TROUBLED Clitheroe-based conservatory group Ultraframe has been hit by a court case in America which could cost the company almost £5million.

Ultraframe's American subsidiary Four Seasons has been taken to court in Ohio by one of its rivals in a case involving the alleged misuse of "trade secrets".

Ultraframe, which has had to issue three profit warnings this year after seeing a big drop in sales of its conservatories, said it would appeal against the judgement.

The company's share price has already fallen by more than 65 per cent this year and the announcement of the American court action pushed it back further to 70p per share. In a statement to the Stock Exchange, Ultraframe said the court case concerned what it described as a "relatively junior" employee of Four Seasons who had previously worked for the rival company, Patio Enclosures, which brought the claim.

Ultraframe bought Four Seasons in June 2001 in an £88million deal that made it one of the largest conservatory companies in the world.

The Clitheroe-based company said the case involved "alleged interference with contractual employment obligations and alleged misuse of trade secrets".

Ultraframe is confident it will not have to pay the full $8.6million dollars cost of the judgement.

"Post trial motions are in the process of being filed with the trial judge in the case, who has the option of reconsidering this judgment before concluding his involvement," a company spokesman said.

He added: "Ultraframe has confidence in Four Seasons' position in this case and believes that challenge to the current judgment, by either post trial motions or alternatively on appeal, is well founded."

Last month, Ultraframe warned shareholders it would make profits of only £12million this year, down from its original estimate of £18million.