Shares in plastics and radiator group Barlo fell 6 per cent yesterday after the company warned trading conditions would continue to be difficult throughout the year.

The company's share price hit a low of 67 cents before recovering to 75 cents on the Irish Stock Exchange, and fell 13 per cent or 6.5p to 43p sterling in London.

When announcing its full-year results in May, the group warned that tough trading conditions in continental Europe would slow growth this year.

Barlo told shareholders it had taken steps to reduce its cost base and would continue to take the necessary action to protect its competitive position.

The costs involved in the restructuring would result in an exceptional charge in the year, Barlo said.

The slowdown in the sheet plastics division was attributed to the general economic slowdown in Europe and recent raw material price reductions which resulted in customers delaying their purchasing of sheet products.

In order to reduce its cost base, Barlo said it was moving the capacity of its high-cost Belgian facility to its lower-cost operation in the Czech Republic. The move will be completed in September and chief executive Mr Tony Mullins said it would make Barlo one of the lowest cost extruders of sheet plastic in Europe.

Activity in the radiator division was suffering from a decline in construction activity and selling price pressures on the continent but trading in Britain and Ireland had remained stable and were broadly in line with expectations, Mr Mullins said.

Athlone Extrusions, which Barlo acquired for #55.8 million (£43.9 million) in January, was also being affected by the slowdown but was performing in line with Barlo's expectations.