DSG International H1 Loss Narrows

11/26/2009 7:42 AM ET

RELATED NEWS

DSG International 12-week Underlying Group Sales Up 11%, Like For Like Sales Rise 8% - Update

DSG International 12-week Like For Like Sales Up 8% - Quick Facts

DSG International H1 Pre-tax Loss Narrows - Quick Facts

(RTTNews) - European specialist electrical retailing group DSG International Plc (DSGI.L: News ) reported Thursday a narrower loss for the first half, despite lower revenues. Looking ahead, the company said it remains cautious about the outlook for 2010.

The U.K-based company's loss before tax for the half year narrowed to GBP 23.1 million from GBP 55.6 million in the previous year. Underlying loss before tax was GBP 17.6 million, compared to a loss of GBP 17.7 million a year ago.

Loss attributable to equity holders was GBP 17.8 million or 0.5 pence per share, compared to a loss of GBP 40.3 million or 1.9 pence per share last year. Underlying loss attributable to equity holders was GBP 4.9 million or 0.1 pence per share, narrower than GBP 7.4 million or 0.3 pence per share in the prior year.

According to the company, underlying results exclude trading results of closed businesses, amortization of acquired intangibles, net restructuring and business impairment charges and other one-off, non-recurring items, profit on sale of investments, fair value remeasurements of financial instruments and, where applicable, discontinued operations.

Loss from continuing operations was GBP 10.5 million or 0.3 pence per share, compared to a loss of GBP 35.6 million or 1.6 pence per share in the the same period last year.

On May 19, the company disposed of its operations in Hungary to EW Electro Retail Ltd., and on September 1, disposed of its operations in Poland to IDMSA Brokerage House, which are classified as discontinued and the prior periods have been re-presented on a consistent basis. Poland was previously shown within the Other International division, the company said.
Loss from discontinued operations for the period were GBP 8.7 million, compared to a loss of GBP 5.4 million last year.

Revenues for the half year decreased to GBP 3.33 billion from GBP 3.42 billion in the comparable period a year ago. Underlying Group sales were down 4% at constant exchange rates.

DSG reports its business performance in four divisions, namely UK & Ireland, Nordics, Other International, and E-Commerce.

Total sales in the UK & Ireland division declined 11% to GBP 1.62 billion from GBP 1.83 billion in the previous year and like-for-like sales were down 11%. Sales for UK & Ireland Electricals, which comprises Currys, CurrysDigital and Dixons Travel in the UK and Currys and PC World in Ireland, totaled GBP 1.04 billion, down 8% from GBP 1.14 billion, with 9% fall in like for like sales. UK Computing, which comprises PC World, DSGi Business and The TechGuys, reported total sales of GBP 580.8 million, down 17%, from GBP 696 million last year, with like for like sales down 15%.

In the Nordics region, sales grew by 22% to GBP 797.8 million from GBP 652.2 million a year ago and like-for-like sales were up 11%.

Other International division comprises operations in Italy, Greece, Spain, Turkey, Czech Republic and Slovakia. Total sales for this division declined by 11% at constant exchange rates and by 3% in sterling to GBP 586 million from GBP 603.7 million in the preceding year, with like-for-like sales down 5%. Total sales for the e-commerce division were GBP 324.4 million, up from GBP 275.6 million in the same period last year.

Operating profit was GBP 0.7 million, compared to a loss of GBP 47.3 million in the same period last year. Underlying operating profit was GBP 5.6 million, in comparison with a loss of GBP 11.6 million a year ago.