Currys plc
1 Portal Way
London
W3 6RS
United Kingdom
T: +44 (0) 203 110 3251
E: ir@currysplc.com
www.currysplc.com
Currys plc Annual Report & Accounts 2021/22
COVER OPTION 1
Annual Report & Accounts
2021/22
We help
everyone
enjoy
amazing
technology
Currys plc Annual Report & Accounts 2021/22
Currys plc
1 Portal Way
London
W3 6RS
United Kingdom
T: +44 (0) 203 110 3251
E: ir@currysplc.com
www.currysplc.com
Currys plc Annual Report & Accounts 2021/22
COVER OPTION 2
Annual Report & Accounts
2021/22
We help
everyone
enjoy
amazing
technology
Currys plc Annual Report & Accounts 2021/22
Currys
What we do
In the UK&I we trade as Currys; in the
Nordics under the Elkjøp brand and
as Kotsovolos in Greece. In each of
these markets we are the market
leader, employing XX,XXX capable
and committed colleagues. Our full
range of services and support makes
it easy for our customers to discover,
choose, afford and enjoy the right
technology for them, throughout their
lives. The Group’s operations are
supported by a sourcing office in Hong
Kong, state-of-the-art repair facilities
and an extensive distribution network,
enabling fast and efficient delivery to
stores and homes.
Our vision, we help everyone enjoy
amazing technology, has a powerful
social purpose at its heart. We believe
in the power of technology to improve
lives, help people stay connected,
productive, healthy, and entertained.
We’re here to help everyone enjoy
those benefits and with our scale and
expertise, we are uniquely placed to
do so.
We’re a leader in giving technology
a longer life through repair, recycling
and reuse. We’re reducing our impact
on the environment in our operations
and our wider value chain and we
will achieve net zero emissions by
2040. We offer customers products
that help them save energy, reduce
waste and save water, and we partner
with charitable organisations to bring
the benefits of amazing technology
to those who might otherwise be
excluded.
We are a leading
omnichannel retailer
of technology
Quick links
New Recycling
Initiative
6
Our Business
Model
10
Strategy
in Action
18
www.currysplc.com/investors
For the latest news visit our website.
1
Governance
Financial Statements
Investor information
Strategic Report
£10,170m
£10,344m
£10,144m
2021/22
2020/21
2019/20
£116m
£156m
£186m
2021/22
2020/21
2019/20
6.7p
10.7p
XX.Xp
2021/22
2020/21
2019/20
£109m
£438m
£72m
2021/22
2020/21
2019/20
£(140)m
£33m
£126m
2021/22
2020/21
2019/20
(13.9)p
0.0p
8.0p
2021/22
2020/21
2019/20
2021/22
Highlights
Operational highlights
• Moved to a single brand in the UK&I.
Currys is now customers’ single
destination for all things tech
• Launched new omnichannel
platforms in both UK and across
the Nordics
• Strong progress against recycling
and net zero targets, recognised
by CDP “A” score
• Successfully entered Cyprus,
our 8th market
• Resumed dividend payments and
commenced a share buyback
Financial highlights
Revenue
£10,144m
(2)%
Free cash flow
£72m
(84)%
Adjusted profit before tax
£186m
+19%
Adjusted EPS
[X.X]p
[+XX]%
Statutory EPS
8.0p
Statutory profit/loss before tax
£126m
Contents
Strategic Report
1 2021/22 Highlights
2 Our Vision
3 Our Strategic priorities
4 The importance of Technology
X Our Business at a glance
X Our Business Model
X Chair of the Boards’ statement
X Group Chief Executive’s statement
X Strategy in Action
X Our Stakeholders and s172(1) statement
X Sustainable Business
X Risk Management
X Principal Risks and Uncertainties
X Going Concern and Viability Statement
X Key Performance Indicators
X Performance Review
Governance
X Board of Directors
X Governance at a glance
X Directors’ Report
X Corporate Governance Report
X Audit Committee Report
X Disclosure Committee Report
X Nominations Committee Report
X ESG Committee Report
X Remuneration Committee Chair’s statement
X Remuneration Policy
X Remuneration Committee Report
X Annual Remuneration Report 2021/22
X Statement of Directors’ Responsibilities
Financial Statements
X Independent Auditor’s Report
X Consolidated Income Statement
X Consolidated Statement of Comprehensive
Income
X Consolidated Balance Sheet
X Consolidated Statement of Changes in Equity
X Consolidated Cash Flow Statement
X Notes to the Group Financial Statements
X Company Balance Sheet
X Company Statement of Changes in Equity
X Notes to the Company Financial Statements
X Five Year Record (unaudited)
Investor Information
X Glossary and Definitions
X Shareholder and Corporate Information
Non-Financial Information Statement
We aim to comply with the Non-Financial
Reporting requirements contained in sections
414CA and 414CB of the Companies Act
2006. The requirements of this disclosure are
addressed within this section by means of cross
reference in order to avoid duplication and to
help stakeholders understand our position on
key non-financial matters:
Environmental matters (including impact of
business on the environment) page [X]
TCFD Report page [X]
Colleagues page [X]
Social matters page [X]
Respect for human rights page [X]
Anti-corruption and
anti-bribery matters page [X]
Description of our business model page [X]
Details of the principal risks relating
to non-financial matters page [X]
non-financial KPIs page [X]
See our Key Performance Indicators on pages XX to XX.
CONTENTS TO BE FINALISED AT FINAL
PROOFING STAGE
KT
2 Currys plc Annual Report & Accounts 2021/22
We put our
customers
first
We win
together
We
own it
Choose Afford
Enjoy
for life
Overview
Our Vision
Our business model
We help customers choose, afford and enjoy amazing technology however they choose
to shop with us.
As a market leading technology products
and services retailer, our vision drives
everything we do, in all countries in which
we operate.
Customers find technology incredibly
exciting, but also confusing and expensive.
Our vision goes beyond ensuring
customers can choose, afford and
enjoy the right tech.
We put our purpose at the heart of what
we do, using our expertise, scale and
reach, to bring technology to everyone.
The assets, colleagues, capabilities
and scale that we have means that
no one is better placed than Currys
to help customers do all this.
We help customers choose the right technology,
across a huge range of products, through
stores or online. Our capable and committed
colleagues provide expert advice to help
customers make the right choice.
Technology’s amazing. And we’re here to
help everyone enjoy it. So, we don’t just sell
products to people, we make sure they have the
knowledge and confidence to get everything
they can out of them. We know that our advice,
our enthusiasm, our commitment to do what’s
right for customers brings them joy. And it’s
through this energy and determination that we’ll
keep more customers for life.
Customers find technology exciting, but
confusing and expensive. We help everyone
afford the technology they want. We won't be
beaten on price and we can spread the cost
of tech through the responsible use of credit.
We help customers make the most of their
amazing tech through our unique services. We
get the product working, help give tech a longer
life and help customers make the most of their
products. We are uniquely positioned to help
customers throughout their life, and by doing so
we will drive relationships that are long-lasting
and more valuable to our customers and to us.
While there are thousands of us, in hundreds
of roles and positions, we’re all united by the
same love for technology and helping people
enjoy it. We value our differences and the
difference we make because that’s what
makes us unique. When we come together
amazing things happen and we win together
as one.
We all take change of our future and we’re
not afraid of change. It’s how we succeed.
So, we find what works well and we make it
work better. We share ideas to help make our
customers’ lives easier and we go above and
beyond to help others out. As individuals and
as a business, we’re committed to learning,
growing and taking responsibility for making
things happen.
Our Values
Our values unite us, helping us achieve our strategic objectives.
We help everyone enjoy
amazing technology
Read more about our values on page [18].
Read more about our business model
on page [XX].
TROPHY ICON - TO
COME FROM CLIENT
STAR ICON - TO COME
FROM CLIENT
HEART ICON - TO
COME FROM CLIENT
3
Governance
Financial Statements
Investor information
Strategic Report
Growing shareholder return
Annual sustainable free cash flow
>£XXXm
Capable and committed
colleagues – our greatest
advantage
Happy colleagues make happy customers
and happy shareholders, and none of our
competitors can match our thousands of
expert colleagues.
Read more about our colleagues on page [XX].
Annual sustainable free cash flow is defined as operating cash flow less capital expenditure, exceptional cash flow, cash tax and interest. It excludes any movements in
working capital which are not expected to be significant by 2023/24.
Customers need an easy
shopping experience
For our customers, we will be easy to shop.
We're strongest when we offer the best of
both online and stores to customers, an
omnichannel shopping experience.
Read more about Omnichannel on page [XX].
We are building customers
for life
We want to be more valuable to
customers. This means helping them
to afford and enjoy their technology,
Our Credit and other Services, fuelled
by data, help us build those longer-term
customer relationships.
Read about Customers for Life on page [XX].
Net Zero by
2040
Eradicate
Digital
Poverty
Grow our
Circular
Business
Model
Our strategic priorities
Sustainability priorities
Financial benefits by 2023/24
EBIT margin
X%
Capital expenditure
XX% of sales
New cash exceptionals
£minimal
Steady Growth
4 Currys plc Annual Report & Accounts 2021/22
The importance of technology
to our customers
Amazing technology plays a vital role
in our customers’ lives
Connected Fed
Fit & Healthy
Helping our customers stay…
Productive Entertained
Clean
5
Governance
Financial Statements
Investor information
Strategic Report
£21.2bn
£22.5bn
£18.6bn
£19.0bn
£19.1bn
£18.8bn
2016/17
2021/22
2020/21
2019/20
2018/19
2017/18
NOK 188bn
NOK 185bn
NOK 158bn
NOK 152bn
NOK 147bn
NOK 142bn
2016/17
2021/22
2020/21
2019/20
2018/19
2017/18
Cloud Gaming
Foldable Phones
Dual Screen
Laptops Food Preservation
8K TVs Energy Efficiency
Smart Security
Windows 11
Continuing growth drivers
Trends
• Hybrid working
• E-learning
• Home entertainment
• Smart tech
Faster replacement
• Greater usage
• Greater familiarity with
benefits of new tech
• High rate of innovation
Larger installed base
• Complementary
products and services
opportunities
Supplier innovation
UK electricals market size (£bn) Nordics electricals market size (BNNOK)
7 out of 10 of the top global
R&D spend companies are
suppliers to us.
We are proud to
partner with many
of the world’s
largest and most
innovative companies.
The developments
coming from them are
incredibly exciting.”
Ed Connolly
Chief Commercial Officer
+14%
Yo2Y
+19%
Yo2Y
6 Currys plc Annual Report & Accounts 2021/22
Overview
Sustainable business
Our vision is to help everyone enjoy
amazing technology. That’s why we exist.
Technology plays a vital role in every
aspect of our lives, whether it’s helping
you stay connected with friends and family,
working from home, or keeping you fed,
clean, fit, healthy and entertained.
We all love new technology and want to
feel good about buying a new piece of
tech. But we also know that electronic
waste is the world’s fastest growing waste
stream and is expected to grow to nearly
75 million tonnes by 2030.
We have to face facts: we can’t keep
throwingtechnology away.
So, let’s change our relationship with
tech. We believe there’s a far better way.
Instead of throwing your old kit away,
we want to give technology longer life.
At Currys, we don’t just sell amazing
technology; we save it too.
It’s not just good for the planet, it’s also
great for your pocket. Our recent UK ‘Cash
for Trash’ campaign encouraged people
in the UK to give Currys their unwanted
tech in return for a £5 voucher. In just three
weeks, we saved the equivalent of ten
double decker buses of e-waste ending
up in landfill.
As the #1 tech retailer in all the markets we
operate in, we’re uniquely placed to lead
the way in changing this relationship. 80%
of UK households have shopped with us
in the past three years, putting us in prime
position to make a difference and help
our customers extend the life of their tech.
Curabitur eget orci tincidunt,
vestibulum dolor non, tincidunt mi. In
eu lectus lacinia, laoreet libero ut,
placerat mi. Vestibulum lorem tortor,
lobortis non nisi sit amet, rhoncus
porttitor tortor.”
Outquote name
Title
Long Live
Your Tech
DESIGN REVIEW REQUIRED
7
Governance
Financial Statements
Investor information
Strategic Report
So, here’s how we’re doing it at every stage
of the product’s life.
When you buy
the amazing technology
Expert face-to-face help is at the heart
of why customers shop with us, and our
colleagues are passionate about helping
customers buy new technology and make
decisions that are right for them. And for
the planet.
We’ll always lead the way with the best
new products and the best prices. Our
Go-Greener range continues to grow
as we all look for ways to reduce our
impact on the environment. From energy-
efficient washing machines, tumble driers
and ovens to water-saving dishwashers,
we’re working hard with our customers
and suppliers to help everyone make
better choices.
And when you buy your amazing
technology, we help you protect it from
Day one so your tech can have longer life.
You want to enjoy the technology and
that’s why, through our care and repair
plans, over eleven 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 you give
your technology longer life if something
goes wrong.
When you need help to repair it
And we’re delivering on that promise. Last
year, we made nearly two million repairs
across the Currys Group. Our Repair Lab
in Newark is the largest electrical repair
facility in Europe, with over 1300 skilled
colleagues working to give technology
longer life. That team is supported by
270 field engineers, who carried out
250,000 repairs in the UK. 80% of those
were completed on the first visit. In the
Nordics, we make several million spare
parts available to customers via an
online platform.
When you’re ready for
something new
Trade-in is the bridge between your old
and your 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.
1,234
Statistic heading
5,678 mt
Selling space
910
Statistic heading
We’ll also give it longer life in a different
form to somebody else. We’ll try to
refurbish and re-use the tech. We can sell
it second hand – and we’ve done that
with over 250k products this year. Or we’ll
donate it to those who need it most. In
the UK, 32% of young people are at risk
of becoming digitally excluded because
they’re unable to get access to a device
when they need it. Through our work with
the Digital Poverty Alliance, Pennies and
our Tech4Families campaign, we believe
we’ll raise between £250k and £300k
each year to provide a mix of new and
refurbished laptops and connectivity
to families who would otherwise be
excluded from personal access. Through
the ‘Second Home’ programme in our
Kotsovolos stores, over 1,500 refurbished
appliances have been distributed to
families in need since 2017.
When it’s reached
the end of life
We want everyone to bring their old
or unwanted tech into our stores to be
recycled or reused for free – whether they
bought it from us or not. If we can’t re-use
it, then we can harvest the parts which can
be put to good use by our amazing repair
colleagues in our repair lab.
Or we can recycle it. We already collect
our customers’ unwanted electrical
equipment and small electrical
appliances for recycling when we deliver
their new technology. We currently recycle
over 100,000 tonnes of used tech every
year across our Group – that’s over
50,000 London black cabs.
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. After all, we’ve
been repairing tech since the 80s and
we’ve recycled over a million tonnes
of tech [in the last decade]. Everyone
benefits because it makes commercial
sense for us, financial sense for customers
and environmental sense for the planet.
We’re leading the way in changing
everyone’s relationship with tech for the
better. We’ve come a long way but we’re
just getting started.
Read more, our sustainable business
on page [XX].
8 Currys plc Annual Report & Accounts 2021/22
UK&I Revenue 2021/22
£5.5bn
Read more, our performance review on page [XX].
International Revenue 2021/22
£[4 . 6] bn
Read more, our performance review on page [XX].
£10.1bn
Total revenue
Our business
at a glance
Currys plc is a leading omnichannel retailer of
technology products and services, operating
online and through 830 stores in 8 countries.
We Help Everyone Enjoy Amazing Technology,
however they choose to shop with us.
In the UK&I we trade as Currys;
in the Nordics under the Elkjøp
brand and as Kotsovolos in
Greece and Cyprus.
In each of these markets we are the market
leader, employing 32,000 capable and
committed colleagues. Our full range of
services and support makes it easy for
our customers to discover, choose, afford
and enjoy the right technology for them,
throughout their lives. The Group’s operations
are supported by a sourcing office in Hong
Kong, state-of-the-art repair facilities and an
extensive distribution network, enabling fast
and efficient delivery to stores and homes.
Our vision, we help everyone enjoy amazing
technology, has a powerful social purpose at
its heart. We believe in the power of technology
to improve lives, help people stay connected,
productive, healthy, and entertained. We’re
here to help everyone enjoy those benefits and
with our scale and expertise, we are uniquely
placed to do so.
We’re a leader in giving technology a longer
life through repair, recycling and reuse. We’re
reducing our impact on the environment in our
operations and our wider value chain and
we will achieve net zero emissions by 2040.
We offer customers products that help them
save energy, reduce waste and save water,
and we partner with charitable organisations
to bring the benefits of amazing technology to
those who might otherwise be excluded.
8
Countries
32k
Colleagues
360m
Website visits
830
Stores
25.6%
24.7%
26.5%
25.8%
25.2%
2021/22
2020/21
2019/20
2018/19
2017/18
25.9%
26.8%
26.0%
25.5%
25.0%
2021/22
2020/21
2019/20
2018/19
2017/18
UK Market share Nordics Market share
54%
UK&I
41%
Nordics
5%
Greece
9
Governance
Financial Statements
Investor information
Strategic Report
Our Markets at a Glance
Electricals Market
29.8m
(1)
Households
£21.2bn
(2)
Annual spend
(20/21: £22.5bn)
65% Online share
(20/21: 76%)
Our footprint
18,067 Colleagues
(20/21: 21,000)
360m Website visits
(20/21: 500m)
309 Stores
(20/21: 314)
5.5m Store area sq ft
(20/21: 5.6m)
XX Logistics
(20/21: 27)
X.Xm Logistics area sq ft
(20/21: 3m)
Electricals Market
4.1m
(4)
Households
£XX.Xbn
(2)
Annual spend
(20/21: [£XX.Xbn])
XX% Online share (20/21:
[XX]%)
Our footprint
2,922 Colleagues
(20/21: 3,000)
2m Website visits
(20/21: [XX]m)
94 Stores (20/21: 93)
1.1m Store area sq ft
(20/21: 1m)
XX Logistics (20/21: [XX])
Xm Logistics area sq ft
(20/21: [X]m)
Electricals Market
13.2m
(3)
Households
£15,9bn
(2)
Annual spend
(20/21: £15.7bn)
24%
(5)
Online share
(20/21: 24%)
Our footprint
10,984 Colleagues
(20/21: 11,000)
320m Website visits
(20/21: 369m)
427 Stores
(20/21: 422)
4.8m Store area sqft
(20/21: 4.8m)
XX Logistics (20/21: [XX])
XXXm Logistics area sq ft
(20/21: [XX]m)
(1) Source: UK Office for National Statistics and Central Statistics Office (Ireland)
(2) Source: GFK
(3) Detail of households in Nordic countries: in Sweden 5.1m, in Norway 2.5m, in Denmark 2.8m and in Finland 2.8m – Source: National Statistical Offices
(4) Source: Hellenic Statistical Authority
(5) Source: GFK. Nordics online share is reported excluded Telecom Sweden. Also, in the Nordics C&C sales are reported as Store Sales and are not part of the online share
10 Currys plc Annual Report & Accounts 2021/22
C
h
o
o
s
e
A
f
f
o
r
d
E
n
j
o
y
f
o
r
l
i
f
e
Our business model
Customers
Competitive
strengths
Our business model is to help everyone to choose,
afford and enjoy technology however they want to shop.
Modern omnichannel
network
Our network of over XXX stores are well
located and well invested to provide an
excellent customer experience. Aligned
with our online digital channels, we
provide a true omnichannel experience.
Read more on page [XX].
Large and flexible
infrastructure
Our extensive infrastructure can be
flexed to support sales and provide
services in any channel and wherever is
most convenient for our customers.
Read more on page [XX].
Established and
well loved brands
Each of our brands has a long history
as the customers' preferred brand in
all our markets.
Our move to a single brand in the UK&I
will make it even easier for customers to
see and experience us as number one.
Read more on page [XX].
Strong supplier
relationships
Our strong relationships with suppliers
enable us to provide the best range of
relevant products at unbeatable prices.
Read more on page [XX].
Capable and committed
colleagues
Our colleagues are our greatest
advantage in helping customers choose,
afford and enjoy the technology that is
right for them.
Read more on colleagues and culture on
page [XX].
Customers are at the heart of everything we do. Constant focus on
improving customer experience is key to achieving our objectives and
delivering value for all stakeholders.
We are uniquely positioned to help
customers throughout their life, and
by doing so we drive relationships
that are long-lasting and more
valuable to our customers and to us.
• Delivery
• Installation
• Set up
• Protection
• Repair
• Trade-in
• Refurbish
• Recycle
• Connectivity
• Help and Support
• Tutorials
• Subscriptions
We help customers choose the right technology
across a huge range of products, through our
stores or online. Our capable and committed
colleagues provide expert face-to-face advice
to help customers make the right choices.
Right Products
Large and relevant range of products including more sustainable
products in every market
Expert Advice
Our 32,000 highly trained, capable and committed colleagues provide
expert advice to help customers shop where and when they want
Omnichannel
We help customers choose the right technology, from the best
range of products and through stores or online
Shoplive
Live video shopping service to help customers choose the right
tech when and where it suits them
We help you
get started
We help give
your tech
longer life
We help you get
the most out of
your tech
11
Governance
Financial Statements
Investor information
Strategic Report
A
f
f
o
r
d
E
n
j
o
y
f
o
r
l
i
f
e
Tonnes e-waste collected
across our group for reuse or
recycling
103k tonnes
Reduction in scope 1, 2 & 3
emissions against a 2019/20
baseline
XXX
Contributed to charities and
communities through key
programmes & initiatives
£XXX
Customers
Satisfying our customers
Customers need the amazing technology
we sell to keep connected, healthy,
productive and entertained. Helping them
choose from the vast range of products
and making sure they can get the most
out of it is at the heart of what we do.
Read more on customers and
sustainability on page [XX].
Engaging our colleagues
We can only keep our customers happy
if we have happy colleagues. Paying
colleagues fairly, building skills for life
and making all colleagues shareholders
are essential to our long term success.
Read more on colleague engagement on
page [XX].
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 suppliers and
sustainability on page [XX].
Supporting our
environment
and 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 our sustainable approach
on page [XX].
Delivering returns for our
shareholders
Our business is cash generative and
we ensure sustainability of this cash
generation through considered capital
deployment.
Value creation
for stakeholders
Value created
during the year
Customers find technology exciting,
but confusing and expensive. We help
everyone afford the technology they
need. We won't be beaten on price and
we can spread the cost of tech through
the responsible use of credit.
UK NPS
+2
Nordics HappyOrNot
90%
Group eSat
77
Revenue growth (like-for-
like, Yo2Y)
+10%
Dividend per Share
3.00p
Share buyback commenced
£75m
Right Price and Price Match
“We won’t be beaten on price”
Credit
Spread the cost of products
usingcredit
12 Currys plc Annual Report & Accounts 2021/22
Chair’s statement
Currys exists to
help everyone enjoy
amazing technology
Despite all of this, we finished the
year in a stronger shape. Profits grew,
shareholders were rewarded with both
dividend and a share buyback, and both
colleague and customer satisfaction
continued to grow. This was only possible
with a great team led by Alex Baldock
and the commitment of our tens of
thousands of great colleagues. Thank
you to all of them.
All of our stakeholders rightly expect a
great business striving to be better every
year and we think we made pretty good
progress last year, but there still remains
the opportunity and necessity to do
better for all of them.
Colleagues
The role of our colleagues is critical to
the continued success of this business.
We cannot deliver highly valued advice
and service without well trained and
motivated colleagues. Investment in tools,
training and reward is key and we have
continued by investing in areas such as a
new Colleague Hub in the UK, thousands
of hours of colleague training and through
share awards that saw almost 13,000
colleagues receive shares this year with
a further 3,000 granted awards that will
vest after three years of employment.
Overview
As an executive and returning as Chair,
this is my 18th year at Currys – it will also
be my last. As part of a well-planned
succession process, Ian Dyson will be
taking over as Chair following the AGM
in September.
No year in Currys is dull. It is a dynamic
business in a fast-moving environment.
Last year was no different as we exited
(in fits and starts) from Covid restrictions,
saw war in Europe unfolding and dealt
with both supply chain disruptions
and inflation.
Customers
Our customers are noticing the difference
from our better trained more committed
colleagues, with better systems and
processes to back them up to give the
best tech advice and service in the market.
Our UK Net Promoter Score continues to
grow and the work on removing customer
pain points is showing real success.
In the Nordics, our customer club has now
grown to [6.8]m members. Sharing this
great idea across the Group, we launched
Currys Perks in the UK in October. Already
[xx.x]m customers have used Perks,
enabling us to reward our loyal customers
and create more personalised and
relevant propositions.
Suppliers
Our suppliers are amongst the largest
and most highly regarded companies in
the world – of the ten companies that
spend the most on R&D each year, seven
are suppliers to us. The innovation and
technological advances that are being
made to enhance people’s lives and help
them make more sustainable choices are
incredible, and we are in a privileged
position to be a trusted partner to these
companies helping them showcase their
amazing technology to our customers.
13
Governance
Financial Statements
Investor information
Strategic Report
Currys is a business
that is very close to my
heart but I am leaving
with it in great shape
and a very exciting
future ahead of it.”
Lord Livingston of Parkhead
Chair of the Board
Communities
We want everyone to be able to
enjoy equal access to the benefits
of technology and are committed to
making digital inclusive for everyone, in
every country we operate in. In 2020/21
we became one of the three founding
partners of a new Digital Poverty
Alliance (DPA). This was supported by
an initial £1m donation from Currys which
funded the first proof of concept for the
charity, by equipping 1,000 teachers
and teaching assistants in the country’s
poorest communities with the technology
and support they need to deliver high
quality home schooling to their pupils.
We are delighted to confirm our ongoing
commitment to the DPA and in 2022/23
we will be using Pennies customer
donations to support vulnerable families
with life changing access to technology.
Meanwhile Elkjop has committed
[6m ill NOK] to a number of strategic
partnerships that will help fight digital
exclusion in each of the countries in which
it operates.
While we don’t have a business in the
Ukraine, we have partners there and
colleagues nearby, so I was humbled
and proud to see Currys donate funds
and devices to help support those
fleeing theirhomes.
Environment
We are striving to become not only a
more sustainable company but also to
help our customers in their journey. It is
not just because this is what we and our
stakeholders think is the right thing to
do, but also that providing more energy
efficient products and services to help
keep tech working longer and to be
recycled at the end of its life, is something
we are uniquely able to do and can be a
key differentiator in our market. We have
reduced our carbon emissions by
an additional [xx]% during the year.
Supported by new initiatives such as “Cash
for Trash” in the UK, we collected xx tonnes
of waste tech, up [xx]% compared to last
year. This effort will continue to feature
centrally in our proposition of helping our
customers choose and afford amazing
technology, helping them get that tech
started, giving that tech a longer life and
helping them get the most out of the tech.
Our progress in sustainability has been
recognised by some of the leading rating
agencies with significantly improved
scores from S&P Global ratings and
Sustainalytics and an “A” score from CDP,
which ranked Currys plc amongst the top
2% of 11,000 global companies surveyed.
Shareholders
We continue to enjoy the engagement
and support of our shareholders. We
have returned this support through paying
a 3p dividend during 2021/22 and will
pay an increased dividend in 2022/23,
while also commencing a £75m annual
buyback. Due to market concerns on
the near-term outlook for European
consumer spending, our share price has
not improved as we all would have liked,
but our net cash balance sheet combined
with market leadership and quality of
operations make us confident that we
can deliver long term cashflow and value
to our shareholders.
Board
The Board of Currys plc brings together
a diverse range of relevant skills and
expertise. Bruce Marsh, our new CFO, has
been a welcome addition to the Board
in the year. In May, it was announced that
I will be stepping down in September. I will
be leaving Currys with sadness as it is a
business very close to my heart, but I am
delighted to be succeeded by someone
of the calibre and experience of Ian
Dyson. Ian brings a wealth of experience
across consumer facing industries and
public company boards. He will be a
great support to Alex and the rest of
theteam.
Looking ahead
My time at Currys has been challenging
but hugely enjoyable. Despite a difficult
external environment, the business is in
really good shape; it has a great
management team, strategic clarity, strong
finances and a very exciting future ahead
of it. Although the immediate future will
continue to be challenging, I have no
doubt that the business is well positioned
to deliver value for all stakeholders, as it
has done for almost 140 years. I look
forward to watching the continuing
progress from the sidelines.
Lord Livingston of Parkhead
Chair of the Board
6 July 2022
14 Currys plc Annual Report & Accounts 2021/22
Chief executive’s statement
Heading to go here
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id, rhoncus dolor. Nunc dignissim vehicula
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tristique turpis. Nulla facilisi. Integer
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convallis quis eu quam.
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sapien dictum hendrerit sit amet non est.
Nullam suscipit, lacus nec scelerisque
varius, sapien sem ultrices nulla, nec
accumsan quam purus sit amet odio.
Pellentesque posuere diam eu suscipit
eleifend. Vestibulum mattis leo ultrices
sem ornare mattis. Sed a metus non mauris
consectetur condimentum vitae a purus.
Performance
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nunc sed pellentesque tincidunt. In
condimentum dapibus magna pretium
malesuada. Integer semper ante sit
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purus, id facilisis mauris felis nec urna. Duis
tincidunt purus non lorem tempus viverra.
Nam ultrices iaculis magna et consequat.
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tempor nunc finibus non. Suspendisse sem
eros, rutrum sed auctor ut, lobortis vitae
ligula.
This has been an extraordinary year for our
business and society, and our colleagues have
stepped up magnificently to the exceptional
pressures Covid-19 has presented.”
Alex Baldock
Chief Executive
CONTENT TO BE CONFIRMED
15
Governance
Financial Statements
Investor information
Strategic Report
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ut enim accumsan, eget auctor neque
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laoreet libero ut, placerat mi. Vestibulum
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rhoncus porttitor tortor. Pellentesque
habitant morbi tristique senectus et netus
et malesuada fames ac turpis egestas.
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auctor. Aenean eu ipsum nec urna
consequat porttitor. Sed ac pulvinar dui,
sit amet aliquet lorem.
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augue semper in. Pellentesque habitant
morbi tristique senectus et netus et
malesuada fames ac turpis egestas.
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lacus sed, elementum sem. Vivamus a
nisl ac arcu euismod luctus ut in metus.
Phasellus gravida erat et ante porta
luctus.
Aenean quis scelerisque felis. Morbi
scelerisque cursus nunc sit amet
condimentum. Phasellus tempus velit vitae
mattis sollicitudin. Nullam sollicitudin
vestibulum condimentum. Cras purus
magna, eleifend venenatis velit eu,
pulvinar faucibus libero. Nunc sed ex
iaculis, convallis odio sed, rutrum eros.
Phasellus et fermentum risus. Pellentesque
in purus ut risus dictum facilisis. Ut eu
rhoncus sapien. Nulla facilisi.
Suspendisse tincidunt scelerisque est ut
vestibulum. Etiam tempus orci gravida
ante commodo malesuada. Pellentesque
posuere molestie elit, aliquam pharetra
risus pellentesque vitae. Morbi euismod
placerat pulvinar. Aliquam ut posuere
lorem. Donec at metus viverra, dictum erat
id, rhoncus dolor. Nunc dignissim vehicula
viverra. Interdum et malesuada fames
ac ante ipsum primis in faucibus. In mi
erat, dignissim id dui sit amet, consectetur
tristique turpis. Nulla facilisi. Integer
sodales laoreet tincidunt.
In ut placerat tellus. Ut efficitur massa
ut enim accumsan, eget auctor neque
mollis. Nulla at urna leo. Vivamus lobortis,
nibh vitae lobortis volutpat, ipsum turpis
tincidunt tellus, non tincidunt tortor purus
non augue. Duis sit amet bibendum leo.
Nam interdum arcu quis varius vulputate.
Curabitur eget orci tincidunt, vestibulum
dolor non, tincidunt mi. In eu lectus lacinia,
laoreet libero ut, placerat mi. Vestibulum
lorem tortor, lobortis non nisi sit amet,
rhoncus porttitor tortor. Pellentesque
habitant morbi tristique senectus et netus
et malesuada fames ac turpis egestas.
Fusce blandit leo eu nibh scelerisque
auctor. Aenean eu ipsum nec urna
consequat porttitor. Sed ac pulvinar dui,
sit amet aliquet lorem.
Sustainability
Euis tellus ligula. Integer accumsan, sapien
eu imperdiet mattis, nulla felis vehicula
libero, at vulputate ligula metus ac lectus.
Maecenas non orci felis. Cras in pulvinar
nunc. In a nulla ac ipsum elementum
convallis sed vitae tellus. Vivamus a tellus
vel dolor gravida convallis quis eu quam.
Donec suscipit lorem nec enim laoreet, vel
convallis velit efficitur. Nam quis dolor a
sapien dictum hendrerit sit amet non est.
Nullam suscipit, lacus nec scelerisque
varius, sapien sem ultrices nulla, nec
accumsan quam purus sit amet odio.
Pellentesque posuere diam eu suscipit
eleifend. Vestibulum mattis leo ultrices
sem ornare mattis. Sed a metus non mauris
consectetur condimentum vitae a purus.
Digital poverty
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eget auctor neque mollis. Nulla at urna
leo. Vivamus lobortis, nibh vitae lobortis
quis varius vulputate. Curabitur eget orci
tincidunt, vestibulum dolor non, tincidunt
mi. In eu lectus lacinia, laoreet libero
ut, placerat mi. Vestibulum lorem tortor,
lobortis non nisi sit amet, porttitor tortor.
Net-zero target
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tincidunt, vestibulum dolor non, tincidunt
mi. In eu lectus lacinia, laoreet libero
ut, placerat mi. Vestibulum lorem tortor,
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tortor. Pellentesque habitant morbi
tristique senectus et netus et malesuada
fames ac turpis egestas. Fusce blandit
leo eu nibh scelerisque auctor. Aenean eu
ipsum nec urna consequat porttitor. Sed
ac pulvinar dui, sit amet aliquet lorem.
Pellentesque ornare nec tellus a rhoncus.
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interdum, leo turpis auctor purus, id
facilisis mauris felis nec urna. Duis tincidunt
purus non lorem tempus viverra. Nam
ultrices iaculis magna et consequat. Duis
accumsan dolor orci, hendrerit tempor
nunc finibus non.
Nunc dignissim vehicula viverra. Interdum
et malesuada fames ac ante ipsum primis
in faucibus. In mi erat, dignissim id dui sit
amet, consectetur tristique turpis. Nulla
facilisi. Integer sodales laoreet tincidunt.
Alex Baldock
Chief Executive
6 July 2022
Read more on our strategy on page [XX].
Strategic progress
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CONTENT TO BE CONFIRMED
16 Currys plc Annual Report & Accounts 2021/22
78
77
68
Nov 2021
May 2021
Nov 2020
48.8
41.0
Peak 2021
Peak 2020
Strategy in action
Colleagues
[Our capable and committed colleagues – our greatest advantage]
Colleagues
Our vision is to help everyone enjoy amazing technology. We know that our customers
find technology exciting, but they also find it confusing and expensive. Our capable and
committed colleagues provide the magic ingredient in helping our customers discover,
choose and enjoy amazing technology.
That’s why we’ve invested nearly £25m
in the last two years in skills, wellbeing
and reward programmes for colleagues.
Happy colleagues make for happy
customers. Expert face-to-face help is
at the heart of why customers shop with
us, and that takes skilled and dedicated
colleagues. Our investment in colleagues
is rewarded through increased customer
satisfaction, leading to market share gains
and higher sales. This in turn supports
margin growth as colleagues become
ever-better at helping customers enjoy the
benefits of all the amazing technology
and amazing services that we offer.
And the results speak for themselves.
Our most recent employee engagement
survey results shows that we’re becoming
a world leader in engagement. We’re now
ahead of the external global and retail
benchmarks.
These are encouraging results, particularly
as they were achieved during a year
of significant change, uncertainty and
disruption.
80%
of customers say our colleagues
are the main reason
for a ‘great experience’
Currys UK&I Employee Satisfaction Total UK&I NPS
The Nordics customer satisfaction KPI
(Happy or Not) was 89.5% in 2021/22.
Happy colleagues… …create happy customers
+10pts +7. 8pts
17
Governance
Financial Statements
Investor information
Strategic Report
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lectus, in aliquam ipsum
tincidunt ac. Maecenas
amet. In consectetur sem
ligula, eu euismod justo nec.
Vestibulum hendrerit diam
nisl, vel vestibulum justo
sodales.
Name
Title
Covid-19 – keeping colleagues
and customers safe
We have continued to create Covid-19
safe environments for our colleagues
and customers throughout the Group.
Within the UK & Ireland business (UK&I),
our safety measures have proved very
successful and ensured that the infection
rate across our business remained
below that of the general population.
For example, we have conducted over
32,000 colleague tests to make sure our
colleagues can safely continue selling
and delivering amazing technology
to customers.
In Greece and the Nordics, we have also
continued our pandemic safety measures,
including rapid testing, plexi-glass to
protect colleagues and customers,
hand sanitisers, masks and on-demand
disinfection for our physical locations.
We have remained mindful of colleague
sentiment and have communicated and
consulted throughout this challenging
period. Our phased approach to the
gradual easing of our internal restrictions
has been well received and supported.
Looking ahead
We are not immune to the economic and
political uncertainty which is fuelling
high inflation and the rising cost of living
for households. This volatility is leading
to predictions of pay inflation and
a new battle for talent. Within the UK
specifically, data points to a smaller
workforce. Recent studies have suggested
that over a million people born overseas
may have left the UK during the Covid-19
pandemic.
The impact of the pandemic has also
accelerated trends that are reshaping
the workplace. These include the
move towards flexible working and the
importance of wellbeing for colleagues.
How we’re responding –
Our People Plan
There are three pillars to our People Plan:
1. Ready for the Future: To be a modern
retailer that’s responding to changing
customer demands and expectations
through a workforce that’s flexible,
skilled and financially sustainable.
2. Home for the Best Talent: To be a
destination for talent with a compelling
brand proposition. We want people to
aspire to work at Currys and feel they
can grow their career with us.
3. Great Place to Work: To be an
organisation that brings our vision and
values to life through highly engaged
colleagues that are proud to work for
Currys and feel like they belong.
OUTQUOTE TO BE
CONFIRMED
18 Currys plc Annual Report & Accounts 2021/22
Strategy in action
Colleagues continued
Ready for the future
Progress in 2021/22
Building skills for life
In Retail, customer demands are
changing fast, as are their expectations
around how they want to shop. As we
develop the workforce of the future
for our omnichannel colleagues, we’re
committed to responding to these
changes and building skills for life.
In the UK and Ireland, we’ve spent in
excess of £500,000 in skills-based
learning for our colleagues, increasing
colleague capability and contributing
to the experience and satisfaction of
our customers.
Our three new Technical Training Centres
for Supply Chain and Service Operations
are now fully operational. We induct our
Driver Installer and Technicians in these
centres, with a full range of products and
categories available to be trained in.
A recent example of how we’re building
skills for life is our ‘Unleashing Colleagues’
programme in the UK&I. Customers tell us
that it’s our expert advice they value most.
So, we want our store colleagues to work
in new, more flexible ways so that they
have more time to sell, and better serve
and support our customers. We’ve asked
all of our store colleagues to adopt a
broader, multiskilled role while maintaining
their specialism. They will now flex to sell,
serve and support customers. For some
Support colleagues who have limited
customer facing experience, we’ll help
them to get the skills they need to flourish.
New Currys London Campus
As part of our new model, we announced
a partnership with the world’s leading
co-working company, WeWork, to
create our New Currys London Campus
at Waterloo.
Our teams will be able to use WeWork
locations across the UK. In a further
step to ensure this new collaborative
approach extends throughout the UK,
we’re also refurbishing several spaces in
stores, Customer Service Centres and our
Learning Academy at Fort Dunlop too,
giving colleagues even more flexibility
about where they work.
Flexible Working
We’re committed to leading the way in
making Currys a world-class place to
work for colleagues, one that keeps and
attracts top talent.
New model
In March 2022, we introduced a refreshed
hybrid working model for all corporate
and commercial colleagues in the UK,
which reinforces our commitment to hybrid
working and the importance of face-to-
face collaboration. Our model includes
clear guiding principles:
• Be Connected
• Be Intentional
• Be Inclusive
• Be Flexible
19
Governance
Financial Statements
Investor information
Strategic Report
Just as the future of
shopping is hybrid, so
is the future of work.
We’re all preparing
for a mix of remote
working and face-to-
face collaboration.
We like digital… But
we’re still human.”
Alex Baldock
CEO
Flexibility in customer-facing roles
Elsewhere in Currys, across our UK
Customer Management Centres (CMCs),
over 200 colleagues are able to work
flexibly from home.
We’ve also introduced technology to
enable colleagues to work flexibly
when selling and serving customers
face-to-face or through video channels.
One example is ShopLive, our 24/7 live
video shopping service which brings
amazing instore expertise to customers
online. Nearly 40 colleagues currently
work flexibly to provide this service
around the clock.
Our commitment to flexible working
is helping us to attract new talent
and increase colleague engagement.
Colleagues value the work/life balance
that it brings, as well as the financial
benefits through reduced travelling
costs etc.
20 Currys plc Annual Report & Accounts 2021/22
Strategy in action
Colleagues continued
Home for the best talent
Progress in 2021/22
The battle for talent –
attracting talent
We recognise the challenging labour market
and battle for talent, but we’ve continued
to attract talent across the Group. In the
UK&I, we received over 44,000 applications
and hired nearly 2,500 colleagues on
Fixed Term Contracts to support Peak 2021.
We went on to retain over 900 of these
colleagues with permanent contracts.
In addition, we leveraged our partnerships
with DHL and GXO, using our combined
scale, to bring in colleagues to support
our Warehouse and Transport logistics
teams for Peak. Internationally, over 3,500
colleagues joined our Nordics business in
the last year, and nearly 1,000 joined our
ranks in Greece.
Pension and Flexible Benefits. All UK&I
colleagues have access to a defined
contribution workplace pension. We
also provide a wide range of benefits
to all colleagues throughout the Group.
In the UK, for example, colleagues can
benefit from Life Assurance; Employee
Assistance Programme; Digital GP; Thrive:
Mental Wellbeing app; and the Aviva
Wellbeing app.
Share ownership. Our award-winning
Colleague Shareholder Scheme was
launched in February 2019, and the
first award vested in February 2022
with over 12,600 current colleagues in
11 countries receiving their shares. We
have also continued to grant awards to
new participants throughout 2021/22,
granting awards to nearly 3,000
colleagues globally.
Careers – Developing our talent
Expert face-to-face help is at the heart
of why customers shop with us, and that
takes skilled and dedicated colleagues.
Colleagues have embraced our culture
of learning.
UK&I. In the UK&I, they consumed over
three million modules/resources between
May 2021 and the end of April 2022.
We’ve provided over:
• 188,000 hours of classroom learning
• 384,000 hours of online learning
• 572,000 hours of combined learning
International
• Elkjøp Nordics: over 550 training
programmes were offered through more
than 100 suppliers and in-house training
programs. In total, over 22,200 training
hours have been completed from
e-learning alone and 97% of training
was rated four stars or above by
colleagues on a 5-point rating scale.
• Kotsovolos: nearly 1,100 store and call
centre employees have taken part in
product and services training, totalling
over 13,000 training hours.
We remain committed to emerging talent,
supporting people into employment
and creating skills for life. In the UK&I,
173 new apprentices started on various
programmes such as LGV driving, gas
engineering and white good engineering
with 288 on programme currently.
Elsewhere, Elkjøp Nordic HQ has
introduced a 12-week long ‘try-and-hire’
programme for junior developers in our
Nordic IT department.
We’ve also continued to develop our
internal and external Careers site with a
complete brand refresh in line with our
Currys launch. In the Nordics, we’ve built
a bespoke onboarding solution – called
‘All on Board’ – to support new hires with
the onboarding process.
Pay inflation – Rewarding our
colleagues
Real Living Wage. From 1st August
2022, we plan to pay a minimum base
hourly rate of £10, to all hourly paid UK
colleagues. This is above the Real Living
Wage (RLW) for colleagues outside
London. The new London rate will continue
to align to the RLW rate of £11.05 per hour.
This will result in an average increase of
5.2%. Almost 12,00 hourly paid frontline
colleagues will benefit from the increase.
Bonus. In May 2021, we introduced our
new quarterly Suuply Chain& Service
Operations (SC&SO) bonus plan to better
align performance with the strategy and
day to day activities within SC&SO and
drive the team and individual behaviours
necessary to deliver on the new strategy.
Be Amazing. Within our UK&I stores, the
launch of our ‘Be Amazing’ colleague
portal has been transformational in
linking the delivery of fantastic customer
service to colleague bonus. Colleagues
now directly receive Customer CSAT
scores and comments for sales they have
transacted. During 2021/22, there were
900,000 total portal visits and 3.7m
page views.
12,600
Colleagues received shares
across the Group
UK & Ireland
total learning hours
572k
21
Governance
Financial Statements
Investor information
Strategic Report
Some examples of development
throughout the Group include:
• Connect Conversations between
Colleagues and Managers (which are
part of PEAK Performance across UK&I)
have been introduced to the entire UK&I
organisation and provide a platform to
discuss performance, career aspirations
and development planning.
• A comprehensive onboarding
programme of training in the Nordics.
Modules were delivered face-to-face
or online through ‘Academy’, our internal
training platform.
• Launch of the ‘UX aKademy’ in
Kotsovolos, designed to build User
Experience (UX) capability, and the ‘CX
aKademy’, designed to build a customer
experience culture and develop
capabilities in areas such as customer
journeys and design thinking.
• A comprehensive suite of learning for
our CCO (Commercial) Colleagues,
covering intermediate and advanced
negotiation, programme management,
financial performance and commercial
decision-making.
Developing our leaders
Developing our leadership capability is
essential for growth – for the colleague,
the team and the Group. We’re doing this
in many ways, such as:
• UK&I: Launch of ‘Amazing Managers’, a
programme to build people manager
capability across Retail and Supply
Chain and Service Operations:
– Nearly 300 General Managers and
Regional Managers went through
the programme.
– Over 200 First Line Managers and
Site & Operations Managers went
through the programme.
• International:
– Elkjøp Nordics: A comprehensive
suite of leadership programmes
in the Nordics designed for
colleagues at all stages in their
leadership journey, from ‘Emerging
Leaders’, to ‘Leading Others’,
‘Leading Leaders’ and a specific
programme for ‘Leading Functions’.
Nearly 170 colleagues participated
across all four programmes.
– Kotsovolos: A new ‘Supercharging
Virtual Leaders’ programme for
leaders in Kotsovolos designed
to build the skills to lead in a
hybrid world. Over 90 leaders
have taken part so far. They have
also launched ‘U-Lead’, a new
programme for first time non-
front-line managers to build core
fundamental leadership skills. This
is in addition to existing leadership
programmes, from ‘Stepping into
Management’ for new people
managers, to ‘Up-Lead’ for all store
and call centre managers.
AWAITING HIGH RES IMAGE
22 Currys plc Annual Report & Accounts 2021/22
Join our
LGBTQ+
network.
Pride at Currys
Pride at Currys is open to LGBTQ+
colleagues and allies. It’s a safe
place to socialise whilst giving focus
on internal policies - building an
inclusive and diverse community.
Scan to join the Workplace group.
Great place to work
Progress in 2021/22
Strategy in action
Colleagues continued
Creating a culture of well-being
UK&I. We’re proud of our continued
progress to place well-being at the heart
of our business. We’ve:
• seen a 13-point increase in well-being
through our colleague engagement
survey.
• up-skilled over 1,200 people managers
as mental health champions.
• continued to develop our ‘well-being
Corner’, which has been accessed by
20,000 colleagues.
• shared over 100 online Weekly well-
being Webinar sessions in collaboration
with our current partners.
• Integrated well-being into our review
process to ensure managers have
meaningful connections with their teams
throughout the year.
International
• Elkjøp Nordics: health insurance is
available for all colleagues who
work more than 80% of the time,
covering benefits such as specialist
appointments, diagnostics and
treatments. The business also organised
for psychologists to run online sessions
for colleagues, providing advice on
how to cope with stress, loneliness and
other challenges.
• Kotsovolos: a comprehensive well-
being programme called ‘Better
Me Better Teams’ which focuses on
physical, mental and financial fitness.
The programme provides practical
support in areas such as exercise,
healthy eating, mindfulness and
financial support.
Creating a culture of
Diversity and Inclusion
We’re at our strongest when we embrace
the full spectrum of society, regardless
of what we look like, where we come from,
or who we love. We’re proud of the steps
we are taking to make Currys an even
more inclusive place to work.
UK&I. We’ve:
• conducted our first ever inclusion survey
with 6,000 responses helping shape
our ongoing inclusion action plans.
• listened and responded to colleague
feedback that inspired the creation
of a new Equality, Inclusion & Diversity
Dignity at Work Policy.
• designed new learning modules
to help managers create a more
inclusive environment.
• worked even more closely with our
existing partners such as ‘Everywoman’
and ‘Business in The Community’.
• became a founding member of
‘Diversity In Retail’ and are currently
investing in our internal talent pipelines
through participation in their Board
Readiness, Ethnic Future Leaders and
Senior Women Leadership programmes.
• continued to work closely with our Pride
at Currys LGBTQ+ colleague network to
celebrate equality.
International
• Elkjøp Nordics: Introduced a Diversity,
Equality & Inclusion policy for the
entire Elkjøp Group. Also signed
a partnership and collaboration
agreement with EqualityCheck, a
Norwegian/Nordic based organisation,
built to help companies create more
equal workplaces for all by combining
data-driven technology with third-party
domain expertise into a single solution.
• Kotsovolos: Signed the Diversity Charter
for Greek companies in May 2021.
Forums. We remain committed to ensuring
our colleagues have a voice. In UK&I, we
have 11 colleague forums representing
colleagues from across the organisation
and have played a key role across a
number of business priorities throughout
the year. A central International
Colleague Forum brings the existing
country forums into a single listening and
engagement forum for all colleagues.
Gender Pay. On 4 April 2022, we
published our annual Gender Pay Report.
Our combined Group data showed that
our comparative median hourly Gender
Pay Gap continues to track below the
ONS national average (15.4%) at 8.2%.
Similarly, year on year the median Gender
Bonus Gap decreased from 22.9% to
20.1%. You can read our report here
https://www.currysplc.com/media/
og4enx1y/d2996_currys_gender_pay_
gap_2_022_a4_v27.pdf
Number of employees as at 30/4/2022
[Insert Country/Region]
Total Female Male
PLC Board 8 3 38% 5 63%
Executive Committee 8 2 25% 6 75%
Direct Reports of Executive Committee 65 22 34% 43 66%
All Employees 31,717 9,846 31% 21,871 69%
23
Governance
Financial Statements
Investor information
Strategic Report
Creating a culture of
communications and
engagement
We have run a comprehensive programme
of engagement events at all levels of the
organisation. Some highlights include:
On The Pulse colleague engagement
We conducted two On the Pulse Surveys
during 2021. Results from our May survey
demonstrated our commitment to engaging
colleagues which saw all 21 questions
increased in score and a significant (8
point) increase in colleague engagement
and double-digit improvements across
two of our three focus areas.
In October, these positive results continued:
• We continued to enjoy high engagement,
with a 78% response rate, with colleagues
leaving over 23,000 comments.
• We’re now ahead of the external global
and retail benchmarks.
• We’re now seeing consistently high
engagement scores throughout Currys
with scores on 12 questions above the
global benchmark. Our eSat employee
satisfaction score for the Group (‘I am
happy working at Currys’) is once again
77, equalling our May score.
• Our colleagues in the UK&I increased
their eSat score by one point to 78. This
puts them in the top 25% of companies
that are part of the global benchmark.
In April 2022, the Nordics joined the
Currys On the Pulse survey and move to
more active listening. All business units are
included in the survey and approximately
13,000 colleagues were invited.
Kotsovolos already take part in the surveys.
Virtual Peak 2.0.
We held our second Virtual Peak event in
October 2021 which was open to all UK&I
colleagues. Highlights included:
• Over 3,000 colleagues tuned in live
to the launch of Virtual Peak 2.0.
• More than 10 hours of on demand
content.
• A Currys Café, which had over 5,500
visits from colleagues exploring the
best of our new brand.
• Our Amazing Technology exhibition,
which had over 33,500 interactions
between colleagues and 35 suppliers.
• The Chairman’s Shield awards, with over
1,500 colleagues watching live.
Currys Brand Launch
An engagement programme was
developed to build excitement around
the launch of the new Currys brand in
October 2021. There was huge colleague
engagement on our internal channel
(‘Workplace’) with thousands of posts
celebrating store rebranding, new uniforms
etc. Video content, microsites, Day one
colleague guides were also developed to
support the launch.
Values Refresh
The three values – We Put Our Customers
First, We Win Together, We Own It – were
launched in October 2019 with the input of
over 7,000 colleagues. Since then, we’ve:
• continued to embed the values. Our
most recent colleague engagement
survey reported a score of 74 on the
question ‘People at Currys Live our
Values’ (above global benchmark).
• recognised individuals and teams who
are living our values through events such
as the annual Chairman’s Shield.
• engaged all colleagues in a ‘Values
refresh’ which was launched as part
of the Currys Brand launch in October
2021. Using a ‘values bot’, 2,350
colleagues took part online.
24 Currys plc Annual Report & Accounts 2021/22
Strategy in action
Omnichannel
Omnichannel is our way of bringing the strengths of stores and
online to all our customers, however they may be shopping
Omnichannel
Omnichannel is our strategy to create seamless journeys
across all channels, whether that is online, in our 830 stores
or using a combination of both channels, we will provide
customers an easy and connected shopping experience
across the full range of our products and services.
Our online business offers customers a 24/7 shopping
experience across our full range of products with the
convenience of delivery. Stores are places of discovery
and allow customers to see, touch and feel amazing
technology while getting trusted face-to-face advice
from our expert colleagues.
Omnichannel is the best of both worlds; customers in-store
can access our full range of products and have them
delivered to home meaning we are never out-of-stock for
these customers, our online customers can pick up products
in-store shortly after ordering, providing an immediacy that
online retailers cannot match, while ShopLive allows our
customers to get the trusted face-to-face advice of our
expert colleagues from the comfort of their own homes.
The flexibility omnichannel provides is also what customers
prefer. Even through the pandemic, almost half of UK
customers used both stores and online during their shopping
journey for tech.
Improving the ease of shopping in both channels will help us
grow market share, while delivering the best of both worlds
will help us grow sales and improve gross margins.
Customers prefer
omnichannel
December 2021 Survey
(1)
Store customers cite the ability
to see, touch and feel products
before buying and the expert
advice 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.
38%
Online
only
46%
Both online
and
in-store
16%
In-store
only
(1) Source: Currys consumer insight survey. Purchase
channel used in L12M. Base 1,184 purchasers buying
from any retailer. Sep 20 to Oct 21.
25
Governance
Financial Statements
Investor information
Strategic Report
46
28
63
51
2021/22
2021/22
2018/19
2018/19
23k
18k
12k
2021/22
2020/21
2019/20
£1.0bn
Elkjop
Competitor 1
Competitor 2
Competitor 3
£1.4bn
£2.5bn
Currys
Competitor 1
Omnichannel starts with better retail basics
Online we are big and have proven our credentials
UK&I online compared to
closest competitor
Nordics online compared to
closest competitors
Larger Range
UK&I more than doubled in two years
Easier experience
Improved delivery and collection
experience
Easier experience
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hendaep repuditem dolum velianditem ipidunt. Et por ma nobit audanto magnim quodis repuditas eos expellit, sum quis eostemo
lorecab ipsapitiae consect et ant optatur, et, re, repuditem dolum velianditem ipidunt. Et por ma nobit audanto magnim quodis
repuditas eos expellit, sum quis utatemquis quodiam voluptaturia idenimus aut inctaturibus esed ut vent mil ma anienisci ab int.]
lnvesting in price
Clear price promise
“You won’t find it
cheaper”
Notes:
UK&I
Currys UK includes Order&Collect.
Competitor 1 reported numbers,
financial year Apr-Mar 21
Nordics
Elkjøp Nordic online retail sales
includes Order & Collect.
Total sales for Competitor 1, Competitor
2 and Competitor 3. Significant part
of Competitor 3 business is not online
sales and including other categories
than electronics, but they don’t
disclose the breakdown. Competitor 1
sales including stores and distribution
business. Competitor 1 and Competitor
3 use calendar years.
UK Delivery CSAT UK Collection CSATUK&I Product Range
Lots of headroom;
Nordics at 140k+ SKUs
Happy or Not
2020/21 revenue (in £bn)
2020/21 revenue (in £bn)
Regardless of channel, good retail starts with getting the basics right. That includes making sure we
have a large and relevant range of products, have a clear price promise and are delivering an easy
customer experience.
>100%
56%
47%
59%
90%
[XX]%
[XX]%
Never out
of stock
Get your product
right now
Help 24/7
26 Currys plc Annual Report & Accounts 2021/22
2021/22
2020/21
2019/20
2021/22
2020/21
2019/20
865
865
849
824
773
735
630
70
552
524
479
447
375
368
361
358
314
309
8.5
8.2
7.6
7.5
6.6
6.5
6.4
5.8
5.6
5.5
2021/
22
2020/
21
20 1 9/
20
2018/
19
20 1 7/
18
2016/
17
2015/
16
2014/
15
2012/
13
2013/
14
Strategy in action
Omnichannel continued
Omnichannel: Giving customers the best of both worlds
UK&I online-in-store sales UK&I Order & Collect sales ShopLive
4.4/5
Customer rating
Vs unassisted online
~5x
Conversion
>55%
AOV
Our UK&I store estate is now rightsized under one brand
Number of stores and total selling space at end of financial year
Dixons/PC World/Currys
Carphone Warehouse
Total selling space (m sq ft)
+118%
+18%
27
Governance
Financial Statements
Investor information
Strategic Report
[Link to new websites, platforms etc]
What we did this year
• Brand new currys.co.uk website launched and moved onto
the new Salesforce platform. Benefits include improved site
speed, improved recommendation engine, intuitive cross sell
and trade up, and enhanced funnel analytics.
• Next Generation Retail, our Nordic omnichannel platform went
live in all markets. This is new online B2C and B2B platforms
and includes the back office connectivity of store sales,
store operations, call centre systems and direct distribution.
• Launch of new Colleague Hub in the UK&I to give access to
to-do lists and calendars, and access to communications
and reports.
• Our first store ranging trial using customer data to tailor the
range in two stores has demonstrated a strong uplift in store
sales with a halo impact on our online sales.
What we will do next
• Upgrading UK&I websites to include more personalisation and
a seamless end-to-end journey.
• Launching UK&I colleague hub to put every tool in one place
for customer facing colleagues.
• New credit platform to be launched.
• New customer app.
• A further upgrade to our currys.co.uk website including moving
Account and Checkout onto the Salesforce based platform.
• Expand the Colleague Hub to increasingly guide and
personalise each customer’s in-store experience, making it
easier for the colleague to make the most out of everything
we know about that customer.
