Game Digital shares take a hit as profit falls and finance boss quits

 
Kasmira Jefford
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Game warned in January that full-year earnings would be flat on the previous year
SHARES in Game Digital slumped 5.6 per cent yesterday after the retailer announced a hefty fall in profits and revealed that its finance chief Benedict Smith is to leave.

Game, which re-listed on the London Stock Exchange last June two years after falling into administration, said Smith would step down in July to join another private equity-backed retailer.

The board has brought in headhunters from Korn Ferry to find his successor.

News of Smith’s departure came as it posted a 1.8 per cent decline in pre-tax profits to £33.2m for 26 weeks to 24 January, while revenue fell 0.7 per cent to £582.1m.

Game lost as much as 50 per cent of its market value in January after issuing a shock profit warning, blaming fierce competition and increased promotional activity around Black Friday.

Despite the weak results, shareholders were nevertheless treated to a special dividend of £25m, which it said was supported by strong cash generation.

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