DSG boss applauds Christmas VAT cut
Former Tesco man John Browett borrowed a phrase from his old employer to praise the Government's cut in VAT from 17.5 % to 15%.
As he tries to rescue computer and hi-fi group DSG International from the doldrums he believes the cut in prices will help Christmas trading. "Every little helps," he said.
DSG, which owns Curry's and PC World, announced a £30 million loss for the half year to October 18 compared to a £52 million profit for the period last year.
It won't pay a dividend as it looks to preserve cash and cut outgoings.
DSG insists it has a good relationship with its banks and is not in danger of breaching covenants.
Like-for-like sales fell 7% with Spain and Central Europe following England into the mire.
Browett became chief executive last December just as consumer confidence began to wane. He said he was not sorry to have left Tesco and that DSG has a bright future.
"We were always very bearish on the economy from the day I took over. I really like this job when it is tough.
"There is a lot to do and this is a great time to do it," he said.
The shares have had a miserable run, plunging from 140p a year ago to just 13p today, down 1p.
Browett is trying to improve service in the shops by retraining staff.
Critics of the business say it will never be able to compete with internet prices.
