News of torrid trading during Game Digital's (GMD) all-important second quarter sent shares plunging by two-fifths.
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The computer games retailer, which only came back from administration in 2012 to list its shares in 2014, said sales of older consoles have collapsed while newer hardware has been slow to shift. Broker Canaccord Genuity has slashed 2016 EPS forecasts by 44 per cent to 10.1p and chopped 2017 EPS by 41 per cent to 11.4p. Expected year-end net cash of £47m means payment of a forecast 14.7p dividend cannot be ruled out, but the lack of cover raises doubts.
