TEXTILES group Readicut International, which owns a number of East Lancashire firms, has announced it is expanding its wallcovering business.

West Yorkshire-based Readicut said the acquisition of Chamberlain Coatings for £13.25m was the latest step in a major shake-up.

Readicut owns Speciality Coatings, Darwen Coatings and Adhesives and Blackburn Gravure - all part of its wallcoverings division.

Chamberlain, based in County Durham, manufactures the base paper for leading wallpaper manufacturers.

In a statement to the stock market Readicut said: "The directors believe that both the depressed market conditions for wallpaper and the current fashion in customer preference for other forms of wallcoverings are not permanent."

The company also said the strength of Sterling and downturns in the economies of Russia and the Far East had hit its business, and higher interest rates had cut domestic consumers' spending on house decoration.

Readicut dived into loss in the year to March 1998 reporting pre-tax losses of £28.4 million on sales of £258.3 million. Interim results published last month showed a modest return to the black with pre-tax profits of £4.8 million.

Readicut also said the Chamberlain acquisition would allow it to achieve economies of scale in its existing wallcoverings business. In the 12 months to December 1997 Chamberlain reported pre-tax profits of £1.4 million on sales of £25.8 million.

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