DSGi shares nosedive - PC Retail

DSGi shares nosedive

Shares in PC World and Currys parent plunge ahead of preliminary results this week
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DSGi shares fell to record lows of 46p last week, as the PC World and Currys parent prepares to unveil its preliminary results this Thursday.

The figures are expected to show pre-tax profits for the year to land between £200 million and £210 million, comparing unfavourably with the £295 million recorded in 2007.

Shares in the firm have been adversely affected by two profit warnings in recent months, as well as investor fears towards the threat posed by the Carphone Warehouse and Best Buy alliance.

Analysts are claiming PC World will be the worst hit when the figures are released on Thursday:

"Profits at Currys may suffer a slight decline to £90m (vs £103m last year), although we forecast a more severe decline at PC World (minus 46 per cent year on year) to £67.5m," said a UBS spokesperson. "We estimate a slightly weaker year-on-year performance in Nordic, with increasing losses in start-up and developing businesses. We expect losses in Italy will have worsened further to £22.5m (vs a £7m loss in 2007)."

Link: The Independent

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