Electrical retailer DSG International, which owns Dixons, Currys and PC World, has reported a sharp fall in profits for the year to May 3 and warned of a difficult economic climate.
The company reported underlying pre-tax profits of £205.3m, down 30% from the same period a year earlier, but in line with forecasts which it had lowered last month. Total sales were up 8% to £8.5 billion, but the increase was only 1% when the impact of new stores was stripped out. Sales were hit by weak sales of computers and a poor performance in its Italian operations.
In Ireland, sales were up 5%, but this was again due to new stores. The company said a sharp slowdown in the consumer environment in the second half of the period had affected Irish sales.
DSG said it remained 'very cautious' about consumer confidence in its markets and it planned to reduce costs.
When restructuring and business impairment charges of £389.2m were included, DSG made a loss before tax of £192.8m.
