City File: Borrowings to shock at Hartstone

THE NIGHTMARE at Hartstone Group, the handbag and tights maker, will continue on Wednesday, with pre-tax profits expected to show a dramatic collapse to pounds 8.7m. But what will shock investors is that borrowings are approaching pounds 100m.

The market thinks a refinancing is a strong possibility, with some form of capital raising or debt-for-equity swap on the cards.

At 37p, the shares have taken some battering. They could fall further before they turn round, but it is a good bet that Hartstone will recover.