POOR overseas performance and UK production problems saw first-half profits tumble for Hereford-based cider giant HP Bulmer.

The company, which makes Strongbow, Woodpecker and Scrumpy Jack, added its full-year results would now be lower than expected.

Tough trading conditions in Australia and the US dented a strong showing by Strongbow in both markets, finance director Mike Flockhart said.

Increased competition from ready-to-drink products and continued investment pushed Bulmers' operations in the US into the red.

And Mr Flockhart promised a "radical restructuring" in Australia after the group's division in the country also reported an operating loss.

Upgrading

Problems upgrading the group's bottling plant in Hereford held back operating profits in the UK by £1.5m as Bulmers contracted out production.

The group as a whole made pre-tax profits of £13.5m in the six months to October 26, before one-off costs, down from £16.5m.

Turnover rose 11 per cent to £286m.

Mr Flockhart said the performance was disappointing but added the second half of the financial year had started well.

He said, however: "We won't catch up on what has been lost in the first half.

"The analysts will make up their minds today but I am fairly certain they will want to lower their targets for the full year."

Analysts had been forecasting full-year pre-tax profits of £32m and Bulmers' shares plunged 15 per cent in early trading to 357p.