the previous Group Revolving Credit Facilities. This represents the residual prepayment balance that has been released to profit and loss upon the refinancing to the new Group facility that took place in the period.

The Group continues to cooperate with HMRC in relation to open tax cases arising from pre-merger legacy transactions in the Carphone Warehouse Group as detailed in the 2023/24 Annual Report. The Group has risk assessed that certain cases have a probable chance of resulting in cash outflows to HMRC that are measured at £51m as at 26 October 2024 (comprising the amount of tax payable and interest up to 26 October 2024) (52 weeks ended 27 April 2024: £50m). During the period, interest of £1m accrued in relation to these cases which is based upon HMRC's prevailing interest rates (26 weeks ended 28 October 2023: £2m, 52 weeks ended 27 April 2024: £(7)m).

(viii) Tax on other adjusting items:

The effective tax rate on adjusting items is 21%. Included within tax on other adjusting items is a £1m charge relating to the movement in relation to un-recognised deferred tax assets in the UK, which were reassessed during 2022/23 given the ongoing elevated macroeconomic uncertainty and a £5m credit reflecting the tax effect on adjusting items explained above.

A5 Reconciliation from statutory (loss) / earnings per share to adjusted (loss) / 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 provides a useful measure of the ongoing earnings of the underlying Group.

The below table shows a reconciliation of statutory basic EPS to adjusted basic EPS as this is considered to be the closest IFRS equivalent.

A5 Reconciliation from statutory (loss) / earnings per share to adjusted (loss) / earnings per share (continuing operations) (continued)

* The prior period profit has been restated to exclude discontinued operations

Basic (loss) / earnings per share is based on the (loss) / profit for the period attributable to equity shareholders. Adjusted (loss) / earnings per share is presented in order to show the underlying performance of the Group. Adjustments used to determine adjusted (loss) / profit are described further in note A4.

A6 Reconciliation of cash generated from operations to free cash flow (continuing operations)

The below provides a reconciliation of cash generated from operations, which is considered the closest equivalent IFRS measure, to operating cash flow and free cash flow.

* The prior period has been restated to exclude discontinued operations

A6 Reconciliation of cash generated from operations to free cash flow (continuing operations) (continued)

* The prior period has been restated to exclude discontinued operations

A7 Reconciliation from liabilities arising from financing activities to total indebtedness and net cash/ (debt)

Net cash/ (debt) comprises cash and cash equivalents and short-term deposits, less loans and other borrowings. 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.

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/ (debt).

A7 Reconciliation from liabilities arising from financing activities to total indebtedness and net cash/ (debt) (continued)

Within the performance review management also refer to average net cash/ (debt). Average net cash/ (debt) comprises the same items included in net cash/ (debt) as defined above, however calculated as the average between April - October for the interim reporting period and April - April for the full year to align to the Group's Remuneration Committee calculation and as reported internally.

A8 Reconciliation of movements in 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 £31m (26 weeks ended 28 October 2023 £9m, year ended 27 April 2024 £(34)m) differs to the statutory working capital balance 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. A description of costs included within adjusting items during the period and comparative periods is further disclosed in note A4.

* The prior period has been restated to exclude discontinued operations

A9 Restatement of comparative balance sheet

Within the Performance Review a summary Group balance sheet it presented which includes a comparative column for 28 October 2023 that excludes balances 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 may apply throughout this interim statement and the Annual Report and Accounts 2023/24 previously published: