SHARES in the Fine Art Group, one of East Lancashire's biggest employers, plunged dramatically today after the company issued a profits warning.

At one point soon after the stock market opened this morning shares fell by 34 per cent - from £4.40 to £2.88.

The greetings cards, Christmas hamper and gifts group said a shortfall in sales in its agency mail order division, which includes Express Gifts, and wholesale card division would mean profits for the current year would be "substantially below market expectations." The group blamed an unsuccessful marketing campaign in the mail order division, which includes catalogue names such as Studio, Webb Ivory and Ace, for a fall in sales of £7.5 million in the 33 weeks to November 15.

It said it had spent an extra £4 million on marketing since but that increased sales would not compensate for poor performance earlier in the year.

The firm employs more than 2,000 people in East Lancashire at its Express Gifts operations in Nelson, Clayton-le-Moors and Church, its Nelson based Delgado cracker factory, and Hambledon Studios.

A statement issued by the firm said that "not withstanding the current difficulties, the board was confident of the inherent strength of its mail order and card divisions."

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