EMBATTLED gifts and cards retailer Clinton Cards racked up further losses in the first six months of its financial year – and warned that the second year would be below expectations.

The greetings card and gift chain, which has Clintons branded outlets at Kingsgate and New Street as well as a Birthdays store at the Piazza Shopping Centre, recorded pre-tax losses of £3.7m in the 26 weeks to January 29 against profits of £11.7m in the previous year.

The company, which owns 328 Clintons stores and 139 Birthdays outlets in total, said like-for-like sales fell by 1.1%.

Chief executive Darcy Willson-Rymer warned the second half of the year would be below expectations.

Mr Willson-Rymer, who joined the company from coffee chain Starbucks in October, said he was on course to unveil his strategic review of the business next month.

The group has been on the retail critical list after plunging to a £10.7m annual loss amid falling sales.

But it was able to secure £55m in borrowing facilities in October, which will allow it to complete a restructuring, which is reportedly set to include store closures.

The company has already closed 17 loss-making Clintons stores and 17 loss-making Birthdays outlets. It has also reduced staffing at its support centre by 15%.

Mr Willson-Rymer said his forthcoming review “is the main platform for change”.

He said: “The outlook for the second half of the current year is below our previous expectations but the changes we are undertaking to the business will deliver significant benefits in future years.”

Total revenues in the period from the Clinton brand was £171.7m compared to £178.3m while the Birthdays brand recorded £25.5m against £28.6 m.

The group said the trend was down 4% for the first eight weeks of the current year compared to last year and after adjusting for the timing of Mother’s Day.

James Dilks-Hopper, analyst at Numis, forecast bigger losses for the full year following the update – increasing the estimate from £8.8m to £18.6m.

Shares in Clinton Cards closed down 0.3p or 2% lower at 10p.