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DSGi reports 78% drop in profits

DSGi, which owns Curry's and PCWorld, widely used by small businesses for their PC supplies, saw a 78% drop in profits for fiscal 2009.

It has identified...

DSGi, which owns Curry's and PCWorld, widely used by small businesses for their PC supplies, saw a 78% drop in...

profits for fiscal 2009.

It has identified a further £200m in cost savings over the next four years as it wrestles with the recession.

The retail giant this morning posted a £140.4m loss after one-off charges of £190.9m related to restructuring and amortisation, while like-for-like sales dropped 9% to £8.23bn.

Working capital took a big hit, falling from a balance of £8.6m last year to a deficit of £287.5m in fiscal 2009

The company said this was due to structural changes in the trade supplier credit environment, which prevented it from deferring payments to suppliers, making early settlement discounts to help distributors and vendors manage their credit risk and an increase in debtors resulting from the Get Connected programme.

"The difficult economic backdrop across Europe and subsequent impact on consumer spending, particularly on discretionary products, has been well publicised," said chief executive John Browett.

A version of this story originally appeared on MicroScope.

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