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28 Currys plc Annual Report & Accounts 2021/22
Strategy in action
Customers for life
We’re changing from a business that just ‘sells boxes’ to anonymous
customers, to one that has deep customer relationships
Customers for life
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 our share
of wallet.
This starts by using data to fuel CRM and personalisation.
We are building our customer data in two ways; first through
our Customer Club in the Nordics and Currys Perks in UK,
we are building a large data set on customers. Second,
we are starting the process of joining together disparate
customer bases to create a single view of our customers.
The combined insight from this will allow us to personalise
experiences for all customers and develop propositions
that customers value.
The propositions that customers value revolve around our
Services. 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. These Services are profitable
on their own, but more importantly they help customers
make more sustainable choices and they drive increased
customer loyalty. We will evolve our Service propositions
to give us more chances to speak to more of our customers
more often and therefore increase loyalty and share
of wallet.
Over the medium term, growing our share of wallet drives
a higher margin as it lowers our net spend on acquiring and
retaining customers.
~80% of UK households shop
for electricals with us
(1)
But we only get a ~30% share
of their wallet
We have a high share of
customers but a low share
of wallet
(1) Unique identifiable households who have
shopped for electricals with Currys in the past
three years.
We don't need to invest lots in acquiring
new customers…
…but significant headroom remains to grow
share of wallet with our existing customers
80%
30%
29
Governance
Financial Statements
Investor information
Strategic Report
6.8m
5.4m
3.2m
1.3m
2021/22
2020/21
2019/20
2018/19
XX%
£ XXbn
£ XXbn
2021/22
Club
Non-club
In the Nordics we have built a successful loyalty program
(1) Unique customer households who have purchased electricals within the last 12 months.
(2) Unique customers with whom we have an ongoing contractual relationship.
Successful rollout in the Nordics
# of customer club members
Clear customer benefits
Always discount on specific
product categories
VIP shopping
Every [X] for free – accessories
and essential
Club deals every month
Extended Buy & Try
Collaboration with streaming
services
Higher engagement
Annual shopping frequency
per customer 21/22
Equivalent to more than
[50%] of Nordic households
being club member
Higher shopping frequency
Higher margins
We are bringing our disparate customer bases
together to create a single view of our customers
With this combined insight we can:
Personalise
experiences for
all customers
Develop
propositions
that reflect what
customers value
Use Services
to enable us to
keep talking to
customers
12.5m customers
(1)
1.5m customers
(2)
1.4m customers
8.5m customers
(2)
1.1m customers
(2)
In the UK, we have taken the first steps to bringing together our disparate data sets
30 Currys plc Annual Report & Accounts 2021/22
Strategy in action
Customers for life continued
We’re building on strengths across all stages of Services
2021/22 - Group
[12.4]%
Sales through credit
[3.2]m
Credit customers
[11.7]m
Deliveries
[1.4]m
Installations
[XX]k
Product set-ups
[XX]m
Products collected
from home
[4. 8]m
Protection plans
[1.5]m
Repairs/year
Europe's largest
electrical repair centre
[145]k
Trade-ins
[103]k
Tonnes of e-waste
recycled
[XX]m
Subscriptions & tutorials
Our Services help everyone enjoy amazing technology. We are in a unique position to be able to help
customers get technology products started, give them a longer life and get the most out of their technology.
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
31
Governance
Financial Statements
Investor information
Strategic Report
1.7m
1.4m
1.2m
0.9m
2023/24
target
2021/22
2020/21
2019/20
2018/ 19
16%
Credit helps customers afford the technology they want and drives loyalty
Customers for Life – Credit
Active credit accounts in UK
# Accounts (m) Pink Line = Credit Adoption Rate (%)
Active credit accounts in UK
What we did this year
• Grew Nordics customer club to [6. 8]m members, representing
[51]% of Nordic households.
• Launched Currys Perks in the UK, so far [XX]m customers have
used the benefits of Perks.
• Moved UK data into Microsoft Azure platform.
• We recorded new highs in customer satisfaction …[Data TBC]
• In the UK, a new data platform was set up, this will become
centre of our data ecosystem.
• Used Loyalty segmentation with our CRM to enable our first
personalisation trials.
• We successfully introduced a Delivery & Installation charging
strategy, enabling a standard charge of £4 for home delivery
for small box baskets under £50. This is leading to uplifts in
basket size and encouraging customers to raise basket sizes
to qualify for free delivery.
What we will do next
• Delivery & Installation charging enhancements including big
box price elasticity testing.
• Launch tech insurance for tablets, giving customers
important cover for accidental damage and theft/loss
for portable devices which are not covered by our current
Care & Repair plans.
• Vivamus placerat nisl elit, ac lobortis magna aliquet a.
• Nullam erat mauris, aliquet a odio vitae.
Credit is a driver of loyalty - credit customers are 70% more likely to return than non-credit customers
88%
Credit
balances
unutilised
12%
Credit
balances
used
32 Currys plc Annual Report & Accounts 2021/22
Section 172(1) statement
What this means
Capable and Committed Colleagues are the interface between the
Company and our customers and are critical to the long-term success of
the Company. The Board considers the needs of colleagues and how any
decision will impact them.
What this means
The Board ensures that any decision is made in the context of the need to
be a responsible partner, to collaborate effectively with suppliers and to
maintain successful relationships with customers. The Board seeks to ensure
that the Company has strong relationships with external stakeholders
including its regulators, banks and the external Auditor.
What this means
The Board considers how any decision will affect the communities in which
the Group operates together with any environmental implications.
What this means
The Board challenges whether any decision made is the ‘right thing to do’
to ensure a fair outcome for all stakeholders.
What this means
The Board challenges what impacts any decision will have on the Company’s
stakeholder groups and ensures that both the immediate implications and
possible cumulative outcomes are considered.
What this means
The Company’s shareholders include institutional investors and retail
shareholders. In considering the impact decisions have on shareholders, the
Board takes this into account and ensures that all shareholders have equal
access to information and engagement opportunities.
Our Stakeholders
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:
This statement explains how the Board has embedded stakeholder considerations across decision-making and, in particular, how
directors have had regard to the factors included in section 172(1) in addition to other factors relevant to any decision being made.
This report sets out the Company’s approach
to stakeholder management
– 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.
HIGH RES VERSION OF BACKGROUND TO BE
CREATED
KT
33
Governance
Financial Statements
Investor information
Strategic Report
Section 172(1) statement
Our approach to stakeholder
management
There are different processes across the business to
ensure stakeholder considerations are embedded
into the Group’s decision-making. A clear corporate
governance structure is in place which, together
with the Group’s Delegated 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 supporting documentation for
each Board and committee meeting includes, for
reference, a summary of section 172(1) responsibilities
immediately after the meeting agenda. To ensure that
the impact on stakeholders is duly considered, Board
and committee decision paper templates include
mandatory fields for papers’ authors to include an
impact assessment on each stakeholder group.
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.
This report includes examples, for each of the
Company’s key stakeholder groups, of the matters
that the Board considered during the year, including
how decisions were reached and stakeholder
considerations that were central to discussions
and outcomes.
34 Currys plc Annual Report & Accounts 2021/22
Our Stakeholders
Stakeholder Management
CASE STUDY:
Environment, Social and
Governance (‘ESG’) Strategy
During the year the Board
discussed and challenged
the ESG strategy and the
extent to which it remained
fit for purpose.
The Board considered the function that
the Group performs for Our Customers,
in providing technology that helps people
stay connected, productive, healthy,
and entertained. The Board agreed
that the ESG Strategy had to reflect
that sustainability considerations are
increasingly important to customers.
The Board considered the opportunities
that the Group has to support customers
in making more sustainable choices
by clearly communicating the ‘Green’
credentials of products (such as energy
efficiency and water use) and helping them
give their technology longer life through
trade-in, protection, repair and recycling.
The Group holds an annual ‘Peak’ event
for Our Colleagues prior to the busy
Christmas trading period. This event
is used to update colleagues on the
product proposition and the strategic
priorities for the business. The Peak
event held in October 2021 was held
virtually enabling the attendance of
colleagues from across the Group. The
event included updates on environmental
and charitable initiatives in the Group to
engage colleagues with the programme
of initiatives underway to achieve
ESG goals and to inspire them to think
of additional ways in which they can
support these goals. The Board discussed
the need to empower colleagues to
deliver improvements and the impact of
the social purpose of the business on
colleague engagement. During the year
the Remuneration Committee approved
the addition of environment metrics into
the 2021/22 Bonus plan. ESG metrics now
make up a significant proportion of the
Company bonus scorecard to ensure
that colleague remuneration is aligned to
‘doing the right thing’.
The Board considered the appropriate
ESG Strategy in context of Our
Communities and Environment.
This included the social purpose that
underpins the Group vision; We Help
Everyone Enjoy Amazing Technology
and the role the Group can play using its
scale and innovation to contribute to key
societal issues. The Board agreed that the
ESG Strategy needed to include specific
plans to reduce the impact of the Group
on the environment in both our operations
and our wider value chain. The Group has
committed to achieve net zero emissions
by 2040. The Board agreed that the ESG
Strategy should accelerate the Group
providing products that help customers
save energy, reduce waste, and save
water. The Board considered the wider
community as part of an evaluation of the
Group’s charitable partnerships to assess
how the Group can most effectively make
a charitable contribution including to bring
the benefits of amazing technology to
those who might otherwise be excluded.
Collaboration with Our Suppliers is
critical to reduce the environmental
impact of products sold within the
Group. The Board agreed that the ESG
Strategy had to include a programme of
activities involving suppliers, partners,
manufacturers, and colleagues
working towards a common goal to
offer more sustainable products
and ensure responsible sourcing and
ethical standards across the Group’s
supply chain.
The Board recognised that there has been
increased interest from Our Shareholders
on the detailed plans supporting ESG
initiatives. The Board agreed that the
Group would need to enhance current
ESG disclosures and reporting and share
more information on existing recycling
and other ESG initiatives in the business.
There was a presentation on ESG at the
Capital Markets Day held in November
2021 and this was supported by ESG
investor roadshows. During the year the
Group has been recognised externally
by various organisations in relation to the
ESG approach. The Board agreed that
helping customers give their technology
longer life through trade-in, protection,
repair, and recycling is a proposition the
Group is uniquely positioned to offer.
It will be both attractive to customers
and position the Group as a long-term
sustainable business.
Further information on the ESG Strategy
is available in the Sustainable Business
report on page [x].
ALLOW SPACE FOR
BOARD IN HIGH VIZ IMAGE
35
Governance
Financial Statements
Investor information
Strategic Report
Our Customers
How we engage
• In-store
• Online
• ShopLive
• Customer app
• Customer care centres
• Email
• Post-sales survey
• Media including social media
Stakeholder focus
• 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
Our approach to engagement and how the Board is kept informed
• The Board receives an update on customer satisfaction metrics
each week. Root cause analysis is carried out to understand and
resolve any concerning trends. A Voice of the Customer Dashboard
is in place for UK and Ireland and the Nordics region has a separate
‘Happy or Not’ satisfaction measure. In June 2021 the Board received
a more detailed UK&I customer satisfaction scores update including
customer experience highlights for 2020/21 and an update on how
key customer ‘pain points’ had been identified and addressed. A
deep dive on Nordics in April 2022 included an update on customers.
• Verbatim customer feedback is captured from thousands of
customers each week to gain insights and help the business better
understand customer expectations and concerns. Machine learning
and AI solutions are used to quantify the sentiment of the comments.
This information is reviewed internally and used to generate
improvements to the customer experience. The Board continued to
receive a synopsis of the results of this feedback during the year
and these insights into the customer experience are considered by
directors as part of Board decision-making.
• ShopLive provides customers in Nordics, Ireland and the UK an
in-store experience from their own homes via video link with sales
colleagues. This functionality enables customers to receive advice on
laptops, TVs, washing machines and refrigeration products to ensure
that customers, including the most vulnerable, can benefit from store
colleagues’ expertise remotely. The Board receives regular updates
on the performance of ShopLive.
• During the year, the Board considered customer feedback as part
of the decision to approve proposals to enhance the customer
experience including a 3-year transformation plan for UK&I Customer
Management Centre and the establishment of a new Nordic
distribution centre that would substantially reduce the CO
2
impact
of distribution.
CASE STUDY:
Board decision on
UK logistics operations
During the year the Board considered the
interests of the Company’s stakeholders
during a review of the logistics operations
in UK&I.
The Board considered whether an enhanced in-house model or
an outsourced model for warehouse and transport operations
could best deliver a clearer, simpler, faster Supply Chain and
Services Operation in the UK that would benefit the Company’s
key stakeholder groups.
The Board considered the needs and expectations of
OurCustomers and the ability of each model to deliver
greater customer choice, availability and fulfilment options
and meet customer promises. The Board agreed that increasing
functionality in respect of speed, choice and convenience would
be critical to meet customer expectations.
The Board agreed that the use of technology and
innovation to continuously improve the working environment
for OurColleagues would be beneficial for colleague
engagement and well-being in addition to increasing the time
colleagues have to offer a customer-centric service.
The risks of each proposal were considered together with
the impact on Our Communities and Environment. The
accountable Executive Committee member for the logistics
operations is the Chief Supply Chain Officer who also attends
ESG Committee meetings and monitors the Group’s progress
against emissions and e-waste targets and other ESG metrics.
The Board considered the needs of Our Suppliers and
Partners relevant to the logistics operations and assessed the
proposals in terms of the efficiency improvements including
improved stock management, forecasting and capacity and
supplier management.
The customer, colleague and financial benefits of the proposals
were considered together with costs to evaluate the option that
would provide the best overall value for Our Shareholders and
support the long-term sustainable success of the business.
Following consideration of the proposal, including the impact
on the Company’s key stakeholder groups, the Board approved
that the business enter into an agreement with XPO logistics to
run the Company’s key warehouses and distribution centres and
transport operations.
36 Currys plc Annual Report & Accounts 2021/22
Our Stakeholders
Stakeholder Management continued
Our Communities and EnvironmentOur Colleagues
How we engage
• Surveys and forums
• Website, reports and media including social media
• Engagement meetings and events
• Charity and supplier partnerships
• Multi-stakeholder collaborations
Stakeholder focus
• We Help Everyone Enjoy Amazing Technology
• Being a responsible contributor to society
• Being a good employer
• Having sustainable business practices and minimising impact to the
environment and addressing climate change
Our approach to engagement and how the Board is kept informed
• An Environment, Social and Governance (‘ESG’) Committee is in place
to oversee all charitable and ESG activities carried out across the
Group. Representatives from all countries attend this forum and provide
updates. The ESG Committee is attended by a non-executive director of
the Board, Andrea Gisle Joosen, is chaired by the General Counsel and
Company Secretary and reports into the Executive Committee. More
information is available on page [x].
• The Company has a Sustainable Business team that leads
the management of the Group’s charitable partnerships and
environment initiatives.
• The Company was awarded the highest available rating, an A, by
global environmental non-profit CDP, for its leadership in corporate
sustainability in tackling climate change putting it in the top 1.5% of
13,000 companies for climate change disclosure.
• Through design, repair, recycling and re-use the Company is working
to improve its use of resources and create circular business models.
The Company will use its scale and expertise to help drive industry
action and in November 2021 joined the Circular Electronic Partnership
(CEP), who maximise the value of components, products and materials
throughout their lifecycle.
• The Company seeks to help accelerate industry change by working
with other retailers and suppliers to share best practice and reduce
the industry’s reliance on plastic packaging. For example, unrestricted
access has been given to Product Packaging Guidance to share best
practice with the wider industry. This guide outlines to suppliers and
other retailers preferred materials to use and which materials to avoid
based on data sources and engagement with a number of specialist
organisations and experts.
• Through a £1m donation to found the Digital Poverty Alliance, the
Company has equipped 1,000 teachers and teaching assistants in the
country’s poorest communities with the technology and support they
need to deliver high quality teaching. These teachers are in turn forming
a community of ideas and best practice to help create digital inclusion
for everyone.
• The Board received comprehensive ESG updates in September and
December 2021 and regular reporting on sustainability and charitable
activities is included within the CEO report at Board meetings. The Board
agreed an approach for a new ESG strategy during the year and this
included consideration of the needs of key stakeholder groups.
How we engage
• Internal communications; Executive Committee member updates,
Workplace intranet, emails, ‘Ask Alex’ Group Chief Executive interactive
videocalls, interactive calls hosted by Executive Committee members,
team meetings, individual meetings with line managers
• Colleague surveys – engagement and for feedback on specific topics
such as hybrid working
• Events – annual Peak event – online during 2021, campus event for
Nordics region, training at The Academy@Fort Dunlop
• Colleague listening forums
• Inclusion and Diversity Forum
Stakeholder focus
• Company culture and values
• Well-being
• Reward
• Benefits
• Flexible working
• Health and safety
• Training and development
• Inclusion and diversity
• Company social purpose and sustainability
Our approach to engagement and how the Board is kept informed
• New store-based colleagues that join the business in the UK attend a
training event at the Academy@Fort Dunlop centre before they start
work serving customers in stores. Similar training is also provided in Nordics
and Greece. A separate induction programme is in place for corporate
colleagues.
• A central ‘People Place’ intranet site is available to UK&I colleagues and
provides access to all HR policies and guidance and allows colleagues
to log any issues or questions and a ‘well-being corner’ Intranet site is
available to support colleagues.
• A central International Colleague Forum is in place to unify the long-
term existing country forums into a single listening and engagement
forum for all colleagues. Tony DeNunzio, the Deputy Chair and Senior
Independent Director, attends these forum meetings with the Chief
People, Communications and Sustainability Officer, Paula Coughlan.
Andrea Gisle Joosen, our Swedish based Non-Executive Director,
attends the Nordics colleague forum meetings. The Board received an
update on Colleague Listening at a Board meeting in April 2022.
• The annual Peak event was held virtually during November 2021 to
provide colleagues with strategic updates from the Executive Committee
members and to provide colleagues with information and training. Topics
included strategic plans, ESG updates and the Company values.
• Regular colleague surveys are used to seek feedback which is then shared
with the Board and used in decision-making. Surveys seek feedback on
engagement and include ESG questions and specific surveys have been
used during the year to assess colleagues’ views on hybrid working and
office facilities to support the design of a new hybrid model of working.
• Directors visit stores and meet colleagues in person. Whilst these visits
were less frequent than previously due to Covid, the Board visited the
UK&I distribution centre in Newark during March 2022. This visit included
meeting many colleagues from Supply Chain & Services Operations,
receiving updates on current priorities for the team as well as new areas
of innovation.
• A Colleague Shareholder award scheme is in place to allow colleagues
to share in the success of the business. Further details of this scheme are
available in the Remuneration Report on page [x].
• Board and committee paper authors include their contact details on
papers submitted to the directors and directors frequently contact them
directly when they have queries on papers or are interested to receive
more detail.
37
Governance
Financial Statements
Investor information
Strategic Report
Our ShareholdersOur Suppliers and Partners
How we engage
• 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
• Capital Markets Day 2021
Stakeholder focus
• Ensuring the long-term sustainable future of the business
• Financial and share price performance
• Dividend policy
• Current trading
• Business strategy and vision
• Director remuneration
• Shareholder communications and engagement
• Environment, Social and Governance issues
Our approach to engagement and how the Board is kept informed
• 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 as well as
upcoming interactions and a summary of investor questions received,
and topics discussed.
• The Investor Relations team manages a programme of meetings
with the top 30 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.
• A Capital Markets Day was held in November 2021 to provide
shareholders with an update on the Group transformation and
strategy. The event was attended by most of the Company’s
largest shareholders and the presentations are available on
www.currysplc.com. This included a presentation on ESG and was
supported by ESG investor roadshows.
• The Chair of the Board requests an engagement meeting with each of
the top 30 shareholders of the Company on at least an annual basis
to discuss any topics of interest to the shareholder.
• The Chair of the Remuneration Committee also contacted the
Company’s largest shareholders during the year to consult with
them in advance of the Remuneration Policy being submitted to
shareholders for approval at the Company’s Annual General
Meeting in 2022.
How we engage
• Formal engagement strategy including regular visits and meetings
• Supplier relationship management team
• Supplier questionnaires
• Due diligence process for new suppliers
Stakeholder focus
• Strong customer demand
• Good collaboration
• Reliability
• Value
• Health and safety
• Compliance
• Effective communications
• Sustainability and ethical sourcing
Our approach to engagement and how the Board is kept informed
• The Board receives regular feedback on substantive Supplier matters
via the Group Chief Executive and the Chief Commercial Officer.
• The Group Chief Executive participates in regular meetings with
the Group’s largest suppliers and receives regular updates on all
suppliers from the Chief Commercial Officer.
• The Commercial team put in place a formal engagement strategy
with each large supplier. This strategy is customised in each case
but includes regular meetings and calls between the Group Chief
Executive and their counterpart at the Supplier company and
between the Chief Commercial Officer and their 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 [x].
38 Currys plc Annual Report & Accounts 2021/22
Sustainable business
Our approach
Our material issues What we do Link to UN Sustainable Development Goals What we did this year Achievements What we will do next
Circular Economy
Objective: We will improve our use
of resources and create circular
business models.
Read about our focus on circular
economy on pages [xxx].
• 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 sustainable products.
• Joined 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.
• Launched our new UK&I Services Strategy –
Giving Tech Longer Life - and ran our first ever
financial recycling incentive ‘Cash for Trash’
for customer e-waste in the UK.
• Elkjøp marked World Recycling Day and
took part in the Board of the industry’s joint
effort Ombrukt (Re-used) through the industry
association Elektronikkbransjen.
• Kotsovolos increased the collection of
e-waste for recycling and re-use by 25%.
[XXX]
tonnes e-waste collected across our Group
for reuse or recycling.
1.7m
repairs across our Group to keep tech
working.
[11m]
Care & Repair customers in the UK&I.
• Utilise our scale with brands to develop,
scale up and promote circular economy
opportunities for our products and make it
more affordable for customers to upgrade
their technology.
• Launch proof of concept projects as part
of our UK&I Services Strategy.
• Improve our pre-loved offering.
• Continue to expand our e-waste collection
services.
• Widen our product trade-in capabilities.
• Continue to work with the CEP and its
members to help move the electronics
sector towards a more circular economy
by 2030.
Climate change
Objective: We will achieve net zero
by 2040.
Read about our focus on climate change
on pages [xxx].
• We are reducing our impact on the environment not
only through the energy and resources used by our
operations, but also in our wider value chain.
• We report our energy and greenhouse gas
emissions publicly, respond to the CDP
questionnaire on Climate Change and support
the Task Force on Climate-related Financial
Disclosures (‘TCFD’) and its recommendations.
• Achieved an A rating for CDP.
• Assessed the impact of key climate risks
and opportunities for our operations.
• Increased the procurement of renewable
electricity across the Group.
• [Outcome of] colleague bonus scorecard
on scope 1 & 2 emissions reduction.
• Increased our focus on environmental
messages in our customer and product
messaging.
A
Currys score for climate change in CDP.
[XXX]
reduction in scope 1, 2 & 3 emissions against
a 2019/20 baseline.
[XXX]
reduction in energy (kWh) consumption.
• Continue to take steps to reduce emissions,
including trialling electric and low-carbon
alternative fuelled vehicles.
• Continue to increase our disclosure and
publish a net zero roadmap.
• Share best practice on climate related
risk management and monitoring across
the Group.
• Assess the impact of key climate risks and
opportunities of our supply chains.
Our communities
Objective: We will eradicate
digital poverty.
Read about our communities on
pages [xxx].
• 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.
• Supported the Digital Poverty Alliance (DPA)
to set out its strategy for the next two years to
convene, compel and inspire collaboration
within the UK community to lead sustainable
action against digital poverty.
• Supported Age UK to develop and launch
21 Digital Support Guides on topics older
people identified as being in most need of
to help them access and enjoy technology.
• Continued to support people to enjoy
amazing technology through our Kotsovolos
Second Home programme and the work of
The Elkjøp Foundation.
• Provided humanitarian aid through the Red
Cross and supported refugees in our local
communities.
£350k+
raised for our partnership with Age UK.
£445k+
committed by Elkjøp to number of long-term
strategic partnerships to strengthen the
ability to fight digital exclusion.
1000+
Kotsovolos colleagues from stores, offices,
warehouses and distribution centres
participated in Good Deed Day activities.
• Work with Age UK to support the successful
delivery of a tablet loan scheme, one to
one support and awareness raising sessions
for four local Age UKs to help enable older
people to get and stay connected to their
loved ones through tech.
• Work with the DPA to launch a Tech4Families
project to support vulnerable families in need
with life changing access to technology.
• Continue to support people to enjoy
amazing technology through our Good
Deed Day, relaunching our Kotsovolos
Second Home programme and The Elkjøp
Foundation.
• Establish Group principles and policies for
Social Impact, and share best practice.
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, 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.
We are committed to operating a responsible business by understanding stakeholder expectations and best practice. During the year,
we reviewed our Sustainability and Social Impact strategy to ensure this continued to reflect those issues that are most important
for our business, our stakeholders and our value chain. We identified three material issues that we are now focused on and will drive
meaningful difference on through long-term objectives. We report our progress against these three material issues alongside updates
on how our work is underpinned by a strong foundation of responsible sourcing, corporate governance and being a good employer.
An Environment, Social and Governance (‘ESG’) Committee is in place to oversee all ESG activities carried out across the Group.
Read the Report from our ESG Committee on page [105].
39
Governance
Financial Statements
Investor information
Strategic Report
Our material issues What we do Link to UN Sustainable Development Goals What we did this year Achievements What we will do next
Circular Economy
Objective: We will improve our use
of resources and create circular
business models.
Read about our focus on circular
economy on pages [xxx].
• 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 sustainable products.
• Joined 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.
• Launched our new UK&I Services Strategy –
Giving Tech Longer Life - and ran our first ever
financial recycling incentive ‘Cash for Trash’
for customer e-waste in the UK.
• Elkjøp marked World Recycling Day and
took part in the Board of the industry’s joint
effort Ombrukt (Re-used) through the industry
association Elektronikkbransjen.
• Kotsovolos increased the collection of
e-waste for recycling and re-use by 25%.
[XXX]
tonnes e-waste collected across our Group
for reuse or recycling.
1.7m
repairs across our Group to keep tech
working.
[11m]
Care & Repair customers in the UK&I.
• Utilise our scale with brands to develop,
scale up and promote circular economy
opportunities for our products and make it
more affordable for customers to upgrade
their technology.
• Launch proof of concept projects as part
of our UK&I Services Strategy.
• Improve our pre-loved offering.
• Continue to expand our e-waste collection
services.
• Widen our product trade-in capabilities.
• Continue to work with the CEP and its
members to help move the electronics
sector towards a more circular economy
by 2030.
Climate change
Objective: We will achieve net zero
by 2040.
Read about our focus on climate change
on pages [xxx].
• We are reducing our impact on the environment not
only through the energy and resources used by our
operations, but also in our wider value chain.
• We report our energy and greenhouse gas
emissions publicly, respond to the CDP
questionnaire on Climate Change and support
the Task Force on Climate-related Financial
Disclosures (‘TCFD’) and its recommendations.
• Achieved an A rating for CDP.
• Assessed the impact of key climate risks
and opportunities for our operations.
• Increased the procurement of renewable
electricity across the Group.
• [Outcome of] colleague bonus scorecard
on scope 1 & 2 emissions reduction.
• Increased our focus on environmental
messages in our customer and product
messaging.
A
Currys score for climate change in CDP.
[XXX]
reduction in scope 1, 2 & 3 emissions against
a 2019/20 baseline.
[XXX]
reduction in energy (kWh) consumption.
• Continue to take steps to reduce emissions,
including trialling electric and low-carbon
alternative fuelled vehicles.
• Continue to increase our disclosure and
publish a net zero roadmap.
• Share best practice on climate related
risk management and monitoring across
the Group.
• Assess the impact of key climate risks and
opportunities of our supply chains.
Our communities
Objective: We will eradicate
digital poverty.
Read about our communities on
pages [xxx].
• 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.
• Supported the Digital Poverty Alliance (DPA)
to set out its strategy for the next two years to
convene, compel and inspire collaboration
within the UK community to lead sustainable
action against digital poverty.
• Supported Age UK to develop and launch
21 Digital Support Guides on topics older
people identified as being in most need of
to help them access and enjoy technology.
• Continued to support people to enjoy
amazing technology through our Kotsovolos
Second Home programme and the work of
The Elkjøp Foundation.
• Provided humanitarian aid through the Red
Cross and supported refugees in our local
communities.
£350k+
raised for our partnership with Age UK.
£445k+
committed by Elkjøp to number of long-term
strategic partnerships to strengthen the
ability to fight digital exclusion.
1000+
Kotsovolos colleagues from stores, offices,
warehouses and distribution centres
participated in Good Deed Day activities.
• Work with Age UK to support the successful
delivery of a tablet loan scheme, one to
one support and awareness raising sessions
for four local Age UKs to help enable older
people to get and stay connected to their
loved ones through tech.
• Work with the DPA to launch a Tech4Families
project to support vulnerable families in need
with life changing access to technology.
• Continue to support people to enjoy
amazing technology through our Good
Deed Day, relaunching our Kotsovolos
Second Home programme and The Elkjøp
Foundation.
• Establish Group principles and policies for
Social Impact, and share best practice.
Engagement
Read about our engagement with key
stakeholder groups on pages [section 172
content].
Colleague
Read about our focus on
colleagueengagement to create a
happier, healthier and more productive
workforce, united through our values and
culture on pages [xxx].
Risks
Information on our Group Principal Risks,
which includes ESG, on pages [xxx].
Information on our activities is
also available on our website.
www.currysplc.com/sustainable-business
United Nations SDGs
Read more about the 17 UN Sustainable
Development Goals (‘SDGs’) at:
https://sdgs.un.org/goals
40 Currys plc Annual Report & Accounts 2021/22
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. At Currys
we don’t just sell amazing technology; we save it too. We believe there’s a far better way –
better for you, better for us, better for communities and better for the planet. And that
better way is to give technology longer life.
Amazing technology
We know our customers are looking
to reduce their impact on the
environment, and it’s our job to make
that easier while also ensuring we
reflect guidelines from consumer
authorities who are intensifying their
work to stop greenwashing – where
something is deemed to have been
conveyed as more sustainable than
it really is.
We help customers make more
sustainable buying decisions: our in-
store and online ‘Go Greener’ events
promote the attributes of the products
and services we sell in the UK&I that save
energy, reduce waste and save water.
In 2021/22 Elkjøp launched several
campaigns aimed at helping consumers
take care of their products. With
Electrolux the campaign “Make it last”
encouraged consumers to take better
care of their clothing in washing so they
may last longer and with BSH the message
was how to avoid food waste. Elkjøp also
offer products with strong credentials
such as Fairphone – known as the most
sustainable alternative for mobile phones
– and the Acer Vero PC with a lot of
extraordinary sustainability features, such
as easiness to dismantle and high content
of recycled plastic.
Care & Repair
There’s no feeling quite like helping
a customer find some new tech that
suits their needs. But keeping their tech
working is important too, and it’s an
area of focus we’re really proud of.
We offer a range of services to enable
longer life of tech.
In the UK&I our 1,300-person repair team
processes and repairs over 800,000
products a year. Elkjøp also repair over
800,000 products each year, and lead
the way on electronic repairs in Norway.
Through extended warranties, technical
support and online tips and tricks we help
our customers take care of their tech.
Trade in
We help customers make the most of
their tech, but when they are finished
with it our customers can trade-in their
unneeded products so that they can
have a longer life.
We offer trade-in for key tech items [and
Elkjøp and Currys are increasing their
focus on trade-in], where we offer money
for old devices that are then given new
life elsewhere. They can be sold as pre-
loved, broken down for reusable parts or
provided to those without access to their
own.
1.7m
repairs completed across our
Group, ensuring customers can
continue to enjoy their amazing
technology.
[XXX]
tonnes of e-waste collected for
reuse and recycling.
£3m
saved from our parts harvesting
operation in our UK Customer
Repair Centre, reducing the
demand for new parts and lead
time on repairs.
[XXX]
items provided for reuse.
Key facts
As part of the Currys rebrand we enabled old uniform
to be repurposed
Our recycling partner shredded and de-branded items which were then made into
2,000 cushions to be sold via our charity partner Age UK and 500 sleeper suits
which we donated to charities to distribute to homeless people. Anything not able to
be used in one of these ways was sent to an energy recovery plant, avoiding landfill.
IMAGE TO BE
SUPPLIED
41
Governance
Financial Statements
Investor information
Strategic Report
We give tech longer life
Choose, afford, enjoy
Discover and Choose
Afford
Delivery and Installation
Set up and connectivity
Protect
Maintain
Product packaging
We’re working to reduce product
packaging, and we’ve committed
to making all our own label and
licensed brand packaging reusable
or recyclable by 2023.
At the end of 2021/22, [99]% was
recyclable, with [76%] recyclable at
kerbside. We remain committed to finding
solutions that reduce environmental
impact whilst also protecting the product
from damage.
We encourage all our suppliers to
eliminate all unnecessary plastics and
packaging and proactively work with
suppliers of own label and licensed
brand products to reduce packaging.
Recent initiatives have included trials
that have reduced the amount of plastic
packaging on refrigeration products by
[up to 86%] and on microwaves by [90%]
and feedback has been encouraging.
We have also rolled out changes such as
swapping polyethylene terephthalate
(PET) plastic blister trays for paper trays
and removing single use items such as
cable ties and plug pin covers.
As a result in 2021/22 we removed 2.23m
items of plastic packaging from own label
and licensed brand products, almost
40 tonnes. Since the start of the initiative
in 2019 we have removed over 4m pieces
equivalent to over 80 tonnes.
Collaborating with others
To increase our impact we are helping
to accelerate industry change by
working with other retailers and
suppliers to share best practice and
reduce the industry’s reliance on
plastic packaging.
For example, we have given unrestricted
access to our Product Packaging
Guidance to share best practice with
the wider industry. This guide outlines to
suppliers and other retailers preferred
materials to use and which materials
to avoid based on data sources and
engagement with a number of specialist
organisations and experts.
Read our Packaging Guidance
on www.currysplc.com.
Help our customers recycle
packaging
In the UK&I, we also offer our
customers a free packaging recycling
service when we deliver and unbox
large household appliances.
It’s resulted in [thousands of tonnes]
of packaging being retrieved. In fact,
we’re one of the largest recyclers of
polystyrene in the UK, recycling 14.5% of
all post-consumer polystyrene recycled
across the country. This market leading
approach to recycling polystyrene led us
to launch the first polystyrene recycling
services in our UK stores for customers
who purchase a TV from store. It allows a
customer to return all the packaging from
their new purchase to any Currys store. This
ensures the polystyrene, which currently
isn’t collected at kerbside for recycling,
to be recovered and processed into
something new.
Looking ahead
In 2022/23 we will carry out further trials
on large white goods and work with
suppliers to investigate options to get
used packaging and other raw materials
back to them for circular production.
Repair
1.7m
product
lifespans
extended
through repair
1,654
people in our
repair team
across the
Group
Reuse and recycling
#1
retail recycler
of tech in UK
[103k]
tonnes of electrical
reuse and recycling
>[£9m]
value of products
provided for reuse
Trade-in and resale
145k
customer
products
collected
through
trade-in
[253k]
used and
refurbished
products sold
New products
Recycled components
used to build new products
42 Currys plc Annual Report & Accounts 2021/22
Sustainable business
Circular economy continued
E-waste is among the fastest growing
environmental problems in the world
At Currys we don’t just sell amazing technology; we save it too. We help repair, recycle,
refurbish and donate unwanted tech. It’s all part of changing our relationship with tech
and giving it longer life.
Collecting used tech
We help customers make the most of
their tech, but when they are finished
with it, our customers can trade-in or
hand over their unneeded products so
that they can have a longer life.
Currys have worked on responsible
recycling for many years. To maintain
our focus, the collection of e-waste
for recycling and reuse is one of two
environmental metrics introduced into our
annual bonus scorecard in 2021/22.
We offer trade-in for key tech items.
Elkjøp and Currys are also increasing their
focus on trade-in, where we offer gift
cards or money for old devices that are
then given new life elsewhere, or recycled.
We offer recycling collection services of
redundant products when a new one is
delivered, as well as free in store drop
off for products across the Group. Each
year, we collect [XXXX] of e-waste from
customers. The waste is collected by local
recycling partners, handled properly, and
recycled or reused help tech live on and
on.
While larger electronic products such as
washing machines and TVs are commonly
collected, there is a challenge to collect
smaller electronic devices such as
cables, small appliances and computing
accessories for reuse and recycling.
Mobile phones, tablets and other devices
with stored data often remain with
customers due to a lack of awareness on
how data is handled before recycling.
Our aim is to make it easy and normal
for all electronics to be recycled. For
example, in the Nordics, Elkjøp marked
World Recycling Day (18th March) and
in the UK Currys promoted recycling
through its ‘Cash for Trash’ month-long
promotion. This resulted in an increase
of 98 tonnes of small electricals and
an uplift in our trade-in service as the
promotion launched. By raising awareness,
encouraging consumers to recycle
everything that is outdated or not in use,
we help give everything longer life.
Focus on services such as trade-in and
[subscription based consumption models
will continue in 2022/23.]
Giving tech a longer life
When technology is at the end of its
useful life for a customer, their used
technology can go on to have benefits
for many other people, helping them
in turn to enjoy amazing technology.
We screen products that are returned to
us, repair if relevant and have mechanisms
in place to sell these through store or
online outlets to give these products a
chance of a second life. We also use
these items to help train new repair or
installation engineers or to harvest parts
for use in our repair services.
Elkjøp takes part in the board of the
industry’s joint effort Ombrukt (Re-used)
through the industry assosciation
Elektronikkbransjen. The project aims at
taking products out of waste streams, and
by providing 3rd party certification, enable
safe re-use with a 2-year warranty.
And when we can, we repair and refurbish
them to support local causes and low-
income families.
88
old mobile phones contain enough
gold to make a wedding ring yet
in the Nordics, each person has
an average of 2.3 mobile phones
lying around in a drawer or in the
attic unused.
96
different elements can be found
in electronic products – the world
is running out of materials like
magnesium, cobalt, tungsten
and rare minerals.
75m
number of tonnes e-waste is
expected to grow to globally
by 2030.
Treasure it. Don’t stash it.
43
Governance
Financial Statements
Investor information
Strategic Report
In the [UK&I] we provided more than [xx]
products for reuse last year. This was
achieved through our partnership with
the Reuse Network and the 150+ charities
they support across the UK which helped
7,024 low income households save £1.3m
in [2021/22]. And our work with the UK’s
largest independent recycler of e-waste
and provider of reuse, Environcom, to
support major UK charities, with [7,024]
refurbished white goods. We also
donated refurbished items to specific
causes, including 200 devices to Humans
in Need in April 2022 to support their work
in assisting refugees from the Ukraine.
It’s not just in the [UK&I] that we’re making
a difference, either. Through the ‘Second
Home’ programme in our Kotsovolos
stores, [1,500] refurbished appliances
have been distributed to families in need
since 2017.
This means our customers can enjoy our
amazing technology even more, in the
knowledge that they are using a product
that is good for their pocket and better
for the planet, and that can be enjoyed
again by others.
[xxx]
[XXX]
Number of tech items
provided to charities for reuse
[XXX]
STATS TO BE CONIFRMED
44 Currys plc Annual Report & Accounts 2021/22
Sustainable business
Climate change
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 business and supply chains, including our own. Addressing our climate
risks and opportunities is a part of our Sustainability and Social Impact strategy.
Climate change strategy
Our purpose, to help everyone enjoy
amazing technology, goes beyond
ensuring customers can choose, afford
and enjoy the right technology.
We recognise our responsibility in ensuring
that our corporate purpose is one
which is sustainable and responds to
our climate risks and opportunities. This
is why we embed this thinking within our
Sustainability and Social Impact strategy.
We recognise that the impacts of
climate change are hard to predict
with accuracy and that they will impact
businesses in many different ways, at
different times and these impacts may
also be compounded by one another.
We support the Task Force on Climate-
related Financial Disclosures (‘TCFD’)
and its recommendations. Understanding
the impacts of climate change on our
business provides us with the opportunity
to develop a strategic response to
mitigate the risks, whilst building on the
opportunities this presents for Currys.
We have carried out this work and are
disclosing our progress in line with the
recommendations of the TCFD. We have
made significant progress this year with
the completion of quantitative scenario
analysis to further strengthen our strategy
and enable us to build a roadmap to
increased climate resilience.
We have responded to the CDP
questionnaire on climate change since
2016, scoring an A in the latest 2021
disclosure, and as part of this report we
included the material climate-related
risks and opportunities we identified
through climate risk and opportunity
identification workshops which we ran
in 2021/22. These workshops identified
short, medium and long-term physical
and transitional climate-related risks
which have been reflected in our ESG Risk
Register. Our ESG Risk Register is monitored
by our ESG Committee.
We recognise that climate-related risks
and opportunities cannot be assessed
through traditional risk management
processes only. As such, we have
undertaken a pilot scenario analysis
exercise in this reporting year.
We applied scenario analysis to 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, 2030
and 2040 to align with our current
Risk Management time horizons and
extending out to the target years of our
climate goals. Analysis was based on
the latest climate models and scientific
understanding. We used the three climate
scenario models developed by the IPCC
(RCP 4.5 Low, RCP 4.5 High and RCP 8.5)
using NEX-GDDP and EnerData datasets,
across three different time horizons.
Following this work, we will now seek to
improve our existing measures to adapt
to and mitigate climate change with a
strategy which is informed by scenario
analysis. We continue to invest in measures
to mitigate our climate change impact,
and as part of this we have near-term
emissions targets approved by the
Science Based Target initiative (‘SBTi’)
with a net zero target by 2040.
This pilot exercise also highlighted areas
where data can be improved to enhance
the robustness of model outcomes.
We recognise the importance of
collaborative action; we have committed
our support to EV100 and the British Retail
Consortium Climate Action Roadmap.
We have actively supported business
commitments to climate action, including
being signatories to the Business Ambition
for 1.5°C and the We Mean Business
Coalition G20 open letter. We also
proactively support policy changes
and recommendation through our
memberships of EV100 and the UK Electric
Fleets Coalition.
More information on our Sustainability
and Social Impact strategy and material
issues is on pages [xxx].
Climate governance
Our management and response to
climate-related risks is led by our ESG
Committee, chaired by General Counsel
and Company Secretary Nigel Paterson.
The Committee considers, monitors and
reviews climate change related issues
in their meetings to ensure that the
appropriate strategy, programmes and
investments are in place to build robust
and effective risk management. They
submit progress to the Risk Committee,
Executive Committee and Board. The ESG
Committee has four scheduled meetings a
year with representation from all business
regions including two Board members and
one Executive Committee member.
CDP score for
climate change
in 2021
A
45
Governance
Financial Statements
Investor information
Strategic Report
The ESG Committee has a clear
communication line to the Board with
regards to climate-related matters;
reporting to the Executive Committee
which in turn reports to the Board. Further,
the Risk Committee reports up to the Main
Operating Subsidiaries which report to
the Board. A diagram of our governance
structure is included on page [xxx] and
a report from the ESG Committee is
available on page [xxx].
During the year the Board discussed and
challenged the ESG strategy and the
extent to which it remained fit for purpose.
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, both of which are provided
twice a year. Progress against climate
targets are reported to the Executive
Committee quarterly.
The Board is continuously seeking to
increase their knowledge on climate
related risks and opportunities. For
example, a climate related risks and
opportunities workshop was held for
members of our Board and Executive
Committee in May 2022. This included
information and discussion on why net
zero is so important, the impacts of
climate change on businesses and the
key learnings from pilot scenario analysis
exercise. The majority of the Board and
Executive Committee attended and those
that we unable to attend were provided
with a recording of the session.
The Board fully support Currys science-
based targets and commitment to net
zero by 2040 across our scope 1, 2
and 3 emissions, with a specific budget
allocated over the next three years for
investment in emission reduction projects.
In 2021/22, emissions related KPIs were
included in the annual bonus scorecard
for employees and will continue to be KPIs
for 2022/23. Whilst not currently in place,
Long Term Incentive Plans linked to climate
targets have been reviewed and we plan
to have them in place within the next two
to threeyears.
Risk management & opportunities
Group risk assessment criteria have been
determined and the net and gross risk
profile. Priority risks have been agreed
by the ESG Committee [and Board] and
in [2020/21] a principal risk relating to
Sustainability which includes climate-
related matters was added to the
Principal Risk Register. We will continue
to monitor changes to risk (increase,
decrease or no change), assess climate
change as a principal risk within the
business and 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 identified. This ESG Risk Register is
reviewed [twice a year], with climate
related risks covering both transitional and
physical risks scored against impact and
likelihood, along with further mitigation
actions identified and assigned to
relevant management team. Actions
identified as a result of this year’s pilot
scenario analysis exercise will be added
to our ESG Risk Register.
Further information
Read about our risk management on pages [XX
and XX].
Climate metrics & targets
We’re committed to achieving net zero
emissions by 2040 by reducing the impact
of the energy and resources we use in
our operations - but also in our wider
value chain. Our near term emissions
reduction targets to reduce Scope 1, 2 and
3 greenhouse gas (GHG) emissions by
50% across the Group by 2029/30, have
been approved by the Science Based
Targets initiative (‘SBTi’) as consistent
with levels required to meet the goals
of the Paris Agreement. In this way, our
definition of net zero meets a number of
the requirements of the SBTi Corporate
Net-Zero Standard.
The targets covering greenhouse gas
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.
For 2021/22 we introduced a new emission
based KPI in the bonus scorecard for
colleagues, affirming the importance of
reducing emissions and tackling climate
change as a business. This KPI will be
present again in the 2022/23 bonus
scorecard.
We report on intensity metrics,
MWh/1000sqft for energy and MPG
for fleet vehicles and have set a target
for zero waste to landfill for commercial
waste in UK&I; in 2021/22 we diverted
[xxx] from landfill. We also measure
the proportion of our business that uses
renewable electricity and the number
of electric vehicles in our fleet (see
Operational emissions).
Our Scope 1, 2 and business travel
(Scope 3) emissions have been assured
against the ISAE 3410 standard by KPMG.
An update on our progress against our
targets is included on pages [xxx] and
our data methodology is available on
www.currysplc.com.
We will refine the metrics that we monitor
for the physical impacts from the
identified material acute risk drivers; and
have identified further metrics to manage
our response to energy cost increases
such as percentage of vehicles converted
to electric vehicles or alternative fuels.
We are actively addressing wider
climate-related risks and report on the
key data we use to monitor our progress,
for example our transition to renewable
energy (see pages [xxx]) and moving
towards circular business models (see
pages [xxx]).
Further information
Read about our energy and carbon data
on pages [XX and XX].
Read about [xxx] on page [XX].
Information on our Environmental policy
is available on our website.
www.currysplc.com/sustainable-
business/policies-disclosures
46 Currys plc Annual Report & Accounts 2021/22
Operational emissions
Energy
We’re taking action to reduce our use
of energy. In fact we maintained our
certification of our Energy Management
System (‘EnMS’) in 2021/22 for our UK&I
estate and fleet. And in line with the
British Retail Consortium’s Climate Action
Roadmap, we have set a target to
operate 100% LED coverage in all new
buildings by 2025 – we made progress
in 2021/22 and now 68% of our UK&I
portfolio uses LED technology as the main
source of lighting.
We also achieved 100% of our properties
on the UK&I, Greece and in the Nordics
being powered by renewable electricity,
expanding this in the UK to now include
sites where we aren’t responsible for the
supplier contract (back by REGOs in the
UK and GOs in Europe). We also have
four [UK] sites with Solar PV installed, with
a capacity of over 2MWp, reducing our
emissions by approximately [413] tonnes.
Fuel
We are a signatory to the Climate Group’s
EV100 initiative and are fully committed
to transitioning 100% of our company
cars and small van fleet and 50% of
our medium to heavy fleet to electric or
alternative fuel fleet by 2030. EV100
is a global initiative bringing together
companies committed to accelerating the
transition to electric vehicles (EVs).
In 2021/22 we submitted our first roadmap
and second progress update to EV100.
We currently have [three] electric vehicles
in service across the Group, along with
[34] charging points installed across
[seven] sites. Whilst this represents a
small proportion of the total vehicles
in our owned fleet, our approach is to
run trials for up to a year with a number
of different drivers to give them a true
on-the-job experience and to gain their
feedback. So far feedback has been
overwhelmingly positive which will help
support our business case for expanding
the use of these vehicles.
Sustainable business
Climate change continued
[Lorem ipsum]
Through our supplier, Calor, [x]% of LPG provided to power our forklifts in the UK
was a bioLPG blend, which has 40% less CO
2
e emissions than traditional LPG.
We aim to increase to % of bioLPG we use in our forklifts alongside Calor’s own
target of providing 100% bioLPG before 2030.
76%
of our portfolio across the Group
uses LED technology as the main
source of lighting.
100%
of our properties in UK&I, Greece
and the Nordics are powered
by renewable electricity where
we are responsible for supplier
contracts.
We are in talks with many of the major
vehicle manufacturers to continue
trialling car and van options, with the
plan to introduce more EVs at scale
in 2022. As well as develop and test
other innovations such as our work with
TRAILER in the UK to reduce our emissions.
In partnership with TRAILAR, we have
invested in solar powered vans to help
reduce the fuel consumption of nearly
200 vans across our network. Across
the next four years, this initiative will aim
to reduce our CO
2
by 271 tonnes a year,
equivalent to 1.39 tonnes a year per
vehicle. This will save an estimated 552
litres of diesel per vehicle each year.
We are also continuing to target
reductions through improved driver
training, the use of telematics and our
‘in-cab’ driver alert system and – in the
UK&I – implementing ISO 50001.
Key facts
IMAGE TO BE CONIFRMED
47
Governance
Financial Statements
Investor information
Strategic Report
Scope 3 emissions
Our Scope 3 emissions include the
indirect emissions from across our
value chain which account for over
[xx]% 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 engagement.
The following table details Currys Scope
3 emissions. This data has not been
externally verified. This data includes
indirect GHG emissions across our value
chain which account for over [90%] of
our total emissions. We have [been able
to use more primary data to calculate
our Scope 3 emissions for 2021/22]. Other
notable changes include [emissions from
the use of sold products decreasing due
to grid greening resulting in significant
reductions in emissions].
Category
Tonnes of
CO
2
e emitted
2021/22
% change
from baseline
Tonnes of
CO
2
e emitted
2020/21
Tonnes of
CO
2
e emitted
2019/20
Purchased goods and services [XXX] [XX]% 3,250,795 4,300,532
Fuel and energy-related emissions [XXX] [XX]% 13,085 15,905
Upstream transportation and distribution [XXX] [XX]% 53,653 165,115
Waste generated in operations [XXX] [XX]% 2,588 972
Business travel [XXX] [XX]% 415 2,754
Employee commuting [XXX] [XX]% 19,390 27,275
Downstream transportation and distribution [XXX] [XX]% 16,904 35,906
Use of sold products [XXX] [XX]% 23,061,342 34,001,509
End-of-life treatment of sold products [XXX] [XX]% 9,990 9,843
Total: [XXX] [XX]% 26,428,162 38,559,811
Assessing supplier
performance
We’ve also partnered with one of
the leading providers of business
sustainability ratings: EcoVadis. This helps
us to measure supplier performance
across a wide range of metrics and
identify ways we can champion positive
activities, collaborate to improve
performance, reduce our emissions and
benefit wider society.
Looking ahead
We plan to build on our pilot climate
scenario analysis and learnings, ensuring
it is embedded into our Governance, Risk
Management and Strategic approach.
In time, we also intend to expand this to
other areas of our value chain to further
assess business resilience under different
scenarios. We will continue to quantify the
transitional and physical risk outputs from
our scenario analysis and incorporate this
into our business strategy. 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.
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 [xxx]. The disclosures
describe activity to date and future areas
of focus to further strengthen our strategic
approach and communication of climate-
related issues.
48 Currys plc Annual Report & Accounts 2021/22
Sustainable business
Climate change continued
The company-wide kWh energy consumption for the reporting period [1 May 2021 – 30 April 2022], are as follows:
Energy and Carbon Reporting
This section details the energy
consumption and greenhouse gas
emissions from the activities of Currys
for the period 1 May 2021 to 30 April
2022, as required by the Companies
Act 2006 (Strategic Report and
Directors’ Report) Regulations 2013
(‘the 2013 Regulations’) and the
Companies (Directors’ Report) and
Limited Liability Partnerships (Energy
and Carbon Report) Regulations 2018
(‘the SECR Regulations’).
An operational control approach has
been used to define the Greenhouse
Gas (GHG) emissions boundary. This
captures emissions associated with the
operation of offices, retails, warehouses,
and distribution sites, plus transport;
company-owned, leased and employee-
owned vehicles used for business travel.
This includes emissions from the UK
and Offshore including the Republic
of Ireland, Greece, Sweden, Norway,
Finland, Denmark.
There are no material omissions from
the mandatory Scope 1 and 2 emission
reporting requirements. This information
was collected and reported using
the methodology in Defra’s updated
greenhouse gas reporting guidance,
Environmental Reporting Guidelines
(ref. PB 13944), issued June 2019.
Emissions have been calculated using
the 2020 conversion factors provided
by Department of Business, Energy and
Industrial Strategy for emissions in the UK
and Association of Issuing Bodies (AIB) for
overseas electricity conversion factors.
Limited assurance was provided by KPMG
over selected information for the current
reporting year 2021/22 only.
[Two successive Covid-19 lockdown
periods had a significant impact on the
operation of our estate. Store closures,
changing operational hours, energy
efficiency interventions, increased home
working and less business-related travel
contributed to a reduction in energy
consumption].
Global energy consumption
Currys
Energy consumption (kWh)
UK and
Offshore
2021/22
Global Total
2021/22
Global Change
(%)
UK and
Offshore
2020/21
Global Total
2020/21
UK and
Offshore
2019/20
Global Total
2019/20
Transport (including
Diesel, Petrol, LPG) [XXX] [XXX] [XX]% 54,936,222 61,599,577 63,377,377 71,261,546
Natural Gas [XXX] [XXX] [XX]% 27,318,959 28,500,590 20,301,590 22,142,355
Heating Oil [XXX] [XXX] [XX]% 98,860 331 ,876 214,868 214,868
Electricity [XXX] [XXX] [XX]% 90,122,184 192,890,720 131,070,522 236,971,131
Total: [XXX] [XXX] [XX]% 172,476,225 283,322,763 214,964,357 330,589,900
Intensity (MWh/
1,000 ft
2
) [XXX] [XXX] [XX]% 14.58 13.65 18.02 16.24
The GHG emissions for our business for the reporting period 1 May 2021 – 30 April 2022, are as follows:
Emissions on location basis
(1)
Currys
Category
Tonnes of
CO
2
e emitted
2021/22 Change (%)
Tonnes of
CO
2
e emitted
2020/21
Tonnes of
CO
2
e emitted
2019/20
Emissions from combustion of fuel
(3)
(Scope 1) [XXX] [XX]% 19,638 19,868
Emissions from the operation of facilities
(6)
(Scope 1) [XXX] [XX]% 1,314 874
Emissions from purchase of electricity
(4, 5)
(Scope 2) [XXX] [XX]% 36,817 51,131
Total: [XXX] [XX]% 57,769 71,873
Intensity ratio: tCO
2
e / 1,000 ft
2
occupied floor area
(2)
[XXX] [XX]% 2.78 3.53
49
Governance
Financial Statements
Investor information
Strategic Report
(1) A location-based method reflects the average emissions intensity of grids on which energy consumption occurs and a market-based method reflects emissions from
electricity that companies have selected.
(2) Overall floor area of the Currys is estimated to be [20,758,660ft
2]
.
(3) ‘Emissions from combustion of fuel’, includes a proportion of private cars being used for business travel, which would be classified as Scope 3, in keeping with
previousyears.
(4) The electricity consumption figure includes Scope 2 generation emissions but not Scope 3 transmission and distribution losses.
(5) Electricity and gas usage is based on supplier bills. Manual gap filling was conducted for a small proportion of supplies in the UK and Ireland, using an average of
the consumption year to date. 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; this has been estimated either based on the average energy consumption per floor
area for site type or using last year’s data estimation, all these have been treated as non-green and therefore subject to the residual factor, due to lack of evidence.
(6) 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
carriedout.
Emissions on market basis
(1)
Currys
Category
Tonnes of
CO
2
e emitted
2021/22 Change (%)
Tonnes of
CO
2
e emitted
2020/21
Tonnes of
CO
2
e emitted
2019/20
Emissions from combustion of fuel
(3)
(Scope 1) [XXX] [XX]% 19,638 19,868
Emissions from the operation of facilities
(6)
(Scope 1) [XXX] [XX]% 1,314 874
Emissions from purchase of electricity
(4, 5)
(Scope 2) [XXX] [XX]% 14,368 16,121
Total: [XXX] [XX]% 35,321 36,863
Intensity ratio: tCO
2
e / 1,000 ft
2
occupied floor area
(2)
[XXX] [XX]% 1.70 1.81
Emissions on location basis
By Region
Category
Tonnes of
CO
2
e emitted
2021/22 Change (%)
Tonnes of
CO
2
e emitted
2020/21
Tonnes of
CO
2
e emitted
2019/20
Tonnes of
CO
2
e emitted
per 1,000 ft
2
of floor area
2021/22
Tonnes of
CO
2
e emitted
per 1,000 ft
2
of floor area
2020/21
Tonnes of
CO
2
e emitted
per 1,000 ft
2
of floor area
2019/20
UK and Offshore
(7)
(Scope 1 & 2) [XXX] [XX]% 39,951 51,866 [XXX] 3.38 4.35
Global (excluding
UK and Offshore)
(Scope 1 & 2) [XXX] [XX]% 17,817 20,006 [XXX] 2.11 2.37
Total: [XXX] [XX]% 57,769 71,873 [XXX] 2.78 3.53
Emissions on market basis
By Region
Category
Tonnes of
CO
2
e emitted
2021/22 Change (%)
Tonnes of
CO
2
e emitted
2020/21
Tonnes of
CO
2
e emitted
2019/20
Tonnes of
CO
2
e emitted
per 1,000 ft
2
of floor area
2021/22
Tonnes of
CO
2
e emitted
per 1,000 ft
2
of floor area
2020/21
Tonnes of
CO
2
e emitted
per 1,000 ft
2
of floor area
2019/20
UK and Offshore
(7)
(Scope 1 & 2) [XXX] [XX]% 20,038 21 ,762 [XXX] 1.70 1.82
Global (excluding
UK and Offshore)
(Scope 1 & 2) [XXX] [XX]% 15,263 15,101 [XXX] 1.71 1.79
Total: [XXX] [XX]% 35,321 36,863 [XXX] 1.70 1.81
2019/20 2020/21 2021/22
Non-renewable fuels purchased and consumed (MWh) 93,619 90,432 [xxx]
Non-renewable electricity purchased (MWh) 110,845 32,420 [xxx]
Total renewable energy purchased or generated (MWh) 126,100 157,858 [xxx]
Total non-renewable energy consumption (MWh) 204,464 122,852 [xxx]
50 Currys plc Annual Report & Accounts 2021/22
Sustainable business
Our communities
We bring technology to everyone everyday
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.
