BEDS and furniture business Silentnight has warned that first half profits will fall below the levels of last year.

The group, which employs more than 700 staff at its Homeworthy operation in Sunderland, said its furniture division had been hit by continued operational problems and a sharp fall in orders.

While the core UK beds division was faring well, chief executive Bill Simpson said interim profits were likely to be about £1.75m, against £5.4m the same time last year.

The group's house broker Collins Stewart has cuts its forecasts for full year profits from £15m to £8m.