Problems abroad drag on Knowles

CONSTRUCTION industry arbitrator James Knowles issued a profits warning today as earnings plummeted. Although construction may be booming in Britain, overseas business has been difficult for the group, sending pre-tax profits in the first half ending last January down to £ 255,000 from £700,000 in the previous half year.

The group is forecasting that full-year profits will be 'substantially below' forecasts. The interim dividend of 0.8p is maintained but there are doubts about the final dividend, which will depend on how current trading goes.

Chairman and chief executive Roger Knowles said the recovery overseas is taking longer than expected but he is optimistic about an improved performance in the financial year starting next August.

Knowles shares slumped 23% to 44p, a fall of 13 1/2p.