Silentnight, the UK's largest maker of beds and branded furniture, has announced a 48 per cent jump in turnover to £148.5 million.

But the company, with factories in Keighley and Batley, has seen operating profit drop to £5.8 million for the first six months of the year compared to £7.2 million during the period in 2000.

Chairman Keith Ackroyd said the profits drop had been incurred through the cash acquisitions of Ducal and Cornwell Parker.

He said: "Demand for our beds has been encouraging overall and our order book for furniture, particularly the branded products is still good.

"While adopting the necessary programme for change in the furniture businesses has caused us some operational difficulties, we are now beginning to see some improvement.

"Overall, significant progress has been made with the acquired businesses in terms of strategic direction and asset realisation.

"We recognise the ongoing operational challenges and have strengthened their management accordingly.''

Mr Ackroyd added: ''In the medium term we expect to have built a profitable furniture business focused on leading UK brands."

The company's two new purchases accounted for almost £42m of the increased turnover and the total figure for the furniture division, £65.3m is 2.6 times last year's result. It has offset some of its outlay with the selling off of £4.5m worth of Cornwell's assets from its fabric division to two UK companies.

Mr Ackroyd said it had also either completely or partially finished selling some of Cornwell's properties which raised a total of £4m cash.

Property has also been disposed of overseas, in Pittsburgh, USA, for £615,000, and in the United Arab Emirates for £430,000.