Some collectables will be discontinued

"For those products that are not that key to the business and don't have a high take-up the decision has been made not to produce them any more," said a company spokeswoman.

"All ranges including tableware and collectables will be affected.

"Removing these products from the business allows the business to become more efficient and to more effectively concentrate on product ranges that are more profitable for us."

Customers will now be given the chance to buy items which face being cut from stocks.

Like-for-like figures showed that pre-tax profits for the half-year actually fell by more than �3m but still stood at �10.5m.

Operating losses narrowed to �9.4m and costs were cut back, but sales also fell 4% to �82.4m.

Demand has failed to improve in the seven weeks since the start of the financial year, with sales falling 3% compared to the same period a year ago.

Chairman Hamish Grossart said the figures showed that measures already taken were having an affect.

Future bleak

But he blamed poor economic conditions for the failure to hit the target of next year to turn the business around.

Mr Grossart said: "We see no reason to plan for any strengthening of sales in the remainder of the current year but we expect to make some further modest progress towards restoring the group to health.

"Slowing consumer demand and poorer economic conditions globally will extend the timetable for the group's recovery.

"New information systems mean that loss-making lines can be more clearly identified.

"It has been clear for some time that the group carried far too many product lines to operate efficiently."