Electrical goods retailer DSG International has reported a 26% fall in first-half profits, saying its Italian business had continued to suffer.
DSG, whose store chains include Dixons, Currys and PC World, also said underlying sales at its Irish stores fell 3% on a year earlier, affected by a weakening consumer environment. When sales at new stores were included, sales were up 21%.
Across the group, underlying sales grew 5% in the 24 weeks to October 13 as pre-tax profit dropped to £52.4m.
'Whilst most parts of the group performed well, overall profit was disappointing, primarily due to PC World and UniEuro,' DSG said. 'It is appropriate to be cautious about the consumer environment in 2008,' it added.
Flat screen TVs helped like-for-like electrical sales rise 6% in the UK and Ireland.
