International, the owner of electronics retailers Currys and Dixons, has opted against entering the Russian market, the firm said today. In a statement accompanying its annual results, DSG admitted the poor performance of rival companies pursuing interests in Russia had discouraged it from proceeding with an agreed ten per cent share buyout of Eldorado. Commenting on the decision to back out of the agreed deal with Eldorado, the largest electronics retailer in Russia and Ukraine, DSG chief executive John Clare said: "Russia remains an interesting and exciting market and we will continue to watch the developments there, both commercially and politically, and I expect the group to re-examine opportunities for entering this market in the future. "In view of this decision the board now plans to return up to £100 million to shareholders through a share buy back programme over the next 12 months, representing the capital that would have been invested in the first tranche of Eldorado shares." DSG also today announced a slide in its full-year pre-tax profits to £295.1 million from £311 million last year. At the same time the group's sales rose 14 per cent to £7,929 million, with international sales accounting for 41 per cent of the firm's total. Mr Clare said that the last year had seen "many of the foundations for future growth" laid out. "However, our overall group result was disappointing, largely because of a weak performance in Italy," he added.
Thursday, June 21, 2007