* All units poised to maintain profitability
* Trading within cash resources
* Limits capex, focuses on cash management
(Adds details)
JOHANNESBURG, Dec 1 (Reuters) - South Africa's Steinhoff said on Monday a consumer shift towards cheaper products was helping its overall business but a tough UK market meant first-quarter revenues and margins there were flat.
The furniture retailer also said in a statement following its annual general meeting that it was trading comfortably within its cash and borrowing resources and was focusing on cash management.
Steinhoff said it was restricting capital expenditure, which it noted would be in line with depreciation for the year.
While it expected a "challenging trading environment" for the rest of the year, Steinhoff said all its units were well placed to maintain and increase activity levels and profitability.
Shares in Steinhoff were sharply lower before the statement was released on the back of Fitch's move last week to cut its outlook on the company to negative from stable.
The stock closed 10.8 percent lower at 9.50 rand on Monday.
Furniture retailers have been hit as consumers worried about the global financial crisis have reined in spending on bigger-ticket items.
While revenue at Steinhoff's Pacific Rim business grew marginally in the first quarter to end-September, profit stripping out exchange rate swings was expected to remain flat, compared with a year earlier.
Trading at the unit had increased more than 5 percent since September after interest rate cuts boosted consumer sentiment.
Trading within New Zealand, which represents less than 1 percent of group revenues, remained depressed, with revenues and profits substantially lower.
Revenues and margins in Britain were flat in the first quarter due to a tough market, but Steinhoff said it expected the demise of major competitors to inflate its market share.
Steinhoff said it expected revenues and profit margins in Germany, Austria and Switzerland to be "on budget" for the rest of the year and said lower input prices and weaker zloty and forint currencies had helped margins.
In South Africa, Steinhoff said Unitrans's logistic business posted growth in excess of 30 percent although a sharp fall in vehicle sales hit its motor division. (Reporting by Rebecca Harrison; Editing by Andrew Macdonald)