 DSG controls some of the UK's best-known High Street retailers |
DSG International, Europe's largest specialist electrical goods retailer, has pulled out of plans to enter the Russian marketplace. The UK firm, which owns the Currys and PC World stores, made the announcement as it posted a dip in full-year profit.
Its underlying pre-tax profit fell 5% to �295.1m in the year to 28 April, despite sales rising 14% to �7.9bn.
Instead of going into Russia, DSG said it would now return �100m to investors through a share buyback programme.
"Since we signed our option agreement with [Russian retailer] Eldorado, we have learnt a great deal about both the company and the market in which it operates," DSG said in a statement.
"This due diligence has led the board to conclude that it is not appropriate to proceed with this investment."
DSG's shares ended the trading day in London down 1 pence, or 0.59%, to settle at 169.5.
Back in March, DSG was forced to announce that it had discovered a "significant fraud operation" within one of its French businesses.
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