Card and gift wrap manufacturer International Greetings has issued a profit warning after slow Christmas trading in the UK.
The UK-based company said it would perform below market expectations for the year ending March 31st 2008 and is not recommending a dividend to shareholders.
International Greetings blamed a slowdown in consumer spending, an increase in the amount of leftover Christmas stock and manufacturing inefficiencies in its UK division for the problems.
The company added that manufacturing operations in the UK, together with those in Eastern Europe and China, are being restructured in an attempt to improve efficiency.
Across the group, businesses not performing strongly will be disposed of.
The company said in a statement: "Following this major review of the business, the board of International Greetings is committed to resolving the short-term difficulties in the UK Greetings Division, and ensuring that all other businesses within the group are clearly focussed on delivering to their maximum potential through first-class product innovation and service to its customers."
AIM-listed International Greetings said early indications for Christmas 2008 have been encouraging.
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