Packaging group ILP continued to record a strong recovery with a profit before tax of #707,000 (£557,000) in the six months to June 30th, 1999, compared with a loss of #956,000 in the first half of last year.

The underlying improvement is better as the pre-tax profit was stated after management consultancy fees of #350,000. These costs arose from a review of its two main operating units. The exercise, has now been completed and there will be no further costs in the second six months, chairman, Mr John Bourke, said.

Turnover grew to #13.41 million (£10.56 million) from #11.17 million. Earnings per share amounted to 1.75 cents compared with a loss of 5.03 cents.

However, ILP is not declaring an interim dividend "at this early stage of improved performance" but this "will remain under review".

A deficit of #62,000 in its revenue reserves has been turned into a positive balance of #418,000 following the better results and the injection of liquidity with a rights issue. The group's associate companies in Galway, Malaysia, China and the Czech Republic "have performed well", Mr Bourke said, "with substantial increase in turnover and profits".

This is reflected in the share of profit from associated companies amounting to #459,000 against #154,000 in the year-ago period. Its main plant in Leixlip, Co Kildare, had "good growth in turnover and overheads, as an overall percentage, have reduced significantly".

Mr Bourke noted that following the completion of the consultancy review, "efficiencies continue to improve and the result of this and of other savings should be seen in the second half of the year".

Its plants in Limerick and Northern Ireland continued to grow and "have shown significant improvements over the same period last year".

ILP is optimistic that the recovery will continue. There is further growth in sales, according to Mr Bourke, and, with improved efficiencies, margins are also projected to widen.