DSG International, owner of Currys and PC World, has reported a half-year loss of nearly £30m. It says the slump is due to a “tough and volatile” retail environment.
The retail group reported an underlying pre-tax loss of £29.8m for the 24 weeks ending October 18, an £82.2m reverse compared with the £52.4m profit posted for the same period last year.
DSG warned the “trading environment remains tough and volatile” and that it was prepared for a “recessionary environment”, adding the outlook for peak Christmas trading and next year was “uncertain” given current economic conditions.
Group sales were up 3% to £3,468m although total sales in its UK and Ireland division were down 7% to £1.8m with like for like sales dipping 8% on last year. The division swung to an underlying operating loss of £10.6m from a £28.9m profit in the first half last year.
Within this, the group’s UK computing division, which includes PC World, was hit by a 10% slump in total sales to £696m, though the revenue decline at PC World was attributed “strong sales in the comparative period” as it cleared laptop overstocks.
John Browett, chief executive of DSG International, says: “We are focused first on trading through the current tough economic environment in which we are
prioritising cash generation as well as tightly managing stock, money margins and costs.”
Shares in the group, which has suspended its divided, dropped 7.14% this morning (27 November).