DSG International, operator of Currys and PC World, has suffered falling sales of “white goods” such as ovens and refrigerator, lending weight to those who believe the UK is entering a consumer downturn.

The consumer electronics retailer said on Wednesday that the outlook in many of its markets was “uncertain” after reporting a 25 per cent drop in underlying pre-tax profits for the first half.

It also said economic fundamentals made “it difficult to extrapolate trends into the rest of the financial year”.

DSG shares rose 5.7p to 118.2p, however, as investors were reassured there were no more shocks in the results following last month’s profit downgrade issued after the company was left with a glut of unsold laptops.

However, the company is likely to be dropped from the FTSE 100 with the index due to be reviewed on December 12.

Analysts have also questioned whether the company will maintain its full-year dividend.

John Browett, the former Tesco director who starts as chief executive next week, will have to contend with the weaker trend in the high street as well as the continued losses at the electrical group’s Italian division.

DSG remained tight-lipped about trade since the end of the first half and echoed its rival Kesa in saying that the higher-margin white goods market had seen recent weakness.

Kevin O’Byrne, finance director, said the white goods market had “seen in the last few months single-digit negatives”. The boom in flat-panel TVs was continuing, helped by larger models and the still relatively low penetration of the product.

Eithne O’Leary, retail analyst with Oriel Securities said: “The outlook here is poor. Not only is the UK consumer heading underground at some pace, but DSGi has found its share of banana skins to step on.”

Group pre-tax profits for the 24 weeks ended October 13 were down 1.3 per cent at £51.4m on sales that grew 8 per cent to £3.4bn.