SHARES in the Lamont Holdings textile group slipped 4p to 312p after the retiring chairman, Sir Desmond Lorimer, said trading in the first five months of the current year had remained "subdued". "Whilst there are signs of increased activity in the housing market, any benefit will take some time to flow through to the furnishing and carpet industries," he told shareholders at their annual meeting in London yesterday.

Sir Desmond emphasised that trading remained "difficult" for the loss making Moygashel linen fabrics concern affected last year by a sharp fall in demand from the US fashion market. As yet, the linen export market is showing little sign of recovery.

However, Lamont's efforts to improve marketing, product development and customer service may produce more positive results in the second half. After last year's £3.6 million collapse in operating profit before exceptional disposal gains to £7.1 million, analysts are looking for modest recovery to nearly £9 million profits in the current year.

Sir Desmond's successor as chairman is non executive director Mr Paul Vaight.