Shares in Land of Leather soared by almost 40 per cent after the struggling furniture retailer said that it had received a number of unsolicited takeover approaches.

The sofa sales company said that discussions were at a very early stage and there could be no certainty that an offer would be made. It also noted that, given it has no debt, it did not need to sell.

Hilco, the retail companies turn-around specialist, which recently expressed an interest in Woolworths, and Sun European Partners, which bought ScS Upholstery, a rival furniture chain, this year, are understood to be behind the approaches.

Yet the confirmation came as the group revealed that orders had plunged by 47 per cent in the three months to November 2, against what it called “very tough precredit crunch comparatives”. The group expected market conditions to remain challenging and uncertain for the rest of 2008 and 2009, including its important January sale period, making the outcome for the current financial year difficult to forecast. However, it assured investors that it had made significant progress on reducing costs and conserving cash, with cash balances of £6.9 million at November 2. The shares rose 2½p to 9p.

Zetar fell 11p to 166½p after the confectionery group said that it could lose up to £970,000 from the collapse of Woolworths.

Centamin Egypt rose 2p to 39¼p and European Goldfieldsedged up ½p to 110p after Ambrian named them alongside Central Rand, down 1p at 23¾p, and Highland Gold, 11p lower at 45p, as its top AIM gold stocks because of the growth potential of their developing projects and their cash balances.

Explore Markets

• United States

• Europe

• Japan

• China

• Russia

• The Gulf

• India

• Africa

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive