Currys and PC World owner racks up £140m losses

Currys and PC World owner DSG International today racked up annual losses of £140.4 million 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 £184.1 million seen in the previous period.

Pre-tax profits without the exceptional items showed a fall of 77 per cent to £50.5 million, reflecting a 9 per cent 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. 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 per cent 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.

Sales of laptops and notebooks had also shown strong volume growth in the second half.

Meanwhile, like-for-like sales in UK computing were down 13 per cent across the year as weaker demand hit PC World.

The group said its TechGuys service desks were now in every store, providing expertise to customers and acting as a "valued differentiator" for the brand.

Mr Browett said: "We are improving the business for our customers.

"We are providing better service in store, selling complete solutions, delivering at more convenient times and improving our technical and after sales service.

"We are well positioned to emerge from the recession with a compelling offer for customers."

DSG's revamp programme has included 30 Currys Superstores, which have delivered gross profit uplifts of between 23 per cent and 65 per cent compared to rest of the chain.

This was "strongly ahead of management's expectations" and DSG said it plans to refurbish a further 58 Currys Superstores in the current financial year.

The group said it intended to open an additional 101 reformatted stores during the year in the UK, including four Currys Megastores.

The first Megastore was opened at Junction 9 in Birmingham in October and is, at 55,000 sq ft, the UK's largest electrical store.

DSG said it generated sales of £2.3 million on its opening weekend and is expected to generate approximately £30 million of sales per annum.

There are now two megastores in the UK after another opened in New Malden, London in June.

Mr Browett said: "This has been a year of significant change for the group."

Start your day with The Independent, sign up for daily news emails
Barn owls are among species that could be affected
charity appeal
Sarah Silverman (middle) with sister Reform Rabbi Susan Silverman (right) and sister actress Laura Silverman (left) at Jerusalem's Western Wall for feminist Hanuka candle-lighting ceremony
peopleControversial comedian stages pro-equality Hanukkah lighting during a protest at Jerusalem's Wailing Wall
Arts and Entertainment
The Bach Choir has been crowned the inaugural winner of Sky Arts’ show The Great Culture Quiz
arts + ents140-year-old choir declared winner of Sky Arts' 'The Great Culture Quiz'
After another poor series in Sri Lanka, Alastair Cook claimed all players go through a lean period
cricketEoin Morgan reportedly to take over ODI captaincy
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Carlton Senior Appointments: Private Banking Manager - Intl Bank - Los Angeles

$200 - $350 per annum: Carlton Senior Appointments: Managing Producer – Office...

Carlton Senior Appointments: San Fran - Investment Advisor – Ind Advisory Firm

$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...

Sheridan Maine: Commercial Finance Manager

Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...

Sheridan Maine: Regulatory Reporting Accountant

Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...

Day In a Page

Homeless Veterans appeal: 'You look for someone who's an inspiration and try to be like them'

Homeless Veterans appeal

In 2010, Sgt Gary Jamieson stepped on an IED in Afghanistan and lost his legs and an arm. He reveals what, and who, helped him to make a remarkable recovery
Could cannabis oil reverse the effects of cancer?

Could cannabis oil reverse effects of cancer?

As a film following six patients receiving the controversial treatment is released, Kate Hilpern uncovers a very slippery issue
The Interview movie review: You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here

The Interview movie review

You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here
Serial mania has propelled podcasts into the cultural mainstream

How podcasts became mainstream

People have consumed gripping armchair investigation Serial with a relish typically reserved for box-set binges
Jesus Christ has become an unlikely pin-up for hipster marketing companies

Jesus Christ has become an unlikely pin-up

Kevin Lee Light, aka "Jesus", is the newest client of creative agency Mother while rival agency Anomaly has launched Sexy Jesus, depicting the Messiah in a series of Athena-style poses
Rosetta space mission voted most important scientific breakthrough of 2014

A memorable year for science – if not for mice

The most important scientific breakthroughs of 2014
Christmas cocktails to make you merry: From eggnog to Brown Betty and Rum Bumpo

Christmas cocktails to make you merry

Mulled wine is an essential seasonal treat. But now drinkers are rediscovering other traditional festive tipples. Angela Clutton raises a glass to Christmas cocktails
5 best activity trackers

Fitness technology: 5 best activity trackers

Up the ante in your regimen and change the habits of a lifetime with this wearable tech
Paul Scholes column: It's a little-known fact, but I have played one of the seven dwarves

Paul Scholes column

It's a little-known fact, but I have played one of the seven dwarves
Fifa's travelling circus once again steals limelight from real stars

Fifa's travelling circus once again steals limelight from real stars

Club World Cup kicked into the long grass by the continued farce surrounding Blatter, Garcia, Russia and Qatar
Frank Warren column: 2014 – boxing is back and winning new fans

Frank Warren: Boxing is back and winning new fans

2014 proves it's now one of sport's biggest hitters again
Jeb Bush vs Hillary Clinton: The power dynamics of the two first families

Jeb Bush vs Hillary Clinton

Karen Tumulty explores the power dynamics of the two first families
Stockholm is rivalling Silicon Valley with a hotbed of technology start-ups

Stockholm is rivalling Silicon Valley

The Swedish capital is home to two of the most popular video games in the world, as well as thousands of technology start-ups worth hundreds of millions of pounds – and it's all happened since 2009
Did Japanese workers really get their symbols mixed up and display Santa on a crucifix?

Crucified Santa: Urban myth refuses to die

The story goes that Japanese store workers created a life-size effigy of a smiling "Father Kurisumasu" attached to a facsimile of Our Lord's final instrument of torture
Jennifer Saunders and Kate Moss join David Walliams on set for TV adaptation of The Boy in the Dress

The Boy in the Dress: On set with the stars

Walliams' story about a boy who goes to school in a dress will be shown this Christmas