Sports group's shares dive: Campari warns on profits

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The Independent Online
SHARES IN Campari International, the sporting leisurewear group, crashed 61p to 230p yesterday after a profits warning.

The company said profits for 1992 would be 'not less than pounds 1m' and the total dividend would be maintained at 12p, assuming no unforseen circumstances. Campari made pounds 5.3m in 1991 and pounds 1m in the first half of last year.

Michael Saideman, finance director, said: 'Trading dropped away towards the end of last year, and the last couple of months are always particularly important for us.

'Continental European markets have been slipping, and nothing much has been happening in the high street here.'

Profits have been further hit by an extra pounds 1.5m provision for unsold stock. Mr Saideman said the company always provided for stock but was taking a slightly more conservative attitude to making the provision.

At the interim announcement in September the chairman, Christopher Cheng, was optimistic, saying sales and orders were 'comfortably ahead'.

Mr Saideman said prospects had looked good in September, but added: 'The cream of our business comes in the last couple of months of the year, and it didn't materialise.'

He said trading was still difficult but the extra stock provision was 'a one-off hit'.