HEALTHCARE products manufacturer SSL International is counting the cost of an accounting scandal which has rocked the company.

The company, which employs 240 staff at a factory in Peterlee, said its half-year results were affected as it sought to eliminate excess stock involved in a recent overstatement of sales figures.

It emerged earlier this year that more goods than usual had been offered to trade customers in order to "load" sales into end-of-year figures.

The practice, which is being investigated by the Serious Fraud Office, meant around £63m of excess stock went into customers' warehouses.

Yesterday, SSL said it had eliminated £40m of that stock but that the move had left its mark on figures for the six months to September 30.

Sales during the period fell 1.4 per cent to £281m but SSL estimated the figure would have grown by between five per cent and six per cent without the problems.

Operating profits also fell to £13.2m from £39.1m.

SSL's products include Durex Condoms, Scholl footcare products and Marigold gloves.