CEMENT group Blue Circle, owners of the up-for-sale Potterton Myson operation in Padiham, has reported a slip in profits.

Tough trading conditions in its recently-expanded Asian operations are still "challenging", the company said today.

But the group said it was confident its investments would reap rewards in the long run.

And it said talks were progressing well with potential buyers for its Potterton heating business.

The group, which has invested heavily in the cement industry in Malaysia and the Philippines and recently announced more acquisitions in Greece, reported a drop in profits before tax and exceptionals for the six months to June 30 to £110.4 million, down from £134.6 million last year.

The profit slip came despite a jump in half year turnover to just over £1 billion, from £930 million in 1998.

At the end of June it said it was planning to sell or de-merge the heating division, which includes the Potterton boilers business.

Analysts estimated the division could be worth up to £400 million.

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