Courts announces a profit warning

Are you sitting comfortably?

Home furnishings company Courts has been forced to issue a profits warning due to £25m of restructuring costs and worsening trade.

The firm says it expects pre-tax losses of £24m for the year to 31 March.

The London-based group had previously it had said profits would be similar to last year's £14.5m pre-tax gain.

Courts also warned the weak dollar may wipe £6m off its books. The deterioration in trading since January will cost another £5m, it added.

Courts, which has 352 stores in 20 countries including 100 in the UK, is now planning a shake-up of its supply chain, further efficiencies and a reshaping of its store portfolio.

'Bad news'

"These actions represent a measured step towards establishing a solid foundation from which to deliver profitable growth," said Courts chairman Leo McKee.

The annual results will be released on 27 May.

Retail analyst Richard Ratner from stockbrokers Seymour Pierce said investors would not be very impressed by the update.

"The bad news continues," said Mr Ratner.

"It's not the first time and I doubt it will be the last time."