SHARES in Salterforth-based Silentnight Group dropped to an all-time low of £1 today after the company issued a profits warning.

Continuing losses at the company's furniture operations forced directors to warn shareholders that results for the year will be poor.

Within minutes of the announcement to the Stock Exchange, the share price had fallen by more than 20 per cent from 127p.

The company said trading conditions had become more challenging across most of business in the second half of the year.

The beds division, which includes the profitable Silentnight Beds at Barnoldswick, has seen increased sales, although margins were under pressure.

Silentnight is now planning a "substantial reorganisation" of its furniture division which include brand leaders Ducal and Cornwell Parker.

"This division continues to incur trading losses and a worsening order book ," said the company.

"However, the implementation of these plans will incur further substantial exceptional costs and trading losses will continue until the plans are completed."