DSG International, the owner of Currys and PC World, has unveiled a 30% plunge in profits, warning that it remains “very cautious” about consumer confidence. The group posted underlying pre-tax profits of £205.3m for the year to May 3, down from £295.1m for the previous year, although sales rose 8% to £8.5bn.
The retailer, which posted two profit warnings this year, says its UK computing division was worst hit, with like-for-like sales down 5% and total sales down 1% at £1.8bn.
At the UK electricals division, which comprises Currys and high street chain Currys.digital, like-for-like sales were up 3% and totals sales up 4% at £2.9bn buoyed by the popularity of flat screen TV and digital goods.
Overall like-for-like sales were up 1% during the year, helped by a 27% rise in internet sales.
DSGi has already announced plans to cut the number of its Currys.digital stores as part of a turnaround plan unveiled in May that it hopes will cut costs by about £50m this year.
The company says: “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.”