ONE of East Lancashire's best-known firms has seen its profits slump by more than £10million.

Clitheroe-based conservatory manufacturer Ultraframe announced its operating profit for 2005 was £5.2million down more than 66 per cent from £15.4million in 2004.

The slump has been blamed on a tough market which has resulted in lower sales volume and the company being forced to cut prices.

At the Salthill Road firm's AGM yesterday, chairman Rod Sellers insisted the company was showing better performance in the current year, and was hopeful of improvements.

But in a statement read by Mr Sellers, and announced to the stock market yesterday morning, he said: "We continue to expect the wide-ranging operational initiatives to slow the decline in UK year-on-year sales trends in 2005/06."

The announcement had little impact on the company's share price, which had closed on Monday at 33.5p. By yesterday afternoon, after the announcement, they had fallen 1p.

At the company's peak in 2000, shares were trading at more than £6.

The firm is now set to introduce new product ranges, as well as target the budget market, in a bid to improve sales.