Entertainment retailer Choices UK has issued a profit warning following poor trading in the four weeks to April 7, ...
Entertainment retailer Choices UK has issued a profit warning following poor trading in the four weeks to April 7, which includes part of the key Easter period.

Sales of PlayStation 3 products were in line with company expectations, but the unseasonably fine weather had an adverse impact on its business, particularly rental.

The retailer said it does not believe trading for the remainder of the financial period will make up for the poor performance over these past four weeks. It added that it is assessing its strategic and financial future and will make a further announcement in due course.

Seymour Pierce analysts said: 'An unexpected, terse and worrying profit warning has come out of the company, only two weeks and one day after the interim results, which painted a much improving picture.

'Much will depend on the attitude of its bankers towards the news of the increased losses. We suspect that it may need a rights issue to enable it to trade successfully over the Christmas period. At the current share price, [it will need] a relatively hefty one in proportion to the size of the company.'

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