ANOTHER SETBACK FOR STRUGGLING TED BAKER

TED Baker shares fell nearly 10pc after the embattled fashion chain warned annual profits will be lower than anticipated.

Profits for the 12 months to January 26 look to have been in the region of £63m. That compares with £68.8m the previous year and the £73.8m expected by City analysts. Shares fell 9pc, or 180p, to 1820p.

The bleak update came as a disappointment to investors who had hoped Ted Baker was on the mend after a 12.2pc rise in sales over Christmas. The prospect of lower profits was just the latest setback after founder Ray Kelvin ( inset) was forced to take a leave of absence amid allegations allegaof harassment.

The group is now being led by Lindsay Page and an investigation has been launched into claims that Kelvin, 63, massaged, kissed, hugged or inappropriately touched staff.

In January, the company said the independent investigation, led by law firm Herbert Smith Freehills, was ‘progressing’ and a further update will be given in due course.