Digital equality
We want everyone to be able to enjoy equal access to
the benefits of technology. We are committed to helping
eradicate digital poverty, in all countries we operate in.
In the UK alone 25% of vulnerable children do not have access to a suitable device for
learning and 42% of offline users said “it’s not for people like me”. While in the Nordics
20 percent of people have products at home that they do not know how to use.
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 digitally excluded
• Our suppliers work collaboratively with us to be a force for good.
The UK Digital Poverty
Alliance
We are one of three founding
partners of the Digital Poverty
Alliance (part of the Learning
Foundation, registered charity
number 1086306) alongside
the Institute of Engineering and
Technology (‘IET’).
The start-up phase of the Digital
Poverty Alliance (DPA) was funded
by a £1m donation from Currys and
we are proud that the last year has
seen the DPA set out its strategy
over the next two years to convene,
compel and inspire collaboration
within the UK community to lead
sustainable action against
digital poverty.
Our donation also funded the first
DPA proof of concept project,
Tech4Teachers, by equipping 1,000
teachers and teaching assistants in
the country’s poorest communities
with the technology and support
they need to deliver high quality
home schooling to their pupils.
These proof of concept projects
are intended to innovate where
there are gaps, and the success
of the pilot has led to further
support for this scheme from other
companies seeking to drive change.
We are delighted to confirm our
ongoing commitment to the DPA
and in 2022/23 we will be using
Pennies funds to support vulnerable
families in need with life changing
access to technology.
Appliance poverty
In 2021/22 in the UK&I we continued our supplier collaboration with Grundig to
provide over £50,000 worth of kitchen technology to food related charities
nominated by colleagues across the UK. This takes our total support since 2018 to
425 appliances donated, to 215 charities helped at a value of £196,737.
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51
Governance
Financial Statements
Investor information
Strategic Report
Amount raised for Age UK’s
Tech Connected programme
£350,000+
Value of donations made
to support those impacted
by the war in Ukraine
£170k
Helping digitally excluded older
persons in the UK
Age UK was chosen by UK colleagues in March 2020 as our
corporate charity partner for a two year period, with the
aim of helping digitally excluded older people benefit from
amazing technology and connecting them to those that
love and need them. With thanks to our colleagues and
customers, in that time we have raised over £350,000 for
Age UK’s Tech Connected programme.
In 2021/22 our customers raised £229,394
through Pennies instore donations and
our colleagues raised £7,200 through our
fundraising activities. Seven colleagues
have also volunteered and made been
friendship calld, spending 76 hours, 40
minutes and 42 seconds speaking to
lonely older people.
With the money raised over the last two
years Age UK has been able to develop
and launch 21 much needed Digital
Support Guides on topics older people
have identified as being in most need
of. There are Beginner, Intermediate and
Advanced guides covering topics such
as: an introduction to technology & key
terminology; getting connected to the
internet & browsing the web; video calling;
email; online entertainment, hobbies &
shopping, as well as staying safe online.
These guides will help enable older
people to get and stay connected to their
loved ones, supporting their mental health
and importantly keeping them safe in the
online world.
This funds raised will also:
• Enable Age UK to develop a Digital
Inclusion Service Handbook with
information, guidance and tools to
help local Age UKs set up a digital skills
service in their community.
• Launch a tablet loan scheme of over
[600] tablets, addressing one of the
main barriers to older people wanting
to get online: access to technology.
• Provide support to four local Age UKs
to provide one to one support and
awareness raising sessions to older
people in their communities through
the recruitment and training of local
Digital Champions who will help inspire,
motivate and support older persons
with their digital capabilities.
Support to the people of
Ukraine:
• Prioritised the safety and well-
being of our colleagues and
partners who have employees
working on behalf of Currys -
such as Softserve – ensuring they
know what support is available.
This is particularly the case for
our colleagues who live and
work near the Ukrainian border
(Brno), as well as those who
have personal connections
within Ukraine.
• Joined other large mobile
telecoms providers to waiver
text and call charges to Ukraine
numbers, as well as crediting back
calls, texts, and unlimited data for
our iD Mobile customers in Ukraine.
• Donated £100k as a Group
to the Red Cross and advised
colleagues of ways in which they
can make contributions.
• The Brno team are directly
supporting refugee & colleague
families, which included 200
refurbished devices worth over
£42,000 donated from the UK&I
business to support Brno’s chosen
charity, Humans In Need.
• Elkjøp have given an additional
£30,000 through direct donations
from the business units operating in
a number of the Nordic countries.
• Kotsovolos supplied more than
100 devices for use by refugees
locally through their partnership
with The Smile of the Child.
To see the guides visit www.ageuk.org.
uk/information-advice/work-learning/
technology-internet/digital-instruction-
guides/
52 Currys plc Annual Report & Accounts 2021/22
Sustainable business
Our communities continued
Elkjøp is fighting digital exclusion
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.
We keep track of our customers
challenges when it comes to technology
through our Tech Trouble survey.
According to our research one out of three
people in the Nordics find it difficult to
keep up with the changes in technology,
and 20 percent say they have products
at home that they do not know how to
use. Even more admit that they are not
utilising their products to full potential, not
knowing how to use all the features.
Elkjøp’s partnerships and Foundation
[In 2021/22] Elkjøp has entered into a number of long-term strategic
partnerships to strengthen the ability to fight digital exclusion
more effectively. Over £400,000 has been contributed.
• Norway: SOS Children’s Villages International, focusing on their project
“Digital Village”.
• Finland: Save the Children, focusing on their interactive learning solution and
contributing to their digital childhood competence center, Kidital. We have
also joined the cross-sector Kaikille Kone initiative.
• Denmark: Danish Peoples Aid, focusing on “School Start Assistance”, ensuring
that those with low income also get a good start at school.
• Sweden: Läxhjälpen (“Homework Assistance”), focusing on kids having the
right digital equipment to be able to do homework in an efficient way. Also
new is the partnership with Barnens Dator (“Computers for kids”), focusing on
donating gaming computers to kids and families that risk missing out due to
low income.
In addition, The Elkjøp Foundation was established to fight digital exclusion.
It works to raise awareness, increase knowledge, and enable access to people
who are falling behind in the rapid development of technology.
To connect, play or learn with technology should be easy and fun but that is not
always the case. That is why The Elkjøp Foundation supports organisations and
associations with products and guidance – in addition to financial resources.
This is very close to our vision and our hearts, and work we are incredibly proud of.
Elkjøp funding to
fight digital exclusion
£400k+
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53
Governance
Financial Statements
Investor information
Strategic Report
Kotsovolos’ support
Kotsovolos support low income families and the move to a circular economy through their
Second Home initiative. Colleagues motivate customers to offer their unused devices and
donate them to families in need.
Second Home
Kotsovolos support low income
families and the move to a circular
economy through their Second
Home initiative.
Through the programme, Kotsovolos
enables people who have functional
devices they no longer use, to donate
them and support families in need.
Colleagues motivate customers to offer
their unused devices and donate them to
families in need. Kotsovolos undertakes to
collect the device, repair it and disinfect
it, and then offer it to another family.
If the appliance cannot be repaired,
the company undertakes to recycle.
Between 2018-2020 more than 1,000
families received at least one basic
appliance, such as refrigerator, oven
or washing machine. During the last
year the process has been updated
and redesigned. Despite this c. 100
devices were offered at a total cost of
£22,757 to: K.Y.A.D.A (Athens Municipality
Solidarity Center), The Smile of the Child,
The Ark of the World and local causes
working in cooperation with local stores.
This programme will be relaunched in
summer 2022.
Kotsovolos Technology without
obstacles programme
Kotsovolos strives to empower people
to live a better life with technology.
This initiative aims to maximize
access to technology for people with
disabilities. Their ‘Technology without
Obstacles’ programme is key to
enabling digital inclusion for people
with disabilities, and creating equal
access for all.
Kotsovolos is the first retailer in Greece
that is investing in store and product
accessibility for people with disabilities.
For example:
• 14 accessible stores are already
recognised by the Hellenic Society
for Protection and Rehabilitation of
Disabled Persons as accessible to
people with disabilities and 18 more
stores are expected to be recognised
as accessible to people with
disabilities in the next 12 months.
• First retailer in Greece to offer sign
language assistance through contact
centre agents and also to offer the
opportunity to blind people to be
able to read their insurance contracts
summary in braille.
• A dedicated microsite explains all
supportive technologies for those with
visual impairments, hearing disabilities
and mobility impairments.
• A dedicated qualitative survey
for people with disabilities was
implemented and shared through a
digital event to Greek retailers.
Kotsovolos has held two training sessions
for colleagues and in 2022/23 aims to
provide sessions for all colleagues as
well as develop dedicated corporate
campaigns raising awareness about
disability issues among consumers.
Kotsovolos has also worked with Laddroller
to create its next generation wheelchair.
Laddroller was made to help wheelchair
users worldwide to overcome their loss of
autonomy. It is an entirely new, innovative
approach to mobility compared to
existing devices, allowing users to stand
up when using Laddroller. The first of this
generation of Laddroller wheelchair will be
donated to a child with physical disabilities
in cooperation with ELEPAP, a charity
committed to providing lifelong support
to those with disabilities.
Kotsovolos
Good Deeds day
In Greece, our teams spend a
day every year taking part in
‘Good Deed Day,’ where they
agree among themselves how
they will support local causes.
Good Deed Day was established
in 2013 and is the biggest volunteer
action for Kotsovolos’ people
that takes place once a year on a
Sunday in May or June. Every year,
more than 1,000 volunteers from
stores, offices, warehouses and their
distribution center participate in
multiple actions focusing on children,
minority social groups, older persons
or the environment.
In 2021/22 colleagues gave up their
time to volunteer on Good Deeds
Day, organising 17 blood donation
drives totalling 256 pints of blood,
supporting hospitals in Greece
and Cyprus.
IMAGE TO BE
SUPPLIED
54 Currys plc Annual Report & Accounts 2021/22
Sustainable business
[Lorem ipsum]
Our suppliers
Bringing amazing and more sustainable tech to our customers
isn’t something we do alone. Our partnerships with suppliers
make a big difference too.
Responsible sourcing
We collaborate with our
manufacturers and suppliers to make
sure the products we sell are safe and
responsibly sourced.
And when selecting our suppliers or
renegotiating existing contracts, we
consider their overall sustainability
performance, particularly their energy
efficiency, climate change impact, water-
use and biodiversity impact.
Our standards
For customers to enjoy our amazing
technology they need peace of mind
that we’re sourcing responsibly. With
around 7,000 suppliers across the
globe, we want to make sure we’re
using our size and unique capabilities
to do good.
In addition to compliance with all relevant
national and international legislation,
we’ve created our own Standards for
Responsible Sourcing which set out our
expectations for all suppliers, partners
and subsequent supply chains. The
Standards reflect our commitment
to acting with integrity in business
relationships.
Modern slavery
We’re committed to eradicating all
forms of modern slavery and human
trafficking. The fact that modern
slavery still exists today is abhorrent
and eradication requires collaboration
and transparency.
Our Modern Slavery Statement and 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
adhere to our Modern Slavery Policy.
We continue to expand our efforts
to tackle the issue - collating existing
actions and working on new initiatives
across our business and supply chain to
mitigate risk and identify areas that need
additional focus.
Our progress
In 2021/22 we:
• Invited more suppliers to join the
EcoVadis platform to enable us
to measure their sustainability
performance, with nearly half of total
revenue of the Group now assessed.
• Joined the Responsible Business
Alliance, an organisation with over 400
members involved in the manufacture
of electronics and with an aim of
driving sustainable value for workers,
the environment and business through
global supply chains.
• Updated our Modern Slavery
Policy and issued new Child Labour
Remediation and Conflict Minerals
policies.
• Rolled out our enhanced ethical and
quality audit criteria for own label
and licensed brand suppliers based in
China and the Far East.
• Completed our assessment of tier 2
waste and recycling partners here in
the UK in conjunction with Slave Free
Alliance and our direct (tier 1) supplier.
Standards
Read our Standards for Responsible
Sourcing: https://www.currysplc.com/
media/l15njpci/currys-plc-standards-for-
responsible-sourcing-april-2019.pdf
Responsible sourcing
Read more on our website: https://www.
currysplc.com/sustainable-business/
suppliers
Modern slavery
Read more in our Modern Slavery
Statement: https://www.currysplc.com/
media/ekvfjju1/d2752_cpcw_modern-
slavery-statement-8.pdf
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55
Governance
Financial Statements
Investor information
Strategic Report
Governance
At Currys we’re fully committed to operating a responsible business.
We talk to our stakeholders about their expectations, we search out
best practice and we reflect these in the decisions we make.
is monitored by the ESG Committee and
the Executive Committee, with the aim of
better managing the broad spectrum of
ESG risks. In 2021/22 an Internal Audit of
ESG was conducted and we are using
the results to drive further improvements
in our measurement and reporting of
material issues. Our progress in 2021/22
has seen the level of risk attached to
sustainability reduce.
Our performance which has also
been recognised through improved
performance in a number of ratings and
assessment of our business including:
• [In June 2022, our progress in
developing and reporting our
performance was recognised with our
repeated inclusion in the FTSE4Good
UK Index].
• We continue to respond to the Carbon
Disclosure Project (‘CDP’) questionnaire
on Climate Change, demonstrating our
continued commitment to identifying,
assessing and managing climate-
related risks and opportunities across
the Group. In 2021, we achieved an
‘A’ score.
• As of 28 March 2022, Currys performed
in the top quartile in the RTS retailing
Industry in the S&P Global Corporate
Sustainability Assessment with a score
of 32 reflecting an improvement of
12 points over the last year.
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 & 2) (5%). Read more about our
remuneration in on page [xxx].
Our Sustainability and Social Impact
strategy is signed off by our Group
Chief Executive and approved by the
Environmental, Social and Governance
(‘ESG’) Committee.
It is driven and delivered by our
colleagues – subject matter experts that
are fully integrated across our business.
Their work is coordinated by the Director
of Group Sustainability and overseen
by the ESG Committee which reports into
the Executive Committee and comprises
representatives from all levels across
the business.
The business has a systematic approach
to ESG risk management. Our approach
has been benchmarked against
other leading organisations, which
resulted in the development of a more
comprehensive ESG risk profile and
risk appetite statement. Details on our
principal risk relating to Sustainability is
available on [page xx]. This Principal risk
Being a good employer
Our people are at the centre of
who we are because it makes us
what we are. Read more about our
colleagues including:
• Our new People Plan strategy on
pages [xxx]]
• Developing talent on pages [xxx]
• Creating a culture of well-being
on pages [xxx.]
• Creating a culture of inclusion
and diversity on pages [xxx.]
• Communication and engagement
on pages [xxx.]
• Health and safety on pages [xxx.]
Gender pay
Read our Gender Pay Report online at
www.currysplc.com
More information
Tax strategy
Read our Tax Strategy online at
www.currysplc.com
ESG Committee
Read the Terms of Reference
for the ESG Committee: https://
www.currysplc.com/media/4zriehtt/
currysplcesgcommitteetor_nov21.pdf
Governance
Read more about Governance at Currys:
https://www.currysplc.com/about-us/
governance/
[Orepellab imos magnam
incto comnitat ligent
Orepellab imos magnam
incto comnitat ligent
Orepellab imos magnam
incto comnitat ligent
Orepellab imos magnam
incto comnitat ligent .”]
[Name Surname]
[Job Title]
OUTQUOTE TO BE CONIFRMED
56 Currys plc Annual Report & Accounts 2021/22
Risk management
Approach
Principal risks to achieving
the Group’s objectives
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 [X] to [X]. The risks are linked to the strategic priorities on pages [X] to [X].
Key changes to the Risk Profile
During 2021/22 a number of changes
were made to the Group Risk profile,
these included:
• following a reduction in the threat
from Covid-19, this risk was removed
as a standalone risk and subsumed
within the existing Group Health and
Safety risk;
• our Key Supplier relationship risk was
updated to include supply chain
related challenges such as reliance on
China and factory capacity limitations,
chip-set shortages, rising shipping costs,
delays at ports and the shortage of
HGV drivers. To reflect its wider ambit,
the risk was renamed Supply Chain
Resilience; and
• the risk relating to the Long Term and
Diversification of Funding was removed
on completion of the refinancing of the
Group’s debt and in light of the strong
current net cash position.
RISK PROFILE
Likelihood Impact
Increased
2
4
Decreased
11 7
No Change
1
3
5
6
7
8
9
10
12
1
2
3
4
5
6
8
9
10
11
12
Principal Risks
1
Supply Chain
2
Business Transformation
3
FCA
4
Data Protection
5
IT systems and infrastructure
6
Information security
7
Health and Safety
8
Business Continuity
9
Tax liabilities
10
Product Safety
11
Our commitment to Sustainability
12
People
57
Governance
Financial Statements
Investor information
Strategic Report
The impact of the Russian invasion of Ukraine
The business does not operate in Russia, Belarus or Ukraine and
we have obtained confirmations from our Brand and Own Band
suppliers that none of the products we sell are produced in
these territories. However, there are risks to our business related
to the invasion which are being managed, including:
• risks to our supply chain caused by transport disruption,
scarcity of raw materials and components which are
being mitigated through our Commercial forecasting and
planning activities,
• impacts on our colleagues, especially in relation to our
operations in Czech Republic, which are being mitigated
through practical assistance and advice being offered to
local colleagues through people management channels, and
• reputational risks which could occur if the Group was
perceived to not be doing the right thing in response to
emerging sanctions. We are confident that the Group
remains fully compliant with all UK sanctions on Russian
and Belarussian entities.
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.
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 Group Risk and Compliance Committee is asked
to review and discuss the horizon risks and to form a view as
to whether any of these should be considered in the Principal
Risk process or additional actions should be factored into
strategic planning for the business.
58 Currys plc Annual Report & Accounts 2021/22
1 Supply Chain Resilience
Risk owner:
Chief Commercial Officer
Risk category:
Strategic
Risk movement:
Link to strategy
Considered in the
Viability statement:
[No]
What is the risk?
Exposure to disruption
to our supply chain
that could impede
our ability to provide
Amazing Technology
to our customers
and impact our
customer satisfaction,
profitability, cash flow
and market share.
What is the impact?
• Investments by
suppliers scaled
down
• Pricing and stock
availability terms
could worsen,
leading to deceasing
sales/reduced
margin
• Reduced revenue
and profitability
• Deteriorating cash
flow
• Reduced market
share
How we manage it
• Ensuring alignment of key suppliers
to future strategy; “Project Board
Meetings” with strategic suppliers’
management
• Continuing to leverage the scale of
operations to strengthen relationships
with key suppliers and maintain a
good supply of scarce products
• Working with suppliers to ensure
availability of products through Key
Supplier Group engagement program
• Ethical supply chain due diligence
over our supplier base
• Control structures to ensure
appropriate Supplier Relationship
Management for GFR, GNFR and OEM
Changes since
last report
The scoring has
remained stable over
2021/22.
2 Business Transformation
Risk owner:
Chief Information Officer
Risk category:
Strategic
Risk movement:
Link to strategy
Considered in the
Viability statement:
[No]
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 omni channel
capability
• Transformation Programme office
established and delivering key
strategic objectives
• Development of customer credit
propositions
• Development of omnichannel
capabilities
• Enhancement of data analytics
capabilities
• Robust portfolio governance
Changes since
last report
This risk has increased
over 2021/22. There
are a number of
critical projects to
deliver in support of
the business strategy.
3 Non-compliance with Financial Conduct Authority
(‘FCA’) and other 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
the mobile insurance
operations and
consumer credit
activities of Currys
Retail Limited.
What is the impact?
• Enforcement action
by the regulator
• Loss of authorisation
and inability to trade
regulated products.
• Reputational
damage
• Financial penalties
• Reduced revenues
and profitability
• Deteriorating cash
flow
• Customer
compensation
How we manage it
• Board oversight and risk management
structures monitor compliance and
ensure that the Company’s culture
puts good customer outcomes first
• Senior Manager and Certification
Regime and if required CBI/other
regulators certification implemented.
• Regulatory Compliance Committee,
Product Governance and other
internal governance structures
• Control structures to ensure
appropriate compliance
• Compliance monitoring and internal
audit review of the operation
and effectiveness of compliance
standards and controls
• Recruitment, remuneration and
training competency programmes,
• Conduct risk and control framework,
including defined minimum control
standards
Changes since
last report
This risk has remained
stable over 2021/22.
Principal risks
and uncertainties continued
NOTE: RISK MOVEMENT, LINK TO STRATEGY,
VIABILITY ALL TBC.
59
Governance
Financial Statements
Investor information
Strategic Report
4 Data Protection
Risk owner:
Chief Information Officer
Risk category:
Regulatory
Risk movement:
Link to strategy
Considered in the
Viability statement:
[Yes]
What is the risk?
Major loss of
customer, colleague
or business sensitive
data.
Adequacy of internal
systems, policy,
procedures and
processes to comply
with the requirements
of EU General Data
Protection Regulation
(‘GDPR’).
What is the impact?
• Reputational
damage
• Financial penalties
• Reduced revenue
and profitability
• Deteriorating cash
flow
• Loss of competitive
advantage
• Customer
compensation
How we manage it
• The operation of a Data
Management Function to ensure
compliance with GDPR compliant
operational processes and controls
• The operation of a Data Protection
Office to ensure appropriate
governance and oversight on the
Group’s data protection activities
• Control activities operate over
management of customer and
employee data in accordance with
the Group’s data protection policy
and processes
• Investment in information security
safeguards and IT security controls
and monitoring
Changes since
last report
The risk has reduced
over 2021/22 due to
increased levels of
assurance over the
strength of the data
protection control
environment.
5 IT systems and infrastructure
Risk owner:
Chief Information Officer
Risk category:
Technology
Risk movement:
Link to strategy
Considered in the
Viability statement:
[No]
What is the risk?
A key system becomes
unavailable for a
period of time.
What is the impact?
• Reduced revenue
and profitability
• Deteriorating cash
flow
• Loss of competitive
advantage
• Restricted growth
and adaptability
• Reputational
damage
How we manage it
• Ongoing IT transformation to align IT
infrastructure to future strategy
• PEAK planning and preparation
to ensure system stability and
availability over high-demand
periods
• Individual system recovery plans in
place in the event of failure which
are tested in line with an annual
plan, with full recovery infrastructure
available for critical systems
• Long-term partnerships with ‘tier
1’ application and infrastructure
providers established
• Strengthening of Technology
leadership team
• A mature IT Service Design &
Transition process controls and
manages the transition of new and
changed services into production
Changes since
last report
This risk has remained
stable over 2021/22.
Risk movement
Increased
Stable
Decreased
Link to strategy
Colleages
Omnichannel
Customers for life
NOTE: RISK MOVEMENT, LINK TO STRATEGY,
VIABILITY ALL TBC.
60 Currys plc Annual Report & Accounts 2021/22
6 Information security
Risk owner:
Chief Information Officer
Risk category:
Operational
Risk movement:
Link to strategy
Considered in the
Viability statement:
[Yes]
What is the risk?
Inadequate
governance and
control around
information security
could result in an
information security
breach compromising
the confidentiality,
integrity and / or
availability of
customer, colleague
or supplier data.
What is the impact?
• Reputational
damage
• Financial penalties
• Reduced revenue
and profitability
• Deteriorating cash
flow
• Customer
compensation
• Loss of competitive
advantage
How we manage it
• Significant investment in information
security safeguards, IT security
controls, monitoring, in-house
expertise and resources as part
of a managed information security
improvement plan
• Information security policy
and standards defined and
communicated
• Information Security and Data
Protection Committee and
Technology Risk Forum set up
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
• Future Security Operations Centre
implemented
Changes since
last report
This risk has remained
stable over 2021/22.
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
• Ongoing
repercussions of
Covid-19
How we manage it
• Implementation of Covid-19
controls to protect colleagues in
the workplace and customers in the
retail estate, including continuous
monitoring of changing government
regulation in all jurisdictions
• Group Health and Safety strategy
• Comprehensive Health and Safety
policies and standards supporting
continued improvement
• Health and Safety governance
committee
• Operational Health and Safety
teams located across business units
• 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 decreased
over 2021/22, largely
attributable to
the suppression of
Covid-19.
Principal risks
and uncertainties continued
NOTE: RISK MOVEMENT, LINK TO STRATEGY,
VIABILITY ALL TBC.
61
Governance
Financial Statements
Investor information
Strategic Report
Risk movement
Increased
Stable
Decreased
Link to strategy
Colleages
Omnichannel
Customers for life
8 Business Continuity
Risk owner:
Chief Information Officer
Risk category:
Operational
Risk movement:
Link to strategy
Considered in the
Viability statement:
[No]
What is the risk?
A major incident
impacts the Group’s
ability to trade and
business continuity
plans are not
effective, resulting
in an inadequate
incident response.
What is the impact?
• Reduced revenue
and profitability
• Deteriorating cash
flow
• Reputational
damage
• Loss of competitive
advantage
How we manage it
• Business continuity and crisis
management plans in place and
tested for key business locations
• Enablement of home working for
office-based and contact centre
colleagues
• Disaster recovery plans in place and
tested for key IT systems and data
centres
• Cross functional Crisis team
appointed to manage response to
significant events
• Major risks insured
• Group Business Continuity strategy
Changes since
last report
This risk has remained
unchanged over
2021/22.
9 Tax liabilities
Risk owner:
Chief Financial Officer
Risk category:
Financial
Risk movement:
Link to strategy
Considered in the
Viability statement:
[Yes]
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
The Net Risk remains
unchanged, but the
relative likelihood &
impact assessment
has changed over
2021/22.
10 Product Safety
Risk owner:
Chief Operating Officer
Risk category:
Operational
Risk movement:
Link to strategy
Considered in the
Viability statement:
[No]
What is the risk?
Unsuitable procedures
and due diligence
regarding product
safety, particularly
in relation to OEM
sourced product, may
result in poor quality
or unsafe products
provided to customers
which pose risk to
customer health and
safety.
What is the impact?
• Financial penalties
• Reduced cash flow
• Reputational
damage
How we manage it
• Factory Audits conducted over OEM
suppliers
• Technical Evaluation of OEM
products prior to production
• Product inspection of OEM products
prior to shipment
• Monitoring of reported incidents
• Safety Governance reviews
conducted by internal by Technical
and Business Standards teams
• Establish protocols and procedures
to manage product recalls
Changes since
last report
This risk remains
unchanged over
2021/22.
NOTE: RISK MOVEMENT, LINK TO STRATEGY,
VIABILITY ALL TBC.
62 Currys plc Annual Report & Accounts 2021/22
Principal risks
and uncertainties continued
11 Our commitment to Sustainability
Risk owner:
Chief People, Communications
& Sustainability Officer
Risk category:
Operational
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 ESG Committee,
ExCo and the Board
• Group ESG strategy regularly
reviewed
• Maintenance of a brand tracker
• Commitment to TCFD ahead of
mandatory compliance
• Independent reviews on
environmental practices e.g. CDP
Changes since
last report
This risk has decreased
over 2021/22 reflecting
the progress made
advancing our ESG
initiatives.
12 People
Risk owner:
Chief People, Communications
& Sustainability Officer
Risk category:
People
Risk movement:
Link to strategy
Considered in the
Viability statement:
[No]
What is the risk?
Not having the right
workforce capacity,
capability, and
colleague commitment
necessary to deliver
on our strategy.
What is the impact?
• Reduced revenue
and profitability
• Failure to achieve
strategic objectives
without strong
leadership
and capable
and committed
colleagues
How we manage it
• Strengthening leadership capability
and succession
• Increasing colleague capability
and engagement to deliver against
customer promise
• Approach for remuneration and
incentives that supports a high-
performance culture, reinforces
the right behaviours aligned to
our values and supports selling
responsibility to customers
• Frequent Pulse Engagement surveys
• Perform and Transform Forum
Changes since
last report
This risk remains
unchanged over
2021/22.
Risk movement
Increased
Stable
Decreased
Link to strategy
Colleages
Omnichannel
Customers for life
NOTE: RISK MOVEMENT, LINK TO STRATEGY,
VIABILITY ALL TBC.
63
Governance
Financial Statements
Investor information
Strategic Report
Going concern and
viability statement
Going Concern
For further information on Going Concern,
see note 1 to the financial stements on page XX.
FURTHER
INFORMATION
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 as outlined on pages [x]
to [x] of the Strategic Report and the
uncertainty regarding the recovery from
the Covid-19 pandemic, the impact from
inflation exacerbated by the conflict in
Eastern Europe plus the further mitigating
actions available to the Board.
The Board concluded that a period of
three years was appropriate for this
assessment as this period is covered by
the Group’s strategic planning process,
which is updated annually, and reflects
the period 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 2022/23, and Board-
approved strategic plan for the remaining
two year period. These forecasts have
been subject to robust stress-testing,
modelling the impact of a combination of
severe but plausible adverse scenarios
based on those principal risks facing the
Group, including specific consideration of
a range of impacts that could arise from
the continued Covid-19 pandemic and the
impact from inflation exacerbated by the
conflict in Eastern Europe. These scenarios
included a downside risk to sales across
the group to reflect the risk caused by
the current macroeconomic environment
with rising energy costs, interst rates, and
inflation that could place additional
pressure on consumer spending as well
as the supply chain risks associated with
the Covid-19 pandemic and the conflict in
Eastern Europe.
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.
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.
As well as focusing on the potential
downside to sales caused by the current
macroeconomic environment, these
scenarios also included other principal
risks such as regulation or information
security incidents and reduced forecast
profitability and cash flow as a result in 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 18 to the Annual
Report and Accounts.
Based on the results of this analysis,
the directors have an 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.
64 Currys plc Annual Report & Accounts 2021/22
£116m
£156m
£[186]m
2021/22
2020/21
2019/20
£(140)m
£33m
£[128]m
2021/22
2020/21
2019/20
6.70p
10.70p
X.XXp
2021/22
2020/21
2019/20
(13.90)p
0.00p
X.XXp
2021/22
2020/21
2019/20
2%
14%
(3)%
2021/22
2020/21
2019/20
£10,190m
£10,344m
£10,144m
2021/22
2020/21
2019/20
£109m
£438m
£78m
2021/22
2020/21
2019/20
Key performance
indicators
Financial
What we measure and why its key
Like-for-like (LFL) revenue growth is the
revenue growth of the business using a constant
currency, adjusted for new and closed stores
and other changes in business. The metric
enables us to measure the underlying trading
performance of the Group on a consistent
year-on-year basis.
Performance in 2021/22
Like-for-like revenue decline due to the
expected decline in mobile revenue within
UK & Ireland and prior year benefitting from
particularly strong performance during
lockdown periods.
What we measure and why its key
Sustainable growth of profit before tax and adjusting items represents
a clear measure of performance against our strategic priorities and an
indication of how we create long term value for all stakeholders.
Performance in 2021/22
On an adjusted and statutory basis, profit before tax increased during
the year due to sales mix and improved cost control.
What we measure and why its key
Adjusted Basic EPS represents the profit after tax, but before adjusting
items, attributable to each share after taking into account the change in
number of shares in issue from year to year. The level of growth provides
a clear measure of the financial health of the Group and its ability to
deliver returns to shareholders each year.
Performance in 2021/22
Continued growth in adjusted basic EPS driven by increased profit before
tax combined with a stable tax rate and reduced share count during the
year.
What we measure and why its key
Revenue represents total revenue generated
by the Group with sustainable growth being an
important measure of our brands appeal and
competitive position.
Performance in 2021/22
Group revenue declined (2)% on a reported
basis due to the like-for-like decline and
closure of the Carphone Warehouse Ireland
business at the end of the prior year.
What we measure and why its key
Free cash flow represents available cash
after operational cash outflows, cash tax
and interest paid and capital investment but
before pension contributions. It is a measure
of the Groups ability to both generate cash
and efficiently manage working capital such
that it optimises cash resources available for
the Group to invest in its future growth and to
generate shareholder return.
Performance in 2021/22
Free cash flow declined as in line adjusted
EBITDAR and a reduction in cash lease
payments were more than offset by a working
capital outflow to secure future supply. The
prior year comparative benefited from a large
working capital inflows as the mobile network
receivable unwound.
LFL Revenue growth
(1)
(3)%
Adjusted
Profit Before Tax
(1)
£186m
Adjusted Earnings
Per Share
(1)
[x.xx]p
Statutory Profit/Loss Before Tax
£126m
Statutory Earnings/Loss Per
Share
[0.00]p
Revenue
£10,144m
Free cash flow
(1),(2)
£72m
Our ten Key Performance Indicators (KPIs) comprise a balanced set of financial and non-financial metrics that are consistent with
our strategy and vision and enable management to evaluate the Groups strategic performance. Statutory equivalents of our KPIs are
provided where relevant.
(1) Alternative Performance Measure. Definitions, purpose and reconciliations to the closest statutory equivalent for our Alternative Performance Measures are provided
within the glossary and definitions on pages [x to x].
(2) The Directors consider free cash flow to be a useful measure as, unlike statutory equivalents, it is a good indicator of cash generated from continuing operations which
is available to fund future growth or be distributed to shareholders.
Link to strategy
Colleages Customers for life
Omnichannel Remuneration
65
Governance
Financial Statements
Investor information
Strategic Report
+64
+65
+66
2021/22
2020/21
2019/20
103k
104k
103k
2021/22
2020/21
2019/20
+62
+68
+77
2021/22
2020/21
2019/20
26.5%
24.7%
25.6%
2021/22
2020/21
2019/20
26.0%
26.8%
25.9%
2021/22
2020/21
2019/20
36,863
35,321
XXX
2021/22
2020/21
2019/20
What we measure and why
We calculate the reduction in Scope 1 and
2 greenhouse gas emissions, in line with the
standards of the GHG protocol and using the
methodology set out in Defra’s Environmental
Reporting Guidelines, by reference to the
Groups total emissions in financial year 2019/20
as the clearest measure of our progress to
achieving net zero emissions by 2040.
Performance in 2021/22
[xx.]
Changes to KPIs
Net Zero by 2040 (scope 1 & 2 tonnes CO
2
e) and tonnes of electrical reuse and recycling have been added as sustainability is a
central part of our vision. Wehave also pivoted to LFL Revenue growth from our previous LFL Electricals Revenue growth KPI following
consolidation of the previously disclosed UK & Ireland Electricals and UK & Ireland Mobile reportable segments as mobile is no
longer reported separately.
Non-Financial
What we measure and why its key
Market share is the clearest indicator that the proposition we are delivering to customers is more
appealing than the competition. Market share is defined as the Group's product sales relative to
total consumer sales of technology products in each market.
Performance in 2021/22
In the UK we gained 0.9% of market share as stores remained open. Compared to two years ago
we have gained 2ppts share in both store and online markets, but overall share declined as the
market shifts online.
Increased competitive pressure on price and availability across the Nordics meant that sales
underperformed the market but we remain market leader in all regions.
What we measure and why its key
Customer satisfaction a key indicator how
we’re performing. NPS is the % of Promoters
minus Critics answering the question ‘How likely
are you to recommend Currys.com to a friend
or colleague?’
Performance in 2021/22
NPS improved 2.3 points in UK & Ireland which
more than offset the marginal decline in
Nordics and Greece.
What we measure and why its key
Tonnes of e-waste collected across our Group
for reuse or recycling is a key indicator of our
progress in creating circular business models
and reducing the impact that used electronics
have on the environment. It is the sum of all
electronics received via trade-in and recycling
services from customers.
Performance in 2021/22
Tonnes of electricals reused and recycling was
declined marginally year on year.
Approval of Strategic Report
This Strategic Report was approved by the
Board and signed on its behalf by:
Alex Baldock
Group Chief Executive
6 July 2022
What we measure and why its key
Our capable and committed colleagues are
our greatest advantage. Keeping colleagues
engaged drives better experiences for
customers.
Our Employee Satisfaction measure is
measured through our colleague’s response
to the question ‘How happy are you working
at Currys?’ and forms just one part of our
employee engagement survey that enables
our colleagues to provide honest and
open feedback.
Performance in 2021/22
Employee engagement increased 9 points as
investment in training, wellbeing and reward
drove a significant increase in the number of
employees who are happy working for Currys in
UK & Ireland, Nordics and Greece.
Currys market share
25.6%
Net Promoter Score
(“NPS”)
+66
Colleague
Engagement
+77
Nordics market share
25.9%
Net Zero by 2040 (scope 1 & 2
tonnes CO
2
e)
[26.8]%
Tonnes of electrical reuse
and recycling
103k
66 Currys plc Annual Report & Accounts 2021/22
Performance review
2021/22
Group sales were +2% higher than last year, as +12% growth in our Electricals business was
offset by the anticipated decline in Mobile sales. Adjusted EBIT grew +22% as UK & Ireland
Electricals and Nordics grew profits, offset by a small decline in Greece and large operating
losses in UK & Ireland Mobile.
Segmental free cash flow more than tripled to £497m, because of large working capital inflow in UK & Ireland Mobile more than
offsetting the operating losses and restructuring costs. Total free cash flow was £438m which after pension and other payments
generated cash flow of £373m, improving the year end position to net cash of £169m.
Income statement
2021/22
£m
2020/21
£m
Reported
% change
Currency
neutral
% change
Revenue 10,344 10,170 2% 1%
Adjusted EBITDA 598 556 8% 7%
Adjusted EBITDA margin 5.8% 5.4% 40 bps 40 bps
Depreciation on right-of-use assets (200) (217)
Depreciation on other assets (79) (81)
Amortisation (57) (44)
Adjusted EBIT 262 214 22% 22%
Adjusted EBIT margin 2.5% 2.1% 40 bps
Interest on right-of-use assets (77) (80)
Finance income 6 10
Adjusted finance costs (35) (28)
Adjusted PBT 156 116 34% 34%
Adjusted PBT margin 1.5% 1.1% 40 bps 40 bps
Adjusted tax (33) (38)
Adjusted Profit after tax 123 78
Adjusted EPS 10.7p 6.7p
Statutory reconciliation
Adjusting items to EBITDA (89) (217)
Statutory EBITDA 509 339
Adjusting items to depreciation and amortisation (26) (25)
Statutory EBIT 147 (28) 625% 603%
EBIT Margin 1.4% (0.3)% 170 bps 170 bps
Adjusting items to finance costs (8) (14)
Statutory PBT 33 (140)
Adjusting items to tax – 17
Discontinued operations 12 (2)
Profit/(loss) after tax 12 (163)
EPS – total 1.0p (14.1)p
67
Governance
Financial Statements
Investor information
Strategic Report
Cash flow
2021/22
£m
2020/21
£m
Reported
% change
Currency
neutral
% change
Adjusted EBITDAR 611 596 3% 5%
Adjusted EBITDAR margin 5.9% 5.8% 10 bps 30 bps
Cash payments of leasing costs, debt and interest
(1)
(288) (324)
Other non-cash items in EBIT 15 27
Operating cash flow
(1)
338 299 13% 18%
Operating cash flow margin 3.3% 2.9% 40 bps
Capital expenditure (122) (191) 36%
Adjusting items to cash flow
(1)
(173) (94) (84)%
Free cash flow before working capital 43 14
Working capital 454 141
Segmental free cash flow 497 155 221% 232%
Cash tax paid (35) (20)
Cash interest paid (24) (26)
Free cash flow 438 109 302% 324%
Dividend – (78)
Purchase of own shares (13) (12)
Pension (47) (46)
Other (5) 5
Movement in net cash/(debt) 373 (22)
Net cash/(debt) 169 (204)
(1) Cash payments of leasing costs, debt and interest have been revised to exclude non-trading stores, which is now included within adjusting items to cash flow. As such,
results for the year ended 2 May 2020 have been restated. The non-trading stores relate to the remaining closed stores under the Currys PCWorld 3-in-1 and Carphone
Warehouse programme announced in 2015/16 and closed standalone UK Carphone Warehouse stores as announced on 17th March 2020.
Online Share of Business 2021/22 2020/21 YoY (%pts)
UK & Ireland Electricals 69% 35% +34%
International 28% 18% +10%
– Nordics 29% 19% +10%
– Greece 21% 8% +13%
Electricals 49% 27% +22%
68 Currys plc Annual Report & Accounts 2021/22
Performance review
2021/22 continued
Income statement
2021/22
£m
2020/21
£m
Reported
% change
Currency
neutral
% change
Revenue 4,921 4,538 8% 8%
Adjusted EBITDA 393 344 14% 14%
Adjusted EBITDA margin 8.0% 7.6% 40 bps
Depreciation on right-of-use assets (104) (111)
Depreciation on other assets (42) (4 4)
Amortisation (38) (25)
Adjusted EBIT 209 164 27% 27%
Adjusted EBIT margin 4.2% 3.6% 60 bps
Adjusting items to EBIT (131) (4 5)
Statutory EBIT 78 119 (34)% (34)%
Statutory EBIT margin 1.6% 2.6% (100) bps
Cash flow
Adjusted EBITDAR 401 368 9%
Adjusted EBITDAR margin 8.1% 8.1% –bps
Cash payments of leasing costs, debt and interest
(1)
(155) (170)
Other non-cash items in EBIT – 12
Operating cash flow
(1)
246 210 17% 22%
Operating cash flow margin 5.0% 4.6% 40 bps
Capital expenditure (59) (106) 44%
Adjusting items to cash flow
(1)
(63) (4 6) (37)%
Free cash flow before working capital 124 58
Working capital 3 34
Segmental free cash flow 127 92 38% 36%
(1) Cash payments of leasing costs, debt and interest have been revised to exclude non-trading stores, which is now included within adjusting items to cash flow.
As such, results for the year ended 2 May 2020 have been restated. The non-trading stores relate to the remaining closed stores under the Currys PCWorld
3-in-1 and Carphone Warehouse programme announced in 2015/16.
UK and Ireland Electricals
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porta. Nullam blandit elit pulvinar felis
condimentum, quis aliquam arcu tempor.
Morbi quis erat eu lectus fermentum mollis.
Vestibulum eu augue sodales, maximus
arcu in, commodo ligula.
Curabitur velit elit, tincidunt sit amet
finibus eu, semper facilisis risus. Etiam vel
dolor nec risus vulputate vestibulum. In
id auctor augue. Nulla rhoncus dolor ut
metus egestas feugiat. Etiam tincidunt mi
urna, sit amet gravida erat pellentesque
vitae. Aliquam et condimentum urna.
Subhead level 2
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Mauris interdum lectus nulla, a elementum
nisi ultrices id. Integer leo erat, vestibulum
ut congue nec, sagittis ac odio. In
placerat, eros non rutrum facilisis, lectus
metus commodo odio, quis congue odio
nunc id felis. Nunc vestibulum odio ut erat
tincidunt placerat. Curabitur tellus mi,
luctus sit amet iaculis in, dapibus et nulla.
Etiam laoreet mollis nibh eu accumsan.
Proin vitae leo nec ante sollicitudin
interdum. Etiam magna dolor, rutrum nec
tempus non, accumsan vitae. Maecenas
volutpat bibendum mi, ac posuere
eros ornare sed. Sed hendrerit vehicula
turpis eget commodo. Proin odio purus,
dignissim sed condimentum condimentum,
scelerisque ut sem. Nullam eu felis
imperdiet velit lacinia bibendum eu sed
tellus. Ut nec efficitur eros.
Subhead Level 1
Curabitur nibh urna, maximus vitae
fermentum ut, aliquam varius sapien.
Ut auctor elit et gravida iaculis.
Phasellus porttitor nisi nec massa mattis
ullamcorper. Integer cursus porttitor
urna, Etiam vel turpis nec elit elementum
tristique. Ut lacinia justo non odio rhoncus,
in ullamcorper metus varius. Phasellus
non hendrerit est. Duis sed odio pulvinar,
aliquet turpis sed, dictum sapien.
TABLE CONTENT TO BE
SUPPLIED
69
Governance
Financial Statements
Investor information
Strategic Report
Subhead level 2
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nisi ultrices id. Integer leo erat, vestibulum
ut congue nec, sagittis ac odio. In
placerat, eros non rutrum facilisis, lectus
metus commodo odio, quis congue odio
nunc id felis. Nunc vestibulum odio ut erat
tincidunt placerat. Curabitur tellus mi,
luctus sit amet iaculis in, dapibus et nulla.
Etiam laoreet mollis nibh eu accumsan.
Proin vitae leo nec ante sollicitudin
interdum. Etiam magna dolor, rutrum nec
tempus non, accumsan vitae.
Maecenas volutpat bibendum mi, ac
posuere eros ornare sed. Sed hendrerit
vehicula turpis eget commodo. Proin
odio purus, dignissim sed condimentum
condimentum, scelerisque ut sem.
Subhead Level 1
Mauris tempor odio ac facilisis convallis.
Mauris interdum lectus nulla, a elementum
nisi ultrices id. Integer leo erat, vestibulum
ut congue nec, sagittis ac odio. In
placerat, eros non rutrum facilisis, lectus
metus commodo odio, quis congue odio
nunc id felis. Nunc vestibulum odio ut erat
tincidunt placerat. Curabitur tellus mi,
luctus sit amet iaculis in, dapibus et nulla.
Etiam laoreet mollis nibh eu accumsan.
Proin vitae leo nec ante sollicitudin
interdum. Etiam magna dolor, rutrum nec
tempus non, accumsan vitae.
Maecenas volutpat bibendum mi, ac
posuere eros ornare sed. Sed hendrerit
vehicula turpis eget commodo. Proin
odio purus, dignissim sed condimentum
condimentum, scelerisque ut sem.
2020/21 2019/20
P&L Cash P&L Cash
Acquisition/disposal related items (14) – (14) –
Strategic change programmes (21) (51) (13) (41)
Data incident costs – (1) – (5)
Impairment losses and onerous contracts (100) (16) (18) –
Regulatory (1) – – –
Other 5 5 – –
Total (131) (63) (4 5) (46)
Maecenas volutpat bibendum mi, ac posuere eros ornare sed. Sed hendrerit vehicula turpis eget commodo. Proin odio purus,
dignissim sed condimentum condimentum, scelerisque ut sem. Nullam eu felis imperdiet velit lacinia bibendum eu sed tellus. Ut nec
efficitur eros.
Mauris tempor odio ac facilisis convallis.
Mauris interdum lectus nulla, a elementum
nisi ultrices id. Integer leo erat, vestibulum
ut congue nec, sagittis ac odio. In
placerat, eros non rutrum facilisis, lectus
metus commodo odio, quis congue odio
nunc id felis. Nunc vestibulum odio ut erat
tincidunt placerat. Curabitur tellus mi,
luctus sit amet iaculis in, dapibus et nulla.
Etiam laoreet mollis nibh eu accumsan.
Proin vitae leo nec ante sollicitudin
interdum. Etiam magna dolor, rutrum nec
tempus non, accumsan vitae.
Duis sed odio
pulvinar, aliquet
turpis sed,
dictum sapien.
12%
CONTENT TO BE SUPPLIED
TABLE CONTENT TO BE
SUPPLIED
70 Currys plc Annual Report & Accounts 2021/22
Subhead Level 1
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porta. Nullam blandit elit pulvinar felis
condimentum, quis aliquam arcu tempor.
Morbi quis erat eu lectus fermentum mollis.
Vestibulum eu augue sodales, maximus
arcu in, commodo ligula.
Curabitur velit elit, tincidunt sit amet
finibus eu, semper facilisis risus. Etiam vel
dolor nec risus vulputate vestibulum. In
id auctor augue. Nulla rhoncus dolor ut
metus egestas feugiat. Etiam tincidunt mi
urna, sit amet gravida erat pellentesque
vitae. Aliquam et condimentum urna.
Subhead level 2
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Mauris interdum lectus nulla, a elementum
nisi ultrices id. Integer leo erat, vestibulum
ut congue nec, sagittis ac odio. In
placerat, eros non rutrum facilisis, lectus
metus commodo odio, quis congue odio
nunc id felis. Nunc vestibulum odio ut erat
tincidunt placerat. Curabitur tellus mi,
luctus sit amet iaculis in, dapibus et nulla.
Etiam laoreet mollis nibh eu accumsan.
Proin vitae leo nec ante sollicitudin
interdum. Etiam magna dolor, rutrum nec
tempus non, accumsan vitae.
Maecenas volutpat bibendum mi, ac
posuere eros orodio purus, dignissim sed
condimentum condimentum, scelerisque ut
sem. Nullam eu felis imperdiet velit lacinia
bibendum eu sed tellus. Ut nec efficitur
eros.
Subhead Level 1
Curabitur nibh urna, maximus vitae
fermentum ut, aliquam varius sapien.
Ut auctor elit et gravida iaculis.
Phasellus porttitor nisi nec massa mattis
ullamcorper. Integer cursus porttitor urna,
tristique. Ut lacinia justo non odio rhoncus,
in ullamcorper metus varius. Phasellus
non hendrerit est. Duis sed odio pulvinar,
aliquet turpis sed, dictum sapien.
Income statement
2021/22
£m
2020/21
£m
Reported
% change
Currency
neutral
% change
Revenue 4,186 3,573 17% 15%
Adjusted EBITDA 267 240 11% 11%
Adjusted EBITDA margin 6.4% 6.7% (30) bps
Depreciation on right-of-use assets (77) ( 74)
Depreciation on other assets (27) (25)
Amortisation (12) (15)
Adjusted EBIT 151 126 20% 20%
Adjusted EBIT margin 3.6% 3.5% 10 bps
Adjusting items to EBIT (12) (11)
Statutory EBIT 139 115 21% 23%
Statutory EBIT margin 3.3% 3.2% 10 bps
Cash flow
Adjusted EBITDAR 271 248 9%
Adjusted EBITDAR margin 6.5% 6.9% (40) b p s
Cash payments of leasing costs, debt and interest (100) (91)
Other non-cash items in EBIT 5 5
Operating cash flow 176 162 9% 7%
Operating cash flow margin 4.2% 4.5% (30) bps
Capital expenditure (52) (63) 17%
Adjusting items to cash flow – – –
Free cash flow before working capital 124 99
Working capital 64 117
Segmental free cash flow 188 216 (13)% (11)%
Nordics
[Etiam purus ex, tempus in tellus nec, lobortis pulvinar turpis. Nam ut ex sed arcu laoreet
congue. Mauris augue urna, aliquam suscipit elementum at, mollis at urna. Donec pharetra
quam at tempus varius. Fusce scelerisque, nisl nec dictum fringilla.]
Performance review
2021/22 continued
TABLE CONTENT TO BE
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71
Governance
Financial Statements
Investor information
Strategic Report
Subhead level 2
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nisi ultrices id. Integer leo erat, vestibulum
ut congue nec, sagittis ac odio. In
placerat, eros non rutrum facilisis, lectus
metus commodo odio, quis congue odio
nunc id felis. Nunc vestibulum odio ut erat
tincidunt placerat. Curabitur tellus mi,
luctus sit amet iaculis in, dapibus et nulla.
Etiam laoreet mollis nibh eu accumsan.
Proin vitae leo nec ante sollicitudin
interdum. Etiam magna dolor, rutrum nec
tempus non, accumsan vitae.Maecenas
volutpat bibendum mi, ac posuere
eros ornare sed. Sed hendrerit vehicula
turpis eget commodo. Proin odio purus,
dignissim sed condimentum condimentum,
scelerisque ut sem. Nullam eu felis
imperdiet velit lacinia bibendum eu sed
tellus. Ut nec efficitur eros.
Subhead Level 1
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vehicula erat. Morbi vel orci vehicula,
luctus mi vitae, fermentum sapien.
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blandit eu ac sem. Morbi lobortis enim a
tortor dictum blandit. Fusce vel metus nisl.
Mauris iaculis convallis vulputate.
Maecenas volutpat bibendum mi, ac
posuere eros ornare sed. Sed hendrerit
vehicula turpis eget commodo. Proin
odio purus, dignissim sed condimentum
condimentum, scelerisque ut sem. Nullam
eu felis imperdiet velit lacinia bibendum
eu sed tellus. Ut nec efficitur eros.
Donec volutpat lectus vitae massa
vehicula bibendum. Maecenas
condimentum magna nec arcu
ullamcorper maximus. Pellentesque
habitant morbi tristique senectus et netus
et malesuada fames ac turpis egestas.
Subhead level 2
Mauris tempor odio ac facilisis convallis.
Mauris interdum lectus nulla, a elementum
nisi ultrices id. Integer leo erat, vestibulum
ut congue nec, sagittis ac odio. In
placerat, eros non rutrum facilisis, lectus
metus commodo odio, quis congue odio
nunc id felis. Nunc vestibulum odio ut erat
tincidunt placerat. Curabitur tellus mi,
luctus sit amet iaculis in, dapibus et nulla.
Etiam laoreet mollis nibh eu accumsan.
Proin vitae leo nec ante sollicitudin
interdum. Etiam magna dolor, rutrum nec
tempus non, accumsan vitae.
Duis sed odio
pulvinar, aliquet
turpis sed,
dictum sapien.
12%
Duis sed odio
pulvinar, aliquet
turpis sed,
dictum sapien.
12%
CONTENT TO BE SUPPLIED
72 Currys plc Annual Report & Accounts 2021/22
6
75%
2
25%
6
75%
2
25%
1
12.5%
1
12.5%
6
75%
4
66.7%
2
33.3%
Compliance with the UK Corporate Governance Code 2018
The Board confirms that throughout the year ended 30 April
2022 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 matters can be found as follows:
Board leadership and company purpose Page [xx]
Division of responsibilities Page [xx]
Composition, succession and evaluation Page [xx]
Audit, risk and internal control Page [xx]
Remuneration Page [xx]
Governance
at a Glance
Board attendance
Directors Meetings attended Directors Meetings attended
Lord Livingston of Parkhead
Eileen Burbidge MBE
Tony DeNunzio
Fiona McBain
(2)
Alex Baldock
Gerry Murphy
Bruce Marsh
(1)
Nigel Paterson
Andrea Gisle Joosen
(1) Bruce has attended all Board meetings since his appointment on 12 July 2021. He attended a Board meeting as an observer prior to his appointment.
(2) Fiona was absent from two meetings due to illness.
Female
Male
Executive
Non-Executive
0–3 years
3–6 years
Over 6 years
Dual nationality UK/US
Swedish
UK
Board composition
Board diversity by gender Balance of the Board Non-executive director tenure Director Nationality
73
Governance
Financial Statements
Investor information
Strategic Report
Board highlights from 2021/22
• approved Three-Year Plan
• reviewed the strategic plans for Credit, Mobile and Services
• considered partial listing of the Nordics business and decided not to proceed
• appointed a new Chair of the Board from September 2022
• UK&I Commercial Trading deep dive
• approved the decisions to outsource logistics in UK and establish a new distribution centre in Nordics
• received customer experience updates
• received update on colleague listening
• approved the 2023-25 People Plan and priorities
• visited the Company’s distribution centre in Newark including a site tour and meetiing several colleagues from Supply
Chain and Services Operations
• approved the approach to ESG strategy
• completed an externally facilitated Board evaluation process
• completed a share buy-back and approved the payment of a dividend to shareholders
Board skills and experience
Ian Dyson
Chair
Ian will join the Board as a non-executive
director on 1 September 2022. He
will become Chair of the Board and
Nominations Committee on 8 September
2022.
Ian has more than 20 years of experience
in the public market arena and has
held both executive and non-executive
directorships at FTSE 100 and FTSE 250
companies. He was group finance and
operations director at Marks & Spencer
Group plc from 2005 to 2021 before
becoming chief executive of Punch Taverns
plc in 2010. Before that, Ian was group
finance director of Rank Group Plc and was
formerly non-executive director and chair
of the audit committees of Misys Plc, Flutter
Entertainment plc (formerly Paddy Power
Betfair) and SSP Group plc.
Directors
Bruce Marsh
Alex Baldock
Gerry Murphy
Fiona McBain
Andrea Gisle
Joosen
Tony DeNunzio
Eileen Burbidge
Ian Livingston
General retailing
experience
Online retailing
experience
Strategy
(development and
implementation)
Accounting, finance
and audit
Corporate
transactions
Risk management
Governance
Regulatory
Human Resources
Management
IT and technology
Marketing/advertising
Consumer Financial
Services
Current executive
leadership
International
Gender
Ethnic
CONTENT TO BE
CONFIRMED- CD
AWAITING IMAGE
74 Currys plc Annual Report & Accounts 2021/22
Board of
Directors
CC C
Lord Livingston
of Parkhead (57)*
Chair of the Board
Tony DeNunzio
CBE (62)
Deputy Chair and
Senior Independent
Director
Alex Baldock (51)
Group Chief Executive
Bruce Marsh (54)
Group Chief
Financial Officer
Andrea Gisle
Joosen (58)
Independent
Non-Executive Director
Eileen Burbidge
MBE (51)
Independent
Non-Executive Director
Fiona McBain (61)
Independent
Non-Executive Director
Gerry Murphy (69)
Independent
Non-Executive Director
Nigel Paterson (55)
General Counsel and
Company Secretary
Appointed
December 2015 (as Deputy
Chair and Non-Executive
Director)
April 2017 (as Chair of the
Board and Chair of the
Nominations Committee)
December 2015 (as Senior
Independent Director and
Non-Executive Director)
April 2017 (as Deputy
Chair, Senior Independent
Director and Chair of the
Remuneration Committee)
April 2018 July 2021 August 2014 (having served
on the Dixons Retail board
since March 2013)
January 2019 March 2017 (as a
Non-Executive Director)
September 2018 (as Chair
of the Audit Committee)
April 2014 April 2015
Current
external
roles
Member of the House
of Lords, Non-Executive
Director of National Grid
plc, Non-Executive Director
of S&P Global Inc, and
Strategic Advisory Board
member of Livingbridge.
Chairman of the British
Retail Consortium,
Chairman of Evri UK, Senior
Adviser at Kohlberg, Kravis,
Roberts & Co L.P. and a
Non-Executive Director of
PrimaPrix SL.
Non-Executive Director of
RS Group plc
None. Non-Executive Director of
Billerud AB, Bilprovningen
AB, Nu Company GmbH,
and Stadium AB.
HM Treasury Special
Envoy for Fintech, Tech
Ambassador for the Mayor
of London’s office, co-
founder of Passion Capital
in 2011, and a director of
several Passion Capital
portfolio companies
including Monzo Bank
Limited.
Chair of Scottish Mortgage
Investment Trust PLC, Non-
Executive Director of Direct
Line Insurance Group plc
and Monzo Bank Limited.
Non-Executive board
member of the Department
of Health and Social Care.
None.
Skills and
experience
Skills: Ian is a chartered
accountant with over
twenty years’ board
level experience. He is an
experienced chair, chief
financial officer and
non-executive director of
public listed companies. Ian
has a strong track record
of successfully growing
complex businesses and
overseeing transformation
programmes. He is a diligent,
conscientious Chair and is
valued for both his extensive
knowledge and experience
and his effective leadership
of the Board.
