Rugby had been hit by the decline in the UK windows and doors market as the economy and the housing market head for a slowdown.

It admitted on Monday that its annual pre-tax profits were likely to be below City expectations.

"The UK joinery business has been disappointing with volumes running well below expectations. The decline in the UK market that began to emerge in the second quarter of the year...has continued into the second half," the company said.

The group said it was being forced to take immediate steps to cut costs at its joinery business.

Rugby has also been affected by competition from overseas rivals that have imported cheap products into the UK and distribution problems.

The group is now conducting a review of its business in an effort to improve profits.

Rugby's shares plunged on the London stock market on Monday in the wake of its profits warning.

The shares were trading down more than 10% at 79p by 1035 GMT.