Mail order retailer Slimma plc has issued a profit warning for trading in the year to September, saying that additional brand investment is likely to hit revenues.

The group added that its results would fall short of market expectations because of charges related to its reorganisation and soft sales at its contract clothing business.

The warning follows a similar statement in May, when the company said that the costs of its three-year investment plan would hit second-half profits.

However, Slimma said it remained confident that the changes would bring about long-term growth, with trading for the rest of the year going according to plan.

The group is set to pay an unchanged final dividend on the year, is set to buy back up to 10% of its share capital, and is in final talks to sell its head office building in Staffordshire for about GBP1.05m (US$1.99m).