Experience: Ian was
Chairman of Man Group
plc from 2016 to 2019,
Minister of State for Trade
and Investment from 2013
to 2015 and Chief Executive
Officer at BT Group plc
from 2008 to 2013. Prior to
that he was Chief Executive
Officer, BT Retail and Group
Chief Financial Officer of
BT. He was Group Finance
Director of Dixons Group plc
between 1996 and 2002,
having served in a number
of roles over more than a
decade with the Group.
Skills: Tony has extensive
experience in the European
retail and consumer goods
sectors in finance, CEO and
chairman roles.
Experience: Tony was
Non-Executive Chairman
of Pets at Home Group Plc
from February 2014 to May
2020 and President and
Chief Executive Officer of
Asda / Walmart UK from
2002 to 2005, having
previously served as
Chief Financial Officer of
Asda PLC. He started his
career in the fast-moving
consumer goods sector
with financial positions in
Unilever PLC, L’Oréal and
PepsiCo, Inc. He was also
previously Non-Executive
Director of Alliance
Boots GmbH, Chairman
of Maxeda Retail Group
BV, and Deputy Chairman
and Senior Independent
Director of MFI Furniture
Group plc (now Howden
Joinery Group Plc). He was
Chairman of the advisory
board of Manchester
Business School and was
awarded a CBE for services
to retail in 2005.
Skills: Alex has an
outstanding track record
in leading large, complex
consumer-facing businesses.
He led Shop Direct through
its digital transformation
from a catalogue retailer
to the UK’s second largest
e-commerce pureplay,,
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 and his
ability to inspire individuals
around him.
Experience: Alex has been
Group Chief Executive of
Currys since 2018 and was
CEO of Shop Direct, now
the Very Group (2012-18).
Before that, Alex was
Managing Director of
Lombard (2008-12), and
Commercial Director at
Barclays. He started his
career in strategy and
operations consulting
with Kalchas and Bain &
Company..
Skills: Bruce has a strong
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 was
Finance Director, UK &
Ireland, at Tesco plc prior
to joining Currys. Before that
Bruce was at Kingfisher plc,
where he was Managing
Director of Kingfisher Future
Homes and Group Strategy
Director. Previously, Bruce
held several senior finance
roles at Currys plc.
Skills: Andrea has extensive
international business
experience in a variety of
sectors including marketing,
brand management,
business development and
consumer electronics.
Experience: Andrea was
Chair of Teknikmagasinet
AB, a Non-Executive
Director of Acast AB,
Lighthouse Group, ICA
Gruppen AB, James
Hardie Industries plc and
BillerudKorsnäs AB. She was
Chief Executive of Boxer TV
Access AB in Sweden and
Managing Director (Nordic
region) of Panasonic,
Chantelle AB and Twentieth
Century Fox. Her early
career involved several
senior marketing roles with
Procter & Gamble and
Johnson & Johnson.
Skills: Eileen has a strong
technology background
and is a leader in the
development of the UK’s
increasingly renowned
fintech industry. Eileen
brings a constructive,
challenging, and balanced
perspective to the Board
including a focus on
technology innovation,
value creation and an
informed perspective on
the digital consumer.
Experience: Eileen has
a university degree in
computer science and
since beginning her career
in telecoms at Verizon
Wireless, she has held
various roles at Apple, Sun
Microsystems, Openwave,
PalmSource, Skype
and Yahoo!. Eileen was
previously a member of
the Prime Minister’s Business
Advisory Group and
chair of Tech Nation, a UK
Government-supported
technology industry group.
Skills: Fiona is a chartered
accountant and has over
30 years’ experience in
retail financial services,
both in the industry and
as an auditor. She has
an outstanding record
of business leadership
and is an experienced
CEO and chair.
Experience: Fiona was
Vice-Chair of Save the
Children from 2012 to 2019
and Trustee Director of the
Humanitarian Leadership
Academy from 2015 to
2019. Fiona was Chief
Executive Officer of
Scottish Friendly Group until
December 2016, having
joined the company in
1998. She has worked in
the finance functions at
Prudential plc and Scottish
Amicable and earlier in her
career, across a number
of industry sectors in the
UK and then in the US with
Arthur Young (now EY).
Skills: Gerry has extensive
audit and finance
experience in consumer
business, retail, technology,
media and communications
sectors.
Experience: Gerry was
a Non-Executive Director
of Capital & Counties
Properties PLC from 2015
to 2018 and the Senior
Independent Director
from 2018 to 2020. Gerry
is a former Deloitte LLP
partner and was leader of
its Professional Practices
Group with direct industry
experience in consumer
business, retail and
technology, media and
telecommunications.
He was a member of
the Deloitte Board and
Chairman of its audit
committee for a number of
years and was Chairman
of the Audit & Assurance
Faculty of the Institute of
Chartered Accountants in
England and Wales.
Skills: Nigel is a solicitor
and has extensive legal,
risk and governance
experience and 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.
* Ian will step down from the Board on 8 September 2022.
75
Governance
Financial Statements
Investor information
Strategic Report
Committee Membership
Audit Committee Disclosure Committee Nominations Committee Remuneration Committee
C
Committee Chair
C
Lord Livingston
of Parkhead (57)*
Chair of the Board
Tony DeNunzio
CBE (62)
Deputy Chair and
Senior Independent
Director
Alex Baldock (51)
Group Chief Executive
Bruce Marsh (54)
Group Chief
Financial Officer
Andrea Gisle
Joosen (58)
Independent
Non-Executive Director
Eileen Burbidge
MBE (51)
Independent
Non-Executive Director
Fiona McBain (61)
Independent
Non-Executive Director
Gerry Murphy (69)
Independent
Non-Executive Director
Nigel Paterson (55)
General Counsel and
Company Secretary
Appointed
December 2015 (as Deputy
Chair and Non-Executive
Director)
April 2017 (as Chair of the
Board and Chair of the
Nominations Committee)
December 2015 (as Senior
Independent Director and
Non-Executive Director)
April 2017 (as Deputy
Chair, Senior Independent
Director and Chair of the
Remuneration Committee)
April 2018 July 2021 August 2014 (having served
on the Dixons Retail board
since March 2013)
January 2019 March 2017 (as a
Non-Executive Director)
September 2018 (as Chair
of the Audit Committee)
April 2014 April 2015
Current
external
roles
Member of the House
of Lords, Non-Executive
Director of National Grid
plc, Non-Executive Director
of S&P Global Inc, and
Strategic Advisory Board
member of Livingbridge.
Chairman of the British
Retail Consortium,
Chairman of Evri UK, Senior
Adviser at Kohlberg, Kravis,
Roberts & Co L.P. and a
Non-Executive Director of
PrimaPrix SL.
Non-Executive Director of
RS Group plc
None. Non-Executive Director of
Billerud AB, Bilprovningen
AB, Nu Company GmbH,
and Stadium AB.
HM Treasury Special
Envoy for Fintech, Tech
Ambassador for the Mayor
of London’s office, co-
founder of Passion Capital
in 2011, and a director of
several Passion Capital
portfolio companies
including Monzo Bank
Limited.
Chair of Scottish Mortgage
Investment Trust PLC, Non-
Executive Director of Direct
Line Insurance Group plc
and Monzo Bank Limited.
Non-Executive board
member of the Department
of Health and Social Care.
None.
Skills and
experience
Skills: Ian is a chartered
accountant with over
twenty years’ board
level experience. He is an
experienced chair, chief
financial officer and
non-executive director of
public listed companies. Ian
has a strong track record
of successfully growing
complex businesses and
overseeing transformation
programmes. He is a diligent,
conscientious Chair and is
valued for both his extensive
knowledge and experience
and his effective leadership
of the Board.
Experience: Ian was
Chairman of Man Group
plc from 2016 to 2019,
Minister of State for Trade
and Investment from 2013
to 2015 and Chief Executive
Officer at BT Group plc
from 2008 to 2013. Prior to
that he was Chief Executive
Officer, BT Retail and Group
Chief Financial Officer of
BT. He was Group Finance
Director of Dixons Group plc
between 1996 and 2002,
having served in a number
of roles over more than a
decade with the Group.
Skills: Tony has extensive
experience in the European
retail and consumer goods
sectors in finance, CEO and
chairman roles.
Experience: Tony was
Non-Executive Chairman
of Pets at Home Group Plc
from February 2014 to May
2020 and President and
Chief Executive Officer of
Asda / Walmart UK from
2002 to 2005, having
previously served as
Chief Financial Officer of
Asda PLC. He started his
career in the fast-moving
consumer goods sector
with financial positions in
Unilever PLC, L’Oréal and
PepsiCo, Inc. He was also
previously Non-Executive
Director of Alliance
Boots GmbH, Chairman
of Maxeda Retail Group
BV, and Deputy Chairman
and Senior Independent
Director of MFI Furniture
Group plc (now Howden
Joinery Group Plc). He was
Chairman of the advisory
board of Manchester
Business School and was
awarded a CBE for services
to retail in 2005.
Skills: Alex has an
outstanding track record
in leading large, complex
consumer-facing businesses.
He led Shop Direct through
its digital transformation
from a catalogue retailer
to the UK’s second largest
e-commerce pureplay,,
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 and his
ability to inspire individuals
around him.
Experience: Alex has been
Group Chief Executive of
Currys since 2018 and was
CEO of Shop Direct, now
the Very Group (2012-18).
Before that, Alex was
Managing Director of
Lombard (2008-12), and
Commercial Director at
Barclays. He started his
career in strategy and
operations consulting
with Kalchas and Bain &
Company..
Skills: Bruce has a strong
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 was
Finance Director, UK &
Ireland, at Tesco plc prior
to joining Currys. Before that
Bruce was at Kingfisher plc,
where he was Managing
Director of Kingfisher Future
Homes and Group Strategy
Director. Previously, Bruce
held several senior finance
roles at Currys plc.
Skills: Andrea has extensive
international business
experience in a variety of
sectors including marketing,
brand management,
business development and
consumer electronics.
Experience: Andrea was
Chair of Teknikmagasinet
AB, a Non-Executive
Director of Acast AB,
Lighthouse Group, ICA
Gruppen AB, James
Hardie Industries plc and
BillerudKorsnäs AB. She was
Chief Executive of Boxer TV
Access AB in Sweden and
Managing Director (Nordic
region) of Panasonic,
Chantelle AB and Twentieth
Century Fox. Her early
career involved several
senior marketing roles with
Procter & Gamble and
Johnson & Johnson.
Skills: Eileen has a strong
technology background
and is a leader in the
development of the UK’s
increasingly renowned
fintech industry. Eileen
brings a constructive,
challenging, and balanced
perspective to the Board
including a focus on
technology innovation,
value creation and an
informed perspective on
the digital consumer.
Experience: Eileen has
a university degree in
computer science and
since beginning her career
in telecoms at Verizon
Wireless, she has held
various roles at Apple, Sun
Microsystems, Openwave,
PalmSource, Skype
and Yahoo!. Eileen was
previously a member of
the Prime Minister’s Business
Advisory Group and
chair of Tech Nation, a UK
Government-supported
technology industry group.
Skills: Fiona is a chartered
accountant and has over
30 years’ experience in
retail financial services,
both in the industry and
as an auditor. She has
an outstanding record
of business leadership
and is an experienced
CEO and chair.
Experience: Fiona was
Vice-Chair of Save the
Children from 2012 to 2019
and Trustee Director of the
Humanitarian Leadership
Academy from 2015 to
2019. Fiona was Chief
Executive Officer of
Scottish Friendly Group until
December 2016, having
joined the company in
1998. She has worked in
the finance functions at
Prudential plc and Scottish
Amicable and earlier in her
career, across a number
of industry sectors in the
UK and then in the US with
Arthur Young (now EY).
Skills: Gerry has extensive
audit and finance
experience in consumer
business, retail, technology,
media and communications
sectors.
Experience: Gerry was
a Non-Executive Director
of Capital & Counties
Properties PLC from 2015
to 2018 and the Senior
Independent Director
from 2018 to 2020. Gerry
is a former Deloitte LLP
partner and was leader of
its Professional Practices
Group with direct industry
experience in consumer
business, retail and
technology, media and
telecommunications.
He was a member of
the Deloitte Board and
Chairman of its audit
committee for a number of
years and was Chairman
of the Audit & Assurance
Faculty of the Institute of
Chartered Accountants in
England and Wales.
Skills: Nigel is a solicitor
and has extensive legal,
risk and governance
experience and 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.
76 Currys plc Annual Report & Accounts 2021/22
Directors’ Report
Directors
The names, biographies, committee memberships and dates of
appointment of each member of the Board are provided on
pages [x] and [x]. During the year, Jonny Mason stepped down
as a director on 9 July 2021 and Bruce Marsh was appointed as
an executive director and the Group Chief Financial Officer with
effect from 12 July 2021. On 8 September 2022, Ian Livingston will
step down from the Board and Ian Dyson will be appointed as
Chair of the Board and Nominations Committee.
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 re-election are being unanimously recommended for
their skills, experience and the contribution they can 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.
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 at 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 [x].
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 [x] to [x]. There is no further information required to be
disclosed under Listing Rule 9.8.4R.
Dividend
The Board has proposed a final dividend for the year ended
30 April 2022. Details of the final and interim dividends for the
year are included in the below table.
As at 6 July 2022, the Company’s Employee Benefit Trust (‘EBT’)
held [xxx,xxx,xxx] shares. The right to receive the final dividend
for 2021/22 will be waived by the trustees of the EBT in respect
of the balance of shares held as at the dividend record date on
[XX] September 2022.
Year ended
30 April 2022
Year ended
1 May 2021
Interim dividend 1.00p Nil
Final dividend [X.00p] Nil
Full year dividend Nil 3.00p
Total dividends [ X.00p] 3.00p
Colleague involvement
The Group has a robust 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 regular
meetings with line managers. The members of the Executive
Committee regularly communicate matters of current interest and
concern to colleagues. There are colleague forums in place in
UK and Ireland and an International Forum has been established
representing all other countries in the Group as the centre of
a colleague listening framework. This ensures that colleague
feedback is received effectively and consistently across all
countries that the Group operates in. This forum supports various
initiatives and more details are available on page [x]. Details
of the colleagues’ involvement in the Group’s share plans are
disclosed in the Remuneration Report on pages [x] to [x].
The Directors’ Report required by the Companies Act 2006 (the ‘Act’), the corporate
governance statement as required by DTR 7.2 and the management report required by DTR
4.1 comprises the Strategic Report on pages [x] to [x], the Corporate Governance Report
on pages [x] to [x], together with this Directors’ Report on pages [x] to [x]. All information is
incorporated by reference into this Directors’ Report.
77
Governance
Financial Statements
Investor information
Strategic Report
Employment of disabled people
The business is committed to providing equal opportunities in
recruitment, training, development and promotion. We encourage
applications from individuals with disabilities. All efforts are
made to retain disabled colleagues in our employment, including
making any reasonable re-adjustments to their roles. Every
endeavour is made to find suitable alternative employment
and to re-train 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
page [x]. 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 [x] 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 holds no shares in treasury.
Details of employee share schemes are provided in note [x] to
the Group financial statements. As at 30 April 2022, the EBT held
33,215,940 shares. The EBT acquired 34,667,982 shares by market
purchase during the financial year.
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.
Significant shareholdings
As at 30 April 2022, the Company had been notified of the
following voting interests in the ordinary share capital of the
Company in accordance with Chapter 5 of the FCA’s DTR.
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 136,282,392 11.95%
Artemis Investment Management LLP 88,211,458 7.56%
Cobas Asset Management 69,140,994 6.00%
Wishbone Management LLP 41,500,000 5.25%
Greater Manchester Pension Fund 59,107,872 5.11%
D P J Ross 55,738,699 4.80%
Ruffer 52,373,898 4.62%
Majedie Asset Management 44,288,264 3.80%
Equiniti Trust (Jersey), trustee of the EBT 33,788,905 2.90%
On 10 May 2022, RWC Asset Management LLP disclosed a
holding of 171,500,831 shares or 15.13% and Schroders plc
disclosed a holding of 59,677,996 shares or 5.26%. On 24 May
2022 Cobas Asset Management disclosed a holding of
80,987,739 shares or 7.15%.
[On 6 July 2022, 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 [x].
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 AGM in 2021 shareholders approved a
resolution to give the directors authority to allot shares up to
an aggregate nominal value of £388,819. The directors have no
present intention to issue ordinary shares, other than pursuant
78 Currys plc Annual Report & Accounts 2021/22
Directors’ Report continued
to obligations under employee share schemes. This resolution
remains valid until 30 October 2022 or, if earlier, until the
conclusion of the Company’s AGM in 2022. The Company will
seek the usual renewal of this authority at the 2022 AGM.
Purchase of own shares
Authority was given by the shareholders at the AGM in 2021
to purchase a maximum of 116,645,844 shares, such authority
remaining valid until 30 October 2022 or, if earlier, until the
conclusion of the Company’s AGM in 2022. The authority was
exercised during the year. Following a review of the capital
allocation framework and consideration of the interest of
the Company’s main stakeholder groups, the Board decided
to commence a share buyback programme. On 4 November
2021 the Company announced that £75m of shares would be
repurchased over the following twelve months. 32,963,792 shares
were repurchased between 14 January 2022 and 30 April 2022.
The Company will seek the usual renewal of this authority to
purchase its own shares at the 2022 AGM.
Use of financial instruments
Information about the use of financial instruments is given in note
[x] to the Group financial statements.
Post-balance sheet date events
Events after the balance sheet date are disclosed in note [x] 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 themself 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.
Following a tender process carried out during 2020/21, KPMG
LLP will be appointed as external auditor for the 2022/23
financial year subject to shareholder approval at the
Company’s AGM in September 2022.
Certain information required to be included in this Directors’
Report may be found within the Strategic Report.
By Order of the Board
Nigel Paterson
Company Secretary
6 July 2022
79
Governance
Financial Statements
Investor information
Strategic Report
Corporate Governance Report
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 at
www.currysplc.com/investors.
The Company’s vision, purpose, values and strategy are described
in more detail in the Strategic Report on pages [XX] to [XX]. The
Board oversees the delivery of the strategy within the context of
the values and culture.
Culture
The directors are focused on monitoring the culture in the
business and receive regular updates on the results of colleague
‘Pulse surveys’. All non-executive directors have access to the
Company’s intranet and corporate email addresses and receive
all communications sent to colleagues. In addition, 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 Capital
Markets Day held in November 2021 and the annual Peak event.
This event was held virtually in October 2021 due to Covid-19.
The Board also visit key sites and stores. The March 2022
Board meeting was held at the Company’s main UK distribution
and service centre in Newark and included a site tour and
opportunities for directors to interact directly with supply chain
and services colleagues. One non-executive director attends
Inclusion and Diversity forum meetings and two non-executive
directors attend colleague listening forums. Each of these
forums provide an opportunity for non-executive directors to
hear feedback directly from colleagues and share insights on
corporate culture with the whole Board. A non-executive director
also attends the ESG Committee.
Corporate Governance Framework
The Currys plc Board is supported by four committees:
• Audit Committee – oversees the financial reporting, 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;
• 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.
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. I believe
that robust corporate governance is the foundation to ensuring
the long-term sustainable success of a business and helps us
deliver the right outcomes for our shareholders, our customers,
our colleagues, our suppliers and our communities.
The Board is fully compliant with all provisions of the 2018 UK
Corporate Governance Code (the ‘Code’). We have structured
this report by the Code provisions to help show how we have
applied these in each case.
Chair of the Board statement
I am pleased to present the
Corporate Governance report
for the year to 30 April 2022.
The Board is responsible for the
overall leadership of the Group to
ensure the long-term, sustainable
success of the business.”
Lord Livingston of Parkhead
Chair of the Board
80 Currys plc Annual Report & Accounts 2021/22
Corporate Governance Report continued
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 which consists of eight senior leaders in the business
and also by a wider Group Leadership Team of approximately
80 colleagues who support the Executive Committee in driving
the management agenda.
The Group Risk and Compliance Committee comprises the members
of the Executive Committee and oversees the management of
principal and emerging risks, (see page [XX] for further information),
Audit, Risk and internal Controls. The Environmental, Social
and Governance (‘ESG’) Committee reports into the Executive
Committee. The ESG Committee drives the sustainability, well-being
and social and ethical impact initiatives in the Group including
consideration of the impacts of climate change.
Currys plc is the ultimate beneficial owner of the main operating
subsidiaries in the Group. In UK and Ireland, the Regulatory
Compliance Committee overseas 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 the
International businesses.
Board Reserved Matters
The formal schedule of matters reserved for the decision of
the Board is considered by the directors on an annual basis. This
was last approved on 18 January 2022 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
• Succession and leadership
• Financial and operational performance
• Assessing and managing the impact of Covid-19 on our
colleagues and the business model
• Major capital and IT projects
• Colleague engagement and well-being
• Evaluation of a partial listing of the Nordics business
• Oversight of transformation of the UK&I Contact Centre and
outsource of the UK Logistics contract
• Consideration of refined ESG strategy and enhanced reporting
Updating shareholders on the Company’s Strategy at
November 2021 Capital Markets Day
The Board and Committees Structure
Currys plc Board Audit Committee
Disclosure Committee
Nominations Committee
Remuneration Committee
Executive Committee
Main Operating Subsidiaries
ESG Committee
Group Risk & Compliance Committee
Risk & Regulatory Committee
Product Governance Committee
81
Governance
Financial Statements
Investor information
Strategic Report
Board activities
during 2021/22
Strategy
• Strategy update to investors at
November 2021 Capital Markets Day
• Considered partial listing of the Nordic
business and agreed not to proceed
• Omnichannel Connected Customer
update
• Future Mobile Offer
• Outsource of the UK logistics
• UK&I Credit deep dive
• Customer promises update
• Customer Contact & Support Strategy
update
• Oversight of Group performance against
strategy and delivery of transformation
projects
• ESG Strategy
Financial and operational
performance
• The Company’s Preliminary and Interim
results, trading statements and the
Annual Report
• Going Concern and Viability Statements
• Fair, balanced and understandable
assessment
• Dividend, treasury and tax strategies
• Budget approval
• Three year plan approval
• New banking facility arrangements
approval
• Capex approvals
• International business updates
Committee updates
• Detailed updates from each Committee Chair – Audit, Disclosure, Nominations and
Remuneration – following committee meetings
Stakeholders
Customers
• Customer experience updates and insights • Customer feedback and metrics
• Covid-19 measures in place
Shareholders
• Annual General Meeting documents
• Investor Relations updates and feedback
• Feedback from shareholder consultation
on Directors’ Remuneration Policy
• Dividend approval
• 2022 Share Buyback programme
approval
• 2021 Capital Markets Day
Colleagues
• Annual health and safety review
• Colleague Share Schemes
• Modern slavery update and statement
• 2023-25 people plan and priorities
• Talent, succession planning and
leadership
• Inclusion and diversity update
• Colleague engagement and colleague
listening updates
• Gender pay gap reporting
Communities and Environment
• ESG strategy updates • Partnership with Digital Poverty Alliance
Governance and risk
• Risk framework and internal control review
• Principal risks and uncertainties review
• Risk horizon scanning
• Regulatory Compliance updates
• Litigation and disputes updates
• Insurance review
• Conflicts of Interest & new appointments
• Group Delegation of Authority Policy
• Board Matters Reserved and Committee
Terms of Reference review
• Role descriptions of the Chair of the
Board, the Group Chief Executive and
the Senior Independent Director review
• Externally facilitated Board
effectiveness process completed
82 Currys plc Annual Report & Accounts 2021/22
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 institutional 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 news releases (including results announcements),
investor presentations and Company publications. 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.
A Capital Markets Day was held in November 2021 to update
investors on the strategic progress the Group has made in
creating long-term sustainable value for stakeholders. The
session included updates on the Nordics business, the new
Omnichannel strategy, Sustainability and the financial profile
and capital structure. The event was attended by most of the
Group’s largest shareholders and the presentations and Q&A
from the event are available on currysplc.com
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 questions and
feedback from shareholders.
The Group Chief Executive has principal responsibility for
investor relations. He is supported by a dedicated 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, and the
Chair of the Remuneration Committee communicates with major
shareholders on 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 (‘AGM’) 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 Act. The Board considers the impact on, and the
responsibility it has to, all the Company’s stakeholders as part
of its decision-making. By considering the Company’s strategic
priorities and having processes in place for decision-making,
they do, however, aim to make sure that their decisions are
consistent. 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 consider
the views of our colleagues. Further details are available in the
Colleagues section on pages [XX] to [XX]. 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.
Stakeholder Engagement
Information on how we engage with
stakeholders including our colleagues.
Read more on page [XX].
FURTHER
INFORMATION
Corporate Governance Report continued
83
Governance
Financial Statements
Investor information
Strategic Report
Division of
Responsibilities
Board Structure
The Board is comprised of two executive directors, five
independent non-executive directors and the Chair of the
Board to limit the ability for any individual or small group to
dominate Board decision-making. There is a clear division of
responsibilities between the executive leadership of the business
and the leadership of the Board.
Director responsibilities
In accordance with the Code, there is a clear division of
responsibility between the Chair of the Board and the Group
Chief Executive. Role descriptions are in place for the Chair
of the Board, Group Chief Executive and Senior Independent
Director and the Nominations Committee reviews and considers
these on an annual basis and recommends any changes to the
Board. The role descriptions were last approved by the Board on
18 January 2022 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.
84 Currys plc Annual Report & Accounts 2021/22
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 2021/22 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 [XX].
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. The
directors attended a virtual Board dinner in December 2021 due
to Covid-19 but were able to attend board dinners in person in
September 2021, March 2022 and April 2022.
Board meetings are usually held at the Company’s head
office but were held by videoconference during the Covid-19
pandemic when it was not safe to meet in person. The Board
usually holds meetings at other Group locations from time
to time. This enables directors to visit stores and operational
centres throughout the portfolio and gain a deeper
understanding of the business. The March 2022 Board meeting
was held at the Company’s distribution centre in Newark.
85
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Financial Statements
Investor information
Strategic Report
Composition, Succession
and Evaluation
Board composition and independence
At year end, the Board comprised eight members: the Chair of the
Board, two executive directors and five non-executive directors,
each of whom is determined by the Board to be independent in
character and judgement and who provide effective challenge to
the Board and the business. The Nominations Committee considers
the criteria set out in the Code when considering independence,
as well as contributions made during Board deliberations. These
independent non-executive directors are Tony DeNunzio, Eileen
Burbidge, Andrea Gisle Joosen, Fiona McBain and Gerry Murphy.
More than half of the Board (excluding the Chair of the Board,
Lord Livingston of Parkhead) 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.
During the year, Bruce Marsh joined the Company on 12 July
2021 as the Group Chief Financial Officer, replacing Jonny
Mason who stepped down from the Board on 9 July 2021. On
8 September 2022, Ian Livingston will step down from the Board
and Ian Dyson will become Chair of the Board and Nominations
Committee. The Board, with the support of the Nominations
Committee, considered the composition of the Board and
its committees during the year. The Chair of the Board keeps
Board composition under regular review and addressed this
specifically with each director as part of the one-to-one
meetings held during the Board effectiveness review process.
Overall, the Board is satisfied that the current composition is
appropriate given the needs of the business.
In accordance with the Code, all directors will stand for
re-election at the Company’s 2022 AGM other than Lord
Livingston who will step down from the Board at the meeting.
Biographical information, Committee membership and the
Board meeting attendance of each of the directors submitting
themselves for re-election is shown on pages [XX] and [XX]. Ian
Dyson will stand for election at the Company’s 2022 AGM and
his biography is included in the Notice of AGM.
Board Succession and changes to the Board
The current average director tenure is six years. Two non-executive
directors have been on the Board since the formation of the
Company in 2014. The Board, with the support of the Nominations
Committee, continues to view the need for robust succession
plans as a priority. Further information on succession planning is
available in the Nominations Committee report on page [XX].
In respect of senior management succession planning, the Board
was briefed on changes to the Executive Committee membership
during the year and received an update on the performance of
this Committee at a Board dinner during April 2022. The Executive
Committee complete a detailed talent review of GLT members on
a quarterly basis and have reviewed the top 30 critical roles in the
business to monitor diversity and ensure that strong development
plans are in place. The Board receive regular updates on talent
and succession planning via the Group Chief Executive and the
Chief People, Communications and Sustainability Officer.
Annual Board Evaluation
2020/21 process outcomes
The 2020/21 Board performance evaluation was conducted
by way of the circulation of questionnaires and individual
interviews between the Chair of the Board and each director. The
outcomes of this process are summarised below.
The directors provided positive feedback including in particular:
• that the Board members work together effectively and
constructively to promote the long-term sustainable success
of the Company;
• that the executive team had shown excellent leadership
during the Covid-19 pandemic;
• that the new colleague listening forums had been effective;
• that Board agendas had improved during the year to enable
increased quality of discussions on key topics;
• that there is significant Board discussion and challenge on
the impact that decisions made will have on the Company’s
stakeholders; and
• that the talent review updates the Board has received during
the year have provided a good view of the talent pipeline
and a framework for executive team succession planning.
The process identified some opportunities to enhance Board
effectiveness:
• the Board to receive additional training on topics relevant to
the Group for example trends in technology evolution and
the impact of climate change goals on the business and its
products and services;
• the Board to receive more frequent updates on the results of
colleague surveys and feedback;
• the quality of Board papers had improved during the year but
there was an opportunity to further improve consistency; and
• the Board to consider the appropriate balance of meetings
that should be held in person or by videoconference once it
was safe to resume travel and business meetings in person.
Each of these follow up actions has either been successfully
implemented or is in progress.
2021/22 process
The Code recommends that the performance of the Board be
reviewed externally every three years and an external evaluation
of the Board was carried out in 2021/22. Clare Chalmers Limited
was engaged to carry out this evaluation. The process included a
document review, director and key stakeholder interviews and the
observation of Board meetings held on 18 January and 9 March
2022 and an Audit Committee meeting held on 7 March 2022.
86 Currys plc Annual Report & Accounts 2021/22
The process addressed all matters relating to the performance
of the Board and included the roles of the executive and
non-executive directors, the Board, committees, the effectiveness
of each director and the Chair of the Board, leadership, culture,
strategy and corporate governance. A report summarising the
findings of the review was tabled at the Board meeting on 27 April
2022. Overall, the directors provided positive feedback on the
performance of the Board, highlighting in particular that:
• the Board has a good mix and balance of skills, good gender
and cognitive diversity, and the non-executive directors
contribute valuable experience and insights;
• the Board is led by a supportive and collaborative Chair
who has a strong understanding of the business and makes
valuable contributions whilst ensuring that all Board members
contribute, and meeting time is used effectively;
• the Board is inclusive of the wider management team and
receives regular presentations from a variety of colleagues
across the business;
• sharing an early view of the three-year plan in June and giving
the Board the opportunity to discuss this with the full Executive
Committee ahead of the submission of the final plan in
November had worked well and increased the transparency
of the process for non-executive directors;
• performance reporting had improved during the year including
KPIs and performance against the three strategic priorities;
• risk governance had improved considerably with better
integration of risk into business planning and monitoring; and
• the Board has a strong customer-centric mentality.
The process identified some further actions to help enhance
effectiveness:
• ensure more time is spent on Chair and non-executive director
succession planning given the number of directors due to step
down from the Board in the next three years and the need to
enhance Board diversity – the full Board to be involved in this
process;
• enhance the Board skills matrix to distinguish the level of
expertise directors have in each skill area to support Board
succession discussions;
• increase the number of Board training sessions, to keep
directors updated on evolving and technical topics;
• the Board to receive more granular information on external
insights, market trends, competitors and market share;
• enhance performance and programme oversight by way of
dashboards that include the main metrics and improve the
view the Board has of progress against strategic goals and
how effectively investments are delivering;
• increase the frequency of reporting on colleague matters
including workforce engagement and invite a representative from
the International Colleague Forum to interact directly with the
non-executive directors in the absence of management; and
• take a more structured approach to evaluation of and
feedback from suppliers.
An externally facilitated Board effectiveness review will next be
completed during 2024/25.
Chair of the Board performance
The Senior Independent Director collated feedback from the
Board on the performance of the Chair of the Board and carried
out his annual performance review. The directors provided
positive feedback on the Chair of the Board’s leadership
during the year. The Board is of the opinion that the Chair of the
Board had no other commitments during the year that adversely
affected his performance, that his effectiveness in leading the
Board was not impaired and that he cultivated an atmosphere
that enabled challenging and constructive debate.
Individual Director performance
Following the results of the external 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,
cognitive and personal strengths.
At year end, the Board had three female directors (37.5% of the
Board), one of whom is based outside the UK, one director that
meets the ethnic minority criteria as set out in the Parker review
and the majority of the directors have substantial international
business experience. 25% of the Executive Committee members
are female.
The review this year again concluded that the Board possessed the
necessary personal attributes, skills and experience to discharge its
duties fully and to challenge management effectively.
The Company is committed to developing a diverse workforce and
equal opportunities for all. The Board recognises that enhancing
diversity in all its forms is a critical part of having an effective
and engaged workforce which in turn supports the long-term
sustainable success of the business. Whilst the Board is strongly
supportive of enhancing all forms of diversity across the Board
and workforce as a matter of priority, the Board does not currently
set specific targets on gender balance or ethnicity. The Committee
and the Board continue to be very mindful of the benefits of
greater diversity of gender, social and ethnic backgrounds, and
cognitive and personal strengths, in all appointments.
In accordance with DTR 7.2.8A, the Committee confirms that the
Board has adopted the same diversity policy as in place for UK
and Ireland colleagues and senior management. The Equality,
Inclusion & Diversity: Dignity at Work Policy was last reviewed in
November 2021.
Corporate Governance Report continued
87
Governance
Financial Statements
Investor information
Strategic Report
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 auditor and advisors. An example of a typical
induction programme is included in the table below. The Chair of
the Board will meet with a new director 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 and in addition, group information and
policies are maintained within the electronic board paper portal
to ensure directors have access to current resources. Bruce Marsh
joined the Board on 12 July 2021 and completed his induction
during the year.
The directors are invited to nominate topics that they would
like to receive training on and briefings are arranged from time
to time on governance, compliance and company knowledge
as requested. During the year, the directors received training
on climate change. Directors arrange individual meetings with
Executive Committee members as required when they require
additional information or context on a 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:
Business and strategy
• business model and strategy
• markets and competitive landscape
• overview of each business area
• market opportunities
• environment, social and governance matters
Finance and audit
• finance, treasury and tax overviews
• current financial position and future projections
• budget
• accounting issues
• audit report and findings
• risk and internal controls
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 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
• members of the external audit team
• store and distribution centre colleagues
Sites to visit
• different format stores that are convenient for new director to visit;
• the Newark distribution centre; and
• the store colleague training centre The Academy@FortDunlop.
88 Currys plc Annual Report & Accounts 2021/22
Corporate Governance Report continued
Audit, Risk and
Internal Control
The Audit Committee report is available on pages [XX] to [XX] and
this covers all the reporting included in this section of the Code.
Risk management and internal control
The Board has overall responsibility for the Group’s system
of risk management and internal control and for reviewing its
effectiveness. The Board is supported by the Audit Committee,
the Group Risk and Compliance Committee, the Regulatory
Compliance Committee, business unit risk committees and the
Risk team in delivering on this responsibility.
The Group operates a process of continuous identification and
review of business risks. This includes the monitoring of principal
risks, undertaking horizon scanning to identify emerging risks,
evaluating how risks may affect the achievement of business
objectives and, by taking into account risk appetite, reviewing
management’s treatment of the risks.
The main business units, locations and functions are responsible
for preparing and maintaining risk registers and operating risk
management processes for their areas of responsibility. Risk
registers and the risk processes are undertaken in accordance
with a consistent Group Risk Management methodology, toolkit
and process.
The Group Risk and Compliance Committee meets at least three
times annually and additionally each month any changes to the
profile of each principal risk are presented to, and reviewed
by, this committee. The work of the Group Risk and Compliance
Committee includes: assessing and challenging the consolidated
risk profile, agreeing and monitoring the Group’s principal risks;
determining the prioritisation of mitigating actions; reviewing the
Company’s horizon-scanning processes and its emerging risks;
providing reports and recommendations to the Audit Committee
and Board including to assist with the setting of risk appetite with
regard to the principal risks.
Our approach to risk management continues to evolve as part
of our organisational focus on transformation and how we
continue in optimal decision-making in an increasingly fast-moving
environment. The Group Risk team has continued to facilitate the
evaluation of the principal risks facing the Group.
Assurance provision
Board
Responsible for risk management and internal control
Defines Currys risk appetite
Reviews and approves the business risk profile
Group Risk and Compliance
Committee
• Reviews Group and business unit
risk registers
• Monitors the management of key risks
• Considers new and emerging risks
Audit Committee
• Reviews the effectiveness
of internal control and risk
management
• 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 Internal Audit, Risk & Insurance
Environmental,
Social and
Governance
Committee
Regulatory
Compliance
Committee
Business Continuity
Planning Steering
Committee
Information Security
and Data Protection
Committee
Business unit and
functional risk
experts
Group Risk Management Structure
89
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Financial Statements
Investor information
Strategic Report
In addition to the Group’s principal risks, the business faces
emerging threats which have been identified through horizon
scanning that may potentially impact the business in the
longer-term. The Group Risk and Compliance Committee
evaluates the appropriateness of management planning
to address such emerging risks. In some areas, there may be
insufficient information to understand the scale, impact or
velocity of these risks. Emerging risks continue to be monitored as
part of the ongoing risk management process in order to ensure
that action is taken at the right time.
The Directors confirm that they have carried out a robust
assessment of the principal and emerging risks facing the Group,
including those that would threaten its business model, future
performance, solvency or liquidity. A description of these risks,
together with details of how they are managed or mitigated, is
set out on pages [XX] to [XX].
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 2021/22 and concluded that
an effective system of risk management and internal control
operated throughout the period. The review was approved by
the Audit Committee and the Board.
The diagram opposite shows the governance structure in place
over the Group’s risk management activities, as at [XX]/[XX]/2022.
Risk appetite
Currys faces a broad range of risks reflecting the business
environment in which it operates. The risks arising from Currys’
business environment and operating model can be significant.
Successful financial performance for the business is achieved
by managing these risks through intelligent decision-making and
an effective control environment that details the processes and
controls required to mitigate risk.
The Company’s risk appetite is set by the Board and governs
the amount of acceptable risk within which we operate. Our
Group risk appetite is further disaggregated by principal risk
and takes into consideration the acceptable level of risk across
strategic, operational, financial and regulatory risks faced by
the business. Reference to our appetite in business decisions
provides guidance for objective, risk-aware decision-making.
A three-point scale is used to assess the risk appetite for each
of our principal risks. If excessive levels of risk are being taken,
a series of actions are identified to bring the risk back within an
acceptable level.
Currys’ general risk appetite is a balanced one that allows taking
measured risk as the Company pursues its strategic objectives,
whilst aiming to manage and minimise risk in its operations. Currys
recognises that it is not possible or necessarily desirable to
eliminate all of the risks inherent in its activities. Acceptance
of some risk is inherent in operations and necessary to foster
innovation and growth within its business practices.
Committed to effective risk management
The Board has overall responsibility for the system of internal
control and for reviewing its effectiveness. It relies on the
Audit and Risk Committees to assist in this process. In addition,
members of the Executive Committee, operating through the
Risk Committee, are accountable for identifying, mitigating and
managing risks in their area of responsibility. Management is
also responsible for implementing controls that are designed to
ensure regulatory compliance, financial and operational control
and to confirm that these operate effectively to protect the
business from loss.
The Board has conducted a review over the effectiveness of the
process for identifying, evaluating and managing the significant
risks faced by the Group and the operation of related controls.
The Audit Committee further reviewed aspects of the internal
control environment as outlined in the Audit Committee Report on
page 92. The Board has considered the controls findings raised
in the Independent Auditor’s report on pages [XX] to [XX]. No
other significant failings or weaknesses were identified during the
period ending 31 April 2022. 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 [XX] to [XX].
Controls, by their very nature, are designed to manage rather
than eliminate risk and can only provide reasonable assurance
against material misstatement or loss.
90 Currys plc Annual Report & Accounts 2021/22
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, risk management,
control activities 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 Authorities 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 & 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 achievement of successful delivery and the achievement of
projected benefits.
• A Programme Management Office operates to oversee delivery of our major Perform and
Transform change initiatives.
• Control activities operate to manage risk associated with our Technology and Information
Security. These continue to evolve in line with the deployment of new systems and to meet the
challenges posed by external threats.
• A Minimum Controls Framework is in place defining the key financial controls that are expected
to operate across the businesses core processes and activities.
• A Conduct Risk and Control Framework identifies control objectives for activities that underpin
the delivery of Good Customer Outcomes in our Financial Services regulated activities.
• Training and development is provided to colleagues to cover their responsibilities for risk
management, compliance, and their operational obligations.
• Our performance management process holds colleagues accountable for their responsibilities.
• Fraud and loss prevention processes operate across our omnichannel and Supply Chain activities.
• Continuous improvement takes place throughout the organisation to improve the operation
of processes and controls. This is informed by actions identified through Internal Audit and
Compliance Monitoring reviews as well as customer feedback, the results of Quality Assurance
and through the Complaints Management process.
• The business is working towards compliance with potential UK Sox requirements.
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Financial Statements
Investor information
Strategic Report
Risk Management
• A risk identification process operates in accordance with the Group Risk Management
methodology. This ensures that risk management takes place consistently across the Group to
identify and evaluate the significant risks faced by the Group.
• The Group risk register covers the principal risks faced by the business, their potential impact
and likelihood of occurrence and the key controls or actions established to mitigate these risks.
• The risk management framework operates across the business with key business units
undertaking risk assessment and risk management activities.
• The Group Risk team undertakes horizon scanning reviews to identify emerging risks and
opportunities that may impact the business.
• The Group Risk and Compliance Committee meets at least three 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.
• The Board conducts a review over the effectiveness of the process for identifying, evaluating
and managing the significant risks faced by the Group and the operation of related controls.
Assurance
• The Audit Committee approves the annual internal audit programme. The progress of the plan
and the results of the audits are reviewed throughout the year.
• A Compliance Monitoring function reviews operation of financial Services regulated activities.
• Annual evaluations are undertaken by business management against the Minimum Control
framework in order to ensure that the control environment operates as intended. Any
deficiencies identified are subject to remedial action.
• A broad range of assurance activities are undertaken across the business by functional
management to review the management of key risks.
• The Group communicates with external stakeholders, including industry bodies and regulators
on the management of risks and issues.
Internal audit
The Group has an internal audit department which conducts
audits of selected business processes and functions. The Group’s
internal audit plan sets out the internal audit programme for the
year and is usually 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 2022/23 internal
audit plan in April 2022, having considered the audit priorities.
The Audit Committee Chair receives and reviews all reports from
the internal audit department detailing its material findings from
testing performed and any recommendations for improvement. The
Audit Committee receives each audit report with a summary at each
meeting. The internal audit team tracks and reports on the progress
against the audit plan and the implementation of action plans
agreed with management. Once closed, the action plans agreed
with management can be reviewed to determine whether any new
controls and procedures have been implemented effectively.
The Audit Committee considered the effectiveness of the
internal audit department by considering; scope, resources and
access to information as laid out in the internal audit charter;
the reporting line of internal audit; the annual internal audit
work plan; and the results of the work of internal audit. The Audit
Committee concluded that the internal audit function operated
effectively during the year.
Capital and constitutional disclosures
Information on the Company’s share capital and constitution
required to be included in this Corporate Governance statement
is contained in the Directors’ Report on pages [xx] to [xx] Such
information is incorporated into this Corporate Governance
statement by reference and is deemed to be part of it.
The AGM provides an opportunity for the Company to engage
with shareholders and for the Board to provide an account of
the progress made by the business during the year, along with a
synopsis of current issues facing the business. Shareholders can
also submit any questions to the Board at any time of the year via
the General Counsel and Company Secretary at cosec@currys.
co.uk. We look forward to receiving your feedback and questions.
Further financial and business information is available on the
Group’s corporate website, www.currysplc.com.
Lord Livingston of Parkhead
Chair of the Board
6 July 2022
92 Currys plc Annual Report & Accounts 2021/22
2021/22 HIGHLIGHTS
• Consideration of accounting and
management judgements
• Consideration of the assurance
process for ESG data disclosures
• Business deep dives including
IT General controls, information
security, data and internal
controls in Nordics and Greece
• Consideration of the continuing
implications of the Covid-19
pandemic and challenging
trading environment
Chair’s statement
I am pleased to present the Audit Committee (the ‘Committee’) report for the year
ended 30 April 2022. 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 Security Officer and the Group Director of Internal Audit 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 Deloitte LLP audit team as part
of the ongoing review of their effectiveness. [I met with Deloitte LLP’s Head of Audit
Quality and Risk, UK to discuss Deloitte’s approach to audit quality and assurance in
connection with the audit of the Group]. I have also met with members of the KPMG LLP
audit team as they have commenced their preparation to take over as external Auditor
for the 2022/23 financial year.
This year, the Committee has considered accounting and management judgements and
particularly in respect of the continuing implications of Covid-19 and the challenging
external trading environment. [The Committee has received assurance on the process
for capturing ESG metrics as the Group’s disclosures are enhanced in this area.]
Oversight of information security and cyber security programmes have been a key
area of focus for the Committee this year. An update on Cyber has been provided
at each scheduled quarterly Committee meeting. Data management and regulatory
compliance continue to be important areas of Committee focus in addition to
accounting matters and other duties. The Committee continues 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 2018 UK Corporate Governance 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 [XX] and [XX].
Number of meetings
6
The biographical details for each Committee
member are available on pages [XX] and [XX].
Audit Committee topics coverage 2021/22
(1) Fiona was absent from two Committee meetings during the year due to illness.
(2) Gerry was appointed as Acting Committee Chair for two meetings during the year in Fiona’s absence.
Bribery and
Corruption: 1
Data protection: 1
Compliance: 5
Information and
Cyber security: 5
www.currysplc.com
Committee Terms of Reference last approved:
18 January 2022 and available on
www.currysplc.com
FURTHER
INFORMATION
Committee members Meeting Attendance
Fiona McBain (Chair) 4/6
(1)
Eileen Burbidge 6/6
Gerry Murphy 6/6
(2)
Internal Controls: 4
IT General Controls: 5
Risk Review: 4
Whistleblowing: 5
Audit
Committee Report
93
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Strategic Report
Meetings and membership
The Committee met six times during the period under review. There
were five scheduled meetings. One additional Committee meeting
was arranged with management during the year to enable an
additional detailed discussion on the accounting judgements for
the Annual Report and Accounts. 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, General
Counsel and Company Secretary and representatives from
Deloitte LLP, the external Auditor, have a standing invite from the
Committee Chair to join all Committee meetings. Other members
of senior management attend Committee meetings by invitation
including team members with responsibility for Information
Security and Data Management, those with responsibility for
internal controls including from the International businesses
and the Director of Group Risk and Insurance. The Committee’s
deliberations are reported by its Chair at the next Board meeting
and the minutes of each meeting are circulated to all members of
the Board.
There have not been any changes to the membership of the
Committee during the financial year. Gerry Murphy was appointed
as Acting Committee Chair for two meetings. 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,
and Gerry Murphy, also a member of the Institute of Chartered
Accountants in England and Wales, meet the requirement for
recent and relevant financial experience. The Committee, as
a whole, has competence relevant to the sector in which the
Company operates. The biographical details outlining the
relevant experience of the Committee members can be found on
pages [XX] and [XX]. The Company Secretary, or their 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 members meet without management present before
and after each Committee meeting. The Group Director of Internal
Audit and representatives of Deloitte LLP 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, 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
Some aspects of the business transformation of the Group
were delayed by the impacts of the Covid-19 pandemic. The
Covid-19 pandemic has also had extensive impact on the
Group’s operations by causing fundamental changes to current
and most likely future customer behaviours and the risks to which
companies are exposed. The Committee will continue to keep
those considerations and risks that fall within the Committee’s
remit under review. The Committee will continue to support the
business transformation work by reviewing and challenging the
governance, risk and control environments relating to strategic
plans. The Committee will continue to receive presentations
from management on the challenges faced by the business
and the operation of internal controls. The Committee will also
continue to monitor the operation of the ‘three lines of defence’,
as well as the evolving enterprise risk landscape and regulatory
environment.
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 2021/22
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 (‘ARA’) 2021/22, when taken as a whole, are fair,
balanced and understandable;
• reviewing the interim results on December 2021;
• considering the presentation, fairness, and balance of the
Group’s alternative performance measures (APMs);
• considering the implications of the Covid-19 outbreak relevant
to the remit of the Committee;
• 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
Financial Conduct Authority (‘FCA’) and receiving reports from
the Head of Compliance;
• approving the internal audit annual plan, considering internal
audit reports and management actions, and monitoring the
effectiveness of internal audit in line with the approved
internal audit charter;
• considering the external audit plan, audit reports and updates
from Deloitte LLP;
94 Currys plc Annual Report & Accounts 2021/22
Audit
Committee Report continued
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;
• 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 FCA’s Disclosure 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;
• review and approve 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;
• review the Company’s systems and controls for the
prevention of bribery;
• considering the effectiveness of the Company’s
compliance function;
Internal audit
• approving the appointment of the Group Director of
Internal Audit;
• monitoring and assessing the effectiveness of the Group’s
internal audit function;
• approving the internal audit plan;
• considering the reports of work performed by internal
audit and reviewing the actions taken by management to
implement the recommendations of internal audit;
• 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;
• 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.
• considering the effectiveness of the external Auditor and
the appointment of KPMG LLP as the external Auditor from
2022/23; and
• receiving presentations and challenging management on
matters such as system access controls, data management,
payment processes, supplier funding, regulatory
compliance-related customer claims, minimum control
standards assessments, whistleblowing and procedures in
place to prevent bribery and corruption.
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 30 April 2022,
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.
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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 [XX] of the ARA 2021/22.
In particular, the Committee considered:
• the impact in respect of uncertainties including the Covid-19 pandemic, a
macroeconomic downturn and climate risk;
• 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 the
alignment of the period with the Group’s detailed strategic planning process, as well as
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 [XX] to [XX]
of the ARA 2021/22, 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 significant change in mobile phone consumer behaviour.
The Committee concurred with management’s conclusions that the viability statement,
including the three-year period of assessment, disclosed on page [XX] of the ARA 2021/22
is appropriate. The Board was advised accordingly.
Fair, balanced and
understandable
In ensuring that the Group’s reporting is fair, balanced and understandable, the Committee
reviewed the classification of items between adjusting and non-adjusting items including
consideration of the £[X] million pre-tax adjusting items disclosed in note [XX] in the
glossary and definitions section of the ARA 2021/22, and the tax impact thereon. The
assessment considered whether items fell within the Group’s definition of adjusting items as
well as the consistency of treatment of such items year on year.
The Committee gave due consideration to the integrity and sufficiency of information
disclosed in the ARA 2021/22 to ensure that they explain the Group’s position, performance,
business model and strategy. An assessment of narrative reporting was included to ensure
consistency with the financial reporting section, including appropriate disclosure of material
adjusting items, and appropriate balance and prominence of statutory and non-statutory
performance measures. In response to the guidelines on Alternative Performance Measures
(‘APMs’) issued by the European Securities and Markets Authority (‘ESMA’), the Committee
considered the use of such measures and the additional information on those APMs used by
the Group is provided in the glossary on pages [XX] to [XX].
The Committee concluded that the ARA 2021/22, taken as a whole, are fair, balanced and
understandable, and that the measures used and disclosures made are appropriate to
provide users of the ARA 2021/22 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.
96 Currys plc Annual Report & Accounts 2021/22
Audit
Committee Report continued
Accounting and financial reporting matters Matters considered and how the Committee discharged its duties
Revenue recognition
The Group discloses revenue recognition in relation to network commissions as a ‘key source
of estimation uncertainty’ as set out in note [XX] to the Group financial statements.
The Committee reviewed management’s assessment of these policies with reference to
contractual terms, the Group’s historical experience of customer behaviour, reliability of
information received from MNOs, legislative changes, future expectation of consumer
behaviour and changes in the trends within the mobile industry. Particular attention was
paid to the consistency of application of the underlying assumptions used, significant
changes in inputs to the valuation model, historical forecasting accuracy, and the network
commission contract assets and receivables disclosures included in note 15 to the Group
financial statements. The carrying value of ongoing network commission contract assets and
receivables at the balance sheet date was [XX] million (2020/21: £239 million).
Supplier funding
A number of arrangements exist relating to supplier funding across the Group, including
promotional support and volume rebates. The Committee has continued to challenge
and debate with management its approach to its recognition and accounting treatment of
supplier funding. In addition, the Committee continues to monitor the effectiveness of the
controls in place to mitigate the risk of material misstatement of supplier funding recognition.
Further information in relation to supplier funding can be found in note [XX] to the Group
financial statements.
Impairment testing of
goodwill, intangible
assets and store-based
investments
The Group has significant goodwill, intangible assets and fixed asset investments which are
reviewed for impairment annually, or where there is an indicator of impairment. The Committee
reviewed appropriateness and accuracy of cash flow forecasts, discount rates and long-term
growth rates used in the impairment review performed at both the interim and year end dates.
Specific attention was paid to cash flow forecasts in light of uncertainties such as the Covid-19
pandemic, a macroeconomic downturn, climate risk and the level of sensitivities applied by
management in determining reasonably possible changes to cash flows. As part of the review of
the store-based asset impairment assessment, whereby a material impairment and impairment
reversal was recognised within the period, particular attention was given to the key assumptions
of how customers will behave in the future, in terms of shopping in store and/or online and the
implications on the impairment modelling.
As a result of a number of strategic changes, specifically related to our Future Mobile Offer
and the decision to close the West London head office after signing a deal with WeWork, a
significant impairment charge and onerous contract costs were recognised as adjusting items.
Further information can be found in note 9 to the Group financial statements.
Taxation
The Group operates across multiple tax jurisdictions. The complex nature of tax legislation in
certain jurisdictions can necessitate the use of judgement.
The Committee reviewed the judgements and assumptions concerning any significant tax
exposures, including progress made on matters being discussed with tax authorities and, where
applicable, advice provided by external advisors. The total provisions recognised at the
balance sheet date amounted to £[X] (2020/21: £65m).
The Committee also reviewed the appropriateness of the disclosures made around tax
provisions, the related contingent liabilities, and the deferred tax balances.
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Risk management and internal control
The 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 [XX] to [XX] of
this ARA 2021/22. 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 & corruption
• The Committee reviewed the arrangements put in place to satisfy requirements to comply
with regulation for anti-bribery & corruption.
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 (‘GDPR’).
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. The Committee
considered compliance and regulatory reports prepared by the Regulatory Compliance
Committee (‘RCC’) 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 (“ITGC”)
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. This control framework
is intended to manage rather than eliminate the risk of failure and oversight of the security
programme is provided by the Committee that, along with the Board, receives regular
updates on the progress and maturity of our control environment.
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 2021/22 and agreed the statements contained in the ARA 2021/22.
The Committee continues to review the results of Internal Audit reviews and Minimum
Controls Standards assessments.
Whistleblowing
• The Committee reviews a summary at every meeting 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.
98 Currys plc Annual Report & Accounts 2021/22
Audit
Committee Report continued
Internal audit
Internal audit is an independent, objective assurance function that impartially appraises the Group’s control activities. Internal
audit works with management to help improve the overall control environment and assist Group management, the Committee and
the Board in discharging their respective duties relating to maintaining an adequate and effective system of internal control and risk
management, and safeguarding the assets, activities and interests of the Group.
Internal audit Matters considered and how the Committee discharged its duties
Audit reviews of
significant risk areas
• The Committee considered the alignment of the annual internal audit plan with the key risks
of the business.
• During the period, internal audits included coverage of the following significant risk areas of
the business:
– information security and data protection;
– business transformation;
– IT resilience, integrity and disaster recovery;
– relationships with major suppliers;
– health and safety;
– business continuity;
– product safety; 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.
• As part of the rolling assurance programme, audits were performed over the following
processes to provide assurance to the Committee that controls were operating within these
areas:
– general business controls relating to UK & Ireland operations including the financial
services conduct risk framework, transformation project processes, Identity and access
management, product safety, financial controls, customer experience processes, ESG
reporting;
– Nordics IT general controls, data protection, major change assurance, and product
safety; and
– Greek IT general controls and product safety.
• The Committee considered the actions taken by management in relation to the audit findings.
• The Committee considered the results from these audits during its assessment of the
effectiveness of the system of internal control operated by management. The Committee
concluded that the system of internal control was appropriately monitored and managed.
Effectiveness of internal
audit and adequacy of
its resources
• The Committee approved the internal audit charter, concluding the role and mandate were
appropriate to the current needs of the organisation.
• The Committee monitored the work of internal audit and formally reviewed the effectiveness
of internal audit and the adequacy of its resources, considering:
– scope, resources and access to information as laid out in the internal audit charter;
– the reporting line of internal audit;
– the annual internal audit work plan; and
– the results of the work of internal audit.
• The Committee concluded that the internal audit department had in all respects been
effective during the period under review and performed its duties in accordance with its
agreed charter.
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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. Deloitte LLP 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 [XX] to [XX].
• As part of the reporting of the half year and full year results, the Committee reviewed the
reports presented by Deloitte LLP in assessing the Group’s significant accounting judgements
and estimates, and considered the audit work undertaken, level of challenge and quality of
reporting.
• Following the 2020/21 year end, feedback on the effectiveness of the audit process in
addressing areas of key audit risk was obtained from members of the Committee and
regular attendees, members of the finance team and senior management within the
businesses via a specifically designed questionnaire. The responses were then considered
by the Committee in conjunction with the outputs received and responsiveness of the Auditor
during the audit process. The results showed a favourable view of the audit process and of
Deloitte LLP as the external Auditor, specifically in relation to the consistent performance
noted for quality of audit delivery, level of challenge, integrity and service of the team, the
constructive relationship and the effectiveness of the communication.
• 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 2022.
100 Currys plc Annual Report & Accounts 2021/22
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 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 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 and the requirement in Greek law for the
external auditor of the company to provide tax compliance
services. 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 external Auditor, which
was approved by the Committee, is set out in note [XX] to the
Group financial statements and amounted to £[XX] (2020/21:
£0.5m) compared with £[XX]m (2020/21: £1.6m) of audit fees.
The non-audit fees as a percentage of audit fees were [XX]%
(2020/21: 31.3%), which reflects the restrictive policy governing
the use of Deloitte LLP for non-audit services.
External Auditor
Deloitte LLP has been the Company’s external Auditor since
the Company was formed on 7 August 2014 by the merger of
Carphone Warehouse and Dixons Retail. Deloitte LLP was the
external Auditor of both Carphone Warehouse and Dixons
Retail prior to 2014. In accordance with the Competition and
Markets Authority (‘CMA’) Statutory Audit Services Order, which
is designed to align with provisions of the EU Regulations on
external audit tender and rotation, and current guidance, the
last period that Deloitte LLP could have remained as external
Auditor was the 2022/23 financial year.
