ULTRAFRAME, the Clitheroe-based conservatory roof manufacturer, had £50 million wiped off the value of the company within minutes of issuing its second profits warning in six months.

The company's share price dropped by 51p after the Stock Exchange was warned that profits for the year were likely to fall to £25.3 million -- about £2 million below expectations.

The news will come as a blow for many of the company's 500 employees who bought shares in the business when it floated on the market in 1996.

Since last summer, the value of their shares has plunged by more than half -- down from a high of more than £6 a share to £2.77. In a statement to the City, Ultraframe said that while sales in June and July had risen by eight per cent, the growth would not continue into August and September. "A shortfall in expected sales in the normally stronger summer months has a significant impact on the full year results," it said.

At the end of June, Ultraframe announced a £88 million deal to buy the American glazing giant, Four Seasons Group, which created the biggest company of its kind in the world.

In its profit warning statement, Ultraframe said the acquisition had been completed on July 16 and was successfully being integrated into the Group. Although Four Seasons was trading in line with expectations, there would be no contribution to profits for the current year, which ends on September 30.

"Results for the current financial year are still principally driven by our core UK domestic conservatory roofing business," said the company.

"Ultraframe has a market-leading position in the UK, Europe and North America. Ultraframe's own market research and that of independent observers continues to demonstrate strong appeal for the group's products in all its markets.

"Recent investments and the Four Seasons acquisition are part of a longer-term strategy which enhance the group's sectoral and geographical spread.

"The board remains committed to this strategy, which it believes will provide scope for good growth as the group continues to develop in the markets and regions in which it operates.

The profits warning follows one made in March in advance of the interim results, which saw a 13 per cent fall in pre-tax profits to £9.1 million. In June, the company said it was comfortable with analysts' projections of £27.5 million for the full year.

Now, Ultraframe is expecting the figure to be "not less than £25.3 million."