SOUTH coast bookshop chain Ottakar's has shocked investors by revealing the departure of its well-respected finance director.

The retailer, with local stores at Eastleigh and Lymington, said Edward Knighton had made the decision to leave and would stay until his handover to a successor at the end of November.

Shares in the group fell nearly four per cent after the announcement, or 13.5p to 361.5p.

The news came as the Salisbury based chain reported an upturn in sales and said it was well placed for the crucial Christmas trading period.

Autobiographies from Olympic rowing champion Matthew Pinsent, presenter Graham Norton and rugby captain Jonny Wilkinson would boost trading in the crucial Christmas period, the group added.

Ottakar's said Mr Knighton had played a key part in the successful growth of the business and that he was leaving to "pursue new opportunities within the public arena", although he is not believed to have another job lined up.

Market analyst Nick Bubb at Evolution Securities called Mr Knighton well-respected and said his resignation was "a bit of a shock".

The group said pre-tax losses narrowed slightly to £2.8m in its traditionally weaker first half, against a deficit of £2.9m last time and in line with expectations.

Sales in the 26 weeks to July 31 were boosted by Richard & Judy's Book Club on Channel 4, as well as its Penguin Essential Library campaign to promote classic fiction.

Chairman Philip Dunne said: "The company is well positioned to take advantage of the crucial Christmas trading period and I look forward to reporting further progress at the year-end results."

Ottakar's now has 124 stores in towns and cities across England, Scotland and Wales.