The Jones Group has reported pre-tax losses of £1.8 million for the half-year to June 30th, compared to pre-tax profits of £766,000 in the same period last year.

The results include returns from the divisions recently sold off by the company as part of its asset disposal programme, which resulted in the company distributing £18.3 million to shareholders.

The remaining business showed a pre-tax profit of £1.2 million for the period on turnover of £35 million.

The recent disposals yielded £25 million, while cash flow from operating activities rose from £1.6 million to £2.8 million for the half year. The main part of the Jones Group's business, the distribution division, saw profits fall by 14.8 per cent or £5.3 million for the half year.

The company said the fall in profits was due to a reduction in the international price of oil.

"In addition, mild weather conditions at the beginning of the year had an adverse effect on the volumes of oil and gas sold," a statement added. However, profits for the company's subsidiary Blugas were in line with expectations.

Appian Fastners experienced continued growth despite an adverse movement in the pound versus sterling. Losses on disposals of Jones shipping and manufacturing businesses amounted to £2.5 million. Of this £1.5 million arose from the disposal of the radiator companies.

The chairman, Mr Eugene Greene, said that while the group is now smaller, "it is clearly focused and exclusively engaged in the distribution business".

The chief executive, Mr Pat Nevin, said the company intends to keep its stock exchange listing, despite its smaller size. He said the company does not currently have any acquisition plans and will grow the distribution business organically. The company has no plans to sell-off any further parts of its business.