A huge drop in profits is forcing Bradford textile firm British Mohair to look at a restructure of its mohair operation.

The firm, which has its headquarters in Midland Mills, Valley Road, Bradford, saw its half-year pre-tax profit cut to £285,000, compare with £521,000 last time. The group saw its turnover increase to £23.2 million from £21.4 million previously.

The group, which also runs engineering companies, employs more than 300 people at its main office, at mohair spinning divisions in Shipley and Keighley, and a further 70 at its combing operation in Bingley.

Chairman Charles Fenton said yesterday the board was working on plans to restructure its mohair operations.

"Trading conditions for our textile companies remain extremely difficult and the full year's result from this division is likely to be below last year's level."

Mr Fenton added: "The sale of mohair yarns for traditional suiting has significantly reduced due to lower demand from Japan and South-East Asia.

"Mohair furniture yarn, sold principally into mainland Europe, has not been profitable due to adverse currency conditions."

The firm is planning to look at its product range in the mohair division, which has been particularly hit by lower sales in some of its specialist product areas.

On a brighter note, Mr Fenton said results from the group's engineering companies showed an improvement compared to the first half of 1997.

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