Losses at DSG increase to €24m
The Irish arm of the Dixon's retail operation last year plunged further into the red, to record pre-tax losses of €24.84m.
New accounts show that DSG Retail Ireland Ltd's losses last year increased more than five-fold to €24.84m, in spite of revenues increasing from €152.16m to €155.65m in the 12 months to the end of April last.
PC World and Currys also operate under the DSG banner in Ireland and the directors confirm that property rationalisation costs associated with the Carphone Warehouse merger totalled €19.9m.
According to the directors' report, the results reflect the challenging economic environment in which the company trades in and the property rationalisation costs.
The report states that the directors continue to manage the cost base of the company and review regularly opportunities to drive efficiencies and savings.
They state that the economic climate and competitive environment in Ireland remains challenging and the directors are continually driving measures to maximise shareholder value and shareholder funds.
The directors state that the €19.9m cost associated with the property rationalisation cost include early lease termination premiums, onerous lease provisions and redundancy costs.
The rationalisation arises from the merger with Carphone Warehouse with the combined Dixons Carphone Group launching a major roll-out of its fully refurbished three-in-one store concept in Ireland and the UK.
Numbers employed by the firm declined marginally from 448 to 445 with staff costs reducing from €15.7m to €15.6m.