Losses widen at Irish arms of PC World and Currys

Losses widened at the Irish divisions of electronics retailers PC World and Currys last year as the financial cost of the merger between its owner Dixons and rival Carphone Warehouse hit their bottom lines.

Losses widen at Irish arms of PC World and Currys

Newly-filed accounts for DSG Retail Ireland — the Irish arm of Dixons and the operator of PC World and Currys here — show that its losses increased more than five times to €24.84m in the year to the end of last April. The company’s revenues however, rose from €152.2m to €155.6m.

In the accounts DSG’s management said that “property rationalisation costs” associated with last year’s £4bn (€4.7bn) merger of Dixons and Carphone Warehouse totalled €19.9m. The annual results also reflected the challenging economic environment in which the company trades.

The property rationalisation dealt with the merged entity introducing its new three-in-one store concept which features PC World, Currys and Carphone Warehouse outlets under one roof.

Numbers employed by the company last year declined from 448 to 445, with staff costs reducing from €15.7m to €15.6m. Directors’ pay rose from €243,000 to €260,000 with certain remuneration being borne by a fellow group company. The cost of sales last year increased from €149m to €153.2m.

A note on the company’s going concern status said that after considering the company’s forecasts and projections, there is “a reasonable expectation” that the company has adequate resources to continue in operation for the foreseeable future.

Last year’s loss also takes account of non-cash depreciation costs of €2.85m and operating lease costs of €11.5m. DSG made a foreign exchange gain of €6.1m during the year.

The latest accounts for DSG come a week after filings showing that losses at Carphone Warehouse’s Irish subsidiary had increased sharply due to merger costs.

That business saw its pre-tax losses jump from €2.5m to €12m in the year to the end of last April. Its accumulated losses, as a result, jumped from €38.6m to €50.6m.

Carphone’s staff numbers in Ireland fell from 749 to 729 people last year.

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