Ladies' wear firm Slimma Plc has admitted it's unlikely to return to profitability during the current financial year after swinging to a first-half pre-tax loss.

The company, whose brands include Frank Usher, Dusk, Coterie and Splendour, posted pre-tax losses of GBP350,000 (US$524,600) for the 26 weeks to 2 April 2010, compared with a profit of GBP2000 last time.

Revenues fell to GBP4.38m, a drop of 37% on last year's GBP6.99m, and the firm reported an operating loss of GBP244,000 compared with a profit of GBP62,000 a year ago.

Chairman Carolyn Simons said sales have been hit by the planned closure of the contract division, as well as the closure of its smaller loss-making labels as the company reorganises its business to focus on its key brands. She also said further cost cuts are planned.

And while the firm has re-negotiated its 12 month banking facility, Simons says "a reduction in borrowing ability from September 2010 through to March 2011 will be particularly challenging."