Profits down 30% for PC World owner

Thursday, 26 June 2008 12:00

DSG International reported a 30 per cent fall in pre-tax profits this morning.

The owner of Currys and PC World saw total sales up eight per cent to £8,546 million, but like for like sales rose just one per cent.

Underlying pre-tax profit stood at £205.3 million.

Following net restructuring and business impairment charges of £389.2 million, total loss before tax was recorded of £192.8 million.

John Browett, DSG chief executive, said: "The group is operating in a challenging environment.

"We have lots of opportunities to improve performance and build on the group's many inherent strengths as a leading specialist electrical retailer."

The firm also reported a milestone of £1 billion online sales - which now make 12 per cent of sales.

In a statement the firm predicted: "The economic backdrop continues to be difficult and the group remains very cautious about consumer confidence in many of the markets in which it operates."

DSG reported Currys - and Currys.digital - had seen a strong start to the year - but over the last six months margins had been hit by increased price promotions as the firm aimed to compensate for falling consumer spending.

On the stock markets DSG has held on to gains made yesterday in anticipation of the results. Its share price was up 1.11 per cent at 10:30 BST to 45.50p. However, this still compares with a 52-week high of 163p.

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