Currys and PC World owner DSG International unveiled a 30% plunge in profits today and warned it remained “very cautious” about consumer confidence.
The group posted underlying pre-tax profits of £205.3m (€259m) for the 53 weeks to May 3, down from £295.1m (€372m) for the previous year, but in line with market guidance.
Bosses at the group had already issued two profits warnings this year.
DSG – which has begun a three year turnaround plan to change its fortunes - said its UK computing division was worst hit, with like-for-like sales down 5% and underlying operating profits nearly halving to £63.2m (€80m) after having to launch a raft of laptop promotions to shift stocks.
The group said it would be focusing on cost control and cashflow as it wrestled with the spending slowdown.
DSG said: “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.”
Overall like-for-like sales were up 1% during the year, helped by a 27% rise in internet sales.