Police make arrests at Parisian warehouse
Profits at DSGi's new businesses division could be wiped out after the company discovered a major fraud at its Parisian warehouse.

The retailer said that French police were investigating a significant fraud operation at the warehouse operations of Fotovista. The fraud could cost the company up toÂŁ10 million.

DSGi said in a statement that several operatives at the warehouse and external individuals had been arrested. It added: 'The group anticipates that the financial impact of these issues will offset the expected profit contribution of the new businesses division to the group in the current financial year only.'

Separately, DSGi said it's Fotovista subsidiary had sold Primaphot and Maine Color forÂŁ15.2 million. The businesses have been acquired by a consortium, which includes directors of Fotovista and the managing director of Primaphot.

On March 26, the combined net asset value of Primaphot and Maine Color wasÂŁ10.5 million. The net profit generated by the disposal amounts to aboutÂŁ7.9 million.

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