WP International, the household products and labels group, continues to record good growth. While the strong pound is adversely affecting Dutch earnings, further growth is anticipated for the remainder of the year.

Interim results show a 10.1 per cent rise in pre-tax profit from £8.75 million to £9.64 million, in the six months to September 30th 1996. The underlying growth is better. Excluding profits from acquisitions and from disposals, profits grew 24 per cent. And this does not take the adverse currency translation of £400,000 (from Dutch guilder to pounds), into accounts.

Earnings per share increased from 8.23p to 9.53p. Shareholders are to benefit from the growth. The interim dividend is being raised from 2p to 2.2p.

IWP is looking for acquisition opportunities in Poland, the US, Britain and mainland Europe. Finance director, Mr Richard Hayes, said the group had the capacity to spend at least £50 million without recourse to shareholders. While the gearing stood at 137 per cent, he noted the interest was well covered at 9.7 times and spending of £50 million would bring the cover down to 6 which IWP would consider a comfortable level.

IWP was expecting to benefit from a proposed expansion of Kruidvat, a European drug chain, into Poland, IWP chief executive, Mr Joe Moran said. Kruidvat in a joint venture with another company plans to open 300 to 400 outlets in Poland and Hungary but this would be over a period of time.

The latest results show a rise in sales from £74.5 million to £87.1 million. Mr Moran said the results were "very satisfactory", particularly as IWP had to contend with the adverse currency translation. Most of the group's profits, over 60 per cent, come from its Dutch operations. There was a contraction in sales from the Dutch operations from £34.5 million to £33.3 million. In Britain, sales grew from £26.8 million to £28.4 million while sales in Ireland went up from £14.4 million to £15.8 million.

It generated a turnover £11.3 million in Poland. This reflected the contribution from Polbita, a Warsaw based distributor of personal care and household products, which it purchased last July. While margins were small in Poland, IWP remained convinced Poland was a "significant growth market".

A profit breakdown of the two main operating areas shows a rise in operating profit from £7.8 million to £8.6 million in household and personal care. Labels and distribution pushed sales up from £1.9 million to £2.1 million.

Although the household and personal care division continues to grow both sales and profits, the results from Burlington were below expectations. "The management structures necessary to underpin future growth were less than our standards," IWP said.

This is now being sorted out, which will lead to good returns but IWP has stressed that the benefits will not come through this year.

Following the disposal of John Cleland (Holdings), its cartons division, earlier this year, IWP is now concentrating on its labels and distribution business.