Silentnight loses sleep over profits

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The Independent Online
SHARES in Silentnight fell 24p to 219p yesterday after Europe's biggest beds maker warned that first-half profits would be lower than last year, writes Tom Stevenson. It was the company's second warning this year.

Bill Davies, chairman, told shareholders that margins remained under pressure in the core bed-making division, which last year provided 60 per cent of sales.

He said: 'We are seeing an upturn in our US operation, satisfactory performance from our German bed business, and continued healthy growth from our UK cabinet businesses. However, our UK bed businesses remain under considerable margin pressure.'

Analysts responded by trimming their full-year forecasts by up to pounds 1m to pounds 12m.