Inveresk celebrates with first results since flotation

INVERESK, the Scottish paper manufacturer, yesterday celebrated its first results since flotation with a 45 per cent jump in taxable profits to pounds 4.7m for the half-year to 5 June, writes Neil Thapar.

There was an 8 per cent rise in turnover, to pounds 47m, from continuing businesses. Last year's profits were held back by a pounds 765,000 loss at a commodity paper business that has since been discarded. Operating profits on a continuing basis were up almost 15 per cent. Earnings per share rose from 6.1p to 8.6p on a tax charge of less than 10 per cent. But from next year Inveresk faces a full tax rate of 33 per cent.

The company said: 'There are as yet no signs of a significant upturn in demand in our UK markets and demand in Germany is declining. None the less, with a number of new products and remodelled ranges . . . we remain confident of a satisfactory result for the full year.'

The shares rose 2p to 170p. They were placed at 150p in May.