At the end of the 2020/21 financial year, lead audit partner
Stephen Griggs (appointed from the 2016/17 audit) stepped
down in accordance with the Auditing Practices Board Ethical
Standards requirement to rotate the lead audit partner every
five years. David Griffin, formerly the Key Audit Partner for UK
and Group, moved into the role of lead audit partner for the
2021/22 financial year.
During 2020/21, the Committee led a comprehensive tender
process to select a new external Auditor for the 2022/23
financial year. A full description of the process is available
in the annual report and accounts 2020/21. KPMG LLP will be
appointed as the Auditor of the Company for the financial year
2022/23 subject to shareholder approval to be sought at the
Company’s Annual General Meeting in September 2022.
Where necessary, any non-audit services provided by KPMG to
the Company ceased by 1 May 2021 in order to meet specified
‘cooling-in’ requirements in the year before appointment.
Consideration of external Auditor appointment and
independence
The Committee considers the appropriateness of the
appointment of the external Auditor each year, including the
rotation of the audit partner.
The Committee oversaw a formal and comprehensive tender
process for the appointment of the external Auditor during
2020/21. The Committee’s recommendation, that KPMG LLP be
appointed as external Auditor of the Company for the 2022/23
financial year was accepted and endorsed by the Board.
Accordingly, shareholder approval will be sought at the Annual
General Meeting in September 2022 to confirm the appointment
of KPMG LLP as external Auditor of the Company.
Fiona McBain
Chair of the Audit Committee
6 July 2022
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101
Governance
Financial Statements
Investor information
Strategic Report
Disclosure
Committee Report
2021/22 HIGHLIGHTS
• Assessment of whether the Company was in possession
of inside information
• Preliminary results for the financial year ended 1 May 2021
• Trading updates including announcement of a £75m
share buyback
• Interim results for the half year ended 30 October 2021
Chair’s statement
I am pleased to present the Disclosure Committee (the
‘Committee’) Report for the year ended 30 April 2022. 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 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 receive notices and papers for
all meetings and are able to act as ‘alternates’ to the Committee
members in the event that the quorum of three members cannot
be met. This has not been necessary during the year and all
Committee members have been able to attend all meetings.
The Company Secretary, or their nominee, acts as Secretary
to the Committee. The 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 was considered as part of the externally
facilitated board and committee effectiveness review that
was carried out this year and this review concluded that the
Committee discharges its duties effectively.
Meetings
There were five Committee meetings during 2021/22. Since the
financial year end, there has been one further meeting. Committee
meetings are scheduled in advance of preliminary and interim
results announcements and in advance of scheduled trading
updates. Meetings can be convened by the Company Secretary as
requested by the Committee Chair at other times as required. The
Committee receives input as appropriate from the other directors,
the Company’s brokers and senior management and invites a
member of the Investor Relations team to attend all meetings.
Responsibilities
The principal duties of the Disclosure 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;
• 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 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 in order 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 30 April 2022, the Committee met to
consider the following key matters:
• assessments as to whether the Company was in possession of
inside information;
• the preliminary results for the financial year ended 1 May 2021;
• a trading update including the announcement of a £75m Share
Buyback programme;
• the interim results for the 26 weeks ended 30 October 2021; and
• the Peak trading update for the 10 weeks ended 8 January 2022.
Bruce Marsh
Chair of the Disclosure Committee
6 July 2022
Number of meetings
5
(1) Bruce Marsh joined the Board and the Committee during the year on 12 July 2021 and has attended all Committee meetings held since his appointment. Jonny Mason
stepped down from the Board and the Committee on 9 July 2021 and attended the two Committee meetings held during the financial year prior to this date.
Committee members Meeting Attendance
Bruce Marsh (Chair) 3/3
(1)
Alex Baldock 5/5
Nigel Paterson 5/5
Alternate members:
Ian Livingston, Chair of the Board and
Tony DeNunzio, Senior Independent Director
The biographical details for each Committee
member are available on pages [xx] and [xx].
FURTHER
INFORMATION
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102 Currys plc Annual Report & Accounts 2021/22
Nominations
Committee Report
2021/22 HIGHLIGHTS
• Considered succession planning for key Board roles
• led the process to recruit a new Chair and recommended
the appointment of Ian Dyson to the Board
• Adopted a new Equality, Inclusion, & Diversity: Dignity at
Work Policy
Chair’s statement
I am pleased to present the Nominations Committee (the
‘Committee’) report for the year ended 30 April 2022. 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
Nominations 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 November
2021. These requirements were discussed, and the Committee
concluded that the Board’s size and composition remained
appropriate to meet the current leadership needs of the
Group. It was agreed that temporary increases to the size of the
Board might help manage sucession planning. 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.
The Board currently meets the voluntary diversity targets in both
the Hampton Alexander Review and Parker Review although
is not complacent about diversity and will seek opportunities
to further increase diversity on the Board. An Inclusion and
Diversity forum is in place to focus on increasing the diversity of
the workforce and more details about this forum are available
on page [xx]. All directors receive updates on colleague issues
including diversity at Board meetings.
Although succession planning and the oversight of the
development of a diverse pipeline for succession fall within
the remit of the Committee, these discussions have also taken
place at Board meetings during 2021/22. The Board received
a comprehensive People Plan update in April 2022 and this
included talent and succession planning. Enhancing diversity and
overseeing the succession planning process for key roles remains
a priority for the whole Board. As delivering the colleague
agenda is a critical component of the successful business
transformation of the Group, this work has been led by the
Committee but has warranted further input from all directors.
Meetings and membership
The Committee meets as and when required and at least twice
a year. The Committee held two meetings during the financial
year and a further meeting in May 2022. 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.
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;
• 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.
Number of meetings
2
Committee members Meeting Attendance
Ian Livingston (Chair) 2/2
Tony DeNunzio 2/2
Andrea Gisle Joosen 2/2
The biographical details for each Committee
member are available on pages [xx] and [xx].
www.currys.co.uk
Committee Terms of Reference last approved:
18 January 2022 and available on
www.currysplc.com
FURTHER
INFORMATION
103
Governance
Financial Statements
Investor information
Strategic Report
Key matters considered
The principal activities of the Committee during 2021/22
included the:
• evaluation of the size, composition and structure of the Board
and its committees;
• oversight of the process to recruit a new Chair of the Board,
consideration of candidates and recommendation of the
appointment of Ian Dyson;
• consideration of the independence and time commitments of
the directors;
• evaluation of director effectiveness during the year and
approval that each director be recommended for re-election
at the 2022 AGM;
• 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
An externally facilitated Board effectiveness review was carried
out in 2021/22 by Clare Chalmers Limited. 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 [xx].
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 consultancies are used when recruiting 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 develops candidate profiles describing the skills,
knowledge and experience required for each new role.
Bruce Marsh joined the Board in July 2021. During the year the
Committee led the process to appoint a new Chair of the Board.
Ian Dyson will join the Board on 1 September 2022 and become
Chair of the Board and Nominations Committee on 8 September
2022.
The process to recruit a new Chair was led by the Senior
Independent Director and executive search firm Korn Ferry
supported the Committee. The Committee agreed a role profile
taking into account the Board skills matrix and the skills and
capabilities needed to Chair a substantial consumer business
operating in a number of countries. The Senior Independent
Director discussed the draft role profile with each of the other
directors. The process included consideration of a long list of
over 60 candidates. Members of the Committee (excluding the
Chair) participated in over 30 candidate interviews as well as
discussions with Korn Ferry. Five candidates were shortlisted,
and this group included candidates with diverse characteristics.
Ian Dyson was the candidate who best met the criteria that
the Company had set for the new Chair. The Committee
recommended the appointment of Ian Dyson to the Board.
Succession planning
The Group requires a talented Board with appropriate
experience, expertise and diversity. The Committee 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 the current Board size
of eight directors is appropriate and effective for the leadership
of the Group although increasing to a Board size of nine or ten
temporarily might be appropriate to enable succession planning
for key Board roles. During the year the Committee considered
Board tenure and, in particular, that two non-executive directors
will reach a nine-year tenure in August 2023 and the Chair of the
Board and Senior Independent Director both reach a nine-year
tenure in December 2024. The Committee agreed to initiate a
search for a successor to the Chair of the Board role and this
search was completed in May 2022.
The Committee considered it prudent to start this search early to
allow sufficient time to identify the most appropriate candidate
and for the orderly management of the succession of other
Board roles. The new Chair of the Board will participate in the
recruitment of new non-executive directors.
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 Officer. The
Chair of the Board who is also the Committee Chair receives
regular updates during the year directly from the People team on
key appointments and initiatives. The Committee, together with
the Board, is focused on ensuring that credible succession plans
are maintained and that there is a talent pipeline for future
business leaders.
104 Currys plc Annual Report & Accounts 2021/22
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 business.
The Board meets the voluntary targets recommended by the
Hampton-Alexander Review and the Parker Review. At the end of
the financial year 37.5% of the Board, and 25% of the Executive
Committee, are female. One member of the Board meets the
criteria as set out in the Parker Review. Whilst the Board is strongly
supportive of enhancing all forms of diversity across the Board
and wider workforce as a matter of priority, the Board does not
currently set specific targets on gender balance or ethnicity.
The Committee and the Board continue to be very mindful of
the benefits of greater diversity of gender, social and ethnic
backgrounds, and cognitive and personal strengths, in all
appointments. The Board will actively seek to enhance diversity
on the Board during 2022/23 by taking steps to increase the
number of diverse candidates to be included in the process.
An Inclusion and Diversity Forum is in place to seek to enhance
diversity across the wider workforce and further information on
this forum and the activities the Group is carrying out in order to
enhance diversity is available on page [xx].
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). This was last reviewed and approved
by the Committee in November 2021. The Board no longer
has a separate policy that only applies to the Board but has
approved the adoption of the Group policy to include all
Board and senior management appointments. The policy is in
place to encourage diversity across the Group and to ensure an
inclusive culture is in place. The Board considers the celebration
of divesity and an inclusive culture to be a competitive
differentiator for the business. The policy establishes clear
values and behavior 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.
In performing its annual review, the Board also looked at
other aspects of diversity relevant to the Group. With a large
proportion of the business in the Nordics, we have a Swedish
Non-Executive Director on the Board to enhance the Board’s
knowledge of these international markets. This Non-Executive
Director also attends the Nordics colleague forum to support
colleague listening and engagement. More information on this
forum is included in the Strategic Report on page [xx].
Election and re-election
At the forthcoming AGM, all directors as listed on pages [xx]
and [xx] will present themselves for re-election other than I,
Ian Livingston, as I will step down from the Board on the date
of the AGM. Ian Dyson will present himself for election and his
biographical information is available in the Notice of AGM.
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. More information on the
individual contributions of each director is available within their
biographies.
Lord Livingston of Parkhead
Chair of the Board
6 July 2022
Nominations
Committee Report continued
105
Governance
Financial Statements
Investor information
Strategic Report
2021/22 HIGHLIGHTS
• Agreed principles and approach for a new Group ESG
Strategy
• Integrated the International businesses into ESG
Committee
• Completed a review of Committee effectiveness and
implemented outcomes
Chair’s statement
I am pleased to present the first ESG Committee (the ‘Committee’)
Report for the year ended 30 April 2022. The principal role of the
Committee is to oversee the development of the Group’s Social
Purpose Strategy and approve the Environmental, Social and
Governance objectives required to deliver it and the appropriate
key performance indicators to monitor progress.
The Committee is comprised of the General Counsel and Company
Secretary (Committee Chair), a Non-Executive Director of Currys
plc, the Chief People, Communications and Sustainability Officer
and the Director of Sustainable Business and ESG. The Company
Secretary, or their nominee, acts as Secretary to the Committee. The
Committee reports into the Executive Committee and provides a
verbal update after each meeting. Key activities of the Committee
are also included in the CEO report to the Currys plc Board as
appropriate. The Board receives a comprehensive update on ESG
at least once a year and received two updates during 2021/22 on
both the new Group ESG strategy and action on climate change.
A Committee effectiveness review was completed during
the year. The review found that the Committee is operating
effectively but provided useful suggestions to further enhance
the operation of the Committee. Suggestions included ensuring
that additional teams are represented at Committee meetings
and adjusting the allocation of agenda time to increase the
focus on Nordics and Greek businesses. The Committee has
considered and implemented these suggestions.
Meetings
There were four Committee scheduled meetings during 2021/22.
Meetings are convened by the Company Secretary as required.
Representatives from the Sustainable Business, Risk, Investor
Relations, People, Health and Safety, Supply Chain and Marketing
teams are standing attendees at Committee meetings and others
are invited to attend at the discretion of the Committee Chair.
Responsibilities
The principal duties of the Committee are to:
• Oversee the development of the Group’s Social Purpose
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;
• identify and approve the Environmental, Social and
Governance objectives and KPIs required to deliver the Group’s
Social Purpose Strategy and review reporting against these at
Committee meetings;
• review the ESG risk profile at each meeting to ensure that the risks
to achieving the objectives are being appropriately managed;
• monitor external developments in respect of Environmental,
Social and Governance issues and consider any implications
for the Group;
• develop and maintain the Group’s policies and practices
relating to Environmental, Social and Governance matters to
ensure that they remain effective, compliant with legal and
regulatory requirements and industry standards and recommend
these to the Board for approval;
• To receive specific reports from Group Responsible Sourcing
over the operation of processes and controls in place to ensure
compliance with requirements of Modern Slavery regulation;
• oversee the Group’s community, charitable and environmental
partnerships;
• to review and approve all Environmental, Social and
Governance content to be published in the Company’s annual
report and accounts; and
• make any recommendations to the Executive Committee on any
area within its remit.
Key matters considered
During the year ended 30 April 2022, the Committee considered
the following key matters:
• ESG strategic approach;
• ESG emissions and e-waste bonus scorecard metrics;
• ESG risk;
• ESG communications to customers;
• ESG disclosures in the 2021/22 Annual Report and Accounts;
• responsible sourcing including the use of packaging;
• received an ISO50001 Energy Management System
management review for UK&I;
• the circular economy and Currys next steps on Giving
Technology Longer Life;
• community and charitable partnerships and next steps for
helping eradicate digital poverty;
• colleague well-being;
• inclusion and diversity;
• ESG horizon scanning and external developments;
• Internal Audit management systems, measurements and targets;
• Review of Committee Terms of Reference; and
• ESG policies review.
Nigel Paterson
Chair of the ESG Committee
6 July 2022
Number of meetings
4
(1) Paula Coughlan joined the ESG Committee as a member on 31 January 2022.
(2) Assad Malic stepped down as a member on 31 January 2022.
Committee members Meeting Attendance
Nigel Paterson (Chair) 4/4
Andrea Gisle Joosen 4/4
Paula Coughlan 1/1
(1)
Moira Thomas 4/4
Assad Malic 3/3
(2)
Environmental, Social and Governance (ESG)
Committee Report
142 Currys plc Annual Report & Accounts 2021/22
Statement of
Directors Responsibilities
Company law requires the directors to prepare financial
statements for each financial year. Under that law, the directors
are required to prepare the consolidated financial statements
in accordance with international accounting standards in
conformity with the requirements of the Companies Act 2006
and IFRS adopted pursuant to Regulation (EC) No 1606/2002
as it applies in the European Union. The consolidated financial
statements are also prepared in accordance with IFRS as issued
by the International Accounting Standards Board. The directors
have also elected to prepare the Company financial statements
in accordance with Financial Reporting Standard 101 Reduced
Disclosure Framework. Under company law, the directors must not
approve the accounts unless they are satisfied that they give a
true and fair view of the state of affairs of the Company and the
Group and of the profit or loss of the Company and the Group
for that period.
In preparing the Company financial statements, the directors
are required to:
• select suitable accounting policies and then apply them
consistently;
• make judgements and accounting estimates that are
reasonable and prudent;
• state whether Financial Reporting Standard 101 ‘Reduced
Disclosure Framework’ has been followed, subject to any
material departures disclosed and explained in the financial
statements; and
• prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Company will
continue in business.
In preparing the consolidated financial statements, IAS 1:
‘Presentation of Financial Statements’ requires that directors:
• properly select and apply accounting policies;
• present information, including accounting policies, in a
manner that provides relevant, reliable, comparable and
understandable information;
• provide additional disclosures when compliance with the
specific requirements in IFRS are insufficient to enable users to
understand the impact of particular transactions, other events
and conditions on the Group’s financial position and financial
performance; and
• make an assessment of the Group’s ability to continue as a
going concern.
The directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Company’s
transactions and disclose with reasonable accuracy at any
time the financial position of the Company and the Group and
enable them to ensure that the financial statements comply
with the Companies Act 2006. They are also responsible for
safeguarding the assets of the Company and the Group and
hence for taking reasonable steps for the prevention and
detection of fraud and other irregularities.
The directors are responsible for the maintenance and integrity
of the corporate and financial information included on the
Group’s website. Legislation in the United Kingdom governing
the preparation and dissemination of financial statements may
differ from legislation in other jurisdictions.
Responsibility Statement
We confirm that to the best of our knowledge:
• the financial statements, prepared in accordance with the
relevant financial reporting framework, give a true and fair
view of the assets, liabilities, financial position and profit or
loss of the Company and the undertakings included in the
consolidation taken as a whole;
• the Strategic Report includes a fair review of the development
and performance of the business and the position of the
Company and the undertakings included in the consolidation
taken as a whole, together with a description of the principal
risks and uncertainties that they face; and
• the Annual Report and financial statements, taken as a whole,
are fair, balanced and understandable and provide the
information necessary for shareholders to assess the Group
and the Company’s performance, business model and strategy.
By Order of the Board
Alex Baldock
Group Chief
Executive
6 July 2022
Bruce Marsh
Group Chief
Financial Officer
6 July 2022
The directors are responsible for preparing the annual report and the financial statements
in accordance with applicable law and regulations.
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143
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Financial Statements
Investor information
Strategic Report
Independent Auditor’s Report
Report on the audit of the financial statements
1. Opinion
In our opinion:
• the financial statements of Dixons Carphone plc (the ‘Company’ or the ‘parent company’) and its subsidiaries (the ‘Group’) give a
true and fair view of the state of the Group’s and of the parent company’s affairs as at 1 May 2021 and of the Group’s profit for
the year then ended;
• the Group financial statements have been properly prepared in accordance with international accounting standards in conformity
with the requirements of the Companies Act 2006 and International Financial Reporting Standards (IFRSs) as adopted by the
European Union;
• the parent company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted
Accounting Practice, including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’; and
• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements which comprise:
• the consolidated income statement;
• the consolidated statement of comprehensive income;
• the consolidated and parent company balance sheets;
• the consolidated and parent company statements of changes in equity;
• the consolidated cash flow statement; and
• the related notes 1 to 34 of the Group financial statements and notes C1 to C10 of the parent company financial statements
The financial reporting framework that has been applied in the preparation of the Group financial statements is applicable law,
international accounting standards in conformity with the requirements of the Companies Act 2006 and IFRSs as adopted by the
European Union. The financial reporting framework that has been applied in the preparation of the parent company financial
statements is applicable law and United Kingdom Accounting Standards, including FRS 101 ‘Reduced Disclosure Framework’ (United
Kingdom Generally Accepted Accounting Practice).
2. Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our
responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements
section of our report.
We are independent of the Group and the parent company in accordance with the ethical requirements that are relevant to our
audit of the financial statements in the UK, including the Financial Reporting Council’s (the ‘FRC’s’) Ethical Standard as applied
to listed public interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
The non-audit services provided to the Group and Company for the year are disclosed in note 3 to the financial statements.
We confirm that the non-audit services prohibited by the FRC’s Ethical Standard were not provided to the Group or the Company.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
144 Currys plc Annual Report & Accounts 2021/22
3. Summary of our audit approach
Key audit matters The key audit matters that we identified in the current year were:
• Revenue recognition – valuation of UK network receivables;
• Impairment of UK & Ireland Electricals goodwill and store assets; and
• Impairment of UK & Ireland Electricals assets in the course of construction.
Materiality The materiality that we used for the Group financial statements was £10.5m. Consistent with the prior year, this
was determined on the basis of considering a number of different metrics used by investors and other users of
the financial statements. These included adjusted profit before tax, net assets and revenue.
For further details refer to section 6 of this report.
Scoping Our full scope audit procedures provided coverage at the Group’s key locations, being the retail operations in
the UK and Nordics, representing 94% of the Group’s revenue.
Significant changes
in our approach
Last year we included key audit matters in respect of Carphone Warehouse UK restructuring, going concern
basis of accounting and tax provisioning, which are not considered to be key audit matters for this year.
Carphone Warehouse UK restructuring was a one off event during 2019/20 and thus has no impact in 2020/21
and has been excluded from the key audit matters.
Going concern was considered as a key audit matter in the previous year due to the increase in the level of audit
effort, judgement and complexity as a result of the Covid-19 pandemic. The improved trading performance,
despite Covid-19 restrictions in place for a sustained period, and the refinancing activities undertaken in April
2021, reduced the level of judgement in the current period. As such, going concern is no longer considered a key
audit matter.
There have been no significant developments during the period in respect of tax provisioning for the two largest
exposures in the UK, and as such the extent of our audit procedures in respect of this audit matter has reduced
compared to the previous period. We therefore have not identified this as a key audit matter in the current period.
We have refined our impairment key audit matter to no longer include Company investments and central assets.
Whilst there remains potential exposure, as indicated by the premium of net assets above market capitalisation,
there is a significant level of headroom available at the combined cash generating unit level based on
management’s forecasts. We included a new key audit matter in respect of impairment of UK assets in the
course of construction. This reflects the increased level of management judgement required as a result of recent
changes in business strategy in light of the Covid-19 pandemic.
Independent Auditor’s Report continued
145
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Financial Statements
Investor information
Strategic Report
4. Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the
preparation of the financial statements is appropriate.
Our evaluation of the directors’ assessment of the Group’s and parent company’s ability to continue to adopt the going concern
basis of accounting included:
• Consideration of the nature of the Group, its business model and related risks including where relevant the impact of both the
Covid-19 pandemic and Brexit, the requirements of the applicable financial reporting framework and the system of internal
control;
• Evaluation of the directors’ assessment of the Group’s ability to continue as a going concern, including challenging the underlying
data and key assumptions used, such as forecast revenue and operating costs, against historical and forward looking data;
• Evaluation of the directors’ plans for future actions in relation to their going concern assessment;
• Evaluation of mitigations in place and further mitigations available to the Group beyond those included within the forecast.
This included challenging the extent to which these mitigations are within the control of management in the context of historical
performance and costs included in management’s underlying forecasts;
• Assessment of the Group’s financing agreements, covenant calculations and forecast covenant compliance over the relevant
outlook period; and
• Assessment of the appropriateness of the going concern disclosures in the financial statements.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the Group’s and parent company’s ability to continue as a going concern
for a period of at least twelve months from when the financial statements are authorised for issue.
In relation to the reporting on how the Group has applied the UK Corporate Governance Code, we have nothing material to add
or draw attention to in relation to the directors’ statement in the financial statements about whether the directors considered it
appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of
this report.
5. Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to
fraud) that we identified. These matters included 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.
These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon,
and we do not provide a separate opinion on these matters.
146 Currys plc Annual Report & Accounts 2021/22
5.1. Revenue recognition – Valuation of UK network receivables
Key audit matter
description
The Group sells mobile phone contracts on behalf of mobile operators. The valuation of gross network
commission receivable and contract assets of £405m (2 May 2020: £1,005m), being commission for which there
is a contractual entitlement based on mobile phone connections already made, and for which there are no
ongoing performance obligations, is subject to significant management judgement.
Included within the gross value are contract assets of £207m (2 May 2020: £546m). These are recognised where
the performance obligations have been met but the quantum of consideration from the customer is variable
due to factors other than the passage of time. The valuation is based on management’s estimate of the extent
to which it is highly probable that recognised revenue will not be subject to a material reversal in the future.
As described in note 15, the valuation of the expected receivable is determined by four key assumptions:
• the expected level of customer spend in excess of their current contracted amount (known as ‘out of bundle’
spend);
• the forecast customer default rate within the contract period;
• the forecast rate of customer renewals with the same network provider; and
• the expected customer behaviour beyond the initial contract period (the propensity of customers to ‘sleep’).
We have focused our risk related to the valuation of contract assets on the determination of these four
key assumptions. Due to the level of judgement involved, we have determined that there is potential for
manipulation of this balance by management.
The value of these assumptions influences the level of network commission revenue that the Group recognises.
A change in these assumptions can also lead to the adjustment of revenue that has been recognised in prior
periods. In determining these assumptions the Group considers historical activity by customers and operators
and makes an assessment as to how this activity will change in the future, taking into account other factors such
as new regulations. These future variations can be influenced by external factors, including customer behaviour,
operator behaviour and changes to market regulations.
The current year reflects an out of period revaluation gain of £14m (2019/20: loss of £(47)m). During the
financial year the contract with one of the network operators ended in September 2020 and in March 2021 the
full debtor was settled. The Group also settled an ongoing contractual dispute with a counterparty and upon
settlement recognised a gain of £28m, which has been recognised as other operating income.
As described in note 1e to the Group financial statements, remeasurement of prior period assumptions due
to changes in consumer behaviour, or where more recent information becomes available, are recognised as
revenue in the income statement. Any changes in prior period assumptions, and their consequential impact
on revenue, are eliminated from the Group’s adjusted profit before tax which is an alternative performance
measure, which can be found in Appendix A5 on page 221. The key judgements and estimates involved are
described in more detail in the Audit Committee report on page 91, in the key sources of estimation uncertainty
disclosed in note 1t and in note 15 to the Group financial statements.
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How the scope
of our audit
responded to the
key audit matter
We obtained an understanding of the senior management review control of the key assumptions used to
determine the UK network receivables balance.
We assessed the valuation of revenue recognised through review of the contractual agreements, comparison of
data used by management to data submitted by the mobile operators, and performing procedures to assess
the reasonableness of the four key assumptions. We challenged:
• the forecast customer spend assumptions by comparison to actual customer spend data trends from the
network operators and with reference to external market data and trends;
• the forecast customer default rate by comparison to the actual rates of default seen in the latest data
from the networks and with reference to the external economic environment and default rates observed in
external market data;
• the forecast rate of customer renewals with the same network provider by comparison to the latest renewals
data from the network operators and with reference to other external market data; and
• the expected customer behaviour beyond the initial contract period by comparison to actual rates of
customers continuing their contract after their fixed contract term and with reference to external market data
and analysis.
In considering the assumptions, we analysed existing and forthcoming changes in regulation and wider
macroeconomic environment. We considered whether these could lead to behavioural changes which would
impact the amount of revenue recognised in the current year. Such changes could also risk the reversal of
revenue recognised in previous accounting periods and the recoverability of the receivable on the balance
sheet. Specifically, we considered expected behavioural changes relating to the events described in note15(iv)
and challenged the quantum of constraint applied to the contract asset recognised at the year end. We
considered whether management’s assumptions in respect of the impact of possible behavioural changes and
the resulting impact on the valuation of the UK network receivables balance were reasonable.
We assessed management’s judgement that the settlement of an ongoing dispute with one of the network
operators should be recognised in other operating income. We reviewed the settlement agreement and
challenged management on whether there was any contradictory evidence to demonstrate that the settlement
should instead be recognised within revenue. In order to confirm the settlements we inspected the receipt on the
bank statements and reviewed the contracts.
We assessed the changes in assumptions in relation to the revenue recognised for current year connections
between consumers and operators, and in relation to revenue recognised in previous accounting periods. In
doing so we assessed whether the amount of revenue recognised in each circumstance is consistent with the
disclosure in note 15. We assessed the disclosures relating to the treatment of out of period revaluations as
an adjusting item in the reconciliation of adjusted profit before tax, a key alternative performance measure.
Key observations We consider the treatment adopted in relation to the valuation of the UK network commission receivable and
the related assumptions applied by management to be appropriate.
We consider the recognition of the gain arising upon settlement of an ongoing dispute with one of the network
operators to be appropriately recognised within other operating income.
We agree that the disclosures relating to network commissions, summarised in note 15, provide an appropriate
understanding of the estimates taken by management and how changes in these estimates have influenced the
total revenue recognised from network commissions in the year.
5.1. Revenue recognition – Valuation of UK network receivables continued
148 Currys plc Annual Report & Accounts 2021/22
5.2. Impairment of UK & Ireland Electricals goodwill and store assets
Key audit matter
description
In light of the impact of Covid-19, there is a heightened risk of impairment in respect of the UK & Ireland
Electricals goodwill of £1,840m (2019/20: £1,840m) and UK store and right-of-use assets of £505m (2019/20:
£546m).
£1,840m of goodwill is reviewed by management for impairment within the UK & Ireland Electricals group of
cash generating units (CGUs). As set out in note 8b to the Group financial statements, management assesses
the recoverable amount of the group of CGUs by calculating its value in use using projections covering a five-
year period. Following their impairment review, management did not identify any impairment of goodwill being
required.
There is judgement required by management in determining forecast cash flows, particularly in respect of the
later and terminal years of their five-year period projections.
As disclosed in note 8 we note that a reasonably possible change in management’s forecast annual operating
profit throughout their Strategic Plan forecasts would result in headroom of the UK & Ireland combined groups of
CGUs being eroded to nil. We note there is uncertainty in the assumptions underlying these forecasts, particularly
in respect of forecast operating profit and the future EBIT margin that the Group will generate. Management
has included a key source of estimation uncertainty in note 1t, and provided associated sensitivity disclosures in
respect of the long term operating profit of the UK & Ireland Electricals group of CGUs as set out in note 8 to the
financial statements.
Management has completed a full impairment review of UK store assets, consisting of £442m of right-of-
use assets and £63m of store assets, by comparing the value in use indicated by management’s store level
forecasts to the carrying value of fixed assets of that store. As a result of this review, an impairment of £15m
was recognised as described in note 3 to the financial statements. There is an inherent key assumption in
management’s forecasts as to how customers will behave in the future, in particular the proportion of customers
that will shop in store or online. As a result, management has identified that a reasonably possible change in
consumer behaviour could result in a further material impairment, and have included a key source of estimation
uncertainty in note 1t to the financial statements.
Further information in this area is discussed in the Audit Committee report on page 91 and in note 8 to the Group
financial statements.
How the scope
of our audit
responded to the
key audit matter
We have completed the following procedures in respect of goodwill and store impairment:
• obtained an understanding of relevant controls relating to the review and approval of the impairment
reviews;
• tested the mechanical accuracy of the value in use models and cash flow forecasts and assessed whether
the methodology used in determining the recoverable amount is consistent with IAS 36: ‘Impairment of Assets’;
• challenged the key assumptions used by management in the impairment reviews through comparison to
historical performance and external evidence. In particular, we challenged management in respect of the
forecast improvement in operating profit. We assessed this by:
– challenging management on the key reconciling items that bridge between the EBIT margin generated in
the current and prior periods to the EBIT margin that is forecast over the term of the strategic plan and into
perpetuity;
– considering the reasonableness of management’s short term cash flow forecasts, including cost savings
related to the transformation of the go to market strategy for one of the Group’s main sales categories that
the Group expects to achieve, which forms a key part of management’s value in use model used to derive
the recoverable amount of the group of CGUs. We assessed whether the Group was committed to these
plans to the extent that the cost savings can be included in an impairment assessment under IAS 36;
– challenging management on the forecast proportion of customers that will shop in store or online by
comparison to the historical proportion before the impact of Covid-19, the actual proportion experienced
during the period and considering forward looking analysis, and reviewing the associated sensitivity
disclosures; and
– evaluating management’s assessment of the sensitivity to forecast operating profit margin required to
indicate an impairment. We compared the breakeven operating profit margin to the margins achieved by
comparator companies.
• challenged management’s rationale for the premium of the net assets of the Group above the market
capitalisation of the Group by evaluating the reconciling amounts in management’s analysis;
• assessed the completeness of assets being included in the asset base and the appropriateness of any
liability balances included by management;
• evaluated management’s assessment of assets which cannot be allocated on a reasonable and consistent
basis to the UK & Ireland Electricals group of CGUs; and
• assessed the completeness and accuracy of disclosures against the requirements of IAS 1 and IAS 36
respectively.
Independent Auditor’s Report continued
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5.2. Impairment of UK & Ireland Electricals goodwill and store assets continued
Key observations We considered that the related disclosures appropriately summarise the uncertainties associated with
management’s impairment reviews. We concur with management’s conclusion that no impairment of goodwill is
required and that the impairment of store assets recognised is appropriate.
5.3. Impairment of UK & Ireland Electricals assets in the course of construction
Key audit matter
description
The Group invests significant amounts in both tangible and intangible assets in relation to strategic change
projects. These projects are typically multiyear and therefore significant capitalised development costs are
classified as assets in the course of construction at key reporting dates. The total UK & Ireland Electricals assets
in the course of construction is £47m at 1 May 2021 (2019/20: £110m).
Within the year, and following a strategic change by the Group, a £55m impairment charge was recognised in
relation to intangible assets, primarily related to software development costs, as described in note 9 to the
financial statements. Given the recent strategic changes in the business, there remains a risk of impairment
in respect of the assets in the course of construction held at year end, and whether there remains a viable
business case for these assets. Where the business case is no longer viable, then an impairment of the
corresponding asset value is recorded.
Further information in this area is discussed in the Audit Committee report on page 91 and in note 9 to the Group
financial statements.
How the scope
of our audit
responded to the
key audit matter
We have completed the following procedures in respect of assets in the course of construction:
• obtained an understanding of relevant controls relating to the management review of the assets in the course
of construction ledger and associated business approval controls;
• for a sample of the largest and most aged assets under construction, we have obtained the business case
plans prepared by management and assessed whether there continues to be a valid business case by
challenging the changes in strategic direction in the year against the original business case plans;
• challenged the impairment recognised in the period by comparison to the wider trading performance of the
UK trading business and assessing whether there is any indicator of management bias;
• made enquiries of management throughout the organisation to further understand the purpose of the project
and assess whether it is appropriate the asset remains in assets under construction; and
• where impairments have arisen in the year, we have understood why the project costs have been written-off
and challenged management on whether this constitutes a prior period error.
Key observations We concur with management’s conclusion that the impairment recognised in the year is appropriate.
6. Our application of materiality
6.1. Materiality
We define materiality as the magnitude of misstatement in the financial statements that makes it probable that the economic
decisions of a reasonably knowledgeable person would be changed or influenced. We use materiality both in planning the scope of
our audit work and in evaluating the results of our work.
Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:
Consolidated financial statements Company financial statements
Materiality £10.5m (2019/20: £9.5m) £9.9m (2019/20: £9.0m)
Basis for
determining
materiality
We considered the following metrics:
• Adjusted profit before tax (see note A5);
• Net assets; and
• Revenue.
Using professional judgement, we determined
materiality to be £10.5m (£9.5m).
Materiality for the current year represents 8.6% of
adjusted profit before tax (2019/20: 7.5%), 0.15% of
total assets (2019/20: 0.12%) and 0.12% of revenue
(2019/20: 0.09%).
Company materiality is determined as a percentage of
net assets. Determined company materiality equates to
0.36% (2019/20: 0.33%) of net assets, which is capped
at 95% (2019/20: 95%) of group materiality.
Rationale for the
benchmark applied
In determining our benchmark for materiality, we
considered a number of different metrics used by
investors and other users of the financial statements.
Net assets was selected as an appropriate benchmark
for determining materiality, as the Company acts as a
holding company. statements.
150 Currys plc Annual Report & Accounts 2021/22
6.2. Performance materiality
We set performance materiality at a level lower than materiality to reduce the probability that, in aggregate, uncorrected and
undetected misstatements exceed the materiality for the financial statements as a whole.
Group financial statements Parent company financial statements
Performance
materiality
65% (2019/20: 70%) of group materiality 65% (2019/20: 70%) of parent company materiality
Basis and rationale
for determining
performance
materiality
Performance materiality as a percentage of materiality has reduced from 70% to 65% to reflect the impact
of a remote working environment and associated increase in risk of control failures and error. In determining
performance materiality, we also considered the following factors:
a. the impact of Covid-19 and industry wide pressure on the financial statements, the judgements taken by
management and the associated disclosures;
b. our risk assessment, including our assessment of the Group’s overall control environment and our reliance
on controls in the Nordics; and
c. our past experience of the audit, including the profit impacting misstatements identified in prior periods
and management’s willingness to correct any misstatements identified.
6.3. Error reporting threshold
We agreed with the Audit Committee that we would report to the Committee all audit differences in excess of £0.5m (2019/20:
£0.5m), as well as differences below that threshold that, in our view, warranted reporting on qualitative grounds. We also report to
the Audit Committee on disclosure matters that we identified when assessing the overall presentation of the financial statements.
7. An overview of the scope of our audit
7.1. Identification and scoping of components
Our group audit was scoped by obtaining an understanding of the Group and its environment, including group-wide controls,
and assessing the risks of material misstatement at the Group level. Based on that assessment, we focused our group audit scope
primarily on the audit work of the significant components, being the retail operations in the UK and the Nordics, which is consistent
with the previous year. Each of these components requires a local statutory audit.
These significant components represent the principal business units and account for approximately 94% of the Group’s revenue from
continuing operations (2019/20: 94%). Each location was selected to provide an appropriate basis for undertaking audit work to
address the risks of material misstatement identified above. Our audit work at these locations was executed at levels of materiality
applicable to each individual entity which were lower than group materiality and ranged from £5.3m to £9.9m (2019/20: £5.7m to £9.0m).
At the Dixons Carphone plc Group level we also tested the consolidation process and carried out analytical procedures to confirm
our conclusion that there were no significant risks of material misstatement of the aggregated financial information of the remaining
components not subject to audit or audit of specified account balances.
7.2. Our consideration of the control environment
Dixons Carphone plc is reliant on the effectiveness of a number of IT applications and controls to ensure that financial transactions
are processed and recorded completely and accurately.
UK control environment
We involved our IT specialists to obtain an understanding of the relevant general IT controls. Due to the IT deficiencies identified in
prior years, we did not plan to rely on the relevant controls over a number of operating cycles as these rely on automated controls.
The revenue earned from extended warranty service agreements with customers relies upon a single financial reporting system,
the general IT controls of which we relied on in the past but were unable to rely on the relevant controls this year due to deficiencies
identified in our assessment of these controls.
We planned to rely on the relevant controls associated with the Dixons supplier funding operating cycle, as certain aspects of this
process do not rely upon automated controls, but were unable to as a result of immaterial errors identified in our substantive testing,
which indicated a failure in the implementation of controls.
As a result of the IT deficiencies identified in the prior and current years, we completed additional substantive procedures. Whilst, for
audit purposes, the additional procedures performed mitigated the risk presented by the deficiencies, management is in the course
of performing further stabilisation activities associated with the Group’s IT infrastructure.
Independent Auditor’s Report continued
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Strategic Report
7.2. Our consideration of the control environment continued
General IT controls continue to be a focus area for management and the Audit Committee. Further information is set out in the risk
management and internal control section of the Audit Committee report on page 92.
Nordics control environment
In the Nordics, we relied upon controls across the following operating cycles: inventory, supplier funding, cash, property, plant and
equipment, trade payables, revenue and cost of goods sold. We tested and relied upon the relevant controls of two finance
systems for our testing of these operating cycles.
7.3. Working with other auditors
The same audit team is responsible for both the Group and UK component audit work.
The Group audit team engaged a component audit team from Deloitte Norway to perform an audit of the Nordics sub-consolidation.
The Group audit team held regular communication with the component auditor ahead of and during the year end audit process.
Oversight of the component audit team included reviewing the audit work of the component audit team via video conferencing.
8. Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s
report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the
financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do
not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated.
If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to
a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a
material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
9. Responsibilities of directors
As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the financial
statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is
necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Group’s and the 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 the directors either intend to liquidate the Group or the parent company or to cease operations, or have no
realistic alternative but to do so.
10. Auditor’s responsibilities for the audit of the financial statements
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 an auditor’s report that includes our opinion. Reasonable assurance is a
high level of assurance, but it is not a 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 the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at:
www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
152 Currys plc Annual Report & Accounts 2021/22
11. Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our
procedures are capable of detecting irregularities, including fraud is detailed below.
11.1. Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws
and regulations, we considered the following:
• the nature of the industry and sector, control environment and business performance including the design of the Group
remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets;
• results of our enquiries of management, internal audit and the audit committee about their own identification and assessment of
the risks of irregularities;
• any matters we identified having obtained and reviewed the Group’s documentation of their policies and procedures relating to:
– identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of
noncompliance;
– detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
– the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and
• the matters discussed among the audit engagement team including significant component audit teams and relevant internal
specialists, including tax, valuations, pensions, IT, and industry specialists regarding how and where fraud might occur in the
financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud
and identified the greatest potential for fraud in the following areas: valuation of UK network receivables and supplier funding. In
common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management
override.
We also obtained an understanding of the legal and regulatory frameworks that the Group operates in, focusing on provisions
of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial
statements. The key laws and regulations we considered in this context included the UK Companies Act, Listing Rules, pension
legislations, tax legislations and FCA regulations.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but
compliance with which may be fundamental to the Group’s ability to operate or to avoid a material penalty. These included the
Group’s health and safety, insurance selling and environmental regulations.
11.2. Audit response to risks identified
As a result of performing the above, we identified the valuation of UK network receivables as a key audit matter related to the
potential risk of fraud. The key audit matters section of our report explains the matter in more detail and also describes the specific
procedures we performed in response to this key audit matter.
In addition to the above, our procedures to respond to risks identified included the following:
• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of
relevant laws and regulations described as having a direct effect on the financial statements;
• considering any indicators of management bias across the key judgements and estimates in the financial statements, in particular
whether any of the judgements and estimates indicated systematic or consistent directional bias;
• enquiring of management, the audit committee and external legal counsel concerning actual and potential litigation and claims;
• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material
misstatement due to fraud;
• reading minutes of meetings of those charged with governance, reviewing internal audit reports and reviewing correspondence with
HMRC;
• assessing the valuation of UK & Ireland Electricals supplier funding related accruals that require the most significant level of
management judgment by confirming a sample of accruals directly with the supplier; and
• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other
adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and
evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including
internal specialists and significant component audit teams, and remained alert to any indications of fraud or non-compliance with
laws and regulations throughout the audit.
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Report on other legal and regulatory requirements
12. Opinions on other matters prescribed by the Companies Act 2006
In our opinion the part of the Directors’ Remuneration Report to be audited has been properly prepared in accordance with the
Companies Act 2006.
In our opinion, based on the work undertaken in the course of the audit:
• the information given in the strategic report and the Directors’ Report for the financial year for which the financial statements are
prepared is consistent with the financial statements; and
• the strategic report and the Directors’ Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent company and their environment obtained in the course
of the audit, we have not identified any material misstatements in the strategic report or the Directors’ Report.
13. Corporate Governance Statement
The Listing Rules require us to review the directors’ statement in relation to going concern, longer-term viability and that part of the
Corporate Governance Statement relating to the Group’s compliance with the provisions of the UK Corporate Governance Code
specified for our review.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate
Governance Statement is materially consistent with the financial statements and our knowledge obtained during the audit:
• the directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and any material
uncertainties identified set out on page 53;
• the directors’ explanation as to its assessment of the Group’s prospects, the period this assessment covers and why the period is
appropriate set out on page 53;
• the directors’ statement on fair, balanced and understandable set out on page 130;
• the Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on page 53;
• the section of the annual report that describes the review of effectiveness of risk management and internal control systems set
out on page 46; and
• the section describing the work of the audit committee set out on page 87.
14. Matters on which we are required to report by exception
14.1. Adequacy of explanations received and accounting records
Under the Companies Act 2006 we are required to report to you if, in our opinion:
• we have not received all the information and explanations we require for our audit; or
• 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 are not in agreement with the accounting records and returns.
We have nothing to report in respect of these matters.
14.2. Directors’ remuneration
Under the Companies Act 2006 we are also required to report if in our opinion certain disclosures of directors’ remuneration have
not been made or the part of the Directors’ Remuneration Report to be audited is not in agreement with the accounting records and
returns.
We have nothing to report in respect of these matters.
154 Currys plc Annual Report & Accounts 2021/22
15. Other matters which we are required to address
15.1. Auditor tenure
Following the recommendation of the Audit Committee, we were appointed by the Board on 31 July 2003 to audit the financial
statements of the Group for the year ending 29 March 2003 and subsequent financial periods. The period of total uninterrupted
engagement as the Group auditors, including previous renewals and reappointments of the firm is 19 years, covering the years ending
29 March 2003 to 1 May 2021. The period of engagement as the Company’s auditor, following a group restructuring, since being
incorporated in 2009, is 11 years, covering the years ending 26 March 2011 to 1 May 2021. As set out in the Audit Committee report on
page 95, 2021/22 will be the final year of our audit tenure.
15.2. Consistency of the audit report with the additional report to the audit committee
Our audit opinion is consistent with the additional report to the audit committee we are required to provide in accordance with ISAs
(UK).
16. Use of our report
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.
Stephen Griggs
Senior Statutory Auditor
for and on behalf of Deloitte LLP
Statutory Auditor
London, United Kingdom
06 July 2022
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Consolidated Income Statement
Note
Year ended
30 April
2022
£m
Year ended
1 May
2021
£m
Continuing operations
Revenue 2,3 1 0 ,14 4 1 0, 34 4
Profit before interest and tax 2,3 222 1 47
Finance income 2 6
Finance costs (98 ) (1 2 0 )
Net finance costs 5 (96 ) (1 14 )
Profit before tax 126 33
Income tax expense 6 (6 7 ) (33 )
Profit after tax – continuing operations 59 –
Profit after tax – discontinued operations 24 - 12
Profit after tax for the period 59 12
Earnings per share (pence) 7
Basic – continuing operations [x x] p –p
Diluted – continuing operations [x x] p –p
Basic – total [x x] p 1 .0 p
Diluted – total [x x] p 1 .0 p
156 Currys plc Annual Report & Accounts 2021/22
Consolidated Statement of Comprehensive Income
Note
Year ended
30 April
2022
£m
Year ended
1 May
2021
£m
Profit after tax for the period 59 12
Items that may be reclassified to the income statement in subsequent years:
Cash flow hedges 22
Fair value movements recognised in other comprehensive income 14 (51 )
Reclassified and reported in income statement (28 ) 11
Tax on movements on cash flow hedges 6 (2 ) -
Exchange (loss) / gain arising on translation of foreign operations (32 ) 46
(4 8 ) 6
Items that will not be reclassified to the income statement in subsequent years:
Actuarial gain on defined benefit pension schemes – UK 21 1 56 30
– Overseas 21 3 –
Tax on movements on defined benefit pension schemes 6 (12 ) 13
Gains on financial assets measured by fair value through other comprehensive income - 8
Other comprehensive income for the period (taken to equity) 99 57
Total comprehensive income for the period 158 69
157
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Financial Statements
Investor information
Strategic Report
Consolidated Balance Sheet
Note
30 April
2022
£m
1 May
2021
£m
Non-current assets
Goodwill 8 2 , 814 2 , 8 51
Intangible assets 9 385 4 26
Property, plant and equipment 10 162 184
Right-of-use assets 11 1 ,0 07 1 , 0 51
Lease receivable 12 3 3
Trade and other receivables 14 123 138
Deferred tax assets 6 20 6 26 2
Current assets
Inventory 13 1 , 28 6 1 ,1 78
Lease receivable 12 1 1
Trade and other receivables 14 696 5 87
Derivative assets 25 28 24
Cash and cash equivalents 15 1 26 175
Total assets 6,837 6 ,880
Current liabilities
Trade and other payables 16 (2, 368 ) (2 , 23 3 )
Derivative liabilities 25 (1 1 ) (4 2 )
Contingent consideration 17 – (2 )
Income tax payable (6 3 ) (6 4 )
Loans and other borrowings 18 (2 ) (6 )
Lease liabilities 19 (2 1 0 ) (2 1 6 )
Provisions 20 (4 8 ) (5 8 )
(2,702 ) (2 , 62 1 )
Non-current liabilities
Trade and other payables 16 (9 6 ) (97 )
Loans and other borrowings 18 (8 0 ) –
Lease liabilities 19 (1 ,0 57 ) (1 ,1 1 0 )
Retirement benefit obligations 21 (2 57 ) (4 8 2 )
Deferred tax liabilities 6 (1 63 ) (16 2 )
Provisions 20 (1 1 ) (2 7 )
(1 , 6 6 4 ) (1 , 878 )
Total liabilities (4 ,366 )
(4,499 )
Net assets 2 , 47 1 2, 3 81
Capital and reserves 22
Share capital 1 1
Share premium reserve 2 , 263 2, 26 3
Other reserves (7 99 ) (76 4 )
Accumulated profits 1,0 06 8 81
Equity attributable to equity holders of the parent company 2 , 47 1 2, 3 81
The financial statements were approved by the directors on 6 July 2022 and signed on their behalf by:
Alex Baldock
Group Chief Executive
Bruce Marsh
Group Chief Financial Officer
Company registration number: 7105905
158 Currys plc Annual Report & Accounts 2021/22
Consolidated Statement of Changes in Equity
Note
Share
capital
£m
Share
premium
reserve
£m
Other
reserves*
£m
Accumulated
profits
£m
Total
equity
£m
At 2 May 2020 1 2 , 26 3 (7 75 ) 791 2 , 280
Profit for the period – – – 12 12
Other comprehensive income recognised directly
in equity – – 14 43 57
Total comprehensive income for the period – – 14 55 69
Amounts transferred to the carrying value of
inventory purchased during the year – – 24 – 24
Net movement in relation to share schemes – – 4 17 21
Amounts transferred from investments revaluation
reserve – – (1 8 ) 18 –
Purchase of own shares – employee benefit trust 22 – – (1 3 ) – (1 3 )
At 1 May 2021 1 2 , 26 3 (76 4 ) 881 2 , 3 81
Profit for the period – – – 59 59
Other comprehensive income / (expense)
recognised directly in equity – – (4 6 ) 145 99
Total comprehensive income / (expense) for the
period – – (4 6 ) 20 4 158
Amounts transferred to the carrying value of
inventory purchased during the year – – 28 - 28
Net movement in relation to share schemes – – 24 (1 ) 23
Purchase of own shares – employee benefit trust 22 – – (41 ) - (41 )
Purchase of shares – share buyback 22 – – (32 ) – (3 2 )
Cancellation of treasury shares 22 – – 32 (32 ) –
Equity dividend 23 – – – (4 6 ) (4 6 )
At 30 April 2022 1 2 , 26 3 (79 9 ) 1 ,0 06 2 , 47 1
* A detailed reconciliation of Other reserves is provided in note 22b.
159
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Financial Statements
Investor information
Strategic Report
Consolidated Cash Flow Statement
Note
Year ended
30 April
2022
£m
Year ended
1 May
2021
£m
Operating activities
Cash generated from operations 26 524 926
Contributions to defined benefit pension scheme (78 ) (4 7 )
Income tax paid (1 8 ) (3 5 )
Net cash flows from operating activities 4 28 844
Investing activities
Net cash outflow arising from acquisitions (2 ) (1 )
Proceeds from sale of financial assets at FVTOCI - 18
Proceeds on sale of business 1 2
Acquisition of property, plant and equipment and other intangibles (1 3 3 ) (1 22 )
Net cash flows from investing activities (1 3 4 ) (10 3 )
Financing activities
Interest paid (87 ) (1 0 1 )
Capital repayment of lease liabilities (20 8 ) (2 32 )
Purchase of ordinary shares – employee benefit trust (4 1 ) (13 )
Purchase of shares – share buyback (32 ) –
Equity dividends paid (4 6 ) –
Drawdown / (Repayment) of borrowings 80 (3 2 6 )
Facility arrangement fees paid (6 ) –
Net cash flows from financing activities (3 4 0 ) (67 2 )
(Decrease) / Increase in cash and cash equivalents and bank overdrafts (4 6 ) 69
Cash and cash equivalents and bank overdrafts at the beginning of the period 169 1 20
Currency translation differences 1 (2 0 )
Cash and cash equivalents and bank overdrafts at the end of the period 26 124 1 69
160 Currys plc Annual Report & Accounts 2021/22
Notes to the Group Financial Statements
1 Significant Accounting policies
a) Basis of preparation
and Wales under the Companies Act 2006.
The consolidated financial statements have been prepared on a going concern basis in accordance with UK adopted international
accounting standards in conformity with the requirements of the Companies Act 2006 as applicable to companies reporting under
those standards.
The financial statements have been presented in Pound Sterling, based on the Group’s primary economic environment, and on the
historical cost convention except for the revaluation of certain financial instruments and defined benefit pension obligations, as
explained below. All amounts have been rounded to the nearest million (‘£m’), unless otherwise stated.
Significant accounting policies have been included in the relevant notes to the financial statements to which the policies relate.
These are presented as text highlighted on pages [x] to [x]. Where accounting policies are applied to the financial statements as a
whole, they are detailed further below.
Unless otherwise stated, the accounting policies are the same as those which have been applied consistently to all periods
presented and in previous financial years.
Alternative performance measures (APMs)
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 in addition to IFRS measures are included within the glossary and
definitions section of the Annual Report on page [x]. This includes further information on the definitions, purpose, and reconciliation
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.
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 the financial statements. The Group and Company’s business activities, factors likely
to affect future development, performance, and position, as well as the principal risks are set out in the Strategic Report on pages
[x] to [x]. The Group and Company’s funding arrangements and processes for managing its exposure to liquidity risk are set out in
notes 18 and 25.
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 directors are of the opinion that the Group’s forecasts and projections, which
take into account reasonably possible changes in trading performance, including the potentially prolonged impact of Covid-19
and the impact from inflation exacerbated by the conflict in Eastern Europe, show that the Group is able to operate within its
current facilities and comply with its banking covenants for the foreseeable future. In arriving at their conclusion that the Group
has adequate financial resources, the directors considered the level of borrowings and facilities as set out in note 18 to the Group
financial statements and that the Group has a robust policy towards liquidity and cash flow management.
As a result of the uncertainties surrounding the forecasts due to the Covid-19 pandemic and the current macroeconomic environment,
the Group has also modelled a reverse stress test scenario. The reverse stress test models the decline in sales that the Group would
be able to absorb 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.
As a result, the Board believes that the Group is well placed to manage its financing and other significant risks satisfactorily and that
the Group will be able to operate within the level of its facilities for the foreseeable future. For this reason, the Board considers it
appropriate for the Group to adopt the going concern basis in preparing its financial statements. The long-term impact of Covid-19
as well as other macroeconomic factors are uncertain and should the impacts on trading conditions be more prolonged or severe
than what the directors consider to be reasonably possible, the Group would need to implement additional operational or financial
measures.
161
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Financial Statements
Investor information
Strategic Report
1 Significant Accounting policies continued
b) Accounting convention and basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the
Company (its subsidiaries). Control is achieved where the Company has the power over the investee; is exposed, or has rights, to
variable return from its involvement with the investee; and has the ability to use its power to affect its returns.
The results of subsidiaries and joint ventures acquired or sold during the year are included in the consolidated income statement from
the effective date of acquisition or up to the effective date of disposal as appropriate, which is the date from which the power to
control passes. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies
used into line with those used by the Group. All intercompany transactions and balances are eliminated on consolidation.
c) Foreign currency translation and transactions
Foreign currency transactions
Transactions denominated in foreign currencies are translated to the Group’s presentational currency using the exchange rate at the
date of the transaction. The Group uses foreign exchange forward contracts to hedge material transactions denominated in foreign
currencies, as outlined in note 25. Foreign exchange differences arising are recognised in the Group’s income statement in the year in
which they arise.
Foreign currency translation
Material monetary assets and liabilities denominated in foreign currencies are hedged, mainly using forward foreign exchange
contracts to create matching liabilities and assets, and are translated at the rates prevailing at the balance sheet date.
The results of foreign operations are translated each month at the monthly rate, and their balance sheets are translated at the rates
prevailing at the balance sheet date. Goodwill and acquisition intangible assets are held in the currency of the operation to which
they relate. Exchange differences arising on the translation of net assets, goodwill and results of foreign operations are recognised in
the Group statement of other comprehensive income and are included in the Group’s translation reserve.
The principal exchange rates against Pound Sterling used in these financial statements are as follows:
Average Closing
2022 2021 2022 2021
Euro 1.18 1.12 1.19 1.15
Norwegian Krone 11.86 11.90 11.78 11.50
Swedish Krona 12.11 11.56 12.31 11.69
US Dollar 1.35 1.33 1.26 1.38
d) 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 estimates are reasonable, by their nature they are uncertain, and as
such changes may have a material impact.
Key sources of estimation uncertainty
Defined benefit pension schemes
The surplus or deficit in the UK defined benefit pension scheme that is recognised through the consolidated statement of
comprehensive income and expense is subject to a number of assumptions and uncertainties. The calculated liabilities of the
scheme are based on assumptions regarding inflation rates, discount rates and member longevity. Such assumptions are based on
actuarial advice and are benchmarked against similar pension schemes. Refer to note 21 for further information.
162 Currys plc Annual Report & Accounts 2021/22
1 Significant Accounting policies continued
d) Key sources of estimation uncertainty and Critical accounting judgements continued
Key sources of estimation uncertainty continued
Revenue recognition – network commissions
For certain transactions with MNOs, the quantum of commission receivable on mobile phone connections depends on consumer
behaviour after the point of sale. This leads to an estimate over the transaction price due to the variability of revenue. A level of
constraint is applied to the revenue recognition to ensure revenue is only recognised when it is highly probable there will not be a
significant reversal. By the nature of this constraint, applied in line with IFRS 15: ‘Revenue from Contracts with Customers’, it is possible
that additional revenue will be recognised in future periods from performance obligations satisfied in prior periods. For example, the
network commission receivables are routinely increased each year in line with RPI, however as part of the variable revenue constraint,
the Group does not include this RPI estimate in the revenue recognised at point of sale. For the year ended 30 April 2022, the revenue
recognised includes a value of £11m (2020/21: £6m) relating to the application of RPI increases on end consumer contracts by the
respective MNOs relating to performance obligations satisfied in prior periods. As a result of the revenue constraints applied, it is
reasonably possible that additional revenue may be recognised in future periods from performance obligations satisfied in prior
periods of between nil and £20m.
Further details of the estimations involved with network commissions can be found in note 3 and a reconciliation of the movements in
the network commission receivables within the year is included within note 14.
Impairment of non-financial assets
The Group tests whether goodwill has suffered any impairment on an annual basis based on the value of the discounted future cash
flows allocated to the group of CGUs to which it is allocated. The methodology and key assumptions used in assessing the carrying
value of goodwill are set out further below. The key assumptions made for long term projections, sales growth rates, cost saving
initiatives and discount rate all include an element of estimation that may give rise to a difference between the value ascribed
and the actual outcomes. Due to the current macroeconomic environment, there is an increased level of risk and therefore a key
source of estimation uncertainty with the sales and cost growth assumptions that drive the operating profit forecasts. It is reasonably
possible that a change in these assumptions could lead to a material change in the carrying value of goodwill specifically within
the UK & Ireland operating segment, where £1,840m of goodwill is allocated, within the next financial year. Further details of the key
assumptions used and the sensitivity analysis in respect of the recoverable amount of UK & Ireland goodwill is disclosed in note 8.
