John Browett, chief executive of Currys, Dixons and PC World owner DSG International, today said the group would "emerge from the recession with a compelling offer for customers".

While warning that he still expects trading conditions to remain tough in many of DSG's European markets in the coming year, Browett claimed: "We are improving the business for our customers. We are providing better service in store, selling complete solutions, delivering at more convenient times and improving our technical and after sales service.

"We remain confident of our medium-term target of achieving a 3%-4% return on sales."

That is a long way from today's announcement that headline profits slumped from £226 million to just £50.5 million in the year to 2 May as consumers across the Continent slashed back on discretionary spending in the face of the recession. Total sales were down by 1% at £8.28 billion. After one-off charges of £190.9 million the group made a pre-tax loss of £140.4 million.

In the UK DSG is rolling out new formats for Currys and PC World including four more Currys Megastores. Online profits doubled to £15 million.

Dixons shares have fallen by a third in the last 12 months but gained 50% in the last three months as investors bet on an early recovery in consumer confidence. Today they rose 1½p to 25¼p.