Luxury furniture retailer Smallbone has issued a profit warning, saying that it expects figures to be “materially below” current market expectations.
Smallbone warned that profits for the year ending December 31, 2008 will come in below expectations due to the economic crisis and costs from acquiring Christopher Peacock Cabinetry last month.
Smallbone said: “This arises from a combination of the challenging current trading environment and rationalisation costs being expensed in the year as a result of the acquisition of Christopher Peacock Cabinetry. The Directors are confident that the restructuring measures being implemented will enhance the Group's medium and long-term prosperity.”
Last month Smallbone announced it had more than trebled its pre-tax profit for the six months to June 30, from £206,000 last year to£620,000, but it did say it remained cautious about the future trading environment.
Smallbone operates 13 UK stores.