The poor summer weather and loss of business to a European glass bottle manufacturer conspired to produce static results at Ardagh during the six months to the end of last year. The group produced interim pre-tax profits of £3.62 million (€4.57 million), compared to £3.65 million previously, stating that it regained some market share in the second half of the year.

Turnover dropped by 12.2 per cent from £21.5 million to £18.9 million in the six months, compared to the same period in 1997. Turnover was mainly affected by the decision of one of Ardagh's major customers to source a portion of its glass requirements from a European manufacturer. This manufacturer is currently in receivership and Ardagh says it has since managed to regain much of the business.

Over-capacity in the glass sector in Ireland and in other EU states, together with competition from other forms of packaging, meant that selling prices were under pressure during the 12 month period which affected profits. The average price per tonne declined by 3 per cent. Earnings per share came in slightly lower for the half year at 8.59p compared with 8.89p. Shareholders will be paid an interim dividend of 1.30p, unchanged on last year. This will be paid on April 2nd to shareholders on the register at the close of business on March 26th. Announcing its results yesterday, the company stressed that it is continuing to improve its efficiencies and productivity and has made favourable progress in areas where it can reduce costs. "These changes, together with some alterations to our product mix, have contributed to offsetting the effects of the reduced turnover on profits."

The acquisition of Rockware is not set to transform the outlook for the group.