Property, plant and equipment, right-of-use assets, and other non-current assets are reviewed for impairment if events or changes
in circumstances indicate that the carrying amount of an asset or cash generating unit is not recoverable. A cash generating unit is an
individual store. The recoverable amount is the greater of the fair value less costs to sell and value-in-use. In calculating the value in
use of each store CGU, order & collect sales (and associated costs) have been included, as well as an allocation of e-commerce
sales that have been delivered directly to the consumer (rather than ordered in store or collected in store) based on data
obtained from customer surveys that support the allocation to stores. Due to the current macroeconomic environment there is an
increased level of risk associated with the forecast operating profit contribution generated by the stores (including the online sales
allocations). Therefore a key source of estimation uncertainty associated with the sales and cost growth assumptions that drive the
operating profit forecasts attributable directly to the store portfolio has been identified. It is considered reasonably possible that
a change in these operating profit forecast assumptions could lead to a material change in the carrying value of assets specifically
attributed to the UK stores, within the next financial year. If the operating profit generated by the store portfolio (including order &
collect and an allocation of e-commerce sales delivered directly to the consumer) reduces by a reasonably possible 20% from
2022/23 onwards, this would result in a further impairment of store assets by £10m. The directors do not consider that the relevant
change in this assumption would have a consequential effect on other key assumptions.
Notes to the Group Financial Statements continued
163
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Financial Statements
Investor information
Strategic Report
1 Significant Accounting policies continued
d) Key sources of estimation uncertainty and Critical accounting judgements continued
Key sources of estimation uncertainty continued
Deferred tax asset - UK losses carried forward
The Group recognises, and regularly remeasures, deferred tax assets for the carry forward of unused tax losses within the UK to
the extent that future taxable profit will be available against which the unused tax losses can be utilised. The calculated asset
is therefore based on a number of management’s projections over the next 3 years based on the Board approved strategic plan,
including sales and costs growth rates and any potential impact of the risks to achieving the Group’s objectives. All of which may give
rise to a difference between the value ascribed and the actual outcome.
It is reasonably possible that a change in assumption could result in a material change in the forecast taxable profit that will be
available against which the unused tax losses can be utilised, and a subsequent change in the deferred tax asset that is recognised,
within the next year. The Group has modelled a number of different scenarios to assess the impact on the deferred tax asset and
based on these the deferred tax asset could range from £39m to £52m. For instance, the lower end of the range is aligned to the
assumptions applied in the reasonable worse case scenarios used in our going concern modelling, and would result in the deferred
tax asset reducing to £39m. Conversely, the higher end of the range models the external market assumptions used for sales estimates
in the 2022/23 forecast assuming they outperform expectations by a reasonably possible amount, and would result in a larger
deferred tax asset of £52m being recognised.
Critical accounting judgements
Taxation
The Group is subject to income taxes in a number of different jurisdictions and judgement is required in determining the appropriate
provision for transactions where the ultimate tax determination is uncertain. The Group recognises a provision when it is probable
that an obligation to pay tax will crystallise as a result of a past event. The quantum of provision recognised is based on the best
information available and has been assessed by in-house tax specialists, and where appropriate third-party taxation and legal
advisers, and represents the Group’s best estimate of the most likely outcome. Where the final outcome of such matters differs
from the amounts initially recorded, any differences will impact the income tax and deferred tax provisions in the year to which such
determination is made. Tax laws that apply to the Group’s businesses may be amended by the relevant authorities, for example as a
result of changes in fiscal circumstances or priorities. Such potential amendments and their application to the Group are monitored
regularly and the requirement for recognition of any liabilities (or changes in existing provisions) assessed where necessary.
The Group has recognised provisions in relation to uncertain tax positions of £66m at 30 April 2022 (2020/21: £65m). Due to the
nature of the provisions recorded, the timing of the settlement of these amounts remains uncertain.
Furthermore, the Group is currently cooperating with HMRC in relation to open tax enquiries arising from pre-merger legacy corporate
transactions in the Carphone Warehouse Group. One of the underlying pre-merger transactions under enquiry is considered to have
a ‘more likely than not’ chance of resulting in settlement. The Group therefore determined, due to this level of risk, that a provision was
appropriate and this was recognised in the 2018/19 financial statements. This enquiry is still open and the treatment as a provision
continues to be deemed appropriate, with £42m (2020/21: £41m) (comprising both the amount of tax due on settlement together with
interest up to 30 April 2022) included within the uncertain tax provisions balance explained above as at 30 April 2022. This enquiry
is linked to another pre-merger tax risk that has a ‘more likely than not’ chance of resulting in settlement and has therefore been fully
provided for at £18m (2020/21: £17m) (comprising both the amount of tax due together with interest) where discussions with HMRC are
held in abeyance pending finalisation of the original enquiry. This provision is included within the uncertain tax provisions balance
explained above as at 30 April 2022.
In addition, the Group has a further open tax enquiry arising from a separate pre-merger legacy corporate transaction. Based on
the strength of third-party legal advice it is considered ‘more likely than not’ that this enquiry will not result in an economic outflow
to the Group and therefore no provision has been made. The potential range of tax exposures relating to this enquiry is estimated to
be approximately £nil – £214m excluding interest and penalties. Interest on the upper end of the range is approximately £61m up to
30 April 2022. Penalties could range from nil to 30% of the principal amount of any tax. Any potential cash outflow would occur in
greater than 1 year and less than 5 years. This potential outflow has been disclosed as a contingent liability within note 31.
164 Currys plc Annual Report & Accounts 2021/22
1 Significant Accounting policies continued
e) Recent accounting developments
In the current year, the Group has applied a number of amendments to IFRS Standards and Interpretations issued by the International
Accounting Standards Board (IASB) that are effective for the financial year beginning 2 May 2021. Their adoption has not had any
material impact on the disclosures or on the amounts reported in these financial statements. The Group has considered the following
standards whose impact is not deemed to be material:
• Amendments to IFRS 9: ‘Financial Instruments’, IAS 39: ‘Financial Instruments: Recognition and Measurement’ and IFRS 7: ‘Financial
Instruments: Disclosures’ on Phase 2 of interest rate benchmark reform
• Amendment to IFRS 16 Covid-19 Related Rent Concessions beyond 30 June 2021.
Certain other new accounting standards, amendments to existing accounting standards and interpretations which are in issue but not
yet effective, either do not apply to the Group or are not expected to have any material impact on the Group’s net results or net
assets:
• IFRS 17: ‘Insurance Contracts’
• IFRS 10 and IAS 28 (amendments) Sale or Contribution of Assets between an Investor and its Associate or Joint Venture
• Amendments to IAS 1 Classification of Liabilities as Current or Non-current
• Amendments to IFRS 3 Reference to the Conceptual Framework
• Amendments to IAS 16 Property, Plant and Equipment – Proceeds before Intended Use
• Amendments to IAS 37 Onerous Contracts – Cost of Fulfilling a Contract
• Annual Improvements to IFRS Standards 2018-2020 Cycle: Amendments to IFRS 1 First-time Adoption of International Financial
Reporting Standards, IFRS 9 Financial Instruments, IFRS 16 Leases, and IAS 41 Agriculture
• Amendments to IAS 1 and IFRS Practice Statement 2: Disclosure of Accounting Policies
• Amendments to IAS 8 Definition of Accounting Estimates
• Amendments to IAS 12 Deferred Tax related to Assets and Liabilities arising from a Single Transaction.
2 Segmental analysis
The Group’s operating segments reflect the segments routinely reviewed by the CODM and which are 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 such that they can be aggregated together into one segment.
Changes to operating segments
During the period the operating and reporting segments of the Group have changed and reflect the updated segments reported
to the Board, who are considered CODM under IFRS 8 “Operating Segments”. Following the closure of the Carphone Warehouse
standalone store estate within the UK in April 2020, Carphone Warehouse Ireland business in April 2021, the final legacy network
contract with volume commitments ending in June 2021, along with the rebrand in the UK to Currys and mobile becoming a category
within the Currys business, the previously disclosed UK & Ireland Electricals and UK & Ireland Mobile segments have been combined
into UK & Ireland.
It was subsequently determined that by including mobile as a category within Currys and the removal of the legacy network volume
commitments, that the previously disclosed UK & Ireland mobile segment incurs expenses in the same manner and sells similar
products to that of the UK & Ireland Electricals segment. The Group has therefore consolidated the information presented to the
Board to provide greater clarity over the relative performance of the UK & Ireland business and to support decisions related to the
allocation of the Group’s resources. The restatement of comparative information for these segments has been set out in part (b) of
this note.
The Group’s operating and reportable segments have therefore been identified as follows:
• UK & Ireland comprises the operations of Currys, Carphone Warehouse, iD Mobile and B2B operations
• Nordics operates in Norway, Sweden, Finland, Denmark with franchise operations in Iceland, Greenland and the Faroe Islands.
• Greece, consisting of our ongoing operations in Greece and Cyprus.
UK & Ireland, Nordics and Greece 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.
In accordance with IFRS 5, discontinued operations are disclosed separately as a single amount within the Group’s consolidated
income statement after profit after tax for continuing operations. Discontinued operations are therefore excluded from the
segmental analysis. Further information on the Group’s operations classified as discontinued is outlined in note 24.
Notes to the Group Financial Statements continued
165
Governance
Financial Statements
Investor information
Strategic Report
2 Segmental analysis continued
a) Segmental results
Year ended 30 April 2022
UK & Ireland
£m
Nordics
£m
Greece
£m
Eliminations
£m
Total
£m
External revenue 5,485 4,105 554 – 10,144
Inter-segmental revenue 67 – – (67) –
Total revenue 5,552 4,105 554 (67) 10,144
Profit before interest and tax 71 130 21 – 222
Year ended 1 May 2021 (restated)*
UK & Ireland
£m
Nordics
£m
Greece
£m
Eliminations
£m
Total
£m
External revenue 5,642 4,186 516 – 10,344
Inter-segmental revenue 56 – – (56) –
Total revenue 5,698 4,186 516 10,344
Profit / (loss) before interest and tax (11) 139 19 – 147
* As discussed above, during the period the Group’s reportable segments have been changed to reflect the updated segments reported to the Board. As a result, inter-
segmental revenue has been restated from £194m to £56m for the year ended 1 May 2021. This is to remove inter-segmental revenue transactions between the previously
disclosed UK & Ireland Electricals and UK & Ireland Mobile CGUs. A full restatement of segmental information from what was disclosed in prior periods is presented below
in note 2b.
No individual customer represented more than 10% of the Group’s revenue within the current or preceding period.
b) Restatement of segmental information
As discussed above, during the period the Group’s reportable segments have been changed, and comparatives have been restated
accordingly. The below tables provide reconciliations for external revenue and profit / (loss) before interest and tax for the year
ended 1 May 2021. The relevant adjustment is a reconciliation of the previously disclosed UK & Ireland Electricals and UK & Ireland
Mobile segments to the UK & Ireland segment.
External revenue
As previously
reported
£m
Reallocate
UK & Ireland
Electricals
£m
Reallocate
UK & Ireland
Mobile
£m
Total
£m
UK & Ireland – 4,921 721 5,642
UK & Ireland Electricals (as previously reported) 4,921 (4 ,921) – –
UK & Ireland Mobile (as previously reported) 721 – (721) –
Nordics 4,186 – – 4,186
Greece 516 – – 516
Total revenue 10,344 – – 10,344
Profit / (loss) before interest and tax
As previously
reported
£m
Reallocate
UK & Ireland
Electricals
£m
Reallocate
UK & Ireland
Mobile
£m
Total
£m
UK & Ireland – 78 (89) (11)
UK & Ireland Electricals (as previously reported) 78 (78) – –
UK & Ireland Mobile (as previously reported) (89) – 89 –
Nordics 139 – – 139
Greece 19 – – 19
Profit / (loss) before interest and tax 147 – – 147
166 Currys plc Annual Report & Accounts 2021/22
2 Segmental analysis continued
c) 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.
Year ended 30 April 2022 Year ended 1 May 2020
UK
£m
Norway
£m
Sweden
£m
Other
£m
Total
£m
UK
£m
Norway
£m
Sweden
£m
Other
£m
Total
£m
Revenue 5,299 1,245 1,387 2,213 10,144 5,352 1,269 1,375 2,348 10,344
Non-current
assets 2,718 588 457 690 4,453 2,886 581 461 684 4,612
Capital
expenditure 64 32 10 27 133 60 36 7 19 122
3 Revenue and profit before interest and taxation
Accounting policies
Revenue primarily comprises sales of goods and services net of returns, expected returns and excluding sales taxes. Revenue
is measured based on the consideration to which the Group expects to be entitled in a contract with a customer and excludes
amounts collected on behalf of third parties. The Group recognises revenue when it transfers control of a product or service
to a customer. The following accounting policies are applied to the principal revenue generating activities in which the Group is
engaged:
a) Sale of goods:
Revenue from the sale of goods is recognised at the point of sale or, where later, upon delivery to the customer. Where
consideration is received, or receivable, in advance of the customer obtaining control and the performance obligations being
satisfied, a contract liability is recognised
It is Group policy to grant customers the right to return their products within a defined period of time. As this does not represent
a separate performance obligation, the Group only recognises revenue to which it expects to be entitled. The Group uses the
most likely amount method to estimate the expected value of goods to be returned by customers exercising their rights in line
with the Group’s refund policy based on the prior period return rates.
A refund liability is recognised as a component of trade and other payables for the amount of variable consideration that
the Group does not expect to be entitled. A separate right to return asset is recognised within inventory to represent the right to
recover goods from customers on settlement of the refund liability. This is measured by reference to the former carrying amount
of the goods sold less any recoverability costs and decrease in value.
b) Network commissions:
Revenue from newtork comissions is recognised at a point in time on completion of the performance obligation under
the individual contract with the Mobile Network Operator (MNO). The Group operates under contracts with a number of
Mobile Network Operators (‘MNOs’). Over the life of these contracts the service provided by the Group to each MNO is the
procurement of connections to the MNOs’ networks. Each connection made to an MNO’s network relates to an individual
consumer. The consumer enters into a contract with the MNO for the MNO to supply the ongoing airtime over that contract
period.
The Group earns a commission for the service provided to each MNO (‘network commission’). Revenue is recognised at the point
the individual consumer signs a contract with the MNO. Consideration from the MNO becomes receivable over the course of
the contract between the MNO and the consumer. A judgement associated with this recognition is the unit of account used in
measurement. As there is a large population of homogeneous items, in measuring the amount of revenue to recognise the Group
has determined that the number and value of consumers provided to each MNO in any given month (a ‘cohort’) represents the
best unit of account.
Notes to the Group Financial Statements continued
167
Governance
Financial Statements
Investor information
Strategic Report
3 Revenue and profit before interest and taxation continued
b) Network commissions: continued
The level of network commission earned is based on a share of the monthly payments made by the consumer to the MNO,
including contractual monthly line rental payments together with a share of ‘out-of-bundle’ spend, spend after the contractual
term, and amounts due from customer upgrades performed directly by the network. The total consideration receivable is
determined by consumer behaviour after the point of recognition. The transaction price includes elements of variability and is
therefore an area of estimation.
The method of measuring the value of the revenue and contract asset in the month of connection is to estimate all future cash
flows that will be received from the network and discount these based on the expected timing of receipt.
A constrained estimate of the determined commission is recognised in full in the month of connection of the consumer to the
MNO as this is the point at which we have completed the service obligation relating to the consumer connection.
Transaction price is estimated based on extensive historical evidence obtained from the networks and an adjustment is made
for expected and possible changes in consumer behaviour including as a result of regulatory changes impacting the sector.
The consideration for a cohort of consumers is estimated by modelling the expected value of the portfolio of individual sales.
Revenue is only recognised to the extent that it is highly probable that a significant reversal in the amount of revenue recognised
will not occur. Management makes a quarterly, and the directors a twice-yearly, assessment of this data. This is based on the
best estimate of expected future trends.
c) Insurance revenue:
Insurance revenue relates to the sale of third-party insurance products. Sales commission received from third parties is
recognised when the insurance policies to which it relates are sold. Although there are no ongoing performance obligations,
future commission receivable can vary due to consumer behaviour however it is only recognised to the extent that it is highly
probable that there will not be a significant reversal of revenue. The Group recognises a contract asset in relation to this
revenue. Any amount previously recognised as a contract asset is reclassified to trade receivables at the point in which it
becomes billable and is no longer conditioned on something other than the passage of time. Revenue from the provision of
insurance administration services is recognised over the life of the relevant policies when the Group’s performance obligations
are satisfied.
d) Support services – customer support agreements:
Revenue earned from the sale of customer support agreements is recognised in full as the stand-ready performance
obligations are satisfied under the contracts with the customer. Where consideration is received in advance of the performance
of the obligations being satisfied, a contract liability is recognised. Due to the cancellation options and customer refund
clauses, contract terms have been assessed to either be monthly or a series of day to day contracts with revenue recognised
respectively in the month to which payment relates, or on a ‘straight-line’ basis
e) Other services:
Other services revenue, including delivery and installation, product repairs and product support, is recognised when the
obligation to the customer has been fulfilled.
Year ended
30 April
2022
£m
Year ended
1 May
2021
£m
Revenue 10,144 10,344
Cost of sales (8,356) (8,592)
Gross profit 1,788 1,752
Operating expenses (1,566) (1,605)
Profit before interest and tax 222 147
168 Currys plc Annual Report & Accounts 2021/22
3 Revenue and profit interest and taxation continued
The Group’s disaggregated revenues recognised under ‘Revenue from Contracts with Customers’ in accordance with IFRS 15 relates to
the following operating segments and revenue streams:
Year ended 30 April 2022
UK & Ireland
£m
Nordics
£m
Greece
£m
Total
£m
Sale of goods 4,647 3,756 511 8,914
Commission revenue 458 220 18 696
Support services revenue 239 57 17 313
Other services revenue 140 72 8 220
Other revenue 1 - - 1
Total revenue 5,485 4,105 554 10,144
Year ended 1 May 2021
UK & Ireland
£m
Nordics
£m
Greece
£m
Total
£m
Sale of goods 4,751 3,797 491 9,039
Commission revenue 469 252 1 722
Support services revenue 260 60 17 337
Other services revenue 157 77 7 241
Other revenue 5 – – 5
Total revenue 5,642 4,186 516 10,344
Revenue from commissions relates predominantly to network and insurance commissions which are further explained within the
accounting policies section above.
Income received from suppliers such as volume rebates
The Group’s agreements with suppliers contain a price for units purchased as well as other rebates and discounts which are
summarised below:
Volume Rebates: This income is linked to purchases made from suppliers and is recognised as a reduction to cost of goods sold as
inventory is sold. Rebates that relate to inventory not sold are recognised within the value of inventory at the period end. Where an
agreement spans period ends, estimation is required regarding amounts to be recognised. Forecasts are used as well as historical
data in the estimation of the level of income recognised. Amounts are only recognised where the Group has a clear entitlement to
the receipt of the rebate and a reliable estimate can be made.
Customer discount support: This income is received from suppliers on a price per unit basis. The level of estimation is minimal as
amounts are recognised as a reduction to cost of goods sold based on the agreement terms and only once the item is sold.
Marketing income: This income is received in relation to marketing activities that are performed on behalf of suppliers. Marketing
income is recognised over the period as set out in the specific supplier agreements and is recognised as a reduction to cost of sales.
Supplier funding amounts that have been recognised and not invoiced are shown within accrued income on the balance sheet. Cash
inflows for supplier funding received are classified as operating cash flows.
Notes to the Group Financial Statements continued
169
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Financial Statements
Investor information
Strategic Report
3 Revenue and profit before interest and taxation continued
Profit before interest and taxation for continuing operations is stated after charging / (crediting) the following:
Year ended
30 April
2022
£m
Year ended
1 May
2021
£m
Depreciation of property, plant and equipment 62 79
Impairment of property, plant and equipment 6 5
Depreciation of right-of-use assets 190 200
Impairment of right-of-use assets 42 15
Impairment reversal of right-of-use assets (15) -
Amortisation of acquisition intangibles 24 26
Impairment of acquisition intangibles - 8
Amortisation of other intangibles 62 57
Impairment of other intangibles 33 47
Impairment of inventory 72 80
Net impairment on financial assets (see note 14) - –
Cost of inventory recognised as an expense 8,013 8,175
Cash flow hedge amounts reclassified and reported in income statement (28) 11
Government grant income (2) (6)
Net foreign exchange gains (6) (2)
Share-based payments expense 23 21
Other employee costs (see note 4) 985 1,054
Restructuring costs* 11 54
Other exceptional income* (19) (31)
Regulatory income* (1) (7)
* Restructuring costs, other exceptional income and regulatory income are further detailed within note A5 of the glossary.
Auditor’s remuneration comprises the following:
Year ended
30 April
2022
£m
Year ended
1 May
2021
£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 their audit of the Company’s subsidiaries 1.7 1.5
Total audit fees 1.8 1.6
Audit-related assurance services:
Review of interim statement 0.2 0.2
Other assurance services - 0.2
Total audit and audit-related assurance services 2.0 2.0
Tax compliance services 0.1 0.1
Total audit and non-audit fees 2.1 2.1
170 Currys plc Annual Report & Accounts 2021/22
4 Employee costs and share-based payments
a) Employee costs
The aggregate remuneration recognised in the income statement for continuing operations is as follows:
Year ended
30 April
2022
£m
Year ended
1 May
2021
£m
Salaries and performance bonuses 845 901
Social security costs 110 119
Other pension costs 30 34
985 1,054
Share-based payments 23 21
1,008 1,075
The average number of employees for continuing operations is:
Year ended
30 April
2022
number
Year ended
1 May
2021
(restated)*
number
UK & Ireland 19,625 23,025
Nordics 10,984 10,399
Greece 2,923 2,663
33,532 36,087
* Figures for the year ended 1 May 2021 have been restated to reflect the change in operating segments reported to the Board as per IFRS 8 “Operating Segments”. The
average number of employees for continuing operations previously disclosed for the UK & Ireland Electricals of 18,591 and UK & Ireland Mobile of 4,434 have been
merged into the singular UK & Ireland operating segment.
Compensation earned by key management, comprising the Board of Directors and senior Executives, is as follows:
Year ended
30 April
2022
£m
Year ended
1 May
2021
£m
Short-term employee benefits 10 10
Share-based payments 6 4
16 14
Further information about individual directors’ remuneration, share interests, share options, pensions and other entitlements, which
form part of these financial statements, is provided in the Remuneration Report.
Notes to the Group Financial Statements continued
171
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Financial Statements
Investor information
Strategic Report
4 Employee costs and share-based payments continued
b) Share-based payments
Accounting policies
Equity settled share-based payments are measured at fair value at the date of grant and expensed on a straight-line basis
over the vesting period, based on an estimate of the number of shares that will eventually vest. A Monte Carlo model is used to
measure fair value.
For all schemes, the number of options expected to vest is recalculated at each balance sheet date, based on expectations
of leavers prior to vesting. For schemes with internal performance criteria such as free cash flow, the number of options
expected to vest is also adjusted based on expectations of performance against target. No adjustment is made for expected
performance against external performance criteria such as TSR, because the likelihood that the performance criteria will be
met is taken into account when estimating the fair value of the award on the grant date. The movement in cumulative expense
since the previous balance sheet date is recognised in the income statement, with a corresponding entry in reserves.
i) Share option schemes
The Group offers discretionary awards of nil-priced options under the Long Term Incentive Plan (LTIP) to senior employees. Awards
are granted annually and will usually vest after three years subject to continued service. Some awards are also subject to the
achievement of performance conditions.
For awards granted during the years ended 27 April 2019 and 2 May 2020, awards granted to Executive Directors and key
management are subject to performance conditions. For awards issued to other senior management, awards are not subject to
performance conditions.
For awards granted during the years ended 1 May 2021 and 30 April 2022, all awards issued are subject to performance conditions,
detailed below.
For awards granted during the year ended 27 April 2019, performance conditions are based on a combination of relative TSR
performance against the constituents of the FTSE 51-150 at the beginning of the performance period and cumulative free cash flow.
For awards granted during the years ended 2 May 2020, 1 May 2021 and 30 April 2022, performance conditions are based on a
combination of relative TSR performance against a bespoke comparator group of 22 European Special Line Retailers and other
comparable companies and cumulative free cash flow.
In February 2019, the Group launched the Colleague Shareholder Award which granted every permanent colleague with 12 months
service at least £1,000 of options which will vest after three years. These awards are not subject to performance conditions.
The following table summarises the number and weighted average exercise price (WAEP) of share options for these schemes:
Year ended 30 April 2022 Year ended 1 May 2021
Number
m
WAEP
£
Number
m
WAEP
£
Outstanding at the beginning of the period 78 – 63 –
Granted during the period 20 – 32 –
Forfeited during the period (13) – (12) –
Exercised during the period (21) – (5) –
Outstanding at the end of the period 64 – 78 –
Exercisable at the end of the period 3 – – –
Year ended
30 April
2022
Year ended
1 May
2021
Weighted average market price of options exercised in the period £1.09 £1.01
Weighted average remaining contractual life of awards outstanding 8.3 yrs 8.5 yrs
Exercise price for options outstanding £nil £nil
172 Currys plc Annual Report & Accounts 2021/22
4 Employee costs and share-based payments continued
b) Share-based payments continued
ii) SAYE scheme
The Group has SAYE schemes which allow participants to save up to £500 per month for either three or five years. At the end
of the savings period, participants can purchase shares in the Company based on a discounted share price determined at the
commencement of the scheme.
The following table summarises the number and WAEP of share options for these schemes:
Year ended 30 April 2022 Year ended 1 May 2021
Number
m
WAEP
£
Number
m
WAEP
£
Outstanding at the beginning of the period 19 0.82 15 1.19
Granted during the period 8 0.93 14 0.67
Exercised during the period - 0.81 – 0.86
Forfeited during period (7) 0.98 (10) 1.1619
Outstanding at the end of the period 20 – 19 0.82
Exercisable at the end of the period - 0.97 1 1.53
Year ended
30 April
2022
Year ended
1 May
2021
Weighted average market price of options exercised in the period £1.12 £1.36
Weighted average remaining contractual life of awards outstanding 2.3 yrs 2.7 yrs
Range of exercise prices for options outstanding £0.67 - £2.52 £0.67 – £3.77
iii) Fair value model
The fair value of options was estimated at the date of grant using a Monte Carlo model. The model combines the market price of a
share at the date of grant with the probability of meeting performance criteria, based on the historical performance of the Group.
The weighted average fair value of options granted during the period was £0.79 (2020/21: £0.56). The following table lists the inputs
to the model:
Year ended
30 April
2022
Year ended
1 May
2021
Exercise price £nil – £0.93 £nil – £0.67
Dividend yield 0% – 3.8% 0% – 3.8%
Historical and expected volatility 42% 41%
Expected option life 4 – 10 yrs 4 – 10 yrs
Weighted average share price £1.30 £0.91
The expected volatility reflects the assumption that the historical volatility is indicative of future trends.
iv) Charge to the income statement and entries in reserves
During the year ended 30 April 2022, the Group recognised a non-cash accounting charge to profit and loss of £23m (2020/21:
£21m) in respect of equity settled share-based payments, with a corresponding credit through reserves.
Notes to the Group Financial Statements continued
173
Governance
Financial Statements
Investor information
Strategic Report
4 Employee costs and share-based payments continued
c) Employee Benefit Trust (‘EBT’)
30 April 2022 1 May 2021
Market
value
£m
Nominal
value
£m
Number
m
Market
value
£m
Nominal
value
£m
Number
m
Investment in own shares 31 - 33.2 28 – 20.5
Maximum number of shares held during
the period 48 - 51.9 28 – 20.5
The number of shares held by the EBT remain held for potential awards under outstanding plans. The costs of administering the
EBT are charged to the income statement in the year to which they relate. Investment in own shares are recorded at cost and are
recognised directly in equity within other reserves.
The EBT acquired 34.7m of the Company’s shares during the year ended 30 April 2022 via market purchases for cash consideration
of £41m. For the comparative period 4.1m shares were acquired at nominal value and 11.6m via market purchases for cash
consideration of £13m.
The EBT has waived rights to receive dividends and agrees to abstain from exercising their right to vote. The shares have not been
allocated to specific schemes as further disclosed in the Directors’ Report. At 30 April 2022, the EBT held 2.9% (2020/21: 1.8%) of the
issued share capital of the Company.
5 Net finance costs
Accounting policies
Net finance costs comprise both finance income and finance costs. Finance income for financial assets and finance costs for
financial liabilities that are measured at amortised cost is calculated using the effective interest method.
Finance income includes income on cash and cash equivalents and income on the unwind of the Network commission contract
assets and receivables as further disclosed in note 14. Finance costs include interest costs in relation to financial liabilities,
including lease liabilities which represent the unwind of the discount rate applied at the commencement date of the lease, and
finance costs related to the groups defined benefit pension obligation.
Year ended
30 April
2022
£m
Year ended
1 May
2021
£m
Unwind of discounts on trade and other receivables 2 6
Finance income 2 6
Interest on bank overdrafts, loans and borrowings (6) (8)
Interest expense on lease liabilities (70) (77)
Net interest on defined benefit pension obligations (8) (8)
Amortisation of facility fees* (2) (11)
Other interest expense (12) (16)
Finance costs (98) (120)
Total net finance costs (96) (114)
* In April 2021, the Group refinanced its existing debt with two new Revolving Credit Facilities. As such, all other facilities were cancelled as part of the refinancing and the
fees relating to these facilities were subsequently written off.
All finance costs in the above table represent interest costs of financial liabilities and assets, other than amortisation of facility fees
which represent non-financial assets and net interest on defined benefit pension obligations which represent the net defined benefit
liabilities.
174 Currys plc Annual Report & Accounts 2021/22
6 Tax
Accounting policies
Current tax
Current tax is provided at amounts expected to be paid or recovered using the prevailing tax rates and laws that have been
enacted or substantively enacted by the balance sheet date and adjusted for any tax payable in respect of previous years.
Deferred tax
Deferred tax liabilities are recognised for all temporary differences between the carrying amount of an asset or liability in the
balance sheet and the tax base value and represent tax payable in future periods. Deferred tax assets are recognised to the
extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised.
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries, except where
the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not
reverse in the foreseeable future. No provision is made for tax that would have been payable on the distribution of retained
profits of overseas subsidiaries or associated undertakings where it has been determined that these profits will not be
distributed in the foreseeable future.
Current and deferred tax is recognised in the income statement except where it relates to an item recognised directly in other
comprehensive income or reserves, in which case it is recognised directly in other comprehensive income or reserves as appropriate.
Deferred tax is measured at the average tax rates that are expected to apply in the years in which the timing differences are
expected to reverse, based on tax rates and laws that have been enacted, or substantively enacted by the balance sheet date.
Deferred tax assets and liabilities are offset against each other when they relate to income taxes levied by the same tax
jurisdiction and when the Group intends to settle its current tax assets and liabilities on a net basis. Deferred tax balances are
not discounted.
a) Tax expense
The corporation tax charge comprises:
Year ended
30 April
2022
£m
Year ended
1 May
2021
£m
Current tax
UK corporation tax at 19% (2020/21:19%) 14 7
Overseas tax 21 36
35 43
Adjustments made in respect of prior years*:
UK corporation tax 1 (12)
Overseas tax 1 (1)
2 (13)
Total current tax 37 30
Deferred tax
UK tax 13 5
Overseas tax 8 (6)
21 (1)
Adjustments in respect of prior years:
UK corporation tax 8 5
Overseas tax 1 (1)
9 4
Total deferred tax 30 3
Total tax charge 67 33
* This is further disclosed in note 6(b)iii
Tax related to discontinued operations is included in the figures set out in note 24.
Notes to the Group Financial Statements continued
175
Governance
Financial Statements
Investor information
Strategic Report
6 Tax continued
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:
Year ended
30 April
2022
£m
Year ended
1 May
2021
£m
Profit before taxation 126 33
Tax at UK statutory rate of 19% (2020/21:19%) 24 6
Items attracting no tax relief or liability
(i)
(3) 12
Movement in unprovided deferred tax
(ii)
37 16
Effect of change in statutory tax rate (5) 1
Differences in effective overseas tax rates 2 6
Increase in provisions 1 1
Adjustments in respect of prior years – provisions
(iii)
1 (13)
Adjustments in respect of prior years – other
(iv)
10 4
Total tax charge 67 33
(i) Items attracting no tax relief or liability relate mainly to non-deductible depreciation and share based payments in the UK business.
(ii) Deferred tax assets relating principally to tax losses in the UK business have not been recognised due to uncertainty over the Group’s ability to utilise the losses in the
future.
(iii) Provision releases in the prior year are predominantly where the window for recovery has now closed in relation to pre-merger uncertain tax positions.
(iv) Other adjustments in respect of prior years are mainly due to lower tax relief on fixed assets through capital allowances in submitted tax returns.
c) Deferred tax
Accelerated
capital
allowances
£m
Retirement
benefit
obligations
£m
Losses carried
forward
£m
Other
temporary
differences
£m
Total
£m
At 2 May 2020 (51) 53 39 56 97
(Charged) / credited directly to income statement (1) – (13) 11 (3)
Credited to equity – 6 – – 6
At 1 May 2021 (52) 59 26 67 100
(Charged) / credited directly to income statement (22) - (14) 6 (30)
Charged to equity - (24) - (3) (27)
At 30 April 2022 (74) 35 12 70 43
Deferred tax comprises the following balances:
30 April
2022
£m
1 May
2021
£m
Deferred tax assets 206 262
Deferred tax liabilities (163) (162)
43 100
Analysis of deferred tax relating to items (charged) / credited to equity in the period:
Year ended
30 April
2022
£m
Year ended
1 May
2021
£m
Defined benefit pension schemes (24) 6
Other temporary differences (3) -
(27) 6
176 Currys plc Annual Report & Accounts 2021/22
6 Tax continued
c) Deferred tax continued
The Group has total unrecognised deferred tax assets relating to gross tax losses of £1,757m (2020/21: £1,491m) of which £1,415m
relates to the UK (2020/21: £1,459m). £1,052m (2020/21: £1,052m) of these losses relate to carried forward capital losses in the
legacy Dixons Group. The balance of the losses relates to carried forward trading losses, principally due to the losses realised in the
Carphone Warehouse business in the UK.
A deferred tax asset has not been recognised in respect of the losses (£705m), other deductible temporary differences (£122m)
and pension contributions (£118m) expected to reverse after the period of the Group’s 3-year plan which is used to determine the
availability of future taxable profits.
There were no temporary differences associated with non-distributable earnings of subsidiaries for which deferred tax liabilities had
not been recognised at the end of the current period or the prior period.
The Group has a current tax credit of £14m (2020/21: £7m) recognised through equity in relation to pensions.
On 24 May 2021 the Finance Bill 2021 passed through all stages in the House of Commons and became substantively enacted, which
included a legislative change to increase the rate of corporation tax to 25% with effect from 1 April 2023.
7 Earnings per share
Year ended
30 April
2022
£m
Year ended
1 May
2021
£m
Total profit
Continuing operations 59 –
Discontinued operations - 12
Total 59 12
Million Million
Weighted average number of shares
Average shares in issue 1,165 1,166
Less average holding by Group EBT and Treasury shares held by Company (35) (14)
For basic earnings per share 1,130 1,152
Dilutive effect of share options and other incentive schemes [xx] 42
For diluted earnings per share [xx] 1,194
Pence Pence
Basic earnings per share
Total (continuing and discontinued operations) 5.2 1.0
Adjustment in respect of discontinued operations - (1.0)
Continuing operations 5.2 –
Diluted earnings per share
Total (continuing and discontinued operations) [xx] 1.0
Adjustment in respect of discontinued operations [xx] (1.0)
Continuing operations [xx] –
Basic and diluted earnings per share are based on the profit for the period attributable to equity shareholders.
Notes to the Group Financial Statements continued
177
Governance
Financial Statements
Investor information
Strategic Report
8 Goodwill
Accounting policies
On acquisition of a subsidiary or associate, the fair value of the consideration is allocated between the identifiable net
tangible and intangible assets and liabilities on a fair value basis, with any excess consideration representing goodwill. At
the acquisition date, goodwill is allocated to each group of Cash Generating Units (‘CGUs’) expected to benefit from the
combination and held in the currency of the operations to which the goodwill relates.
Goodwill is not amortised, but is assessed annually for impairment, or more frequently where there is an indication that
goodwill may be impaired. Impairment is assessed by measuring the future cash flows of the group of CGUs to which the
goodwill relates, at the level at which this is monitored by management. Where the future discounted cash flows or recoverable
amount is less than the carrying value of goodwill, an impairment charge is recognised in the income statement.
On disposal of subsidiary undertakings and businesses, the relevant goodwill is included in the calculation of the profit or loss
on disposal.
Cost £m
As at 2 May 2020 3,028
Foreign exchange 48
As at 1 May 2021 3,076
Foreign exchange (37)
As at 30 April 2022 3,039
Accumulated impairment £m
As at 2 May 2020 and 1 May 2021 (225)
Impairment -
As at 30 April 2022 (225)
Carrying amount £m
As at 2 May 2020 2,803
As at 1 May 2021 2,851
As at 30 April 2022 2,814
No impairment charge has been recognised over goodwill in the current or prior period.
a) Carrying value of goodwill
The components of goodwill comprise the following businesses:
30 April
2022
£m
1 May
2021
£m
UK & Ireland 1,840 1,840
Nordics 974 1,011
2,814 2,851
As part of the strategic review and change in information reported to the Board as described in note 2, the Group has merged the
previously disclosed UK & Ireland Electricals and UK & Ireland Mobile operating segments into the combined UK & Ireland operating
segment. As a result of the change, the goodwill previously allocated to the UK & Ireland Electricals CGU has been consolidated into
the UK & Ireland CGU.
178 Currys plc Annual Report & Accounts 2021/22
8 Goodwill continued
b) Goodwill impairment testing
As required by IAS 36, goodwill is subject to annual impairment reviews. These reviews are carried out using the following criteria:
• business acquisitions generate an attributed amount of goodwill;
• the manner in which these businesses are run and managed is used to determine the CGU grouping as defined in IAS 36: ‘Impairment
of Assets’;
• the recoverable amount of each CGU Group is determined based on calculating its value in use (‘VIU’);
• the VIU is calculated by applying discounted cash flow modelling to management’s own projections covering a three-year period;
• cash flows beyond the three-year period are extrapolated using a long-term growth rate equivalent to long-term forecasts of
Gross Domestic Product (‘GDP’) growth rates for the relevant market; and
• the VIU is then compared to the carrying amount in order to determine whether impairment has occurred.
The key assumptions used in calculating value in use are:
• management’s projections;
• the growth rate beyond three years; and
• the pre-tax discount rate.
The long term projections are based on Board approved budgets for 2022/23 together with the Board approved three-year
strategic plan. These projections have regard to the relative performance of competitors and knowledge of the current market
together with management’s views on the future achievable growth in market share and impact of the committed initiatives, including
long term sustainability targets committed by the Group, any longer-term impact of the Covid-19 pandemic and any impact to the
Group, inflationary or otherwise, as a result of the uncertain conflict arising in Eastern Europe. The cash flows which derive from these
three-year projections include ongoing capital expenditure required to develop and upgrade the store network and e-commerce
channels in order to maintain and operate the omnichannel businesses and to compete in their respective markets. In forming the
three-year projections, management draws on past experience as a measure to forecast future performance.
Key assumptions used in determining the three-year projections comprise the growth in sales and costs over this period. The
compound annual growth rate in sales and costs can rise as well as fall year-on-year depending not only on the year three targets,
but also on the current financial year base. These targets, when combined, accordingly drive the resulting profit margins and the
profit in year three of the projections which is in turn used to calculate the terminal value in the VIU calculation. Historical amounts for
the businesses under impairment review as well as from other parts of the Group are used to generate the values attributed to these
assumptions.
The value attributed to these assumptions for the most significant components of goodwill are as follows:
30 April 2022 1 May 2021
Compound
annual
growth in
sales
Compound
annual
growth in
costs
Growth rate
beyond five
years
Pre-tax
discount rate
Compound
annual
growth in
sales
Compound
annual
growth in
costs
Growth rate
beyond five
years
Pre-tax
discount rate
UK & Ireland 1.4% 0.9% 1.5% 10.6% (2.6)% (3.2)% 1.4% 8.7%
Nordics 0.4% 0.3% 1.8% 9.6% 1.3% 1.3% 1.8% 7.8%
Growth rates used were determined based on third-party long-term growth rate forecasts and are based on the GDP growth rate
for the territories in which the businesses operate. The pre-tax discount rates applied to the forecast cash flows are based on a
riskfree rate of interest appropriate to the geographic location of the cash flows related to the asset being tested. The risks specific
to the asset are reflected as an adjustment to the future estimated cash flows. Pre-tax discount rates have been calculated using
the capital asset pricing model, the inputs of which include a country risk-free rate, equity risk premium, Group size premium and a
risk adjustment (beta). The discount rate is calculated by reference to a weighted average cost of capital (WACC) calculated by
reference to an industry peer group of quoted companies using post-tax rates which are subsequently grossed up to a pre-tax rate.
As disclosed above, the VIU is calculated using long-term projections that are based on Board approved budgets for 2022/23
together with the Board approved three-year strategic plan. This has been updated during the year ended 30 April 2022 from
the previously adopted five-year projections and represents the information presented and approved by the board. For the year
ended 1 May 2021, the Compound annual growth in sales and costs have therefore been restated for the UK & Ireland and Nordics
CGUs.
Notes to the Group Financial Statements continued
179
Governance
Financial Statements
Investor information
Strategic Report
8 Goodwill continued
c) Goodwill impairment sensitivity analysis
In line with the assumptions noted above and highlighted in note 1d, the Group undertook an impairment review of the UK & Ireland group
of CGUs, where £1,840m of goodwill is allocated. These impairment tests are prepared using the methodology required by IAS 36. The
recoverable amount, based on value in use, shows headroom of £756m above the carrying amount of UK & Ireland CGU. Within the value
in use model growth in sales and growth in costs assumptions drive the operating profit forecasts in line with the Group’s strategic plan. The
key assumption within the value in use model is therefore the operating profit forecast in the strategic plan which is underpinned by the
successful delivery of a number of key strategic initiatives that are either currently underway or committed.
In accordance with IAS 36, the Group performed sensitivity analysis on the estimates of recoverable amounts and found that the
excess of recoverable amount over the carrying amount of the UK & Ireland CGU would be reduced to nil as a result of a reasonably
possible change in the key assumption. The recoverable amount would equal the carrying value if operating profit were reduced by
30% within the value in use model, and then extrapolated for the remainder of the forecast period including the period beyond the
strategic plan. The directors do not consider that the relevant change in this assumption would have a consequential effect on other
key assumptions.
For the Nordics group of CGUs, where £974m of goodwill is allocated, the directors do not consider that any reasonably possible
changes to the key assumptions would reduce the recoverable amount to its carrying value.
9 Intangible assets
Accounting policies
Acquisition intangibles
Acquisition intangibles comprise brand names and customer relationships purchased as part of acquisitions of businesses and
are capitalised and amortised over their useful economic lives on a straight-line basis. These intangible assets are stated at
cost less accumulated amortisation and, where appropriate, provision for impairment in value or estimated loss on disposal.
Amortisation is provided to write off the cost of assets on a straight-line basis as follows:
Brands 7% – 13.3% per annum
Customer relationships 13.3% per annum
This amortisation is included in the income statement as an administrative expense and, as further described in note A5 of the
glossary, this is recognised as an adjusting item.
Software and licences
Software and licences include costs incurred to acquire the assets as well as internal infrastructure and design costs incurred in
the development of software in order to bring the assets into use.
Internally generated software is recognised as an intangible asset only if it can be separately identified, it is probable that the
asset will generate future economic benefits which exceed one year, and the development cost can be measured reliably.
Where these conditions are not met, development expenditure is recognised as an expense in the year in which it is incurred.
Costs associated with maintaining computer software are recognised as an expense as incurred unless they increase the future
economic benefits of the asset, in which case they are capitalised.
The expenditure capitalised includes the cost of materials, direct labour and an appropriate proportion of overheads. Subsequent
expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates.
Software is stated at cost less accumulated amortisation and, where appropriate, provision for impairment in value or
estimated loss on disposal. Amortisation is provided to write off the cost of assets on a straight-line basis between three and
ten years, and is recorded in administrative expenses.
Intangible assets are assessed on an ongoing basis to determine whether circumstances exist that could lead to the conclusion
that the net book value is not supportable. Where assets are to be taken out of use, an impairment charge is levied. Where the
intangible assets form part of a separate CGU, such as a store or business unit, and business indicators exist which could lead
to the conclusions that the net book value is not supportable, the recoverable amount of the CGU is determined by calculating
its value in use. The value in use is calculated by applying discounted cash flow modelling to management’s projection of future
profitability and any impairment is determined by comparing the net book value with the value in use.
180 Currys plc Annual Report & Accounts 2021/22
9 Intangible assets continued
Acquisition intangibles
Brands
£m
Customer
relationships
£m
Sub-total
£m
Software and
licences
£m
Total
£m
Balance at 2 May 2021 191 – 191 235 426
Additions - - - 83 83
Amortisation (24) - (24) (62) (86)
Impairment - - - (33) (33)
Disposals - - - - -
Foreign exchange (3) - (3) (2) (5)
Balance at 30 April 2022 164 - 164 221 385
Cost 369 73 442 883 1,325
Accumulated amortisation and impairment losses (205) (73) (278) (662) (940)
Balance at 30 April 2022 164 - 164 221 385
Included in net book value as at 30 April 2022
Assets in the course of construction - - - 9 9
Acquisition intangibles
Brands
£m
Customer
relationships
£m
Sub-total
£m
Software and
licences
£m
Total
£m
Balance at 3 May 2020 218 2 220 249 469
Additions – – – 84 84
Amortisation (24) (2) (26) (57) (83)
Impairment (8) – (8) (47 ) (55)
Disposals – – – (1) (1)
Foreign exchange 5 – 5 7 12
Balance at 1 May 2021 191 – 191 235 426
Cost 372 73 445 802 1,247
Accumulated amortisation and impairment losses (181) (73) (254) (567) (821)
Balance at 1 May 2021 191 – 191 235 426
Included in net book value as at 1 May 2021
Assets in the course of construction – – – 50 50
During the year ended 30 April 2022 management took the decision to stop selling its credit-based mobile offer which resulted in a
£24m impairment of intangible assets.
The Group continues the operational roll out of its long term strategic plan in moving towards a full omnichannel offering, bringing
stores and online together, giving customers the best of both worlds at scale. This change, accelerated by the pandemic, has resulted
in the identification of a material non-cash impairment charge over intangible assets of £8m (2020/21: £46m), primarily related to
software development costs as the Group moves towards best-in-class cloud-based solutions to achieve operational efficiencies
and improve the customer journey.
During the year ended 1 May 2021, an £8m impairment was recognised over acquisition intangibles, that arose on the Dixons Retail
Merger, following the decision to close the Dixons Travel business during the year ended 1 May 2021.
Further information on the impairments recognised in the year is disclosed in note A5.
Notes to the Group Financial Statements continued
181
Governance
Financial Statements
Investor information
Strategic Report
9 Intangible assets continued
Individually material intangible assets
Customer relationships and brands include intangible assets which are considered individually material to the financial statements.
The primary intangible assets, their net book values and remaining amortisation periods are as follows:
30 April 2022 1 May 2021
Net book
value
£m
Remaining
amortisation
period
Years
Net book
value
£m
Remaining
amortisation
period
Years
Currys 83 8 94 9
Elgiganten 36 8 43 9
Elkjøp 27 8 31 9
Gigantti 18 8 22 9
10 Property, plant and equipment
Accounting policies
Property, plant and equipment are stated at historical cost less accumulated depreciation and any accumulated impairment
losses. Assets under construction are held at cost less any accumulated impairment losses. Cost includes the original purchase
price of the asset, costs attributable to bringing the asset to the location and condition necessary for intended use and
any capitalised borrowing costs. Subsequent expenditure is capitalised only when it increases the future economic benefits
embodied in the specific asset to which it relates while maintenance related costs are recognised in the income statement when
incurred.
With the exception of land, depreciation is provided to write off the cost of the assets over their expected useful lives from the
date the asset was brought into use or capable of being used on a straight-line basis.
Rates applied to different classes of property, plant and equipment are as follows:
Land and buildings 1.7% – 4% per annum
Fixtures, fittings and equipment 10% – 33.3% per annum
Property, plant and equipment are assessed on an ongoing basis to determine whether circumstances exist that could lead
to the conclusion that the net book value is not supportable. Where assets are to be taken out of use, an impairment charge
is levied. Where the property, plant and equipment form part of a separate CGU, such as a store, and business indicators
exist which could lead to the conclusions that the net book value is not supportable, the recoverable amount of the CGU
is determined by calculating its value in use. The value in use is calculated by applying discounted cash flow modelling to
management’s projection of future profitability and any impairment is determined by comparing the net book value with the
value in use.
182 Currys plc Annual Report & Accounts 2021/22
10 Property, plant and equipment continued
Land and
buildings
£m
Fixtures, fittings
and other
equipment
£m
Total
£m
Balance at 2 May 2021 28 156 184
Additions 20 30 50
Depreciation (8) (54) (62)
Disposals - - -
Impairment (4) (2) (6)
Foreign exchange - (4) (4)
Balance as at 30 April 2022 36 126 162
Cost 70 681 751
Accumulated depreciation (34) (555) (589)
Balance as at 30 April 2022 36 126 162
Included in net book value as at 30 April 2022
Assets in the course of construction - 8 8
Land and
buildings
£m
Fixtures, fittings
and other
equipment
£m
Total
£m
Balance at 3 May 2020 25 215 240
Additions 9 17 26
Depreciation (6) (73) (79)
Disposals – (2) (2)
Impairment – (5) (5)
Foreign exchange – 4 4
Balance as at 1 May 2021 28 156 184
Cost 61 702 763
Accumulated depreciation (33) (546) (579)
Balance as at 1 May 2021 28 156 184
Included in net book value as at 1 May 2021
Assets in the course of construction – 15 15
Notes to the Group Financial Statements continued
183
Governance
Financial Statements
Investor information
Strategic Report
11 Right-of-use assets
Accounting policies
Right-of-use assets are recognised at the commencement of the lease, when the underlying asset becomes available for
use, and comprises the initial measurement of the corresponding lease liability, lease payments made at or before the
commencement date, any initial direct costs and any dilapidation costs less any lease incentives received upon initial
recognition. They are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for
any subsequent remeasurements of lease liabilities.
Right-of-use assets are depreciated on a straight-line basis over the shorter period of lease term and useful life of the
underlying asset.
Variable rents that do not depend on an index or rate are not included in the measurement of the lease liability and the right-
of-use asset. The related payments are recognised as an expense in the period in which the event or condition that triggers
those payments occurs.
30 April
2022
£m
1 May
2021
£m
Land and buildings 983 1,026
Vehicles, equipment and other 25 25
1,007 1,051
Additions to the right-of-use assets for the period were £187m (2020/21: £137m).
The total cash outflow for leases amounts to £278m (2020/21: £310m).
Amounts recognised in the Consolidated Income Statement
30 April
2022
£m
1 May
2021
£m
Depreciation expense on right-of-use assets:
Land and buildings 180 191
Vehicles, equipment and other 10 9
Total depreciation on right-of-use assets 190 200
Impairment of right-of-use assets 42 15
Impairment reversal of right-of-use assets (15) -
Interest expense on lease liabilities 70 77
Expense relating to short-term leases 11 10
Expense relating to leases of low value assets 1 1
Expense relating to variable lease payments not included in the measurement of the lease liability 2 5
Income from subleasing right-of-use assets - (3)
184 Currys plc Annual Report & Accounts 2021/22
12 Lease receivables
Accounting policies
A lease is classified as a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a
period of time in exchange for consideration.
The Group as a lessor
The Group is a lessor predominantly when subleasing retail store properties that are no longer open for trading. Whenever
the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a
finance lease.
Amounts due from lessees under finance leases are recognised as receivables at the amount of the Group’s net investment in
the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the
Group’s net investment outstanding in respect of the leases.
Under IFRS 16, an intermediate lessor accounts for the head lease and sublease as two separate contracts. The intermediate
lessor is required to classify the sublease as a finance or operating lease by reference to the right-of-use asset arising from the
head lease. The Group’s finance lease arrangements do not include variable payments.
30 April
2022
£m
1 May
2021
£m
Net investment in the lease analysed as:
Recoverable after 12 months 3 3
Recoverable within 12 months 1 1
4 4
The Group applies the simplified model in accordance with IFRS 9 to recognise lifetime expected credit losses on lease receivables.
The value of the expected credit loss on lease receivables is immaterial.
The Group is not exposed to foreign currency risk as a result of the lease arrangements, as all leases are denominated in functional
currency.
30 April
2022
£m
1 May
2021
£m
Undiscounted amounts receivable under finance leases:
Year 1 1 1
Year 2 1 1
Year 3 1 1
Year 4 1 1
Year 5 1 1
Onwards - –
Undiscounted amounts receivable 5 5
Less: unearned finance income (1) (1)
Net investment in the lease 4 4
Notes to the Group Financial Statements continued
185
Governance
Financial Statements
Investor information
Strategic Report
13 Inventory
Accounting policies
Inventories are stated at the lower of cost and net realisable value, and on a weighted average cost basis. Cost comprises
direct purchase cost and those overheads that have been incurred in bringing the inventories to their present location and
condition less any attributable discounts and bonuses received from suppliers in respect of that inventory. Net realisable value
is based on estimated selling price, less further costs expected to be incurred to disposal. Provision is made for obsolete, slow
moving or defective items where appropriate.
Certain purchases of inventories may be subject to cash flow hedges to address foreign exchange risk. Where this is the case
a basis adjustment is made; the initial cost of hedged inventory is adjusted by the associated gain or loss transferred from the
cash flow hedge reserve.
30 April
2022
£m
1 May
2021
£m
Finished goods and goods for resale 1,286 1,178
14 Trade and other receivables
Accounting policies
Trade receivables are initially measured at their transaction price. Where there is a significant financing component, trade
and other receivables are discounted at contract inception using a discount rate that is at an arm’s length basis and such that
would be reflected in a separate financing transaction between the Group and the customer. Other receivables are initially
measured at fair value plus transaction costs that are directly attributable to the acquisition or issue of the financial asset.
Subsequently, trade and other receivables are measured at amortised cost. The loss allowance for trade receivables, accrued
income and contract assets is measured using simplified approach (lifetime expected credit losses). Loss allowance for other
debtors is measured using 12-months expected credit losses unless there was a significant increase in credit risk and then the
loss allowance is measured using lifetime expected credit losses. See note 25 for further disclosures.
30 April
2022
£m
1 May
2021
£m
Trade receivables 419 347
Less expected credit loss allowances (29) (21)
390 326
Contract assets 180 220
Prepayments 82 55
Other receivables 56 60
Accrued income 111 64
819 725
Non-current 123 138
Current 696 587
819 725
The majority of trade and other receivables are non-interest bearing. Non-current receivables mainly comprise commission
receivable on sales, as described below.
In the comparative period, included within other receivables is £3m of government grants receivable. This related to compensation
for expenses already incurred by the Group that had been pledged by national governments in light of the Covid-19 pandemic. This
is further disclosed in note 29.
186 Currys plc Annual Report & Accounts 2021/22
14 Trade and other receivables continued
As set out in the table below, adjustments are made in the trade receivables balance for expected credit loss allowances.
30 April 2022 1 May 2021
Gross trade
receivables
£m
Expected
credit loss
allowances
£m
Net trade
receivables
£m
Gross trade
receivables
£m
Expected
credit loss
allowances
£m
Net trade
receivables
£m
Ageing of gross trade receivables and expected
credit loss allowances:
Not yet due 347 (5) 342 308 (1) 307
Past due:
Under two months 29 (1) 28 13 (1) 12
Two to four months 6 (1) 5 5 (1) 4
Over four months 37 (22) 15 21 (18) 3
72 (24) 48 39 (20) 19
419 (29) 390 347 (21) 326
Movements in the expected credit loss allowances for trade receivables is as follows:
30 April
2022
£m
1 May
2021
£m
Opening balance (21) (26)
Charged to the income statement (14) (2)
Receivables written off as irrecoverable 2 4
Amounts recovered during the year 4 3
Disposal of business - 1
Closing balance (29) (21)
Management also consider the counter party risk relating to its accrued income balance, which comprises amounts where the Group
has fulfilled its performance obligations but not yet invoiced. The amounts are primarily due from large multi-nationals and blue chip
companies and hence the loss allowances made are not material. Further details with regards to trade receivables credit risk are
included in note 25.
Contract assets
30 April
2022
£m
1 May
2021
£m
Insurance commission contract assets 5 12
Network commission contract assets 175 207
180 220
The Group recognises contract assets where the performance obligations have been met but the right to consideration from the
customer is conditional on something other than the passage of time. This occurs on both insurance commission revenue and network
commission revenue as detailed in the accounting policies in note 3.
Upon the initial recognition of revenue from contracts with customers, the Group considers the risk profile for amounts due from
network and insurance customers based on historical experience and forward looking information in accordance with IFRS 15. As
such, credit risk is factored into the initial recognition of revenue, while contract assets are adjusted at each reporting date to reflect
the future expected value. Therefore, no further expected credit loss is recognised as it is included within the initial measurement of
the Group’s contract assets. Further information is disclosed in note 25, while additional information on the measurement of expected
consideration is detailed below.
Notes to the Group Financial Statements continued
187
Governance
Financial Statements
Investor information
Strategic Report
14 Trade and other receivables continued
Network commission contract assets and receivables
As described in the accounting policies in note 3, the revenue earned by the Group for the acquisition of consumers on behalf
of third-party network operators is subject to variable consideration. Some consideration is paid by the MNOs at the time of
connection with the remainder paid over the duration of the consumer’s contractual relationship with the MNO which is usually
between one and five years. Whilst the underlying contract with the consumer predominately constitutes a fixed monthly value,
variability arises due to future expected behaviour of such consumers after the point of connection.
Under IFRS 15: ‘Revenue from Contracts with Customers’ the Group only recognises revenue to the extent that it is highly probable
that there will not be a significant reversal in the future. Determining the amount of revenue to recognise is judgemental and subject
to a degree of estimation uncertainty in particular due to the nature of the variable revenue constraint applied in line with IFRS 15
as described in note 1d. In previous periods, the Group has estimated such revenue with a high level of accuracy, as evidenced and
regularly monitored by the level of cash the Group receives from MNOs in the periods subsequent to acquiring consumers on their
behalf.
In determining the amount of revenue to recognise, the Group estimates the amount that it expects to receive in respect of each
consumer based on historical trends and anticipated changes in consumer behaviour. The Group also discusses and analyses
emerging behavioural trends with the respective MNOs, considers external sources of industry and market analysis and models the
impact of potential regulatory changes, if any are proposed.
