Lamont profit figures go from bad to worse

Lamont Holdings, the Northern Ireland-based textiles company, has warned that losses will be incurred in the full year. Six weeks ago the company told its shareholders to expect a profit decline but now it expects to go into the red. Lamont had complained about difficult trading conditions with "subdued" demand for carpets and home furnishings but says it is "now clear that the commissioning of new plant and equipment at Moygashel and BFF Nonwovens has continued to cause disruption".

An overall loss is predicted before the inclusion of a £2.8 million sterling profit on disposals. The group recorded an interim pre-tax profit (before exceptionals) of £700,000. The commissioning problems are described as "temporary" but will lead to a once-off impact on profit of more than £2 million. The group also anticipates further redundancy costs of £900,000. On a more optimistic note, the group has noted that its re-equipment programme, which totalled more than £40 million, has been completed this year. As a result, it is now said to be well placed to take advantage of wider and new market opportunities. An unchanged interim dividend has been paid. Lamont reiterated that the final dividend would be considered in the light of the results for the full year. However, the market is bracing itself for a cut.

Lamont has also announced the resignation of its chairman, Dr Paul Vaight, who has also left the board because of "increased family commitments".

He has been succeeded by Mr Dermott Simpson as non-executive chairman. Mr Simpson is executive chairman of the recently-floated BCO Technologies, a Belfast-based manufacturer of microchips. He is non-executive chairman of Phillips Auction Group which is based at New Bond Street, London.