Shares in Bradford-based ISA International dived today after the office stationery supplier announced profits for the year would be "materially" below current market expectations.

The profits warning reduced the stock market value of the company by nearly 30 per cent from £33.3 million to £23.4 million after it reassessed its outlook for the first half and the remainder of its year to December 31, 1998.

ISA International said its trading performance in May was well below expectations and this prompted the review.

The company, based in Bradford, said its first-half performance was expected to be "similar" to its second-half figure of £3.9 million in 1997.

And office stationery group John Heath & Co, bought in March for £29 million, will not make a "meaningful contribution" to ISA International's results for the six months to June 30.

A spokesman for the company said: "The trading performance for the month of May was well below expectations and therefore the board has reassessed the outlook for the first half and the remainder of the year to 31 December, 1998.

"Overall there has been a significant growth in sales of electronic office supplies as the investments made in people have begun to pay off.

"The directors continue to believe that there will be a stronger performance by the group in the second half as the benefits of the John Heath acquisition come through."

ISA International said it would maintain its interim dividend payment of 1.01p.

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