DSGi stung by 30% profit drop

News

Andrew Wooden Jun 26 2008, 10:09am

PC World and Currys owner sees significant dip after a tough year

DSGi today confirmed pessimistic financial forecasts, posting a sizable 30 per cent decline in annual profits.

In a year described as ‘challenging’ by chief executive John Browett, the group recorded underlying pre-tax profits for the period ending May 3rd of £205.3 million – compared to the £295.1 million posted in 2007.

The news will have compounded investor fears, which last week resulted in a dramatic plunge in share prices.

In a year that has seen two profit warnings for the firm, the credit crunch, and the looming threat of US retail giant Best Buy’s European invasion, Browett has been consistently verbal about his plans to turn the company around.

He said in the report:

“The Group is operating in a challenging environment. We have lots of opportunities to improve performance and build on the Group’s many inherent strengths as a leading specialist electrical retailer. We are working very hard on executing our five-point plan that will renew and transform the business over the next three years. We are revamping ranges, retraining staff, trialling new store formats, selling new services, cutting costs and simplifying the business form top to bottom.”