DSG Retail Ireland Ltd, the company behind Currys and PC World, made a pre-tax loss of €5m last year as revenues from the sale of its electronics continued to slide.
According to accounts just filed with the Companies Office, the company’s revenues declined by 4% from €148.7m to €142.2m in the 12 months to the end of Apr 30 last.
The company’s pre-tax losses last year follow the company recording a pre-tax loss of €8.3m in 2010 and €8m in 2009.
The figures show the company recorded the €6m drop in revenues in spite of the retailer opening two new stores in Ireland last year.
The figures show the numbers employed by the company last year increased from 659 to 682.
The losses last year reduced the company’s accumulated profits to €6.87m at year end.
The company’s net assets stood at €32.19m at the end of May last — the firm’s cash last year reduced from €8.1m to €1.3m.
The company specialises in the retail sale of high-tech consumer electronics, personal computers, domestic appliances, photographic equipment, communications products and related services.
The filings show the firm’s cost of sales last year reduced from €144.6m to €140.5m with its distribution costs increasing from €2.3m to €2.4m.
The figures show that the company’s administrative expenses decreased during the year from €10m to €6.3m.
The accounts include a non-cash depreciation charge of €4.2m.
The figures show the company paid rentals under operating leases of €11.3m compared to €11.8m in 2010.
The firm’s staff costs last year rose from €15.6m to €15.7m with directors’ remuneration increasing from €294,000 to €301,000.
The company cites price deflation as a risk, stating that “price deflation has been a common feature across most electrical goods categories for a number of years, primarily driven by technological advances and improved efficiencies in production”.
The directors also cite the risk that the economic downturn is prolonged through 2011, particularly in Ireland and that mitigation measures include “ongoing monitoring, including review of the store portfolio, renewal and transformation plan to improve the business performance irrespective of macro-economic factors”.
The directors also state that “a substantial proportion of revenue and operating profit is generated during the third financial quarter, which includes the Christmas and New Year season.
“Adverse trading in this relatively short period is likely to impact significantly the full year’s results”.
The directors did not recommend the payment of a dividend.
© Irish Examiner Ltd. All rights reserved