Profit at manufacturer rises to 拢5m but company says challenging market conditions would result in static 2006 sales

Shares in Heywood Williams, the UK-based modular housing to conservatory company, fell slightly this morning to 84p after it unveiled that UK sales would remain flat for the rest of 2006.

The company said that its pre-tax profit was up 13.6% to 拢5m on an increased turnover of 拢133.8m from 拢122.6m for the six months to 2 July 2006.

Heywood鈥檚 profit after tax returned to the black to 拢3.4m from a loss of 拢18.2m in the corresponding period last year. It said the improvement was a result of restructuring undertaken last year.

In its stock market statement the company said that trading in its UK hardware division had been 鈥渃hallenging鈥� in the first half of the year and that it expected the market to remain 鈥渇lat鈥� for the rest of 2006.

In its North American modular housing division sales had increased by 15.8% to 拢91.8m over a similar period.