Sherwood Group Plc today reported an interim profit despite emphasising that the garment, lace manufacturing and dyeing operations continue to trade in a highly competitive environment with significant pressure on price.

It added that despite lower turnover, improvements in cost and efficiency mean all these activities are now operating profitably and in line with expectations.

The group's comments came as it announced pre-tax profits on continuing operations to June 30 of £786,000, against a loss of £227,000, on sales on continuing operations of £20.52 million against £25.47m.