Electrical products supplier Get Group saw first half pretax profits increase - but warned the slump in retail sales will hit full year results.
The London-based company - which has its national distribution base in West Bromwich - is reducing its stock holdings before placing new orders because of the decrease in consumer spending, it was revealed yesterday.
Pretax profit for the six months to February 28 was £ 2.56 million against £2.5 million on a turnover of £42.44 million, up from £37.75 million.
The interim dividend was slashed to 0.5 pence from 2.85 while the earning per share is 10.31 pence against 10.03.
John Joseph, group chairman, said Get maintained satisfactory progress during the first half of the financial year and increased its market share in domestically.
But he said: " Unfortunately during March and April demand from our major customers weakened due to a sharp downturn in retail spending, witnessed by trading statements from leading companies in the DIY market."
He said that situation would hit full year results but the board was confident innovation and the introduction of new product ranges would see the group resume growth "once the uncertainty in the sector diminishes".
In light of the depressed retail environment, the board had decided to reduce the interim dividend to ensure the "group has a stronger balance sheet".
Looking ahead, the company expected a growing demand for products in the home security sector, and was planning the launch of new products.