Currys and PC World owner experiences 30% profit fall

DSG International, the owner of Currys and PC World, has announced a £192.68 million annual loss after it was hit by charges of £341.3 million to restructuring its Italian business.

Excluding the Italian restructuring charges, full-year pre-tax profits in the company plunged by 30% to £205.3 million.

Back in April, DSG revealed it was to close down almost one third of its struggling Italian operation, shutting 40 out of 150 outlets.

Like many other retailers, the group said it had been a challenging year and remains very cautious about the state of consumer confidence. DSG has already issued two profit warnings this year.

Rising mortgage payments, higher household bills and soaring fuel costs means consumers are only buying necessities rather than luxury goods.

As part of a restructure, it plans to reduce the number of its Currys.digital stores. Last month, it revealed a five-point plan that it hopes will slash costs by about £50 million in 2008-09.

According to equity analyst Keith Bowman at Hargreaves Lansdown Stockbrokers, DSG’s mid-May profit warning had removed all the sting from the results and consequently, investors are relieved that no further bad news was received.

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