Currys and PC World owner racks up losses of £140m

Currys and PC World owner DSG International today racked up annual losses of £140.4m (€165m) as it warned markets were set to remain tough in the year ahead.

DSG’s losses in the year to May 2 were driven by one-off items – mainly turnaround costs and the lower value of European businesses – but were less than the £184.1m (€215m) seen in the previous period.

Pre-tax profits without the exceptional items showed a fall of 77% to £50.5m (€59m), reflecting a 9% decline in like-for-like sales during a time of “significant change” for the company.

DSG has successfully completed a fundraising from shareholders and is “well prepared” for the tough conditions it anticipates in many of its markets for the next year, the company said.

Chief executive John Browett added that the company had achieved rapid progress with its store refurbishment programme.

DSG said its UK and Ireland division had seen comparable sales fall 11% in the year.

It said Currys had moved to cut the prices of its televisions in July last year to bring them in line with the internet. The chain also tried to slash its stock levels as a response to reduced customer demand.

Currys saw a “very tough” market in the crucial weeks before Christmas, but DSG said this was followed by a better-than-expected sales period.

The group sounded a positive note on recent trading saying that while white goods had suffered particularly as a result of the housing market downturn, sales had “shown signs of stability” towards the end of the year.