Toughing it out
The 2008/9 financial results for DSGi - the UK's biggest technology retail group - were never going to make pretty reading as the global recession and its own reorganisation took their toll.
The group managed an underlying pre-tax profit of £50.5 million, which was 77.6 percent down on the 2007/8 figure, but still above market expectations.
That profit was wiped out, however, by charges totalling £190.9 million resulting from its restructuring programme, creating an annual loss of £140.4 million. This still compares favourably to a loss of £184.1 million in the previous accounting year.
"We are improving the business for our customers. We are providing better service in store, selling complete solutions, delivering at more convenient times and improving our technical and after sales service. We are well positioned to emerge from the recession with a compelling offer for customers," said CEO John Browett.
Sales in the UK and Ireland were down 11 percent year-on-year. In its UK Computing division, which is comprised of PC World, DSGi Business and TechGuys, total sales were down 14 percent. Weak consumer demand was blamed.
DSGi expects the difficult trading conditions to continue for the rest of the year, but thinks it's well positioned to tough it out.