Fyffes, the fresh produce group, is looking for further strong growth, following the 15.4 per cent rise in pre-tax profit to £23.3 million in the six months to April 30th, 1998. The trading momentum has continued, market conditions remain positive and the group says it is confident of "another good result" for the full year. With its strong cash flow and cash-rich balance sheet - which has net cash of £58.6 million, up from £49.1 million, - it is "actively seeking further significant investment opportunities".

Vice-chairman, Mr Carl McCann, said the group is talking to a number of companies but there is "nothing hard on the table". Asked about the possibility of paying back some of the group's surplus cash to shareholders, he said it is much better to make acquisitions as this gives a "better kick to earnings". He also noted that the company has a "progressive dividend policy".

Expenditure on acquisitions and capital assets amounted to £33.3 million, down from £40.5 million. Fyffes says further capital expenditure is planned for its operations in the UK, Ireland and Spain.

Since the beginning of the year Fyffes made a number of small fresh produce acquisitions in European countries involving a consideration of £16.6 million. The businesses had sales of £35 million and pre-tax profit of £0.8 million in 1997. They had no impact on the first six months, but they are expected to make a positive contribution to earnings in the second half.

That, together with core growth, should ensure that profits of close to £60 million are generated in the full year, surpassing some brokers' predictions. The group is still waiting for regulatory approval for the disposal of its 18.5 per cent interest in United Beverages to Guinness Ireland Group for £8.6 million. As a result, the transaction is not reflected in the latest results.

The interim results show an 8.6 per cent rise in sales from £663 million to £720 million. Bananas account for some 30 per cent of sales. Profit margins improved from 3.35 per cent to 3.55 per cent. Earnings per share have grown by 24.3 per cent from 3.38p to 4.20p. Shareholders are to benefit from the better results with a 20 per cent rise in the interim dividend to 0.6859p.

The growth is attributed to better market conditions compared to the same period last year. Currency movements were "generally unhelpful on the trading side", the group said.