Shares in the UK ports operator Mersey Docks and Harbour Company slumped by 10% after the company said that economic conditions had been worse than expected.

The company said the downturn meant its full-year profits were likely to be lower than previous market forecasts.

"Weakness in international trading is expected to continue through the first half of 2002 and possibly beyond, with most customers forecasting little or no volume growth," the company said in a statement.

The ports operator said it was cutting 40 jobs because of the disappointing levels of trade.

Despite the problems, Mersey said it remained confident that it could attract new business next year.

The company employs about 1,600 people and operates ports in Liverpool, two ports in Kent, and Heysham port near Morecambe. It also operates Marine Terminals in Dublin.

Following the release of the trading statement, shares in the company slumped 10% to 472.5p.