ClickAJob News

The owner of electrical retail chain Currys has reported a 26 per cent fall in half-year profits.

In a statement today DSG International revealed its underlying pre-tax profits slumped to £52.4 million in the six months to October 13th, down from the £70.3 million reported for the same period last year.

Despite reporting a five per cent increase in group like-for-like sales, the company said its overall profit performance was "disappointing" – primarily reflecting trading conditions at computer retail chain PC World and its Italian business UniEuro.

DSG said PC World performed well against the prior year in the key back-to-school period, but said the business's profitability had been "significantly impacted" by the overstocking of laptops and hardware.

The company stressed UniEuro's performance also remained disappointing and said it was working hard to improve the Italian firm's operational performance against the backdrop of a difficult consumer environment.

But DSG said most parts of its business performed well during the first-half, with demand for flat panel high definition televisions, laptops, digital cameras and games consoles driving sales in the UK and Europe.

Like-for-like sales within the UK and Ireland climbed by six per cent over the six-month period, while underlying operating profits within the region rose to £14.1 million – up from £8.9 million last year.

However looking ahead, DSG group chairman Sir John Collins said the company remained cautious about the retail outlook.

"There is much debate about the uncertain outlook in many of our markets and the economic fundamentals make it difficult to extrapolate trends into the rest of the financial year," he said.

"Accordingly it is appropriate to be cautious about the consumer environment in 2008," Sir John added.