DSGi profits plunge 30 per cent

DSGi owns PC World in the UK

DSG International (DSGi) has posted a whopping 30 per cent fall in annual profits following a year in which the company's share price has fallen by 70 per cent.

The electrical goods retailer recorded a pre-tax loss of £192.8m in the year to 3 May, compared with a pre-tax profit £114.1m a year ago.

The poor results confirmed pessimistic financial forecasts, including two profit warnings from the company so far this year.

"The group is operating in a challenging environment. We are working very hard on executing our five-point plan that will renew and transform the business over the next three years," said DSGi chief executive John Browett in the financial report.

DSGi's UK computing division, which includes the PC World chain, saw underlying profits almost halved to £63.2m, although Browett acknowledged " self-inflicted" wounds including the overstocking of laptops.

Browett joined DSGi last year as chief executive after being widely recognised as the architect of Tesco's highly successful online strategy.

DSGi's online platforms will show strong growth, according to the financial statement, but retail stores will continue to make up the majority of sales for the foreseeable future.