Currys owner sees profit fall 30%

Retailers are going through tougher times as the UK economy slows

DSG International, the owner of Currys and PC World, has seen its annual pre-tax profits fall by 30% after a "challenging" year for the firm.

The retailer, which has issued two profit warnings this year, said it remained "very cautious" about the state of consumer confidence.

DSG made profits of £205.3m in the year to 3 May, with sales up 8% to £8.5bn.

The firm has already announced plans to cut the number of its Currys.digital stores as part of a revival plan.

In May, it announced a five-point plan that it hopes will cut costs by about £50m in 2008/09.

Beside the closures, the transformation of the DSG group will include store refits at Currys, PC World and Currys.digital, and cost savings at its head office.

Like many other retailers, DSG has found trading tough this year. Consumers have tightened purse strings as they try to cope with higher household bills and mortgage repayments.

Shares in DSG fell slightly in early trading, although Hargreaves Lansdown Stockbrokers equity analyst Keith Bowman said the group's mid-May profit warning had removed "all the sting" from the results.

"Investors are breathing a sigh of relief, given no further bad news," he added.