SOFA specialist ScS Upholstery saw its half-year profits cut in half yesterday and said trading conditions remained "extremely tough".

The Sunderland company said it expected the remainder of the financial year to be challenging and warned it was unlikely that the group would meet its forecasts for the ten months to July. The gloomy outlook came as ScS reported a 54 per cent drop in pre-tax profits to £4.7m in the six months to March 31, compared to £10.3m last year. Revenue was up six per cent at £113.4m.

Chairman Mike Browne said: "The results are a great disappointment and reflect the extremely tough trading conditions which have prevailed during the period. We expect the remainder of the financial year to remain challenging."

He said the group was well placed for the medium term.