BEDS and furniture giant Silentnight today reported a record first half performance, with profits up to £21.3 million.

The Barnoldswick-based company, which employs 4,000 people, announced a 16 per cent increase in pre-tax trading profits to £8.1 million for the half year to August.

This was boosted by an exceptional profit of £13.2 million from the disposal of its US bed business.

The UK's biggest bed manufacturer reported sales and profits up in the beds division despite difficult market conditions.

Cabinet sales fell 14 per cent in the period, but following a factory closure, profitability improved substantially, said chairman Keith Ackroyd.

The US bed business was sold for £27.4 million in July but profits on the deal came down sharply after writing off intangible assets and goodwill.

More money flowed into the company after the half year end, following the sale of the Barnoldswick spring business to a US company for £10 million last month.

Mr Ackroyd said a further £4 million is expected from the disposal of surplus properties before the end of the year.

The results show group turnover fell three per cent to £113.4 million but earnings per share, before disposals, increased 19 per cent.

The interim dividend is being increased by 5.4 per cent to 3.9p per share.

Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.