Irish glass bottle manufacturer Ardagh increased its pre-tax profit from I 2.58 million to I 2.9 million in the six months to 26 December 1995, an increase of 12.3%. Sales grew by 12.5% from I 17.7 mi…
Irish glass bottle manufacturer Ardagh increased its pre-tax profit from I 2.58 million to I 2.9 million in the six months to 26 December 1995, an increase of 12.3%. Sales grew by 12.5% from I 17.7 million to I 19.9 million. The growth, said Ardagh“s chairman, Mr. Peter Murray, reflected the impact of the exceptionally warm weather in July and August as well as an underlying improvement in the market trends. Mr. Eddie Kilty, managing director, said the first quarter saw a 17.5% increase in sales also due to particularly good weather. During that time, he said there had been few exports apart from to the Northern Ireland market, which accounted for 10% of sales. The growth in group sales fell to a more normal figure of 7.5% in the second quarter. Earnings per share went up from 6.57p to 7.25p. Shareholders will receive an increase in the interim dividend from 0.95p to 1.05p. Net profit after tax rose from I 2.23 million to I 2.47 million, on a turnover of I 19.92 million (up from I 17.71 million). Second quarter sales growth in the current financial year is expected to moderate to around 3% due to a different mix. The continued strength of the Irish pound against sterling remains a concern, said Mr. Murray. The main target of Ardagh“s investment programme this year is the replacement of its compressed air system which, Mr. Murray noted, should result in more stable operating conditions on the bottle making machines and some modest productivity gains.