Troubled car parts giant Unipart, which last year announced 300 redundancies at its Cowley works, has seen its share price drop a further 14 per cent.

Independent valuers say the shares are worth just 36p, down from 42p in November 2000 and a high of 108p in 1999.

About 2,000 of Unipart's 10,000 employees hold shares in the company, owning about 50 per cent of the business.

Unipart's share price is announced each year by auditors at the start of a formal share dealing period, which runs until January 18, 2002.

After that date, shareholders will have at least three weeks to sell any unsold shares.

However, the board has advised shareholders not to buy or sell shares this year.

In a letter to shareholders, group chief executive John Neill wrote: "At this time last year it was necessary to recommend to shareholders that they should not trade in the company's shares because there were some confidential matters that the board judged it would not be in the company's best interests to disclose at that time.

"Unfortunately, the issue of this year's share value notice and the share dealing period have coincided again with there being significant matters relating to the company which the board does not judge that it can disclose at this time."

He added: "I believe that we are producing a stronger, leaner group better equipped to win new, profitable business."

Commenting on the share price drop, a Unipart spokesman said: "Whilst there has been a fall in the share value of UGC shares, this is set against a background of a significant fall generally in stock market prices over the last 12 months, with the FTSE 100 index down 16 per cent, the distribution sector down 18 per cent and transport down 28 per cent."

The company said that it was undertaking a marketing exercise to ensure its Cowley site was being used to best advantage.

A spokesman said: "There is currently no plan for the Group to exit this location."

Unipart Group produced an operating profit of £10.1m on sales of £764.5m for the six months to June 30 2001. Last year, the group reported a £111m loss, blamed on the £179m purchase two years ago of Partco.