Electrical retailer Dixons has announced pre-tax profit of £85.3m sterling for the year to the end of April, down 6% from £90.9m the previous year.
The company, which operates in Ireland under the Currys and PCWorld brands, said that its total underlying group sales fell by 2% to £8.154 billion as the benefits of a plan to revamp stores and cut costs were offset by weak consumer spending on discretionary items.
The company said that the economic backdrop remains challenging, particularly in the first half as it compares this year with the events of last year including the World Cup and iPad launch.
'However the Group is well prepared for this environment. We are creating a market leading differentiated customer offer leaving us well set to emerge from the current climate ahead of the competition,' the company said.
Dixons said that total sales in the UK & Ireland were down 5% to £3.8 billion and like for like sales were down 3% across the year. Underlying operating profit for the full year was flat year on year at £71.3m.
The company said this was an 'encouraging performance' in the context of a weak market. It said that during the year white goods held up well, while computing was supported by iPad's and tablets with the new iPad 2 selling very strongly.
Television sales benefitted from a strong World Cup, but have been particularly weak since January, the company added.
The company said it had reviewed its balance sheet given the tough conditions in its markets and made impairment and other charges totalling £309.4m. The charges relate to the closure of the firm's operations in Spain, and the impairment of goodwill at its Kotsovolos chain in Greece and PIXmania Internet business.
Consumers across Europe are cutting back on purchases of electrical appliances as household budgets are squeezed by austerity measures.
