Creightons plummets as losses widen

12th Aug 2011 14:17

Two-fifths of Creightons' market value was sold off on Friday after the personal care and beauty products group revealed that losses in the first quarter will be higher than the same period a year ago.The group, whose products include shaving cream, shampoo and fake tan, admitted that its "financial position has deteriorated" since the end of last year (31 March).While sales in the first four months (to 31 July) have been higher, the firm is struggling with pricing pressures from suppliers which have taken a toll on its margins, which are now expected to be lower year-on-year in the first quarter."The company continues to experience serious pricing pressures from suppliers, although the board is striving to mitigate this wherever possible by seeking to maintain margins and reducing non-essential overhead costs," Creightons said.The share price dropped 40% to 1.5p, down from Thursday's closing price of 2.5p.BC