PROFITS at a company which employs more than 1,000 people across East Lancashire have slumped by more than £6 million in the last 12 months.

Fine Art Developments, which includes Express Gifts in Nelson, Clayton-le-Moors and Church, as well as Nelson cracker company Delgado, made £21.5 million last year compared to £27.9 million in 1997-1998.

Group chairman Keith Chapman said the results were disappointing but expected following the company's half year figures in November.

He said: "The results, whilst broadly in line with our expectations, were naturally disappointing but should, however, be viewed against the unusually depressed retail climate which prevailed last Autumn."

The group reported an increase in turnover of almost £10 million compared to last year and said that home shopping sales, including hampers, had increased alongside their fund raising division which is now worth more than £50 million.

Over the last 10 years the company has raised more than £140 million for good causes and has recently launched a charities site on the internet in conjunction with the Charities Aid Foundation.

Mr Chapman went on: "In the first seven weeks of the new financial year sales have been encouraging and I believe the prospects for the group are excellent while the investments we are making in the businesses will lead to sustainable long term growth.

"The quality and breadth of the group's management and the initiatives that have been planned and undertaken support that belief."

During the year Fine Art Developments sold Hambledon Studios in Altham to Hallmark for £10 million.

Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.