DSGi revealed that underlying pre-tax profits dropped to £52.4 million in the 24 weeks to October 13, compared with £70.3 million the previous year.

The electricals giant blamed the fall on a disappointing performance at PC World and UniEuro.

PC World was affected by the overstock of laptops and increased hardware in the mix, but the retailer said that stock levels are now back to normal. However, sales at UniEuro remain disappointing, which the group said is down to a tough consumer environment. Group sales jumped 8 per cent to£3.38 billion, with like-for-likes up 5 per cent.

Sales in the UK and Ireland rose 5 per cent to£1.19 billion, with like-for-likes up 6 per cent. Underlying operating profit almost doubled to£14.1 million, aided by the sale of flatpanel TVs. Currys, including Currys.digital, experienced a strong year of growth in both sales and profits.

Group chairman Sir John Collins said: “We had an encouraging start to the year in terms of sales and I am pleased with the performance of the UK electricals businesses as well as our operations in the Nordics, Greece and Central Europe.” However, he said that overall profit was disappointing, primarily due to PC World and UniEuro.

Pali International analyst Nick Bubb said: “Having spoken to the company, there are no surprises. At 113p, the shares are trading on a 20 per cent discount but, unless bid rumours revive, it's hard to see much short-term upside pre-Xmas.”

Collins added: “There is much debate about the uncertain outlook in many of our markets. Accordingly, it is appropriate to be cautious about the consumer environment in 2008.”

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