GLASS bottle manufacturer Ardagh has increased its pre-tax profit by 12.3 per cent from £2.58 million to £2.9 million in the six months to December 26th last. Sales grew by 12.5 per cent from £17.7 million to £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 per cent increase in sales due to the exceptionally warm weather.

During that time, he said there had been few exports apart from to the Northern Ireland market, which accounted for 10 per cent of sales. The growth in group sales fell to a more normal figure of 7.5 per cent 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 0.950p to 1.050p.

Second quarter sales growth in the current year is expected to moderate to around 3 per cent due to a different mix. The continued strength of the 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.

Asked about the impact of possible competition from Mr Sean Quinn, who may establish a glass bottling plant, Mr Kilty reiterated Ardagh's stance that it had faced competition in the past and would continue to do so.