DSG eyes larger stores as turnaround gathers pace

DSG International, which has 650 shops in the UK, said the majority of the estate will be out-of-town superstores which can accommodate its recently-introduced 2-in-1 Currys and PC World format.

It said those combined stores already open under DSG's transformation plan were proving popular after profit uplifts of up to 50 per cent.

The group, which is two-thirds of the way through a three-year revival plan, showed the benefits of the shake-up today as it reported a 61 per cent rise in underlying pre-tax profits to 90.5m for the year to May 1. Like-for-like sales were up two per cent after rising six per cent in the second half of its financial year.

At the bottom-line, DSG returned to the black with profits of 112.7m, against losses of 123.6m a year earlier.

DSG's recovery comes as it faces up to increased competition following the arrival in the UK of American electronics firm Best Buy.

Former Tesco director John Browett took over as chief executive in late 2007 and has steered the business through a savage recession and put the firm's balance sheet in order with a cash-call on shareholders.

He said the business had made "excellent progress" over the last 12 months, despite recessionary pressure across Europe.

Mr Browett added: "We are now two years into the renewal and transformation plan and are encouraged by the improved profitability and competitiveness it continues to deliver."

The company has a total of 1,275 stores, including outlets in Norway, Italy and Greece.