Crockery group Churchill China reported a slump in profits in the last half year after a slowdown in sales of its ranges for the home.

The firm, which issued a profits warning last month, said pre-tax profits for the six months to June 30 fell to £363,000 against £1.2 million the same period last year.

Turnover slipped to £24.3 million, down from £26.7 million, after a fall in sales of its ranges of dinnerware for use in the home.

Chairman Stephen Roper said the dining-in division had been unable to continue the progress of the first half of last year.

Sales in the division slid to £13.9 million against £16.3 million, with lower-priced tableware particularly hit.

Trading of its volume dinner ware, sold in the United States and Europe, was affected by weak demand and price competition from the Far East, a spokeswoman said.

The figures were also hit by costs of £167,000, spent on restructuring the group's manufacturing operations.

The group has reduced its staff numbers by about 130 over the past year, bringing its head count down to 1,065.

A spokeswoman said there were no major job losses expected in the future.

In contrast to the fall in demand in its dining-in division, the group's dining-out range, selling to hotels and restaurants, had robust sales, at £10.4 million, in line with last year.

The group said despite weaker trading conditions in the UK it had maintained sales by increasing its market share.

The launch of a new range, named Alchemy, had proved successful and the group had achieved good sales to four-star restaurants and hotels.