FLOORCOVERINGS group Gaskell PLC, based at Altham, is looking to further reduce costs after warning that it expects to make a loss this year.

Earlier this year, the company announced more than 100 redundancies throughout the group which employs more than 500 people at its East Lancashire sites at Altham, Clayton Park, Rishton and Bamber Bridge.

The job cuts followed the announcement of an operating loss of £352,000 for the six months to June 2001.

In a statement to the Stock Exchange, the company said the difficult trading conditions that had led to the half year loss had continued into the second half year.

And further troubles were heaped on the long-established company when it was announced that a major competitor, Chesterfield-based Granwood Holdings, had taken a near 25 per cent stake in the group.

The Gaskell Board has publicly welcomed Granwood as a strategic investor and noted that it had no "current" intentions of making a bid for the company.

However, there must be private concerns that a highly-profitable competitor has taken such a major stake in the business.

Gaskell said it anticipated that the benefits of a restructuring programme will start to show through in the next financial year though Gaskell is not yet able to see any indications of a recovery in its markets.

"Consequently, the board is actively pursuing other initiatives to reduce costs and eliminate loss-making activities," it added in its statement.