A discounted cash flow methodology is used to measure the expected consideration, by estimating all future cash flows that will be
received from the MNO and discounting these based on the timing of receipt. The key inputs to the model are:
• revenue share percentage – the percentage of the consumer’s spend (to the MNO) to which the Group is entitled;
• minimum contract period – the length of contract entered into by the consumer;
• out-of-bundle spend – additional spend by the consumer measured as a percentage of contractual spend;
• consumer default rate – rate at which consumers disconnect from the MNO;
• spend beyond the initial contract period – period of time the consumer remains connected to the MNO after the initial contract
term; and
• upgrade propensity – the percentage of consumers initially connected by the Group estimated to be subsequently upgraded by
an MNO.
Having estimated the expected consideration, the Group applies a constraint to reduce to a level where any future significant
reversal of revenue would be considered highly improbable. Management makes a regular assessment of historical amounts and
market data to ensure that the amounts recognised still meet the requirements of IFRS 15. In the current year ended 30 April 2022, the
net revaluation recognised from performance obligations satisfied in previous periods was an increase of £43m (2020/21: £3m).
188 Currys plc Annual Report & Accounts 2021/22
14 Trade and other receivables continued
Network commission contract assets and receivables continued
Amounts recognised in the financial statements in respect of such variable consideration are summarised and reconciled from prior
year below:
Note
30 April
2022
£m
1 May
2021
£m
Gross network commission receivable and contract asset: Opening balance (i) 405 1,005
Less: amounts received in advance from MNOs (166) (389)
Net network commission receivable and contract asset: Opening balance (ii) 239 616
Revenue recognised in respect of current year sales (iii) 337 388
Revaluation of opening network commission contract asset (iv) 22 14
Revenue recognised / (reversed) in respect of prior period sales not previously included
in the estimation of revenue recognised (v) 21 (11)
Revenue recognised in respect of prior period sales 43 3
Revenue recognised in the period 380 391
Cash received from mobile network operators (vi) (431) ( 7 74)
Movements due to the effect of discounting 2 6
Net network commission receivable and contract asset: closing balance (vii) 190 239
Comprising:
Net network commission receivable and contract asset in more than one year 84 100
Net network commission receivable and contract asset in less than one year 106 139
190 239
Less amount billed (network commission trade receivable) (viii) (15) (32)
Net network commission contract asset (ix) 175 207
i. Net of discounting for the time value of money. The unwind of this discounting is recognised as finance income in the relevant period. The amount of related finance
income within the year, as shown in the table above, was £2m (2020/21: £6m).
ii. Payment terms with the MNOs are based on a mix of cash received upon connection and future payments as the MNO receives monthly instalments from end
consumers over the life of the consumer contract. This balance shows the net amounts receivable from the MNOs. Further information is included below to explain the
classification split of this balance between trade receivables and contract assets.
iii. This relates to revenue recognised from connections made in the current year. This revenue is recognised at point of sale as explained within the accounting policies in
note 3. This figure includes in-year adjustments to the carrying value of revenue recognised (net of constraints) where the estimated consideration has changed since
point of recognition within the year.
iv. The Group continues to monitor the level of this revaluation as an indicator of estimation uncertainty in respect of previously recognised variable consideration. The
current year reflects a positive revaluation of the prior period contract asset and is what the Group would expect as a result of the variable revenue constraint under
IFRS 15. This revaluation of £22m (2020/21: £14m) discussed above is the figure that has historically been used by the Group to monitor the accuracy of assumptions
made in previous periods and is excluded from measuring the performance of the UK & Ireland segment in our alternative performance measures as explained within
the glossary to the Annual Report. This amount is also presented as the Group has received feedback from certain stakeholders that its separate presentation is
helpful, in order to present more clearly the underlying performance in year.
v. These amounts were not previously recognised as revenue due to the application of the constraint (described above) and include a value of £11m (2020/21: £6m)
relating to the uplift in the profit share the Group receives associated with RPI on commission receivable where the performance obligations were satisfied in prior
periods. These amounts also include other out of period amounts settled with MNOs in respect of prior period transactions of £10m (2020/21: £(17)m). As the Group
does not recognise an estimate of these amounts within revenue at the point of sale, they are recognised in revenue within each financial year once the amounts
for that period are known. Therefore, the RPI uplift and the other out of period amounts settled with MNOs are included within the Group’s alternative performance
measures as explained within the glossary to the Annual Report.
vi. Cash received in the period. For the prior year this includes the cash settlement of £189m received from EE on 1 April 2021 to settle the outstanding EE network debtor
receivable. The majority of this payment was previously expected over the course of 2021/22 and 2022/23.
vii. Gross network receivable and contract asset balance of £281m, offset by amounts received in advance of £91m. This is in line with the explanation in (ii) above.
viii. Amounts that have been invoiced to the network operators and are no longer conditional on something other than the passage of time. These amounts are therefore
classified as trade receivables.
ix. This is the contract asset element of the network commissions receivable. This is variable based on future consumer behaviour and hence conditional on something
other than the passage of time therefore as per IFRS 15 this is classified as a contract asset.
Notes to the Group Financial Statements continued
189
Governance
Financial Statements
Investor information
Strategic Report
15 Cash and cash equivalents
Accounting policies
Cash and cash equivalents are classified as held at amortised cost, comprising cash at bank and in hand, bank overdrafts
and short term highly liquid deposits which have an orignal maturity of less than three months, are available on demand and
are subject to an insignificant risk of changes in value. Bank overdrafts, which form part of cash and cash equivalents for the
purpose of the cash flow statement, are shown under current liabilities and further disclosed in note 18.
Cash and cash equivalents include restricted cash which predominantly comprises funds held by the Group’s insurance
businesses to cover regulatory reserve requirements. These funds are not available to offset the Group’s borrowings.
30 April
2022
£m
1 May
2021
£m
Cash at bank and on deposit 126 175
Included within cash and cash equivalents is £30m (2020/21: £35m) of restricted cash.
16 Trade and other payables
Accounting policies
Trade and other payables are initially recorded at fair value and subsequently measured at amortised cost.
Contract liabilities predominantly relate to the sale of customer support agreements. Revenue is recognised in full as each
performance obligation is satisfied under the contracts with the customer. Where consideration is received in advance of the
performance of the obligations being satisfied, a contract liability is recognised. Due to the cancellation options and customer
refund clauses, contract terms have been assessed to either be monthly or a series of day to day contracts with revenue
recognised respectively in the month to which payment relates, or on a ‘straight-line’ basis.
30 April 2022 1 May 2021
Current
£m
Non-current
£m
Current
£m
Non-current
£m
Trade payables 1,614 - 1,420 –
Other taxes and social security 221 - 236 –
Other creditors 1 - 1 –
Contract liabilities 215 88 203 92
Accruals 317 8 373 5
2,368 96 2,233 97
The carrying amount of trade and other payables approximates their fair value.
Contract liabilities
30 April
2022
£m
1 May
2021
£m
Opening balance 295 276
Revenue recognised in the period that was included in the opening balance (162) (165)
Increase in contract liabilities in the period not yet recognised in revenue 170 184
Closing balance 303 295
190 Currys plc Annual Report & Accounts 2021/22
17 Contingent consideration
Accounting policies
On initial recognition, contingent consideration is measured at fair value using the income approach. Contingent consideration
that does not qualify as a measurement period adjustment is subsequently remeasured to fair value at each reporting date
with changes in fair value recognised in profit or loss.
30 April
2022
£m
1 May
2021
£m
Opening balance 2 3
Settlements (2) (1)
Closing balance – 2
During the year the Group cash settled the final instalment of earn-out consideration, totalling £2m, for the previously acquired Epoq
kitchen business. For the year ended 1 May 2021 £2m remained contingent on the performance of the Epoq kitchen business against
earnings growth targets following the balance sheet date. The fair value of contingent consideration arrangements had previously
been estimated by applying the income approach.
18 Loans and other borrowings
Accounting policies
Borrowings in the Group’s balance sheet represent bank loans drawn under committed and uncommitted facilities. Borrowings
are initially recorded at fair value less attributable transaction costs. Transaction fees such as bank fees and legal costs
associated with the securing of financing are capitalised and amortised through the income statement over the term of the
relevant facility. All other borrowing costs are recognised in the income statement in the period in which they are incurred.
Subsequent to initial recognition, borrowings are stated at amortised cost with any difference between cost and redemption
value being recognised in the income statement over the period of the borrowings on an effective interest basis.
Bank overdrafts, which form part of cash and cash equivalents for the purpose of the cash flow statement, are classified as
held at amortised cost.
30 April
2022
£m
1 May
2021
£m
Current liabilities
Bank overdrafts 2 6
Loans and other borrowings – –
2 6
Non-current liabilities
Loans and other borrowings 80 –
82 6
Notes to the Group Financial Statements continued
191
Governance
Financial Statements
Investor information
Strategic Report
18 Loans and other borrowings continued
Committed facilities
In April 2021, the Group refinanced its existing debt with two new Revolving Credit Facilities totalling £543m (2020/21: £551m), which
were initially due to expire in April 2025. In April 2022, the Group extended these two facilities by 1 year to expire in April 2026.
As part of the refinancing all other facilities available to the Group in April 2021 were cancelled. The Group’s facilities available
throughout the current and prior year are detailed below.
£200m Revolving Credit Facility
In April 2021, the Group signed a £200m Revolving Credit Facility (‘RCF’) with a number of relationship banks which was initially
due to expire in April 2025. In April 2022, this facility was extended by 1 year to expire in April 2026. The interest rate payable for
drawings under this 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. At 30 April 2022, the Group had drawn down on this
facility by £80m. This facility was undrawn as at 1 May 2021.
NOK 4,036m Revolving Credit Facility
In April 2021, the Group signed a NOK 4,036m (£343m) (2020/21: £351m) RCF with a number of relationship banks which initially due
to expire in April 2025. In April 2022, this facility was extended by 1 year to expire in April 2026. This is on broadly similar terms to the
£200m facility. This facility was undrawn as at 30 April 2022 and 1 May 2021.
Facilities previously available that have now lapsed or been cancelled
£800m Revolving Credit Facility
In October 2015, the Group signed a five-year £800m RCF with a number of relationship banks; this facility was extended in October
2016 and 2017 by an additional year and the facility was due to expire in October 2022. The interest rate payable for drawings
under this facility was at a margin over LIBOR (or other applicable interest basis) for the relevant currency and for the appropriate
period. The actual margin applicable to any drawing depended on the fixed charges cover ratio calculated in respect of the most
recent accounting period. A non-utilisation fee was payable in respect of amounts available but undrawn under this facility and a
utilisation fee was payable when aggregate drawings exceeded certain levels. This facility was cancelled in April 2021.
£250m Revolving Credit Facility
In October 2016, the Group signed a four-year £250m RCF with a group of relationship banks; this facility was on broadly similar
terms to the £800m RCF; this facility was extended in February 2019 by an additional two years and the facility was due to expire in
October 2022. This facility was cancelled in April 2021.
£266m Revolving Credit Facility
In April 2020, the Group signed a one-year £266m RCF to mitigate any potential impact of the Covid-19 pandemic with a group of
relationship banks; this facility was on broadly similar terms to the £800m and £250m RCF. The facility was due to expire in April 2021
and was cancelled in February 2021 with no amounts having been drawn down.
€50m term loan
The Group had access to a €50m term loan with BBVA. The terms of this facility were broadly similar to the £800m and £250m RCF.
This facility expired in October 2020.
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 £70m (2020/21: £70m).
All borrowings are unsecured.
192 Currys plc Annual Report & Accounts 2021/22
19 Lease Liabilities
Accounting policies
The Group as a lessee
The Group’s leasing activities predominantly relate to retail store properties and distribution properties as well as distribution
vehicle fleet. The Group assesses whether a contract is or contains a lease, at inception of the contract. The Group recognises
a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except
for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets (which comprise
IT equipment and small items of office furniture). For these leases, the Group recognises the lease payments as an operating
expense on a straight-line basis over the term of the lease with no corresponding right-of use asset.
Lease liabilities
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement
date, discounted by using the incremental borrowing rate and subsequently held at amortised cost in accordance with IFRS
9. The incremental borrowing rate is determined based on a series of inputs including: the risk-free rate based on government
bond rates; a country-specific risk adjustment; and a credit risk adjustment. This is the rate that the Group would have to pay
for a loan of a similar term, and with similar security, to obtain an asset of similar value.
Lease payments included in the measurement of the lease liability comprise:
• Fixed lease payments (including in-substance fixed payments), less any lease incentives receivable;
• Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date;
• The amount expected to be payable by the lessee under residual value guarantees;
• The exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and
• Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.
The Group remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever:
• The lease term has changed or there is a significant event or change in circumstances resulting in a change in the assessment
of exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised lease payments
using a revised discount rate.
• The lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual
value, in which cases the lease liability is remeasured by discounting the revised lease payments using an unchanged discount rate
(unless the lease payments change is due to a change in a floating interest rate, in which case a revised discount rate is used).
• A lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease
liability is remeasured based on the lease term of the modified lease by discounting the revised lease payments using a
revised discount rate at the effective date of the modification.
30 April
2022
£m
1 May
2021
£m
Analysed as:
Current 210 216
Non-current 1,057 1,110
1,267 1,326
Total undiscounted future committed payments due are as follows:
30 April
2022
£m
1 May
2021
£m
Amounts due:
Year 1 260 271
Year 2 236 253
Year 3 222 227
Year 4 187 200
Year 5 161 162
Onward 485 534
1,551 1,647
The Group does not face a significant liquidity risk with regard to its lease liabilities. Lease liabilities are monitored within the Group’s
Treasury function.
Notes to the Group Financial Statements continued
193
Governance
Financial Statements
Investor information
Strategic Report
20 Provisions
Accounting policies
Provisions are recognised when a legal or constructive obligation exists as a result of past events, it is probable that an outflow
of resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
Provisions are discounted where the time value of money is considered to be material.
Provisions for onerous contracts are recognised when the Group believes that the unavoidable costs of meeting or exiting the
contract exceed the economic benefits expected to be received under the contract. Where the Group has assets dedicated
to the fulfilment of a contract that cannot be redirected, an impairment loss is recognised before a separate provision for an
onerous contract.
A restructuring provision is recognised when the Group has developed a detailed formal plan for the restructuring, and
has raised a valid expectation in those affected that it will carry out the restructuring by starting to implement the plan or
announcing its main features to those affected by it. The measurement of a restructuring provision includes only the direct
expenditures arising from the restructuring, which are those amounts that are both necessarily entailed by the restructuring and
not associated with the ongoing activities of the entity.
All provisions are assessed by reference to the best available information at the balance sheet date.
30 April 2022
Reorganisation
£m
Sales
£m
Property
£m
Other
£m
Total
£m
At the beginning of the period 10 7 51 17 85
Additions 16 55 - - 71
Released in the period (1) - (17) (1) (19)
Utilised in the period (15) (49) (10) (4) (78)
Foreign exchange - - - - -
At the end of the period 10 13 24 12 59
Analysed as:
Current 9 12 20 7 48
Non-current 1 1 4 5 11
10 13 24 12 59
1 May 2021
Reorganisation
£m
Sales
£m
Property
£m
Other
£m
Total
£m
At the beginning of the period 39 7 64 40 150
Additions 54 10 21 5 90
Released in the period (6) – (22) (19) (47)
Utilised in the period (77) (11) (12) (9) (109)
Foreign exchange – 1 – – 1
At the end of the period 10 7 51 17 85
Analysed as:
Current 10 5 34 9 58
Non-current – 2 17 8 27
10 7 51 17 85
194 Currys plc Annual Report & Accounts 2021/22
20 Provisions continued
Reorganisation
Reorganisation provisions of £3m have been provided for following management’s decision to stop selling its credit-based mobile
offer. This amount represents the unavoidable costs the Group is obligated to pay for services over the next two years which are not
applicable to its post-pay mobile offer.
In addition, £7m relates to redundancy costs for employees who are still employed at the reporting date but will be departing
within the following 12 months. Reorganisation provisions are only recognised when a detailed formal plan is in place and it has been
communicated to those affected.
Sales
Sales provisions relate to product and service warranties. 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
£23m primarily relating to the Currys PCWorld 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.
The amounts of future expenditures for store closure costs are reviewed throughout the year and are based on readily available
information at the reporting date as well as management’s historical experience of similar transactions.
Of the £23m 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 8 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 and as announced in the prior reporting period, management made the decision to close the Dixons Travel business. The
Group has a provision of £1m as at 30 April 2022 which represents its remaining obligations under these contracts, which is expected
to be utilised in full within the following 12 months.
Other
Other provisions predominantly relate to regulatory costs, data incident costs, and warranties in relation to discontinued operations.
In the year ended 27 April 2019 the Group reported that it was subject to a £29m fine imposed by the FCA following the conclusion
of an investigation into historical Geek Squad mobile phone insurance selling processes for a period prior to June 2015. The Group
ran two voluntary customer redress programmes which led to the refund of £1.5m paid in the year ended 2 May 2020.
The Group subsequently received claims from a number of customers who believe they were mis-sold Geek Squad policies. All
customer claims are carefully considered by the Group on a case by case basis with the majority of claims received being invalid
and no new claims having been received during the period. Nevertheless, the volume and value of outstanding claims remains
uncertain with utilisation of the provision expected to be incurred over the next two years as the Group continues to co-operate with
the relative authorities. Management estimates the related provision based on historical claims information and applying this against
any remaining potential claimants using an expected value approach. As at 30 April 2022, this particular provision had a carrying
value of £11m (2020/21: £13m), with a release of £1m recognised in the income statement during the period.
In determining the amounts to be provided management have considered the utilisation profile and do not consider the time value of
money to be material.
Notes to the Group Financial Statements continued
195
Governance
Financial Statements
Investor information
Strategic Report
21 Retirement and other post-employment benefit obligations
Accounting policies
Company contributions to defined contribution pension schemes and contributions made to state pension schemes for certain
overseas employees are charged to the income statement on an accruals basis when employees have rendered service
entitling them to the contributions.
For defined benefit pension schemes, the difference between the market value of the assets and the present value of the
accrued pension liabilities is shown as an asset or liability in the consolidated balance sheet. The calculation of the present
value is determined using the projected unit credit method.
Actuarial gains and losses arising from changes in actuarial assumptions together with experience adjustments and actual
return on assets are recognised in the consolidated statement of comprehensive income and expensed as they arise. Such
amounts are not reclassified to the income statement in subsequent years.
Defined benefit costs recognised in the income statement comprise mainly of net interest expense or income with such interest
being recognised within finance costs. Net interest is calculated by applying the discount rate to the net defined benefit liability
or asset taking into account any changes in the net defined benefit obligation during the year as a result of contribution or
benefit payments.
30 April
2022
£m
1 May
2021
£m
Retirement benefit obligations – UK 257 482
– Nordics - –
257 482
The Group operates a defined benefit and a number of defined contribution schemes. The principal scheme which operates in
the UK includes a funded final salary defined benefit section whose assets are held in a separate trustee administered fund. The
scheme is valued by a qualified actuary at least every three years and contributions are assessed in accordance with the actuary’s
advice. Since 1 September 2002, the defined benefit section of the scheme has been closed to new entrants and on 30 April 2010
was closed to future accrual with automatic entry into the defined contribution section being offered to those active members of the
defined benefit section at that time. Membership of the defined contribution section is offered to eligible employees.
In the Nordics division, the Group operates small funded secured defined benefit pension schemes, which are also closed to new
entrants, with assets held by a life insurance company as well as an unsecured pension arrangement. In addition, contributions are
made to state pension schemes with defined benefit characteristics.
The defined benefit pension schemes expose the Group to actuarial risks such as longer than expected longevity of members, lower
than expected return on investments and higher than expected inflation, which may increase the liabilities or reduce the value of
assets of the plans.
a) Defined contribution pension schemes
The pension charge in respect of defined contribution schemes was £30m (2020/21: £34m).
b) UK defined benefit pension scheme – actuarial valuation and assumptions
A full actuarial valuation of the scheme was carried out as at 31 March 2019 and showed a shortfall of assets compared with
liabilities of £645m. A ‘recovery plan’ based on this valuation was agreed with the Trustees such that contributions in respect of the
scheme were £47m for the 2020/21 financial year, rising to £78m per year from the 2021/22 financial year until 2027/28, with a final
payment of £52m in 2028/29.
196 Currys plc Annual Report & Accounts 2021/22
21 Retirement and other post-employment benefit obligations continued
b) UK defined benefit pension scheme – actuarial valuation and assumptions continued
The principal actuarial assumptions as at 31 March 2019 were:
Rate per annum
Discount rate for accrued benefits* – Equity portfolio 3.85%
– Multi-asset credit portfolio 3.00%
– Matching portfolio 1.50%
Rate of increase to pensions 0.00% – 3.80%
Inflation 3.40%
* The discount rate is based on a linear de-risking methodology which assumes the Scheme’s investment strategy switches investments from growth assets (such as equities)
to matching assets (such as bonds) and multi-asset credit over a period of eight years from 2026 to 2034 so that by 2034 the asset portfolio is projected to be 100%
invested in matching assets and multi-asset credit.
At 31 March 2019, the market value of the scheme’s investments was £1,210m and, based on the above assumptions, the value of the
assets was sufficient to cover 65% of the benefits accrued to members with the liabilities amounting to £1,855m.
c) UK Defined benefit pension scheme – IAS 19
The following summarises the components of net defined benefit expense recognised in the consolidated income statement, the
funded status and amounts recognised in the consolidated balance sheet and other amounts recognised in the statement of
comprehensive income. The methods set out in IAS 19 are different from those used by the scheme actuaries in determining funding
arrangements.
(i) Principal assumptions adopted
The assumptions used in calculating the expenses and obligations are set by the directors after consultation with the independent
actuaries.
30 April
2022
1 May
2021
Rates per annum:
Discount rate 3.05% 1.90%
Rate of increase in pensions in payment / deferred pensions (pre / post April 2006 accrual) 3.30% / 2.25% 3.20% / 2.20%
Inflation 3.40% 3.20%
The Group uses demographic assumptions underlying the formal actuarial valuation of the scheme as at 31 March 2019. Post
retirement mortality has been assumed to follow the standard mortality tables ‘S3’ All Pensioners tables published by the CMI,
based on the experience of Self-Administered Pension Schemes (SAPS) with multipliers of 108% for males and 104% for females.
In addition, an allowance has been made for future improvements in longevity by using the new CMI 2020 Core projections with a
long term rate of improvement of 1.5% per annum for men and 1.25% per annum for women. Applying such tables results in an average
expected longevity of between 86.5 years and 88.1 years for men and between 89.0 years and 90.4 years for women for those
reaching 65 over the next 20 years.
(ii) Amounts recognised in consolidated income statement
Year ended
30 April
2022
£m
Year ended
1 May
2021
£m
Past service cost - 1
Net interest expense on defined benefit obligation 8 8
Total expense recognised in the income statement 8 9
On 20 November 2020, the High Court issued a judgement in relation to historical transfer values impacted by Guaranteed Minimum
Pensions (GMPs) equalisation in the Lloyds Banking Group’s defined benefits pension schemes. This judgement is in addition to an
earlier judgement on unequal GMPs in October 2018. We estimate that this will increase the liability by £1m, and therefore recorded
this as a past service cost in the year ended 1 May 2021.
Notes to the Group Financial Statements continued
197
Governance
Financial Statements
Investor information
Strategic Report
21 Retirement and other post-employment benefit obligations continued
c) UK Defined benefit pension scheme – IAS 19 continued
(iii) Amounts recognised in other comprehensive income
Year ended
30 April
2022
£m
Year ended
1 May
2021
£m
Remeasurement of defined benefit obligation – actuarial gains / (losses) arising from:
Changes in demographic assumptions 3 (4)
Changes in financial assumptions 334 (70)
Experience adjustments (85) 17
Remeasurement of scheme assets:
Actual return on plan assets (excluding amounts included in net interest expense) (96) 87
Cumulative actuarial gain 156 30
(iv) Amounts recognised in the consolidated balance sheet
30 April
2022
£m
1 May
2021
£m
Present value of defined benefit obligations (1,620) (1,885)
Fair value of plan assets 1,363 1,403
Net obligation (257) (482)
Changes in the present value of the defined benefit obligation:
30 April
2022
£m
1 May
2021
£m
Opening obligation 1,885 1,850
Past service cost - 1
Interest cost 35 29
Remeasurements in other comprehensive income – actuarial (gains) / losses arising from changes in:
Demographic assumptions (3) 4
Financial assumptions (334) 70
Experience adjustments 85 (17)
Benefits paid (49) (52)
Closing obligation 1,620 1,885
The weighted average maturity profile of the defined benefit obligation at the end of the year is 20 years (2020/21: 20 years),
comprising an average maturity of 25 years (2020/21: 25 years) for deferred members and 12 years (2020/21: 12 years) for
pensioners.
Changes in the fair value of the scheme assets:
30 April
2022
£m
1 May
2021
£m
Opening fair value 1,403 1,300
Interest income 27 21
Employer contributions 78 47
Remeasurements in other comprehensive income:
Actual return on plan assets (excluding interest income) (96) 87
Benefits paid (49) (52)
Closing fair value 1,363 1,403
198 Currys plc Annual Report & Accounts 2021/22
21 Retirement and other post-employment benefit obligations continued
c) UK Defined benefit pension scheme – IAS 19 continued
(iv) Amounts recognised in the consolidated balance sheet continued
Analysis of scheme assets:
30 April
2022
£m
1 May
2021
£m
Multi-asset credit funds – Listed 215 125
– Unlisted 226 176
Private equity – Unlisted 10 18
Corporate bonds – Listed - 110
Other credit linked funds* – Listed 426 345
– Unlisted - 41
Liability driven investments (‘LDIs’)* – Listed 819 104
– Unlisted (599) (4 3)
Synthetic equity* – Unlisted 250 499
Cash and cash instruments – Listed - –
– Unlisted 15 27
Other – Unlisted 1 1
1,363 1,403
* These assets are managed together as part of one investment portfolio.
The table above provides the market value of the Scheme’s assets split into key categories as at 30 April 2022. The Scheme’s
investment strategy is to:
• gain economic exposure to equity markets equivalent to a third of its assets through derivatives;
• invest a third of its assets in credit markets; and
• use a third of its assets to hedge inflation and interest rate risk.
The Scheme invests part of its assets in a bespoke fund to achieve this strategy. The fund consists of a synthetic equity portfolio, a
credit portfolio and a liability hedging portfolio. The synthetic equity portfolio uses equity total return swaps and equity futures to
provide economic exposure to a range of equity markets while the credit portfolio provides economic exposure to short duration
global credit. The objective of the liability hedging portfolio is to hedge the Scheme’s liabilities against inflation and interest rate risk
up to the value of the Scheme’s assets.
In the fair value hierarchy, listed investments are categorised as level 1. Unlisted investments (including unlisted LDIs and synthetic
equity) relate to derivatives, which are categorised as level 2, and private credit and private equity funds which are categorised as
level 3. Private credit investments are valued by aggregating bid and offer quotes from brokers where this information is available. If
this information is not available, investments are valued at amortised cost, with provision for impairment where appropriate. Private
equity fund valuations are based on the last audited accounts of each investment plus any known movements including distributions
since the last audited accounts.
The investment strategy of the Scheme is determined by the independent Trustees through advice provided by an independent
investment consultant. The Trustee’s objective is to achieve an above average long term return on the Scheme’s assets from a mixture
of capital growth and income, whilst managing investment risk and ensuring the strategy remains within the guidelines set out in the
Pensions Act 1995 and 2004 and the Scheme’s statement of investment principles. In setting the strategy, the nature and duration of
the Scheme’s liabilities are taken into account, ensuring that an integrated approach is taken to investment risk and both short term
and long term funding requirements. The Scheme invests in a diverse range of asset classes as set out above with matching assets
primarily comprising holdings in inflation linked gilts, corporate bonds and liability driven investments.
To reduce volatility risk a liability driven investment (LDI) strategy forms part of the Trustee’s management of the UK defined benefit
scheme’s assets, including government bonds, corporate bonds and derivatives. Repurchase agreements are entered into with
counterparties to better offset the scheme’s exposure to interest and inflation rates, whilst remaining invested in assets of a similar
risk profile. Interest rate and inflation rate derivatives are also employed to complement the use of fixed and index-linked bonds in
matching the profile of the scheme’s liabilities.
Actual return on the scheme assets was a loss of £96m (2020/21: gain of £87m).
Notes to the Group Financial Statements continued
199
Governance
Financial Statements
Investor information
Strategic Report
21 Retirement and other post-employment benefit obligations continued
c) UK Defined benefit pension scheme – IAS 19 continued
(v) Sensitivities
The value of the UK defined benefit pension scheme assets is sensitive to market conditions. Changes in assumptions used for
determining retirement benefit costs and liabilities may have a material impact on the 2022/23 income statement and the balance
sheet. The main assumptions are the discount rate, the rate of inflation and the assumed mortality rate. The following table provides
an estimate of the potential impacts of each of these variables if applied to the current year consolidated income statement and
balance sheet.
Net finance costs Net deficit
Year ended
30 April
2022
£m
Year ended
1 May
2021
£m
Year ended
30 April
2022
£m
Year ended
1 May
2021
£m
Positive / (negative) effect
Discount rate: 0.5% increase 2 1 139 179
Inflation rate: 0.5% increase* (3) (2) (110) (147)
Mortality rate: 1 year increase (1) (1) (65) (75)
* The increase in scheme benefits provided to members on retirement is subject to an inflation cap.
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is
unlikely that the changes in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
d) Other post-employment benefits – IAS 19
The Group offers other post-employment benefits to employees in overseas territories, in particular in Greece. These benefits are
unfunded. At 30 April 2022 the net obligation in relation to these benefits was £1m (2020/21: £5m) which is included in trade and
other payables.
22 Share capital, retained earnings and reserves
a) Share capital
30 April
2022
million
1 May
2021
million
30 April
2022
£m
1 May
2021
£m
Authorised, allotted, called-up and fully paid ordinary shares
of 0.1p each 1,133 1,166 1 1
30 April
2022
million
1 May
2021
million
30 April
2022
£m
1 May
2021
£m
Ordinary shares of 0.1p each in issue at the beginning of the period 1,166 1,162 1 1
Issued during the period - 4 - –
Repurchased and cancelled during the period (33) – - –
Ordinary shares of 0.1p each in issue at the end of the period 1,133 1,166 1 1
During the period the Company bought back 32,963,792 Ordinary shares of 0.1p each. The Company paid cash consideration of
£32m at an average price of 98p per Ordinary share. The repurchased shares were cancelled in the period, with the nominal value of
the cancelled shares transferred to the capital redemption reserve.
During the year ended 1 May 2021, 4,098,442 Ordinary shares with nominal value of 0.1p each were issued for consideration at
nominal value to satisfy awards under the Group’s share option schemes.
200 Currys plc Annual Report & Accounts 2021/22
22 Share capital, retained earnings and reserves continued
b) Retained earnings and reserves
Movements in retained earnings and reserves during the reported periods are presented in the consolidated statement of changes in
equity. Movements within the individual reserves are as follows:
Hedging
reserve
£m
Investments
revaluation
reserve
£m
Treasury
share
reserve
£m
Investment
in own share
reserve
£m
Translation
reserve
£m
Demerger
reserve
£m
Total
£m
As at 2 May 2020 8 10 – (13) (30) (750) (775)
Other comprehensive income and expense
recognised directly in equity (40) 8 – – 46 – 14
Amounts transferred to the carrying value of
inventory purchased during the year 24 – – – – – 24
Amounts transferred to accumulated profits (18) – 4 (14)
Purchase of own shares - EBT – – – (13) – – (13)
As at 1 May 2021 (8) – – (22) 16 (750) (764)
Other comprehensive income and expense
recognised directly in equity (14) - - - (32) - (46)
Amounts transferred to the carrying value of
inventory purchased during the year 28 - - - - - 28
Amounts transferred to accumulated profits - - - 24 - - 24
Purchase of own shares – EBT - - - (41) - - (41)
Purchase of own shares – share buyback - - (32) - - - (32)
Cancellation of treasury shares - - 32 - - - 32
As at 30 April 2022 6 - - (39) (16) (750) (799)
Hedging reserve
The hedging reserve is used to recognise the effective portion of gains or losses on derivatives that are designated and qualify as cash
flow hedges. Amounts are subsequently either transferred to the initial cost of inventory or reclassified to profit or loss as appropriate.
Investment revaluation reserve
The Group previously held an equity investment in Unieuro S.p.A, an Italian retailer of consumer electronics and household
appliances listed on the Borsa Italiana. The Group subsequently disposed of the equity instruments for consideration of £18m during
the year ended 1 May 2021 as it no longer aligned to the Group’s long-term strategic direction.
Treasury share reserve
The treasury share reserve represents the repurchase of shares recognised as equity in the parent company, Currys plc. Repurchased
shares are classified as treasury shares and presented in the treasury share reserve at cost, inclusive of any directly attributable cost
as disclosed above, as a deduction in total equity. When treasury shares are cancelled, the cost of those cancelled is transferred to
accumulated profits.
All shares purchased by the Company as treasury shares in the period were done so as part of the buyback programme previously
announced on 4 November 2021. All shares purchased in treasury during the period were subsequently cancelled.
Investment in own shares reserve
The investment in own shares reserve is used to recognise the cost of shares in the Company held by the EBT. As further disclosed in
note 4 the shares held by the EBT are purchased in order to satisfy share option and save as you earn share option plans issued by
the Company as part of employee share incentive schemes. At the reporting date, the EBT held 33.2m shares (2020/21: 20.5m).
When shares are issued by the EBT to employees in order to satisfy employee share awards, the cost of these shares is transferred
to accumulated profits. During the period the EBT subsequently disposed, by way of share issue, 21.9m of Ordinary shares in the
Company (2020/21: 5.4m).
Translation reserve
The translation reserve accumulates exchange differences arising on translation of foreign subsidiaries which are recognised in other
comprehensive income. The cumulative amount is reclassified to accumulated profits when the related net investment is disposed of.
Demerger reserve
The demerger reserve arose as part of the demerger of the Group from TalkTalk in 2010.
Notes to the Group Financial Statements continued
201
Governance
Financial Statements
Investor information
Strategic Report
23 Equity dividends
30 April
2022
£m
1 May
2021
£m
Final dividend for the year ended 2 May 2020 of nil per ordinary share – –
Interim dividend for the year ended 1 May 2021 of nil per ordinary share – –
Final dividend for the year ended 1 May 2021 of 3.00p per ordinary share 34 –
Interim dividend for the year ended 30 April 2022 of 1.00p per ordinary share 12 –
Amounts recognised as distributions to equity shareholders in the period - on ordinary shares of 0.1p
each 46 –
The following distribution is proposed but has not been effected at 30 April 2022 and is subject to shareholders’ approval at the
forthcoming Annual General Meeting:
£m
Final dividend for the year ended 30 April 2022 of [x.xx]p per ordinary share [xx]
The payment of this dividend will not have any tax consequences for the Group.
24 Discontinued operations and assets held for sale
Accounting policies
A discontinued operation is a component of the Group which represents a significant separate line of business, either through its
activity or geographical area of operation, which has been sold, is held for sale or has been closed.
Where the sale of a component of the Group is considered highly probable at the balance sheet date and the business
is available for immediate sale in its present condition, it is classified as held for sale. Such classification assumes the
expectation that the sale will complete within one year from the date of classification. Assets and liabilities held for sale are
measured at the lower of carrying amount and fair value less costs to sell. Once classified as held for sale, intangible assets
and property, plant and equipment are no longer amortised or depreciated.
There have been no additional operations classified as discontinued during the year ended 30 April 2022. The following were
classified as discontinued in previous years and have continued to incur costs and cash flows in the current financial year:
honeybee
No profit or loss has been recognised in relation to the disposal of the honeybee operation in the current or comparative period.
During the year the Group received the final cash payment of £1m for the disposal of trade and assets in relation to the honeybee
operations (2020/21: £2m).
Spain
On 29 September 2017, the Group completed the disposal of The Phone House Spain S.L.U., Connected World Services Europe S.L.
and Smarthouse Spain S.A., which together represented the trading operations in Spain. For the year ended 1 May 2021, a £2m credit
was recognised in relation to the reversal of previously held provisions no longer required. No further costs in relation to the disposal
have been recognised during the period while further information on the contingent liability that the Group has recognised in relation
to the disposal can be found in note 31.
Other
No profit or loss or cash flows have been recognised in relation to other previously disposed operations during the period. For the
year ended 1 May 2021 the Group recognised a credit of £5m as the Group released the remaining provision held in relation to.
following the settlement of the claim.
In prior periods the Group had deemed it probable that it would need to pay amounts covered by warranties provided under the
sale agreement for the previously disposed Phonehouse Germany business. The claim was subsequently settled in the second
half of the year ended 1 May 2021. The Group subsequently recorded a cash outflow of £3m, released excess amounts provided,
thereby recognising a credit of £5m in the income statement as the provision was reduced to £nil.
202 Currys plc Annual Report & Accounts 2021/22
24 Discontinued operations and assets held for sale continued
Other continued
As a result of the settlement as set out above the Group does not expect any further warranty claims in respect of tax risks in territories
within which the legacy Carphone group used to operate. As such, a further £5m was released during the year ended 1 May 2021.
a) Profit after tax from discontinued operations
Year ended 30 April 2022 Year ended 1 May 2021
honeybee
£m
Spain
£m
Other
£m
Total
£m
honeybee
£m
Spain
£m
Other
£m
Total
£m
Revenue – – – – – – – –
Expenses – – – – – 2 5 7
Profit before tax – – – – – 2 5 7
Income tax – – – – – – 5 5
– – – – – 2 10 12
b) Cash flows from discontinued operations
Year ended 30 April 2022 Year ended 1 May 2021
honeybee
£m
Spain
£m
Other
£m
Total
£m
honeybee
£m
Spain
£m
Other
£m
Total
£m
Operating activities – – – – – – (3) (3)
Investing activities 1 – – 1 2 – – 2
1 – – 1 2 – (3) (1)
25 Financial risk management and derivative financial instruments
Accounting policies
Non-derivative financial assets
Financial assets are recognised in the Group’s balance sheet when the Group becomes party to the contractual provisions
of the investment. The Group’s financial assets comprise cash and cash equivalents, receivables which involve a contractual
right to receive cash from external parties, and for the prior period, financial assets designated as at fair value through
other comprehensive income (FVTOCI). Financial assets comprise all items shown in notes 12, 14 and 15 with the exception of
prepayments and contract assets.
When the Group recognises a financial asset, it classifies it in accordance with IFRS 9 depending on the Group’s intention with
regard to the collection, or sale, of contractual cash flows and whether the financial asset’s cash flows relate solely to the
payment of principal and interest on principal outstanding. All of the Group’s assets measured at amortised cost are subject to
impairments driven by the expected credit loss (ECL) model as further stipulated in notes 15 and below.
Financial assets are derecognised when the contractual rights to the cash flows expire or the Group has transferred the
financial asset in a way that qualifies for derecognition in accordance with IFRS 9.
Non-derivative financial liabilities
The Group’s financial liabilities are those which involve a contractual obligation to deliver cash to external parties at a future
date. Financial liabilities comprise all items shown in notes 16 to 19 with the exception of other taxes and social security,
contract liabilities and accruals for wages, bonuses and holiday pay. Financial liabilities are recognised in the Group’s
balance sheet when the Group becomes a party to the contractual provisions of the instrument. Financial liabilities (or a part
of a financial liability) are derecognised when the obligation specified in the contract is discharged, cancelled or expires. In
the event that the terms in which the Group are contractually obliged are substantially modified, the financial liability to which
it relates is derecognised and subsequently re-recognised on the modified terms.
Where the Group has the right and intention to offset in relation to financial assets and liabilities under IAS 32, these are
presented on a net basis.
Notes to the Group Financial Statements continued
203
Governance
Financial Statements
Investor information
Strategic Report
25 Financial risk management and derivative financial instruments continued
Accounting policies continued
Non-derivative financial liabilities continued
The Group reviews several factors when considering a significant increase in credit risk including but not limited to: credit rating
changes; adverse changes in general economic and / or market conditions; and material changes in the operating results or
financial position of the debtor.
Indicators that an asset is credit-impaired would include: observable data in relation to the financial health of the debtor;
significant financial difficulty of the issuer or the debtor; the debtor breaches contract; or it is probable that the debtor will
enter bankruptcy or financial reorganisation.
The Group uses derivatives to manage its exposures to fluctuating interest and foreign exchange rates. These instruments are
initially recognised at fair value on the date the contract is entered into and are subsequently remeasured to fair value at
each prevailing balance sheet date and are recorded within assets or liabilities as appropriate. The treatment of the resulting
gain or loss depends on whether the derivative is designated as a hedging instrument and if so, the nature of the item being
hedged. Derivatives that qualify for hedge accounting are treated as a hedge of a highly probable forecast transaction (cash
flow hedge) in the case of foreign exchange hedging, and a hedge of the exposure arising from changes in the cash flows of a
financial liability due to interest rate risk on a floating rate debt instrument in the case of interest rate hedging.
Cash flow hedge accounting
At inception the relationship between the hedging instrument and the hedged item is documented, as well as an assessment
of the effectiveness of the derivative instrument used in the hedging transaction in offsetting changes in the cash flow of the
hedged item. This effectiveness assessment is repeated on an ongoing basis during the life of the hedging instrument to ensure
that the instrument remains an effective hedge.
The effective portion of changes in the fair value is recognised in other comprehensive income and accumulated in the cash
flow hedge reserve. Any gain or loss relating to the ineffective portion is recognised immediately in the income statement
within finance costs. Amounts recognised in other comprehensive income and accumulated in the cash flow hedge reserve
are recycled to the income statement, in the same line as the recognised hedged item, in the period when the hedged item
will affect profit or loss. If the hedging instrument expires or is sold, or no longer meets the criteria for hedge accounting, any
cumulative gain or loss existing in other comprehensive income at that time remains in other comprehensive income and is
recognised when the forecast transaction is ultimately recognised in the income statement. If the forecast transaction is no
longer expected to occur, the cumulative gain or loss in other comprehensive income is immediately transferred to the income
statement and recognised within finance costs.
Where hedged forecast transactions result in the recognition of a non-financial asset or liability, the gains and losses
previously recognised and accumulated in the cash flow hedge reserve are subsequently removed and included in the initial
cost of the non-financial asset or liability. Such transfers will not affect other comprehensive income.
Derivatives that do not qualify for hedge accounting
Derivatives that do not qualify for hedge accounting are classified at fair value through profit or loss. All changes in fair value
of derivative instruments that do not qualify for hedge accounting are recognised immediately in the income statement within
finance costs.
The carrying amount of the Group’s financial assets, liabilities and derivative financial instruments are as follows:
30 April
2022
£m
1 May
2021
£m
Cash and cash equivalents
(1)
126 175
Trade and other receivables excluding derivative financial assets
(1)
558 450
Derivative financial assets
(2)
28 24
Derivative financial liabilities
(2)
(11) (4 2)
Trade and other payables
(1)
(1,940) (1,799)
Contingent consideration
(2)
– (2)
Loans and other borrowings
(1)
(82) (6)
(1) Held at amortised cost.
(2) Held at fair value through profit or loss.
204 Currys plc Annual Report & Accounts 2021/22
Financial instruments that are measured at fair value in the financial statements require disclosure of fair value measurements by
level based on the following fair value measurement hierarchy:
• Level 1 – quoted prices (unadjusted) in active markets for identical assets and liabilities;
• Level 2 – inputs other than quoted prices included within level 1 that are observable for the asset or liability either directly (that is,
as prices) or indirectly (that is, derived from prices);
• Level 3 – inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).
Listed investments held are categorised as level 1 in the fair value hierarchy and are valued based on quoted bid prices in an active
market.
Contingent consideration is categorised as level 3 in the fair value hierarchy as the valuation requires the use of significant
unobservable inputs. An explanation of the valuation methodologies and the inputs to the valuation model are provided in note 17.
The fair value of contingent consideration was immaterial in the prior year and nil in the current year, due to the consideration being
settled, therefore no additional disclosure was required. The impact of Covid-19 has had no material impact on the fair value of
contingent consideration.
The significant inputs required to measure the Group’s remaining financial instruments at fair value on the balance sheet, being
derivative financial assets and liabilities, are observable and are classified as level 2 in the fair value hierarchy. There have also
been no transfers of assets or liabilities between levels of the fair value hierarchy.
25 Financial risk management and derivative financial instruments continued
Fair values have been arrived at by discounting future cash flows (where the impact of discounting is material), assuming no early
redemption, or by revaluing forward currency contracts and interest rate swaps to period end market rates as appropriate to the
instrument.
Management consider that the carrying amount of financial assets and liabilities recorded at amortised cost and their fair value are
not materially different.
Offsetting financial assets and financial liabilities
The Group has forward foreign exchange contracts that are subject to enforceable master netting arrangements. Under these master
netting agreements gross assets and liabilities could be offset in the case of a counterparty default.
(i) Financial assets
30 April 2022
Gross amounts
of recognised
financial assets
£m
Gross amounts of
recognised financial
liabilities set off in
the balance sheet
£m
Net amounts of
financial assets
presented in the
balance sheet
£m
Financial
instruments not
set off in the
balance sheet
£m
Net
amount
£m
Forward foreign exchange contracts* 28 - 28 (11) 17
Cash and cash equivalents 126 - 126 (2) 124
154 - 154 (13) 141
1 May 2021
Gross amounts
of recognised
financial assets
£m
Gross amounts of
recognised financial
liabilities set off in
the balance sheet
£m
Net amounts of
financial assets
presented in the
balance sheet
£m
Financial
instruments not
set off in the
balance sheet
£m
Net
amount
£m
Forward foreign exchange contracts* 24 – 24 (23) 1
Cash and cash equivalents 175 – 175 (6) 169
199 – 199 (29) 170
Notes to the Group Financial Statements continued
205
Governance
Financial Statements
Investor information
Strategic Report
25 Financial risk management and derivative financial instruments continued
Offsetting financial assets and financial liabilities continued
(ii) Financial liabilities
30 April 2022
Gross amounts
of recognised
financial liabilities
£m
Gross amounts of
recognised financial
liabilities set off in
the balance sheet
£m
Net amounts of
financial liabilities
presented in the
balance sheet
£m
Financial
instruments not
set off in the
balance sheet
£m
Net
amount
£m
Forward foreign exchange contracts* (11) - (11) 11 -
Overdrafts (2) - (2) 2 -
(13) - (13) 13 -
1 May 2021
Gross amounts
of recognised
financial liabilities
£m
Gross amounts of
recognised financial
liabilities set off in
the balance sheet
£m
Net amounts of
financial liabilities
presented in the
balance sheet
£m
Financial
instruments not
set off in the
balance sheet
£m
Net
amount
£m
Forward foreign exchange contracts* (42) – (42) 23 (19)
Overdrafts (6) – (6) 6 –
(48) – (4 8) 29 (19)
* The forward foreign exchange contract assets and liabilities are recognised within the statement of financial position as derivative assets and derivative liabilities
respectively. The change in fair value of the forward foreign exchange contract assets is accounted for as a qualifying cash flow hedge.
a) Financial risk management policies
The Group’s activities expose it to certain financial risks including market risk (such as foreign exchange risk and interest rate risk),
credit risk and liquidity risk. The Group’s treasury function, which operates under treasury policies approved by the Board, uses certain
financial instruments to mitigate potentially adverse effects on the Group’s financial performance from these risks. These financial
instruments consist of bank loans and deposits, spot and forward foreign exchange contracts, foreign exchange swaps and interest
rate swaps.
Throughout the period under review, in accordance with Group policy, no speculative use of derivatives or other instruments
was permitted. No contracts with embedded derivatives have been identified and, accordingly, no such derivatives have been
accounted for separately.
b) Foreign exchange risk
The Group undertakes certain transactions that are denominated in foreign currencies and as a consequence has exposure to
exchange rate fluctuations. These exposures primarily arise from inventory purchases, with most of the Group’s exposure being to
Euro and US Dollar. The Group uses spot and forward currency contracts to mitigate these exposures, with such contracts designed to
cover exposures ranging from one month to one year.
The translation risk on converting overseas currency profits or losses is not hedged and such profits or losses are converted into
Sterling at average exchange rates throughout the year. The Group’s principal translation currency exposures are the Euro and
Norwegian Krone.
At 30 April 2022, the total notional principal amount of outstanding currency contracts was £1,925m (2020/21: £2,872m) and had a
net fair value of £17m asset (2020/21: £18m liability). Monetary assets and liabilities and foreign exchange contracts are sensitive to
movements in foreign exchange rates.
206 Currys plc Annual Report & Accounts 2021/22
25 Financial risk management and derivative financial instruments continued
b) Foreign exchange risk continued
The impact of fluctuations in foreign exchange rates on profit and loss is mitigated by using offsetting exposures and non-hedged
derivatives however there may be residual minimal impact on P&L from residual exposures that are not fully matched. This sensitivity
can be analysed in comparison to year end rates (assuming all other variables remain constant) as follows:
Year ended 30 April 2022 Year ended 1 May 2021
Effect on profit
before tax*
£m
Effect on
total equity
£m
Effect on profit
before tax*
£m
Effect on
total equity
£m
10% movement in the US dollar exchange rate – 8 – 13
10% movement in the Euro exchange rate – 22 – 60
10% movement in the Norwegian Krone exchange rate – 14 – 30
10% movement in the Swedish Krona exchange rate – 9 – 27
10% movement in the exchange rate Danish Krone – 6 – 17
10% movement in the Chinese Yuan Offshore exchange rate – 5 – 6
* Wherever possible the group offsets foreign exchange fluctuations using matching foreign currency assets or liabilities or unhedged derivatives, the group targets profit
and loss impact of nil however unmatched exposures may cause a profit and loss impact.
c) Interest rate risk
The Group’s interest rate risk arises primarily on cash, cash equivalents and loans and other borrowings, all of which are at floating
rates of interest and which therefore expose the Group to cash flow interest rate risk. These floating rates are linked to risk free
rates and other applicable interest rate bases as appropriate to the instrument and currency. Future cash flows arising from these
financial instruments depend on interest rates and periods agreed at the time of rollover. Group policy permits the use of long-term
interest rate derivatives in managing the risks associated with movements in interest rates.
The effect on the income statement and equity of 100 basis point movements in the interest rate for the currencies in which most
Group cash, cash equivalents, loans and other borrowings are denominated and on which the valuation of most derivative financial
instruments is based is as follows, assuming that the year end positions prevail throughout the year:
Year ended
30 April 2022
Year ended
1 May 2021
Effect on profit
before tax
increase /
(decrease)
£m
Effect on profit
before tax
increase /
(decrease)
£m
1% increase in the Sterling interest rate - 2
d) Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that
are settled by delivering cash or another financial asset. The Group manages its exposure to liquidity risk by reviewing regularly the
long term and short term cash flow projections for the business against the resources available to it. In response to Covid-19, the
Group entered into a one year facility of £266m in April 2020; this was cancelled in February 2021.
In order to ensure that sufficient funds are available for ongoing and future developments, the Group has committed bank facilities,
excluding overdrafts repayable on demand, totalling £543m (2020/21: £551m). The lower amount of facilities reflect strong cash
flow generation in financial year ended 1 May 2021 and a lower requirement for debt going forward. Further details of committed
borrowing facilities are shown in note 18.
Notes to the Group Financial Statements continued
207
Governance
Financial Statements
Investor information
Strategic Report
25 Financial risk management and derivative financial instruments continued
d) Liquidity risk continued
The table below analyses the Group’s financial liabilities and derivative assets and liabilities into relevant maturity groupings. The
amounts disclosed in the table are the contractual undiscounted cash flows, including both principal and interest flows, assuming
that interest rates remain constant and that borrowings are paid in full in the year of maturity.
30 April 2022
Within
one year
£m
In more than
one year but
not more than
five years
£m
In more than
five years
£m
Total
£m
Lease liabilities (260) (806) (485) (1,551)
Derivative financial instruments – gross cash outflows:
Forward foreign exchange contracts (1,925) - - (1,925)
Derivative financial instruments – gross cash inflows:
Forward foreign exchange contracts 1,942 - - 1,942
Loans and other borrowings (2) (80) - (82)
Trade and other payables (1,932) (8) - (1,940)
(2,177) (894) (485) (3,556)
1 May 2021
Within one year
£m
In more than
one year but
not more than
five years
£m
In more than
five years
£m
Total
£m
Lease liabilities (271) (842) (534) (1,647)
Derivative financial instruments – gross cash outflows:
Forward foreign exchange contracts (2,872) – – (2,872)
Derivative financial instruments – gross cash inflows:
Forward foreign exchange contracts 2,854 – – 2,854
Loans and other borrowings (6) – – (6)
Deferred consideration (2) – – (2)
Trade and other payables (1,794) (5) – (1,799)
(2,091) (847) (534) (3,472)
e) Credit risk
Credit risk is the risk of financial loss to the Group if a counterparty fails to meet its contractual obligations and arises principally
from the Group’s receivables from consumers. The Group’s exposure to credit risk is regularly monitored and the Group’s policy is
updated as appropriate.
The credit risk associated with cash and cash equivalents and derivative financial instruments are closely monitored and credit
ratings are used in determining maximum counterparty credit risk.
Surplus cash is invested in investment grade institutions using only low risk, highly liquid instruments such as overnight deposits and
money market funds. Cash and cash equivalents comprise cash balances and other deposits with a maturity of less than three months
when deposited. The Group only invests in money market funds where cash can be withdrawn the same day, and which are comprised
of assets with a weighted-average maturity of less than ninety days hence meeting the definition of cash and cash equivalents.
For the purposes of short term operational requirements in Greece, local banks which are below investment grade are used to
service short term liquidity needs. Any surplus cash in Greece is moved to an investment grade institution.
Counterparty credit rating
30 April
2022
£m
1 May
2021
£m
AAA to AA- 72 78
A+ to A- 37 81
BBB+ to BBB- 1 6
Cash held for short term operational requirements within Greece 16 10
126 175
208 Currys plc Annual Report & Accounts 2021/22
25 Financial risk management and derivative financial instruments continued
e) Credit risk continued
All derivative assets are considered low risk financial instruments as they are held at banks that are investment grade.
The Group’s contract assets of £180m (2020/21: £220m) are generally owed to the Group by major multi-national enterprises with
whom the Group has well-established relationships and are consequently not considered to add significantly to the Group’s credit
risk exposure. In addition, credit risk is also inherently associated with the MNO end subscribers. Exposure to credit risk associated
with the MNO subscriber is managed through an extensive consumer credit checking process prior to connection with the network.
The large volume of MNO subscribers reduces the Group’s exposure to concentration of credit risk. Further information for credit risk
associated to contract assets and the MNOs is disclosed within note 14.
For the Group’s trade receivables in the UK and Nordics, it has adopted the simplified approach to calculating expected
credit losses allowed by IFRS 9. Historical credit loss rates are applied consistently to groups of financial assets with similar risk
characteristics. These are then adjusted for known changes in, or any forward-looking impacts on creditworthiness. In Greece the
Group has adopted both the simplified approach for business to business and a debtor by debtor expected credit loss model
based on the probability of default.
Of the Group’s £558m trade and other receivables that fall within the classification of financial assets (2020/21: £450m), £152m
is deemed by the Group to have a material level of credit risk (2020/21: £135m). Other amounts within trade and other receivables
are not considered to have a material level of credit risk because they primarily relate to receivables with blue chip multi-national
companies with no history of default and no concentration of credit risk to the Group. The Group applies the expected credit loss
model, as described above, to all financial assets. The areas of risk and corresponding expected credit loss are as follows:
30 April 2022 1 May 2021
Gross carrying
amount
£m
Expected
credit loss
£m
Gross carrying
amount
£m
Expected
credit loss
£m
UK – PC World Business (B2B) 17 6 13 3
UK – DSG Retail – Main Sales Ledger 62 4 39 4
UK – CPW Concessions 2 2 2 2
UK - iD Mobile - 4 - -
Nordics – Business to Business 29 2 24 3
Nordics – Franchise Debtors 29 1 30 1
Greece – Business to Business 4 - 4 –
Greece – Franchise Debtors 1 1 2 1
Greece – Consumer Credit - 1 15 1
Greece – Main Sales Ledger 8 - 6 1
152 21 135 16
Ageing of the areas of credit risk is set out in the tables below:
Gross amounts of recognised financial assets
30 April
2022
£m
1 May
2021
£m
Not Yet Due [xx] 108
0–90 Days [xx] 13
91–180 Days [xx] 2
180+ Days [xx] 12
[xx] 135
The carrying amount of financial assets recorded in the financial statements, which is net of impairment losses, represents the Group’s
maximum exposure to credit risk.
f) Capital risk
The Group manages its capital to ensure that entities within the Group will be able to continue as a going concern, whilst maximising
the return to shareholders through a suitable mix of debt and equity. The capital structure of the Group consists of cash and cash
equivalents, loans and other borrowings and equity attributable to equity holders of the Company, comprising issued capital,
reserves and accumulated profits. Except in relation to minimum capital requirements in its insurance business, the Group is not
subject to any externally imposed capital requirements. The Group monitors its capital structure on an ongoing basis, including
assessing the risks associated with each class of capital.
Notes to the Group Financial Statements continued
209
Governance
Financial Statements
Investor information
Strategic Report
25 Financial risk management and derivative financial instruments continued
g) Derivatives
Derivative financial instruments comprise forward foreign exchange contracts, foreign exchange swaps and interest rate swaps. The
Group has designated financial instruments under IFRS 9 as explained below.
Cash flow hedges
Foreign exchange
The objective of the Group’s policy on foreign exchange hedging is to protect the Group from adverse currency fluctuations and
to gain greater certainty of earnings by protecting the Group from sudden currency movements. All hedging of foreign currency
exposures is managed centrally within the Group Treasury function. The Group analyses its exposure to foreign exchange rate
movements without assuming any correlations between currency pairs and uses this analysis to hedge up to the level prescribed in its
transactional hedging policy (a target of up to 80% hedged a year in advance). The Group generally prefers to use vanilla forward
foreign exchange contracts as hedging instruments for hedges of forecasted transactions. The Group has a policy that all its foreign
exchange rate derivatives must be eligible for hedge accounting. The Group can use more complex derivatives including options
when management considers that they are more appropriate, based on management’s views on potential foreign exchange rate
movements.
Any amendments to the Group’s policies or strategy on managing foreign currency risk must be approved by the Group’s Tax and
Treasury Committee.
At 30 April 2022 the Group had forward and swap foreign exchange contracts in place with a notional value of £737m (2020/21:
£1,570m) and a net fair value of £7m asset (2020/21: £17m liability) that were designated and effective as cash flow hedges. These
contracts are expected to cover exposures ranging from one month to one year. The fair value of derivative foreign exchange
contracts and foreign exchange swaps not designated as cash flow hedges was a £10m asset (2020/21: £1m liability).
