Dixons Retail – the parent company of Currys, PC World and Dixons - has posted a pre-tax loss of £224.1 million in the year to April 30 as a result of exceptional charges.

These impairment and non-underlying charges totalled £309.4m. The impairments primarily related to the closure of group operations in Spain (£70.6m), the impairment of acquired goodwill in relation to Kotsovolos in Greece (£53.2m) and Pixmania (£106.3m).

Discounting these, the group made underlying pre-tax profits of £85.3m.

Total group sales were £8.3 billion, down from £8.5bn a year ago. Like-for-like sales were down two per cent for the year as a whole but fell four per cent in the second half. Underlying gross margins rose 0.1 per cent during the year.

In the UK and Ireland, Dixons Retail saw a slight rise in profits from £71.1m a year ago to £71.3m. although total sales were down five per cent to £3.8bn from £4bn the year before and like-for-like sales down three per cent.

It pointed out that white goods held up well during the year, while computing was supported by iPads and tablets – the new iPad 2 was selling “very strongly”, it said – but TV sales, following a World Cup boost, have not done so well. In fact, they have been particularly weak since January, the retailer said.

The group’s renewal and transformation programme has seen 250 stores refitted in the UK and Ireland, including 31 megastores. Dixons Retail also said its 2-in-1 Currys and PC World format will be used in all its high street and out-of-town superstores and for the majority of the 70 megastores it is targeting although there will be a small number of standalone Currys megastores in larger catchment areas.

During the year, the group also set up its Pixmania-Pro e-merchant platform and Knowhow, its delivery, installation and repair service.

The retailer said it had planned to have a store portfolio in the UK and Ireland of 70 high street stores, 310 superstores and 70 megastores. “The portfolio will be managed to this size as existing leases expire and stores in each catchment are refitted.”

Said chief executive John Browett: “Maintaining sales, margin and profits is a good performance in such challenging conditions. We are consistently outperforming our markets and gaining share because our renewal and transformation plan continues to deliver a better and more compelling experience for customers.”

He warned that the economic backdrop remained challenging. “However, t he group is well prepared for this environment,” said Mr Browett. “We are creating a market leading differentiated customer offer leaving us well set to emerge from the current climate ahead of the competition.”