CONSERVATORY maker Ultraframe rocked investors with a profits warning yesterday after a disappointing start to its key summer season.

Shares slumped 35p, or 32 per cent, to 75p, after Ultraframe said worsening conditions in the UK and North America meant full-year profits were likely to be a third lower than hoped.

The group has been forced to cut prices in the UK to protect market share, while margins across the Atlantic have been hit by unexpectedly high production costs.

Ultraframe, which is based in Clitheroe, Lancashire, said it expected annual profits to be about £12m, compared with £18m previously.

Sales in the UK last month were eight per cent lower than forecasts as households worried about rising interest rates, stock market volatility and pensions.

Chief executive David Moore reported no pick-up in spending among its target customers, the over-50s, who traditionally buy expensive sunrooms.

But sales of budget conservatories to younger families were starting to build momentum, he said.