A MOTORHOME and caravan company says the weather is more likely to have an adverse effect on trading than the credit crunch.

Discover Leisure yesterday announced pre-tax losses of £1.8m for the six months to March 2, although sales in the market are traditionally weak in winter.

But the company said it was unlikely to meet its predicted results for the full year after poor weather hit sales at the start of the second half of its trading year. The company is reducing its profit before tax forecast for the year to August from £3.5m to £2m.

Ten days ago, the company announced its intention to take on 30 workers at its flagship Darlington branch.

Chief executive Trevor Parker said: "Putting it into the context of performance against last year, we made £400,000 last year and this year we are expecting to make £2m. So under the current circumstances, when many are falling around us, this is quite a credible result.

"In March and April we had an early Easter and atrocious weather conditions, sales were down on our expectations, in line with other retailers, but in May they have gone up.

"We are trading more in line with where we expect to be at this time of year."

A large portion of caravan and motor home customers are over 50 and more immune to changes in economic conditions. However, although sales of caravans, which cost about £10,000, have improved, tougher economic conditions have taken their toll.

Surpisingly, sales of motor homes, which cost nearly three times as much but have lower profit margins, are going up.

Mr Parker said: "For motor homes, the rough ticket price is £30,000 and we are seeing major growth. Our customers are financially more resilient, most of them are retired, they have significant equity in their property, no mortgage to pay and they have savings. It is very much a lifestyle decision."

The company bought the former Barrons dealership, at Burtree Gate, Darlington, last year and has recently completed a £250,000 makeover of the showroom and accessories shop at the branch. The improvements have led to the 30 jobs being created on top of the 80 staff already employed there.