No picnic for Blacks Leisure as it warns on profits

The picture at outdoor equipment retailer Blacks Leisure is looking more black than leisurely as it issued a profit warning after further weakening of trading conditions.

Much will depend, as ever, on the crucial Christmas trading period, but sales have tapered off recently, prompting the company to "manage margins in order to drive sales", and based on recent trading the full-year results are likely to be below expectations.

An even tough trading environment is the last thing the cash-strapped company needs, as it seeks more funds to implement its turnaround plan.

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Constructive dialogue has been maintained with the group's bankers, Bank of Scotland, who continue to be supportive, the company said.

The shares hit a new 52-week low on the profit warning, slumping to 1.71p at one point, before recovering to 3.25p, down 1.125p on the day.

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