Troubled ceramic materials group Beauford is dismissing reports it is about to put itself up for sale.

A slump in the company’s share price has prompted speculation it could become a takeover target. But Beauford is firmly ruling out seeking a purchaser.

A spokeswoman said: ‘‘This is not the case – there is no truth to this.’’

The company owns Wade Ceramics at Burslem and bought Milton-based Allied Insulators last year. In February, Beauford warned the strong value of the pound and the downturn in key Asian markets would hit profits.

In March, Beauford announced 125 redundancies across its two subsidiaries in the city.

Now Beauford is warning investors they will see lower-than-expected profits. At its AGM last week, it told them: ‘‘The strength of Sterling in certain markets, especially the Asian economies, continue to affect adversely our current trading and prospects for 1998 as they did at the end of 1997.

‘‘Whilst our businesses are bringing their costs into line with changed trading conditions, our performance for 1998 will reflect these adverse factors.’’

Last year, Beauford saw a 15 per cent rise in pre-tax profits to £1.15 million (1996: £1 million). Sales on continuing operations was also up 1.8 per cent to £28 million (1996: £27.5 million).

Its share price was trading at any thing up to 37p last year. But yesterday, they were changing hands for around 10p.