SHARES in Holliday Chemical, owners of the Blythe chemical plants at Church and Hapton, dived after a profits warning.

The Huddersfield-based firm warned that results for the year to the end of December will be below market expectations following a drop off in sales and profitability in the second half of the year.

At one point shares dived 48p on the news.

The company blamed rising increased raw material prices and depressed trading in the chemical industry.

"We are taking tough action to achieve improvements in margins despite market conditions," said chairman Dr Michael Peagram.

"Price increases for Holliday products are being implemented and we are striving to reduce raw material costs." And the firm stressed all its operating businesses were profitable in the second half of the year and have good prespects for the future.

"This is the first year in the history of Holliday Chemicals when earnings per share have declined. This setback is being met by a determination to return the group to its previous growth," added Dr Peagram

Holliday bought the East Lancashire plant in 1991 for £23 million.

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