Possible sources of ineffectiveness are scenarios where future cash flows are delayed to a later period or brought forward to a
prior period. Ineffectiveness can also be caused by credit risk (both own risk and that of the counterparty) as well as currency basis
spread which is not included in the effectiveness calculation. All hedges are expected to be highly effective.
Supply chain issues have had an impact on the timing and volume of foreign currency purchases into the business. However, all
hedged items are considered highly probable, therefore no material ineffectiveness has been recognised. The situation in Ukraine
and subsequent sanctions imposed on Russia has had no significant impact on foreign currency purchases.
As of 30 April 2022, the Group holds the following levels of foreign exchange hedging derivatives (foreign exchange forwards) to
hedge its exposure to fluctuating foreign exchange rates of the next 12 months:
Year ended 30 April 2022 Year ended 1 May 2021
Maturing
hedges in
the next
12 months
£m
Weighted
average
hedge rate
£m
Change in fair
value used to
calculate hedge
ineffectiveness
£m
Maturing
hedges in
the next
12 months
£m
Weighted
average
hedge rate
£m
Change in fair
value used to
calculate hedge
ineffectiveness
£m
Hedging USD purchases into GBP (UK) 62 1.3480 4 66 1.3704 (1)
Hedging EUR purchases into GBP (UK) 30 1.1753 - 24 1.1247 –
Hedging CNY purchases into GBP (UK) 52 8.7825 3 61 9.0489 –
Hedging EUR purchases into NOK (Nordics) 305 10.1009 (6) 761 10.4977 (33)
Hedging USD purchases into NOK (Nordics) 30 8.7826 2 84 8.7562 (4)
Hedging SEK sales into NOK (Nordics) 103 1.0237 2 301 0.9787 12
Hedging DKK sales into NOK (Nordics) 73 0.7388 1 189 0.7100 8
Hedging EUR purchases into GBP (Ireland) 81 1.1724 1 84 0.8864 1
736 7 1,570 (17)
The change in value of hedged items is a total of £7m (2020/21: £(17)m). This is used in assessing the economic relationship between
hedged items and hedging instruments. Ineffectiveness caused by foreign currency basis spread and credit risk was highly immaterial
during the period.
210 Currys plc Annual Report & Accounts 2021/22
25 Financial risk management and derivative financial instruments continued
g) Derivatives
Cash flow hedges continued
Interest rate
The Group’s interest rate risk management objective is to limit the amount of additional expense incurred if interest rates rise to
unexpected levels. To manage the interest rate exposure, the Group generally enters interest rate swaps to fix its floating rate
borrowings, in which the Group agrees to exchange, at specified intervals, the difference between fixed and variable rate interest
amounts calculated by reference to an agreed-upon notional principal amount. The Group monitors and manages its interest rate risk
individually in each currency and it does not make any assumptions about how interest rates in different currencies may move in tandem.
Any amendments to the Group’s policies or strategy on managing interest rate risk must be approved by the Group’s Tax and
Treasury Committee.
Interest rate continued
As at the 30th April 2022 there are no interest rate swaps in place. Whilst the Group’s policy and strategy on interest rate risk has
not changed, £60m of interest rate hedges were discontinued in April 2021 because they no longer fulfilled the criteria for hedge
accounting under IFRS 9.
In the prior period, the Group held interest rate swaps with a notional value of £nil and a fair value of £nil, whereby the Group received a
floating rate of interest based on LIBOR and paid a fixed interest rate. All interest rate swap contracts were terminated in April 2021.
IBOR Reform
During the year, the Group adopted the ‘Interest Rate Benchmark Reform Phase 2’ amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS
16. During the year the Group has established that it has no material contracts that use an IBOR benchmark which would require the
remeasurement of any assets, liabilities or derivatives.
In April 2021, the Group extinguished its instruments linked to IBOR. This included the refinancing of the Group’s Revolving Credit
Facilities which were replaced with new agreements linked to risk-free rate indices as set out in note 18. The Group simultaneously
cancelled all of its interest rate hedging as they no longer met with the requirements of IFRS 9. The Group continues to operate with
no significant core level of debt and as such has no interest rate hedging arrangements in place.
The Group’s interest rate risk management strategy and policies remain unchanged and if circumstances change, the Group’s interest
rate programme may be recommenced in future.
26 Notes to the cash flow statement
a) Reconciliation of cash and cash equivalents and bank overdrafts at the end of the period
Year ended
30 April
2022
£m
Year ended
1 May
2021
£m
Cash at bank and on deposit 126 175
Bank overdrafts (2) (6)
Cash and cash equivalents and bank overdrafts at end of the period 124 169
Notes to the Group Financial Statements continued
211
Governance
Financial Statements
Investor information
Strategic Report
26 Notes to the cash flow statement continued
b) Reconciliation of operating profit to net cash inflow from operating activities
Year ended
30 April
2022
£m
Year ended
1 May
2021
£m
Profit before interest and tax – continuing operations 222 147
Profit before interest and tax – discontinued operations - 7
Depreciation and amortisation 338 362
Share-based payment charge 23 21
Profit on disposal of fixed assets (1) (6)
Impairments and other non-cash items 65 76
Operating cash flows before movements in working capital 647 607
Movements in working capital:
Increase in inventory (130) (174)
(Increase) / decrease in receivables (92) 404
Increase in payables 143 182
Decrease in provisions (44) (93)
(123) 319
Cash generated from operations 524 926
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.
2 May
2021
£m
Financing
cash flows
£m
Lease
additions,
modifications
and disposals
£m
Foreign
exchange
£m
Interest
£m
30 April
2022
£m
Loans and other borrowings (note 18)
(i)
– (63) - - (17) (80)
Lease liabilities (note 19)
(ii)
(1,326) 279 (165) 15 (70) (1,267)
Total liabilities from financing activities (1,326) 216 (165) 15 (87) (1,347)
3 May
2020
£m
Financing
cash flows
£m
Lease
additions,
modifications
and disposals
£m
Foreign
exchange
£m
Interest
£m
1 May
2021
£m
Loans and other borrowings (note 18)
(i)
(324) 348 – – (24) –
Lease liabilities (note 19)
(ii)
(1,444) 310 (96) (19) (77) (1,326)
Total liabilities from financing activities (1 ,768) 658 (96) (19) (101) (1,326)
(i) The Group used interest rate swaps and foreign exchange forward contracts to hedge borrowings. The fair value of these derivatives rounded to £nil (2020/21: £nil).
There were no material cash flows or changes in fair value on these instruments during the year.
(ii) Lease liabilities are secured over the Group’s right-of-use assets.
27 Related party transactions
Transactions between the Group’s subsidiary undertakings, which are related parties, have been eliminated on consolidation and
accordingly are not disclosed. See note 4a for details of related party transactions with key management personnel.
The Group had the following transactions and balances with its associates and joint venture:
30 April
2022
£m
1 May
2021
£m
Revenue from sale of goods and services 15 16
Amounts owed to the Group - –
All transactions entered into with related parties were completed on an arm’s length basis.
212 Currys plc Annual Report & Accounts 2021/22
28 Capital commitments
30 April
2022
£m
1 May
2021
£m
Intangible assets 7 14
Property, plant and equipment 3 5
Contracted for but not provided for in the accounts 10 19
29 Government support
Accounting policies
Government grants are not recognised until there is reasonable assurance that the Group will comply with the conditions
attaching to them and that the grants will be received.
Government grants are recognised in profit or loss on a systematic basis over the periods in which the Group recognises
expenses as related costs which the grants are intended to compensate. Government grants that are receivable as
compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Group
with no future related costs are recognised in profit or loss in the period in which they become receivable.
During the year ended 30 April 2022, the Group received further government support designed to mitigate the impact of Covid-19 in
several countries in which the Group operates.
In the United Kingdom, the Group received further benefit in the form of business rates relief under the ‘Retail Discount’ for the year ended
30 April 2022. Under the scheme the business benefited from 100% relief from business rate bills for the first 2 months of the period and
66% off the remaining bills up to a total of £2m. This has led to a reduction in operating costs totalling £18m (2020/21: £62m).
The Group also benefited from government backed Covid-19 related rent concessions for closed stores in Greece. The Group
elected to take the practical expedient related to rent concessions under IFRS 16, subsequently recognising a £1m credit (2020/21:
£6m) against rental expense to reflect the variable element of the reduction and a corresponding adjustment to the lease liability.
In addition, the Group has made use of government-backed tax and social security payment deferral schemes.
During the prior period the Group also received government grants to cover the salaries for those employees who had been ‘furloughed’
through the Coronavirus Job Retention Scheme in the United Kingdom. A similar subsidy was also received in Ireland through the Temporary
Wage Subsidy Scheme and subsequently the Employment Wage Subsidy Scheme. These were subsequently repaid to the respective
governments on 28 April 2021 while no further benefit has been taken in relation to such schemes in the year ended 30 April 2022.
The Group also received £1m (2020/21: £6m) in relation to similar employment cost subsidy schemes in the Nordics. During the year
ended 1 May 2021 £2m of social security payments for the Group’s Danish operations had been deferred under government backed
schemes.
There are no unfulfilled conditions or contingencies attached to these grants.
Notes to the Group Financial Statements continued
213
Governance
Financial Statements
Investor information
Strategic Report
30 Operating lease arrangements
Accounting policies
A lease is classified as a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a
period of time in exchange for consideration.
The Group as a lessor
The Group is a lessor predominantly when subleasing retail store properties that are no longer open for trading. Leases for
which the Group is a lessor are classified as finance or operating leases. All leases that are not finance leases are classified
as operating leases. See note 12 for further disclosure where the Group is a lessor and the contracts are classified as finance
leases.
Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs
incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised
on a straight-line basis over the lease term.
Under IFRS 16, an intermediate lessor is required to classify the sublease as a finance lease or an operating lease by reference
to the right-of-use asset arising from the head lease. As such, operating leases in which the Group is a lessor relate to right-of-
use assets subleased to external third parties. A maturity analysis of undiscounted lease payments to be received relating to
these operating leases is shown below.
Undiscounted amounts receivable under sub-leases classified as operating leases:
30 April
2022
£m
1 May
2021
£m
Year 1 - 1
Year 2 - –
Year 3 - –
Year 4 - –
Year 5 - –
Onwards - –
31 Contingent liabilities
The Group continues to cooperate with HMRC in relation to open tax enquiries 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 – £214m excluding interest and
penalties. Interest on the upper end of the range is approximately £61m up to 30 April 2022. Penalties could range from nil to 30% of
the principal amount of any tax. Any potential cash outflow would occur in greater than 1 year and less than 5 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 will enter litigation and is likely to take a minimum of three 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 £10m.
32 Events after the balance sheet date
There were no material events after the balance sheet date.
214 Currys plc Annual Report & Accounts 2021/22
Company Balance Sheet
Note
30 April
2022
£m
1 May
2021
£m
Non-current assets
Investments in subsidiaries C4 2,670 2,670
2,670 2,670
Current assets
Cash and cash equivalents 12 55
Debtors C5 3,306 3,583
Derivative assets C7 39 63
3,357 3,701
Current liabilities
Creditors C6 (3,338) (3,578)
Loans payable C8 - –
Derivative liabilities C7 (30) (6 5)
Net current (liabilities) / assets (11) 58
Total assets less current liabilities 2,659 2,728
Net assets 2,659 2,728
Capital and reserves
Share capital C9 1 1
Share premium reserve C9 2,263 2,263
Profit and loss account 395 464
2,659 2,728
The Company’s profit for the year was £50m (2020/21: £20m).
The financial statements of the Company were approved by the Board on 6 July 2022 and signed on its behalf by:
Alex Baldock
Group Chief Executive
Bruce Marsh
Group Chief Financial Officer
Company registration number: 7105905
215
Governance
Financial Statements
Investor information
Strategic Report
Company Statement of Changes in Equity
Share
capital
£m
Share
premium
reserve
£m
Profit and loss
account
£m
Total
equity
£m
At 2 May 2020 1 2,263 456 2,720
Profit for the year – – 20 20
Other comprehensive income – – 1 1
Total comprehensive income for the year – – 21 21
Purchase of own shares – employee benefit trust – – (13) (13)
At 1 May 2021 1 2,263 464 2,728
Total comprehensive income for the year – – 50 50
Purchase of own shares – employee benefit trust – – (41) (41)
Purchase of own shares – share buy back – – (32) (32)
Equity dividend – – (46) (46)
At 30 April 2022 1 2,263 395 2,659
216 Currys plc Annual Report & Accounts 2021/22
Notes to the Company Financial Statements
C1 Accounting policies
Basis of preparation
The Company is incorporated in the United Kingdom. The financial statements have been prepared on a going concern basis (see
note 1 to the Group financial statements).
The separate financial statements of the Company are presented as required by the Companies Act 2006. The Company meets
the definition of a qualifying entity under FRS 100 (Financial Reporting Standard 100) issued by the Financial Reporting Council.
Accordingly, the financial statements have therefore been prepared in accordance with FRS 101 (Financial Reporting Standard 101)
‘Reduced Disclosure Framework’ as issued by the Financial Reporting Council, incorporating the Amendments to FRS 101 as issued by
the Financial Reporting Council.
As permitted by FRS 101, the Company has taken advantage of the disclosure exemptions available under that standard in relation
to share-based payments, financial instruments, capital management, presentation of comparative information in respect of certain
assets, presentation of a cash flow statement and certain related party transactions. 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 re-measurement 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. The directors consider there are no critical accounting judgements or key sources of estimation
uncertainty which affect these financial statements.
Investments in subsidiaries are stated at cost less, where appropriate, provisions for impairment.
The Company had no employees during the year ended 30 April 2022 (2020/21: nil). All directors were remunerated by other group
companies.
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 year ended 30 April 2022 was £50m (2020/21: £20m). Included
in the profit recognised for the year ended 1 May 2021 is £1m of charitable donations. 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 23 of the
Group financial statements.
C4 Investments in subsidiaries
30 April
2022
£m
1 May
2021
£m
Opening balance 2,670 2,670
Impairments – –
Closing balance 2,670 2,670
Cost 2,776 2,7 76
Accumulated impairments (106) (106)
Net carrying amount 2,670 2,670
Balances comprise investments in subsidiary undertakings and other minority investments. Details of the Company’s investments in
subsidiary undertakings are provided in note C9.
217
Governance
Financial Statements
Investor information
Strategic Report
C4 Investments in subsidiaries continued
The directors acknowledged that as at 30 April 2022 the market capitalisation of Currys plc was less than the net assets of the
company which primarily consists of investments in subsidiaries. This was considered to be an indicator of impairment and an
impairment test over the investment in subsidiaries was performed in accordance with IAS 36. The recoverable amounts of the
investments have been determined based on value-in-use calculations where management have prepared discounted cash flows
based on the latest five year strategic plan and require the use of estimates.
The recoverable amount, based on the value-in-use, shows a headroom of £3,575m above the carrying amount of the investments in
subsidiaries. As such, no impairment charge was recognised over investment in subsidiaries as a result of the impairment test detailed
above.
C5 Debtors
30 April
2022
£m
1 May
2021
£m
Amounts owed by Group undertakings 3,305 3,582
Other debtors 1 1
Amounts falling due within one year 3,306 3,583
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. An impairment of £49m (2020/21: £nil) was recognised in relation to amounts owed by Group undertakings. 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
30 April
2022
£m
1 May
2021
£m
Amounts owed to Group undertakings 3,329 3, 576
Overdrafts 9 2
Amounts falling due within one year 3,338 3,578
C7 Derivatives
30 April
2022
£m
1 May
2021
£m
Foreign exchange contracts 39 63
Derivative assets 39 63
Foreign exchange contracts (30) (6 5)
Derivative liabilities (30) (6 5)
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 25 of the Group financial statements for
further details.
Included within the Company’s derivatives are £11m of assets (2020/21: £39m asset) and £18m of liabilities (2020/21: £23m liability)
related to internal trades with Group undertakings.
218 Currys plc Annual Report & Accounts 2021/22
C7 Derivatives continued
At 30 April 2022 the Company had external forward and swap foreign exchange contracts in place with a notional value of £736m
(2020/21: £1,570m). The external derivative contracts are passed down to the hedging subsidiary using an internal derivative and
designated as an effective cash flow hedge with a notional fair value of £736m (2020/21: £1,570m), resulting in a total net fair value
of £nil (2020/21: £nil). These contracts are expected to cover exposures ranging from one month to one year. The gross fair value
of derivative foreign exchange contracts and foreign exchange swaps passed down and not designated as cash flow hedges was
£12m asset and £2m liabilities (2020/21: £3m asset and £5m liabilities).
As of 30 April 2022, the Company holds the following levels of foreign exchange hedging derivatives (foreign exchange forwards) to
hedge its exposure to fluctuating foreign exchange rates of the next 12 months:
Year ended 30 April 2022 Year ended 1 May 2021
Maturing
hedges in
the next
12 months
£m
Weighted
average
hedge rate
£m
Change in fair
value used
to calculate
hedge
ineffectiveness
£m
Maturing
hedges in
the next
12 months
£m
Weighted
average
hedge rate
£m
Change in fair
value used
to calculate
hedge
ineffectiveness
£m
External trades:
Hedging USD purchases into GBP (UK) 62 1.3480 4 66 1.3704 (1)
Hedging EUR purchases into GBP (UK) 30 1.1753 – 24 1.1247 –
Hedging CNY purchases into GBP (UK) 52 8.7825 3 61 9.0489 –
Hedging EUR purchases into NOK (Nordics) 305 10.1009 (6) 761 10.4977 (33)
Hedging USD purchases into NOK (Nordics) 30 8.7826 2 84 8.7562 (4)
Hedging SEK sales into NOK (Nordics) 103 1.0237 2 301 0.9787 12
Hedging DKK sales into NOK (Nordics) 73 0.7388 1 189 0.7100 8
Hedging EUR purchases into GBP (Ireland) 81 1.1724 1 84 0.8864 1
736 7 1,570 (17)
Internal trades:
Hedging USD purchases into GBP (UK) 62 1.3480 (4) 66 1.3704 1
Hedging EUR purchases into GBP (UK) 30 1.1753 – 24 1.1247 –
Hedging CNY purchases into GBP (UK) 52 8.7825 (3) 61 9.0489 –
Hedging EUR purchases into NOK (Nordics) 305 10.1009 6 761 10.4977 33
Hedging USD purchases into NOK (Nordics) 30 8.7826 (2) 84 8.7562 4
Hedging SEK sales into NOK (Nordics) 103 1.0237 (2) 301 0.9787 (12)
Hedging DKK sales into NOK (Nordics) 73 0.7388 (1) 189 0.7100 (8)
Hedging EUR purchases into GBP (Ireland) 81 1.1724 (1) 84 0.8864 (1)
736 (7) 1,570 17
C8 Share capital and share premium
Details of movements in share capital and share premium are disclosed in note 22 to the Group financial statements.
Notes to the Company Financial Statements continued
219
Governance
Financial Statements
Investor information
Strategic Report
C9 Subsidiary undertakings
a) Principal subsidiaries as at 30 April 2022
The Company has investments in the following principal subsidiary undertakings. 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 Business activity
Carphone Warehouse Europe
Limited
1 Portal Way, London, W3 6RS United Kingdom A and B Ordinary 100 Holding
company
CPW Technology Services Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100 IT
Dixons Carphone Holdings Limited
company
1 Portal Way, London, W3 6RS United Kingdom Ordinary 100* Holding
Deferred 100*
A Ordinary 84.6**
B Ordinary 100*
Dixons Retail Group Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100 Holding
company
Deferred 100*
Dixons South East Europe A.E.V.E. 90 Marinou Antypa str., Neo
Irakleio, Athens 14121
Greece Ordinary 100 Retail
DSG International Holdings Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100 Holding
company
DSG Retail Ireland Limited 3rd Floor Office Suite,Omni Park
Shopping Centre, Santry, Dublin 9
Ireland Ordinary 100 Retail
DSG Retail Limited 1 Portal Way, London, W3 6RS United Kingdom Irredeemable
Cumulative
Preference and
Ordinary
100 Retail
Elgiganten Aktiebolag Box 1264, 164, 29 Kista, Stockholm Sweden Ordinary 100 Retail
ElGiganten A/S Arne Jacobsens Allé 16, 2.sal
København S, 2300 Copenhagen
Denmark Ordinary 100 Retail
Elkjøp Nordic AS Nydalsveien 18A, NO-0484 Oslo Norway Ordinary 100 Retail
Elkjøp Norge AS Solheimveien 10, NO-1473,
Lørenskog
Norway Ordinary 100 Retail
Gigantti Oy Töölönlahdenkatu 2, FI-00100,
Helsinki
Finland Ordinary 100 Retail
The Carphone Warehouse Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100 Retail
The Carphone Warehouse Limited 3rd Floor Office Suite, Omni Park
Shopping Centre, Santry, Dublin 9
Ireland Ordinary 100 Retail
* Interest held directly by Dixons Carphone plc.
** This is the only interest of Dixons Carphone plc, directly or indirectly, in this class of shares.
220 Currys plc Annual Report & Accounts 2021/22
C9 Subsidiary undertakings continued
b) Other subsidiary undertakings
The following are the other subsidiary undertakings of the Group, all of which are wholly owned unless otherwise indicated. All these
companies are either holding companies or provide general support to the principal subsidiaries listed on the previous page.
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 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
Codic GmbH (in liquidation) Eschenheimer Anlage 1, 60316, Frankfurt Germany Ordinary 100
Connected World Services
Distributions Limited
1 Portal Way, London, W3 6RS United Kingdom Ordinary 100
Connected World Services LLC 2711 Centerville Road, Suite 400
Wilmington DE 19808
United States Ordinary 100
Connected World Services
Netherlands BV
Watermanweg 96, 3067 GG, Rotterdam Netherlands Ordinary 100
Connected World Services SAS
(in liquidation)
26 rue de Cambacérès, 75008 Paris France Ordinary 100
CPW Acton Five Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100
CPW Brands 2 Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100*
CPW CP Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100
CPW Tulketh Mill Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100*
Currys Limited
(1)
1 Portal Way, London, W3 6RS United Kingdom Ordinary 100
Currys Retail Limited
(2)
1 Portal Way, London, W3 6RS United Kingdom Ordinary 100
DISL 2 Limited 6th Floor, Victory House, Prospect Hill,
Douglas, IM1 1EQ
Isle of Man Ordinary 100
DISL Limited 6th Floor, Victory House, Prospect Hill,
Douglas, IM1 1EQ
Isle of Man Ordinary 100
Dixons Carphone CoE s.r.o. Trnita, 491/5, 602 00 Brno Czech Republic Business Shares 100
Dixons Deutschland GmbH i.L
(in liquidation)
Ottostraße 21, 80333 Munich Germany Ordinary 100
Dixons Sourcing Limited 31/F, AXA Tower Landmark East, 100 How
Ming Street, Kwun Tong Kowloon
Hong Kong Ordinary 100
Dixons Stores Group Retail Norway AS Nydalsveien 18A, NO-0484 Oslo Norway Ordinary 100
Dixons Travel srl (in liquidation) Foro Buonaparte 70, 20121, Milan Italy Ordinary 100
DSG Card Handling Services Limited 1 Portal Way, London, W3 6RS United Kingdom 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 Hong Kong Sourcing Limited 31/F, AXA Tower Landmark East, 100
How Ming Street, Kwun Tong Kowloon
Hong Kong Ordinary 100
Notes to the Company Financial Statements continued
221
Governance
Financial Statements
Investor information
Strategic Report
Name Registered office address
Country of
incorporation or
registration Share class(es) held % held
DSG International Belgium BVBA
(in lquidation)
Havenlaan 86C, Box 204, B-1000 Brussels Belgium Ordinary 100
DSG International Retail Properties
Limited
1 Portal Way, London, W3 6RS United Kingdom Ordinary 100
DSG Ireland Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100
DSG KHI 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 40 Upper Mount Street, Dublin 2, D02 PR89 Ireland Ordinary 100
Elcare Workshop AS
(3)
Industrivegen, 53, 2212, Kongsvinger Norway Ordinary 100
Elcare Workshop Oy
(4)
Silvastintie 1, 01510, Vantaa Finland Ordinary 100
Electrocare Nordic AB
(5)
Arabygatan 9, 35246 Växjö, Kronobergs län Sweden Ordinary 100
El-Giganten Logistik AB Mobelvagen 51, 556 52 Jönköping Sweden Ordinary 100
Elkjøp Holdco AS Nydalsveien 18A, NO-0484 Oslo Norway Ordinary 100
Epoq Logistic DC k.s. Evropská 868, 664 42 Modrˇice Czech Republic Ordinary 100
iD Mobile Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100
Kungsgatan Concept Store AB Box 1264, 164, 29 Kista, Stockholm Sweden 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
PC City (France) SNC (in liquidation) 52 rue de la Victoire 75009 Paris France Partnership 100
Petrus Insurance Company Limited 2 Irish Town Gibraltar Ordinary 100
Simplify Digital Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100
TalkM Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100
Team Knowhow 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 UK Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100
The Phone House Holdings (UK) Limited 1 Portal Way, London, W3 6RS United Kingdom Ordinary 100
* Interest held directly by Dixons Carphone plc.
(1) Currys Limited was called Kereru Limited until 13 May 2021.
(2) Currys Retail Limited was called Mohua Limited until 13 May 2021.
(3) Formerly named InfoCare Workshop AS.
(4) Formerly named InfoCare Workshop Oy.
(5) Formerly named InfoCare CS AB.
222 Currys plc Annual Report & Accounts 2021/22
C9 Subsidiary undertakings continued
c) 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 Business activity
Elkjøp Fjordane AS Fugleskjærgata 10, 6905 Florø Norway Ordinary 30 Retail
d) 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 Limited
(1)
05929750
Currys Retail Limited
(2)
05929753
Dixons Carphone Holdings Limited 07866062
Dixons Retail Group Limited 03847921
DSG Card Handling Services Limited 04185110
DSG European Investments Limited 03891149
DSG International Holdings Limited 03887870
DSG International Retail Properties Limited 00476440
DSG Ireland Limited 00240621
DSG KHI Limited 09012752
DSG Overseas Investments Limited 02734677
Simplify Digital Limited 06095563
TalkM Limited 04682207
The Carphone Warehouse (Digital) Limited 03966947
The Phone House Holdings (UK) Limited 03663563
(1) Currys Limited was called Kereru Limited until 13 May 2021.
(2) Currys Retail Limited was called Mohua Limited until 13 May 2021.
Notes to the Company Financial Statements continued
223
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Financial Statements
Investor information
Strategic Report
Five Year Record (Unaudited)
2021/22
£m
2020/21
£m
2019/20
£m
2018/19
£m
2017/18
£m
Adjusted results
Revenue 10,122 10,330 10,217 10,474 10,555
EBIT 274 262 214 363 430
Interest (88) (106) (98) (24) (18)
Profit before tax 186 156 116 339 412
Tax (42) (33) (38) (70) (85)
Profit after tax 144 123 78 269 327
Earnings per share
– Basic [xx] 10.7p 6.7p 23.2p 28.3p
– Diluted [xx] 10.3p 6.6p 23.0p 28.2p
224 Currys plc Annual Report & Accounts 2021/22
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 alternative performance measures 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 (commonly referred to as ‘alternative performance 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 revenues, profit, and other earnings measures, all of which are
described throughout the glossary and definitions section of this report. 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. Those items that the Group consider to be adjusting, as well as the threshold used to determine the
departure from IFRS measures is defined below.
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:
• It is non-operating in nature;
• It is one-off in nature, such as material non-cash impairments;
• Significant strategic implementation programmes that may span multiple reporting periods, where the classification as adjusting
removes volatility and aids comparability between periods; or
• Causes significant change to the underlying business operations as a result of acquisition, divestiture or closure of operations.
Management will classify items as adjusting where an item meets one of the above criteria and it is considered more appropriate to
depart from IFRS measures.
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 A5.
Out of period network debtor revaluations
Adjusting items includes the impact of out of period network debtor revaluations due to changes in the initial underlying assumptions,
primarily driven by the introduction of new regulations or other external factors that drive significant changes in consumer behaviours,
where the original transaction was recorded in periods prior to the current financial reporting year. They do not include the
incremental amounts that form part of the constraint as these elements are not recognised initially when the performance obligation
is satisfied. Although they can recur each period management consider these out of period network revaluations to be non-
operating in nature, and thereby distorting the underlying trading performance within the period. Further information can be found in
note 14 of the financial statements.
The inclusion of such items is considered to be additional useful information for users to aid the understanding of current year trading.
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 that have been earned in relation to previous acquisitions but continue to exclude 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.
225
Governance
Financial Statements
Investor information
Strategic Report
Alternative performance measures (‘APMs’) continued
Adjusting items continued
Strategic change programmes
Primarily relate to costs incurred for the execution and delivery of a change in strategic direction, such as; severance and other
direct employee costs incurred following the announcement of detailed formal restructuring plans as they are considered one-
off; property rationalisation programmes where a business decision is made to rebase the store estate as this is considered both
one-off in nature and to cause a significant change to the underlying business operations; and implementation costs for strategic
change delivery projects that are considered one-off in nature. Such costs incurred do not reflect the Group’s underlying trading
performance. Results are therefore adjusted to exclude such items in order to aid comparability between periods.
Regulatory costs
While ongoing compliance costs are considered to be operating in nature, and included within adjusted results, in certain instances
costs are to be incurred following significant one-off events that lead to the Group incurring material one-off charges. As such, these
are considered to be included within adjusting items.
Impairment losses and onerous contracts
In order to aid comparability, costs incurred for material non-cash impairments and onerous contracts are included within adjusting
items where they are considered so material that they distort the underlying performance of the Group. 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.
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. 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 year 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 Groups underlying operations.
Where the Group is co-operating with tax authorities in relation to tax treatments arising from changes in underlying business
operations as a result of acquisition, divestiture or closure of operations, the respective costs will also be included within adjusting
items. Management considers it appropriate to divert from IFRS measures in such circumstance as the one-off charges related to
prior periods could distort users understanding of the Group’s ongoing operational performance.
The Group also includes the movement of deferred tax recognised in relation to the carry forward of unused tax losses 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.
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. Where appropriate, for example where a business is classified as exited / to be exited, comparative
information is restated accordingly.
226 Currys plc Annual Report & Accounts 2021/22
Alternative performance measures (‘APMs’) continued
Definitions, purpose and reconciliations
In line with the Guidelines on Alternative Performance Measures issued by the European Securities and Markets Authority (‘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 year before deducting interest and
tax, termed as EBIT; and profit for the year before deducting interest, tax, depreciation, and amortisation, termed as for 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 are excluded and closed stores (where closed by the company’s decision and not where closed due to
government imposed restrictions related to the global Covid-19 pandemic) 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.
Year-on-two-year (Yo2Y)
Within the key highlights and performance review we present year-on-two-year (Yo2Y) results for certain metrics in order to aid users
in making meaningful comparisons of the Group’s performance following the influence that government enforced store closures had
on the Group in the prior year.
A1 Reconciliation from revenue to adjusted revenue
Adjusted revenues are adjusted to remove out of period mobile network debtor revaluations and the revenues of those operations
in which the Group classifies as exited or to be exited but do not meet the definition of discontinued in accordance with IFRS 5
‘Non-Current Assets Held for Sale and Discontinued Operations’.
The exclusion of such revenues helps management and users with the comparability of results, based on the underlying trading
performance of continuing operations within the relevant reporting period.
The below reconciles revenue, which is considered to be the closes equivalent IFRS measure, to adjusted revenue.
Year ended 30 April 2022
UK & Ireland
£m
Nordics
£m
Greece
£m
Eliminations
£m
Total
£m
Statutory external revenue 5,485 4,105 554 – 10,144
Out of period mobile network debtor revaluations (22) – – – (22)
Adjusted external revenue 5,463 4,105 554 – 10,122
Inter-segmental revenue 67 – – (67) –
Total adjusted revenue 5,530 4,105 554 (67) 10,122
Glossary and Definitions continued
227
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Financial Statements
Investor information
Strategic Report
A1 Reconciliation from revenue to adjusted revenue continued
Year ended 1 May 2021
UK & Ireland
£m
Nordics
£m
Greece
£m
Eliminations
£m
Total
£m
Statutory external revenue 5,642 4,186 516 – 10,344
Out of period mobile network debtor revaluations (14) – – – (14)
Adjusted external revenue 5,628 4,186 516 – 10,330
Inter-segmental revenue* 56 – – (56) –
Total adjusted revenue 5,684 4,186 516 (56) 10,330
* As discussed in note 1, during the period the Group’s reportable segments have been changed to reflect the updated segments reported to the Board. As a result, inter-
segmental revenue has been restated from £194m to £56m for the year ended 1 May 2021. This is to remove inter-segmental revenue transactions between the previously
disclosed UK & Ireland Electricals and UK & Ireland Mobile CGUs.
A2 Reconciliation from statutory profit before interest and tax to adjusted EBIT and adjusted PBT
Adjusted EBIT and adjusted PBT are measures of profitability that are adjusted from total IFRS measures to remove adjusting items,
the nature of which are disclosed above. A description of costs included within adjusting items during the period and comparative
periods is further disclosed in note A5.
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.
Year ended 30 April 2022
Total
profit
£m
Mobile
network
debtor
revaluations
£m
Acquisition
/ disposal
related
items
£m
Strategic
change
programmes
£m
Regulatory
costs
£m
Impairment
losses and
onerous
contracts
£m
Other
£m
Pension
scheme
interest
£m
Adjusted
profit
£m
UK & Ireland 71 (22) 13 6 (1) 62 (18) – 111
Nordics 130 – 12 – – – – – 142
Greece 21 – – – – – – – 21
EBIT 222 (22) 25 6 (1) 62 (18) – 274
Finance income 2 – – – – – – – 2
Finance costs (98) – – – – – – 8 (90)
Profit before tax 126 (22) 25 6 (1) 62 (18) 8 186
Year ended 1 May 2021
Total
profit /
(loss)
£m
Mobile
network
debtor
revaluations
£m
Acquisition
/ disposal
related
items
£m
Strategic
change
programmes
£m
Regulatory
costs
£m
Impairment
losses and
onerous
contracts
£m
Other
£m
Pension
scheme
interest
£m
Adjusted
profit /
(loss)
£m
UK & Ireland (11) (14) 14 41 (7) 100 (31) – 92
Nordics 139 – 12 – – – – – 151
Greece 19 – – – – – – – 19
EBIT 147 (14) 26 41 (7) 100 (31) – 262
Finance income 6 – – – – – – – 6
Finance costs (120) – – – – – – 8 (112)
Profit before tax 33 (14) 26 41 (7) 100 (31) 8 156
228 Currys plc Annual Report & Accounts 2021/22
A3 Reconciliation from statutory profit before interest and tax to EBITDA
EBITDA represents earnings before interest, tax, depreciation and amortisation. It provides a useful measure of profitability for users
by adjusting for the volatility of depreciation and amortisation expense which, due to variable useful lives and timing of capital
investment, could distort the underlying profit generated from the Group in relative periods.
The below reconciles profit before interest and tax, which are considered to be the closest equivalent IFRS measures, to EBITDA.
Year ended
30 April
2022
£m
Year ended
1 May
2021
£m
Profit before interest and tax 222 147
Depreciation 252 279
Amortisation 86 83
EBITDA 560 509
A4 Reconciliation from adjusted EBIT to adjusted EBITDA and adjusted EBITDAR
Adjusted EBITDA represents earnings before interest, tax, depreciation and amortisation. This measure also excludes adjusting items,
the nature of which are disclosed above and with further detail in note A5. It provides a useful measure of profitability for users by
adjusting for the items noted in A2 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 expenses fall outside the scope of IFRS 16 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 outside the scope of IFRS 16. The purpose of this measure is aligned to the adjusted EBITDA purpose
above however with the addition of excluding the full cost base of leases which can vary from year to year of being in scope or out
of scope of IFRS 16 for example due to when leases are short term whilst negotiations are in place regarding lease renewals.
The below reconciles adjusted EBIT to adjusted EBITDA and adjusted EBITDAR. The closes equivalent IFRS measures are considered
to be profit before interest and tax, the reconciliation of such from adjusted EBIT can be found in note A2.
Year ended
30 April
2022
£m
Year ended
1 May
2021
£m
Adjusted EBIT 274 262
Depreciation 252 279
Amortisation 62 57
Adjusted EBITDA 588 598
Leasing costs in EBITDA 14 13
Adjusted EBITDAR 602 611
Glossary and Definitions continued
229
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Financial Statements
Investor information
Strategic Report
A5 Further information on the adjusting items between IFRS measures to adjusted profit measures
noted above
Note
Year ended
30 April
2022
£m
Year ended
1 May
2021
£m
Included in revenue
Mobile network debtor revaluation (i) (22) (14)
(22) (14)
Included in profit before interest and tax
Mobile network debtor revaluation (i) (22) (14)
Acquisition / disposal related items (ii) 25 26
Strategic change programmes (iii) 6 41
Regulatory costs (iv) (1) (7)
Impairment losses and onerous contracts (v) 62 100
Other (vi) (18) (31)
52 115
Included in net finance costs
Net non-cash finance costs on defined benefit pension schemes (vii) 8 8
Total impact on profit before tax – continuing operations 60 123
Tax regulatory matters (viii) 1 1
Tax on other adjusting items (ix) 24 (1)
Total impact on profit after tax – continuing operations 85 123
Discontinued operations 24 – (12)
Total impact on profit after tax 85 111
(i) Mobile network debtor revaluations
In the current period changes in consumer behaviour on previously recognised transactions have led to positive revaluations of
network receivables of £22m (2020/21: £14m).
Further information can be found in footnote (iv) of the network commission receivables and contract assets reconciliation table
within note 14 to the Group financial statements.
(ii) Acquisition / disposal related items
A charge of £25m (2020/21: £26m) relates primarily to amortisation of acquisition intangibles arising on the Dixons Retail Merger.
(iii) Strategic change programmes
During the period, further costs of £28m have been incurred as the Group continues to deliver the long-term strategic plan set back
in 2018; becoming clearer simpler and faster, improving the overall customer experience with an omnichannel offering and building
customers for life. The Group have included such items within adjusting items as, at the balance sheet date, the projects remain on
going, with further significant costs and corresponding cash outflows to be recognised. There is expected to be no significant timing
difference between the recognition of charges to the income statement and cash outflows. The costs incurred relate to the following
strategic change programmes:
• £10m one off implementation costs of the Currys rebrand which was announced and completed within the current period;
• £12m (2020/21: £41m) of restructuring costs for central operations and UK & Ireland retail operations; and
• £6m in relation to costs of implementing the cloud-based omnichannel strategy. The significant one-off costs of the front end
omnichannel implementation were initiated and substantially completed in the period.
For the year ended 1 May 2021, £13m of restructuring costs were incurred relating to Carphone Warehouse UK standalone store
closures and the strategic decision to close the Carphone Warehouse Ireland business.
230 Currys plc Annual Report & Accounts 2021/22
A5 Further information on the adjusting items between IFRS measures to adjusted profit measures
noted above continued
(iii) Strategic change programmes continued
Property rationalisation:
Included within strategic change programmes is a credit of £23m (2020/21: £19m) that primarily relates to the release of excess
property provisions following successful early exit negotiations on stores included within previously announced rationalisation and
closure programmes.
For the year ended 1 May 2021 the Group has also incurred £9m of property costs following the announcement to close the
Carphone Warehouse Ireland business, £3m of which relates to non-cash impairments over right-of-use assets and £6m for
dilapidation and closure related costs.
(iv) Regulatory costs
In periods prior, the Group provided for redress related to the mis-selling of Geek Squad mobile phone insurance policies following
the FCA investigation for periods preceding June 2015. All customer claims are carefully considered by the Group on a case by case
basis with the majority of claims received being invalid. As a result, the Group reduced the provision in relation to redress by a further
£1m during the year ended 30 April 2022 (2020/21: £8m) as, although the outstanding claims remain uncertain, no new claims were
received.
For the year ended 1 May 2021, costs of £1m were also recognised in relation to past service costs for the Group’s defined benefit
pension scheme following an additional judgement on GMP equalisation. This is further disclosed in note 21, with the cumulative
adjustment recognised within adjusting items in relation to the judgement totalling £16m to date.
(v) Impairment losses and onerous contracts
Management continues to closely monitor the trading performance of the omnichannel business as we emerge from the pandemic
and acknowledged a change in consumer shopping habits between our store-mix during the year ended 30 April 2022. This led to
the identification and recognition of a non-cash impairment charge of £17m (2020/21: £14m) over store assets within the UK. Also in
the current period a non-cash impairment reversal (credit) of £17m was recognised on store assets which had been impaired in a prior
period but where indicators of impairment no longer exist.
In March 2022 as part of its hybrid-working policy the Group announced it would close its head office in Acton and relocate to
facilities operated by WeWork. As a result of this announcement, a non-cash impairment of £31m was recognised, £26m over right-of-
use assets and £5m on other fixed assets. The lease contains a lessor-only break option which, if exercised, could result in a material
lease remeasurement and reversal of impairment in a future period. In addition, during the period the Group negotiated an early
termination settlement on a non-trading lease premises which resulted in an impairment to right-of-use assets of £2m.
Further, during the year ended 30 April 2022 management took the decision to stop selling its credit-based mobile offer which
resulted in a £24m impairment of fixed assets and recognition of a £4m provision for onerous contracts relating to the unavoidable
costs the Group is obligated to pay for services which are not applicable to the ongoing post-pay mobile offer.
The Group continues the operational roll out of its long term strategic plan in moving towards a full omnichannel offering, bringing
stores and online together, giving customers the best of both worlds at scale. This change, accelerated by the pandemic, has resulted
in the identification of a material non-cash impairment charge over intangible assets of £8m (2020/21: £46m), primarily related to
software development costs as the Group moves towards best-in-class cloud-based solutions to achieve operational efficiencies
and improve the customer journey. In the year ended 1 May 2021, these strategic changes also resulted in the recognition of a one-
off £16m contract termination fee.
A credit of £7m has also been recognised within the UK & Ireland operating segment following a release of previously recognised
onerous contracts related to the closure of the Dixons Travel business following successful exit negotiations and lower than
expected closure costs.
During the year ended 1 May 2021, the Group recognised an £8m impairment over acquisition intangibles and £16m for onerous
contracts and store related asset impairments following the announcement to close the Dixons Travel business.
Glossary and Definitions continued
231
Governance
Financial Statements
Investor information
Strategic Report
A5 Further information on the adjusting items between IFRS measures to adjusted profit measures
noted above continued
(vi) Other
Credits of £18m primarily relate to compensation received following the settlement of a legal case in relation to anti-competitive
behaviour engaged by the counterparty.
For the year ended 1 May 2021 the Group recognised a credit of £28m following the settlement of a contractual dispute with the
counterparty that caused damage to the Group. A further £5m was also recognised following the settlement of a separate legal
case, similar to that of the settlement in the current year but with a different counterparty, in relation to anti-competitive practices
engaged. This was marginally offset by £2m of fees incurred.
(vii) 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.
(viii) Tax regulatory matters
As previously disclosed, the Group has been co-operating with HMRC in relation to the tax treatment arising due to pre-merger
legacy corporate transactions. The Group maintains the tax treatment was appropriate, however, the likelihood of litigation,
and therefore risk associated with this matter is such that the Group holds a provision for the probable economic outflow. There
have been no significant developments in the year and as such the principal has been retained while further interest of £1m has
accumulated throughout the year.
(ix) Tax on other adjusting items
The effective tax rate on adjusting items is (42%). The rate is higher than the UK statutory rate of 19% predominantly due to movements
in unrecognised deferred tax assets in the UK where it is not considered there are sufficient future taxable profits to recognise all of the
deferred tax asset in respect of losses, pensions and other timing differences.
A6 Reconciliation from statutory net finance costs to adjusted net finance costs
Adjusted net finance costs exclude certain adjusting finance cost items from total finance costs. The adjusting items include the
finance charges of businesses to be exited, net pension interest costs, finance income from previously disposed operations not
classified as discontinued, and other exceptional items considered so one-off or material that they distort underlying finance costs
of the Group. 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.
Year ended
30 April
2022
£m
Year ended
1 May
2021
£m
Total net finance costs (96) (114)
Net interest on defined benefit pension obligations 8 8
Adjusted total net finance costs (88) (106)
232 Currys plc Annual Report & Accounts 2021/22
A7 Adjusted tax expense
a) Tax expense
The corporation tax charge comprises:
Year ended 30 April 2022 Year ended 1 May 2021
Adjusted
£m
Adjusting
items
£m
Statutory
£m
Adjusted
£m
Adjusting
items
£m
Statutory
£m
Current tax
UK corporation tax at 19% (2020/21: 19%) 21 (7) 14 5 2 7
Overseas tax 21 – 21 36 – 36
42 (7) 35 41 2 43
Adjustments made in respect of prior years:
UK corporation tax 1 – 1 (12) – (12)
Overseas 1 – 1 (1) – (1)
2 – 2 (13) – (13)
Total current tax 44 (7) 37 28 2 30
Deferred tax
UK tax (22) 35 13 4 1 5
Overseas tax 11 (3) 8 (3) (3) (6)
(11) 32 21 1 (2) (1)
Adjustments made in respect of prior years:
UK corporation tax 8 – 8 5 – 5
Overseas tax 1 – 1 (1) – (1)
9 – 9 4 – 4
Total deferred tax (2) 32 30 5 (2) 3
Total tax charge 42 25 67 33 – 33
Tax related to discontinued operations is included in the figures set out in note 24 to the consolidated financial statements.
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:
Year ended 30 April 2022 Year ended 1 May 2021
Adjusted
£m
Adjusting
items
£m
Statutory
£m
Adjusted
£m
Adjusting
items
£m
Statutory
£m
Profit / (loss) before taxation 186 (60) 126 156 (123) 33
Tax at UK statutory rate of 19% (2020/21: 19%) 35 (11) 24 30 (24) 6
Items attracting no tax relief or liability
(i ,v)
2 (5) (3) 4 8 12
Movement in unprovided deferred tax
(iv)
(7) 44 37 1 15 16
Effect of change in statutory tax rate (1) (4) (5) 1 – 1
Differences in effective overseas tax rates 2 – 2 6 – 6
Increase in provisions 1 – 1 1 – 1
Adjustments in respect of prior years – provision
(ii)
– 1 1 (14) 1 (13)
Adjustments in respect of prior years – other
(iii)
10 – 10 4 – 4
Total tax charge 42 25 67 33 – 33
The effective tax rate on adjusted earnings for the year ended 30 April 2022 is 23% (2020/21: 21%). The effective tax rate on
adjusting items is (42)% (2020/21: nil). 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 unrecognised deferred tax assets.
(i) Items attracting no tax relief or liability relate mainly to non-deductible depreciation and share-based payments in the UK business.
(ii) Provision releases are predominantly where the window for recovery has now closed in relation to pre-merger uncertain tax positions.
(iii) Other adjustments in respect of prior years are mainly due to lower tax relief on fixed assets through capital allowances in submitted tax returns than originally estimated.
(iv) Deferred tax assets relating principally to tax losses in the UK business have not been recognised due to uncertainty over the Group’s ability to utilise the losses in the future.
(v) Items attracting no tax relief or liability relate mainly to non-deductible store closure costs.
Glossary and Definitions continued
233
Governance
Financial Statements
Investor information
Strategic Report
A8 Adjusted earnings per share
EPS measures are adjusted in order to show an adjusted EPS figure, which reflects the adjusted earnings per share of the Group.
Weconsider the adjusted EPS to provide a useful measure of the ongoing earnings of the underlying Group.
The below table shows a reconciliation of statutory basic and diluated EPS to adjusted basic and diluted EPS on both a continuing
and total basis as this is considered to be the closest IFRS equivalent.
Year ended
30 April
2022
£m
Year ended
1 May
2021
£m
Adjusted profit
Continuing operations 144 123
Total profit
Continuing operations 59 –
Discontinued operations – 12
Total profit 59 12
Million Million
Weighted average number of shares
Average shares in issue 1,165 1,166
Less average holding by Group EBT and Treasury shares held by Company (35) (14)
For basic earnings per share 1,130 1,152
Dilutive effect of share options and other incentive schemes [xx] 42
For diluted earnings per share [xx] 1,194
Pence Pence
Basic earnings per share
Total (continuing and discontinued operations) 5.2 1.0
Adjustment in respect of discontinued operations – (1.0)
Continuing operations 5.2 –
Adjustments – continuing operations (net of taxation) 7.5 10.7
Adjusted basic earnings per share 12.7 10.7
Diluted earnings per share
Total (continuing and discontinued operations) [xx] 1.0
Adjustment in respect of discontinued operations [xx] (1.0)
Continuing operations [xx] –
Adjustments – continuing operations (net of taxation) [xx] 10.3
Adjusted diluted earnings per share [xx] 10.3
Basic and diluted earnings per share are based on the profit for the period attributable to equity shareholders. Adjusted earnings
per share is presented in order to show the underlying performance of the Group. Adjustments used to determine adjusted earnings
are described further in note A5.
A9 Reconciliations of cash generated from operations to free cash flow
Operating cash flow comprises cash generated from / (utilised by) operations, but before cash generated from / (utilised by)
discontinued operations, adjusting items (the nature of which are disclosed above), and after repayments of lease liabilities
(excluding non-trading stores) and movements in segmental working capital. The measure aims to provide users a clear
understanding of cash generated from the continuing operations of the Group.
Free cash flow comprises cash generated from / (utilised by) operations, but before cash generated from / (utilised by)
discontinued operations and after capital expenditure, capital repayments of lease liabilities, net cash interest paid, and income
tax paid. Free cash flow is considered to be useful for users as it represents available cash resources after operational cash
outflows and capital investment to generate future economic inflows.
234 Currys plc Annual Report & Accounts 2021/22
A9 Reconciliations of cash generated from operations to free cash flow continued
The below provides a reconciliation of cash generated from operations, which is considered the closest equivalent IFRS measure, to
both operating cash flow and free cash flow.
Reconciliation of cash inflow from operations to free cash flow
Year ended
30 April
2022
£m
Year ended
1 May
2021
£m
Cash generated from operations 524 926
Operating cash flows from discontinued operations* – 3
Capital repayment of leases cost and interest (278) (310)
Less adjusting items to cash flow 33 173
Less movements in segmental working capital (note A11) 88 (4 5 4)
Facility arrangement fees (6) –
Operating cash flow 361 338
Capital expenditure (133) (122)
Add back adjusting items to cash flow (33) (172)
Add back movements in segmental working capital (note A11) (88) 454
Taxation (18) (35)
Cash interest paid (17) (24)
Free cash flow 72 438
Reconciliation of adjusted EBIT to free cash flow
Year ended
30 April
2022
£m
Year ended
1 May
2021
£m
Adjusted EBIT (note A2) 274 262
Depreciation and amortisation (note A4) 314 336
Segmental working capital (note A11) (88) 454
Share-based payments* 23 21
Capital expenditure (133) (122)
Taxation (18) (35)
Interest (17) (24)
Repayment of leases (249) (275)
Profit on disposal of fixed assets* (1) (6)
Free cash flow before exceptional items 105 611
Exceptional costs (33) (173)
Free cash flow 72 438
* Other non-cash items in EBIT, as disclosed within the Performance Review, comprises share-based payments and profit on disposal of fixed assets in the above
reconciliation to free cash flow.
Glossary and Definitions continued
235
Governance
Financial Statements
Investor information
Strategic Report
A10 Reconciliation from liabilities arising from financing activities to total indebtedness
and net cash
Total indebtedness is a new measure used for the first time this reporting period and represents period end net cash, pension deficit
and lease liabilities, 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 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.
Year ended
30 April
2022
£m
Year ended
1 May
2021
£m
Loans and other borrowings (note 18) (80) –
Lease liabilities (note 19) (1,267) (1,326)
Total liabilities from financing activities (note 26c) (1,347) (1,326)
Cash and cash equivalents less restricted cash (note 15) 96 140
Overdrafts (note 18) (2) (6)
Pension liability (257) (482)
Total indebtedness (1,510) (1 , 674)
Restricted cash 30 35
Add back pension liability 257 482
Add back lease liabilities 1,267 1,326
Net cash 44 169
Within the performance review management also refer to average net cash / (debt). Average net cash / (debt) comprises the same
items as included in net cash as defined above, however calculated as the arithmetic mean average between April – April for the
full year to align to the Group’s Remuneration Committee calculation and as reported internally.
A11 Reconciliation of statutory working capital cash inflow to segmental working capital
cash inflow
Within the performance review on page [x], a reconciliation of the adjusted EBIT to free cash flow is provided. Within this, the working
capital balance of £(88)m (2020/21: £454m) differs to the statutory working capital balance of £(123)m (2020/21: £319m) as cash
flows on adjusting items are separately disclosed. A reconciliation of the disclosed working capital balance is as follows:
Year ended
30 April
2022
£m
Year ended
1 May
2021
£m
Working capital cash (outflow) / inflow (note 26b) (123) 319
Exceptional provisions 53 93
Network debtor out of period revaluation 22 14
Exceptional receivable – legal settlement (note A5(vi)) (34) 28
Facility arrangement fees (6) –
Segmental working capital (88) 454
236 Currys plc Annual Report & Accounts 2021/22
A12 Summary of working capital presented within the performance review
Within the performance review on page [x], a summary balance sheet is provided which includes a working capital balance of
£(530)m (2020/21: £(684)m). The below table provides a breakdown of how the summary working capital balance ties through to
the statutory balance sheet. Network commission receivables are excluded from the breakdown as they are presented separately.
Further information on network commission receivables can be found in note 14.
Note
30 April
2022
£m
1 May
2021
£m
Non-current assets
Trade and other receivables* 14 39 38
Current assets
Inventory 13 1,286 1,178
Trade and other receivables* 14 590 448
Derivative assets 25 28 24
Current liabilities
Trade and other payables 16 (2,368) (2,233)
Derivative liabilities 25 (11) (4 2)
Non-current liabilities
Trade and other payables 16 (96) (97)
Working capital presented within the performance review (532) (684)
* Trade and other receivables excludes network commission receivables and contract assets of £190m (2020/21: £239m) as these are presented separately within the
condensed balance sheet in the performance review.
Glossary and Definitions continued
237
Governance
Financial Statements
Investor information
Strategic Report
A13 Restatement of segmental information within the performance review
As discussed above, during the period the Group’s reportable segments have been changed, and comparatives have been restated
accordingly. The below table provides a reconciliation of results as presented within the performance review for the year ended
1 May 2021. The relevant adjustment is a reconciliation of the previously disclosed UK & Ireland Electricals and UK & Ireland Mobile
segments to the UK & Ireland segment.
Year ended 1 May 2021
UK & Ireland
Electricals
as previously
reported
£m
UK & Ireland
Mobile as
previously
reported
£m
UK & Ireland
£m
Income Statement
Adjusted revenue 4,921 707 5,628
Revenue 4,921 721 5,642
Adjusted EBITDA 393 (102) 291
Adjusted EBITDA margin 8.0% (14.4)% 5.2%
Depreciation on right-of-use assets (104) (6) (110)
Depreciation on other assets (42) (4) (46)
Amortisation (38) (5) (4 3)
Adjusted EBIT 209 (117) 92
Adjusted EBIT margin 4.2% (16.5)% 1.6%
Adjusting items to EBIT (131) 28 (103)
EBIT 78 (89) (11)
Margin 1.6% (12.3)% (0.2)%
Cash flow
Adjusted EBITDAR 401 (103) 298
Adjusted EBITDAR margin 8.1% (14.6)% 5.3%
Cash payments of leasing costs, debt and interest (155) (13) (168)
Other non-cash items in EBIT – 8 8
Operating cash flow 246 (108) 138
Operating cash flow margin 5.0% (15.3)% 2.5%
Capital expenditure (59) (1) (60)
Adjusting items to cash flow (63) (110) (173)
Free cash flow before working capital 124 (219) (95)
Network debtor – 391 391
Segmental working capital 3 (29) (26)
Segmental free cash flow 127 143 270
238 Currys plc Annual Report & Accounts 2021/22
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. Where
businesses have grown organically rather than through acquisition, there is no amortisation of
acquired intangibles and therefore the non-cash amortisation charge is removed from our
adjusted earnings measures in order to increase comparability between segments
Active credit customers Customers with an open ‘Your Plan’ account
ADRs American Depositary Receipts
ARPU Average monthly revenue per user
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
CRM Customer Relationship Management
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
FVTOCI Financial assets measured at fair value through other comprehensive income
GfK Growth from Knowledge
HMRC Her Majesty’s Revenue and Customs
honeybee honeybee was our proprietary IT software operation for which an asset sale was completed on
31 May 2018
IFRS International Financial Reporting Standards as adopted by the UK
Market position Ranking against competitors in the electrical and mobile retail market, measured by market
share. Market share is measured for each of the Group’s markets by comparing data for
revenue or volume of units sold relative to similar metrics for competitors in the same market
MNO Mobile network operator
MVNO Mobile virtual network operator
NPS Net Promoter Score, a rating used by the Group to measure customers’ likelihood to recommend
its operations
Online Online sales and Online market share 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
Online In-store Online In-store is the term used for sales that are generated through in-store tablets for product
that is not stocked in the store
Order & collect Order & collect is the term used for sales where the sale is made via the website or app and
collected in store
Peak / post peak Peak refers to the 10 week trading period ended on 8 January 2022 as reported in the Group’s
Christmas Trading statement on 14 January 2022. Post peak refers to the trading period from
9 January 2022 to the Group’s year end on 30 April 2022
RCF Revolving credit facility
Sharesave or SAYE Save as you earn share scheme
Glossary and Definitions continued
239
Governance
Financial Statements
Investor information
Strategic Report
ShopLive 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
SIMO Sales of SIM-only contracts, without attached handset
TSR Total shareholder return
UK GAAP Generally Accepted Accounting Practice in the UK is the body of accounting standards
published by the UK’s Financial Reporting Council
WAEP Weighted average exercise price
240 Currys plc Annual Report & Accounts 2021/22
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,
BN996DA, United Kingdom
Online – https://equiniti.com/uk/contact-us/shareholder-enquiries
Telephone – 0371 384 2089 (UK callers) or +44 (0)121 415 7047
(International callers). Telephone lines are open on UK business
days between 8.30am and 5.30pm UK time.
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 and this can be found on your share
certificate, form of proxy or any correspondence from Equiniti.
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 overseas-based ‘brokers’ who target UK shareholders
offering to buy their shares or sell them what can turn out to
be worthless or high-risk shares in US or UK investments. These
communications can be persistent and extremely persuasive.
Share fraud includes scams where investors are called out of the
blue and offered shares that often turn out to be worthless or
non-existent, or an inflated price for shares they own. These calls
come from fraudsters operating in ‘boiler rooms’ that are mostly
based abroad. 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
FCA 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.
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
0207 930 3737.
Electronic communications
Shareholders will receive annual reports 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
Deloitte LLP, 1 New Street Square, London, EC4A 3BZ
www.deloitte.com
Joint Stockbrokers
Deutsche Bank AG, 1 Great Winchester Street, London, EC2N 2DB
www.db.com
Citigroup Global Markets Limited, 33 Canada Square, Canary
Wharf, London, E14 5LB
www.citigroup.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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