PC World and Currys parent DSGi has axed its dividend to preserve liquidity, after being hit with a £29.8 million pre-tax loss for the first six months of the year.
Weak trading throughout the UK, Italy, Spain and Central Europe was blamed for the loss. In particular, PC sales in the UK fell by eleven per cent, and electricals by seven per cent.
Comparatively, the group made a £52.5 million profit during the same period last year. The firm says it hasn’t made a loss since 1984.
DSGi said that the trading environment remains ‘tough and volatile’ but that it is prepared for the recession. It also said it was focused on cash generation, which as well as the scrapped dividends will also mean tighter stock control and reducing costs.
“We are focused first on trading through the current tough economic environment in which we are prioritising cash generation as well as tightly managing stock, money margins and costs,” said chief executive John Browett. “Second, we are making rapid progress on our Renewal and Transformation plans and although early days the performance of the new format stores and improved service model gives us confidence for the future.”