DSG International Axes Dividend: Currys and PC World owner

DSG International, who are the owners of Currys and PC World have announced that they are to axe their dividend. The news is a direct result of DSG falling into the red for the first 6 months of 2008; they warned that trading had remained “tough and volatile”.

DSG International has said that weak trading in UK, Central Europe and Italy, Ireland and Spain was to blame. The company announced a £29.8 million pre-tax loss for the first 6 months to October 18; this is a starke contrast to the same period last year, when they announced a £52.5 million profit.

The poor trading has forced DSG in to not paying a dividend in the current financial year; this decision was made so that the company can “preserve liquidity.” Sales for computing products are now down by 11 percent in the UK, with electrical sales down by 7 percent. Currys and PC World are hoping to see strong sales from the current 2% reduction in interest rates.

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