Shares digital

DSG International (DSGI) 68p

Electricals retailer DSG has warned it expects full-year pre-tax profit to be up to £50 million below current expectations due to weaker trading. (Read the full story: www.sharesmagazine.com/node/2789)

Shares says: The conjunction of these results and the appointment of a new chief executive is likely to lead to a cut in the dividend. The company is facing increased competition from the internet. SELL

Telegraph says: A shock profit warning from DSG International has raised fears that the troubled retailer could be forced slash its dividend.

Reader - Will Spencer says: The internet is taking over 10% of electrical sales. That can only grow further. DSG is lumbered with a large number of high street stores that will – sooner rather than later – have to be closed at some cost.

The City says: Having held group profits broadly stable for a number of years, we think the dam could now burst, and it is unlikely that this year will represent a floor to profits.