Interim profits at the UK firm rose 6% despite adverse costs

British Vita withstood rising raw material costs and adverse currency movements to post a 6% rise in first half pre-tax profits, excluding the inflow from the final tranche of its share in Spartech in the US.

The polymer foam, compounds and fibres group reported a headline pre-tax figure of Ј28.4m (E41.8m) on turnover virtually unchanged at Ј485.5m (E713.7m) against Ј26.9m (E39.5m) for 2003’s first half. The Ј67m (E98m) sale of Vita’s remaining holding in Spartech generated a Ј28.4m (E41.7m) profit taking overall pre-tax profit in the first half to Ј55.8m (E82m).

Chief executive David Campbell called the performance “robust” and pointed to a 5% volume advance over last year’s first half. However, the benefits of the higher volumes were swallowed by 2% and 13% negative currency movements against the euro and sterling respectively.

So far, Campbell said, the company has managed to withstand the higher cost of polymer raw materials and maintained its margins at 5.8%. “Continuing raw material price pressures present further challenges for the remainder of the year and recovery of increased costs will remain a priority,” he said.