Spanish Business News

PC World and Currys owner Dixons Retail has posted a fall in profits as it swallowed heavy losses from Greece and Spain.

Underlying profits fell to £85.3m from £90.9m in the year to April, although Dixons said it was encouraged by flat operating profits in the UK and Ireland, where it also gained market share from rivals.

However, the group made a loss of £224.1m after making large accounting write-offs on the value of businesses in Spain and Greece and European e-commerce venture PIXmania.

Dixons, which has 1,269 stores across Europe, said its 642 outlets in the UK and Ireland saw sales fall by 5% to £3.8bn, with demand for white goods and iPads propping up the performance.

Trading in the last quarter was much weaker and on a like-for-like basis, second-half sales fell by 7%, with sales of televisions particularly weak.

However, it said its programme to refit stores and increase focus on customer service was helping it weather the tough market conditions.

It has concentrated on developing its 2-in-1 Currys and PC World stores and said all high street and out of town superstores will be in the format, with a small number of standalone Currys megastores in larger catchment areas.

The group said it expected to reduce its portfolio in the UK and Ireland to 450 stores from 642, comprising 70 high street stores, 310 superstores and 70 megastores.

On Wednesday, Kesa said its Comet business had incurred a loss of £8.9m and added that it would consider the sale of the UK business.

Source: Sky News