Profits at Irish glass-maker Ardagh rose by 11.3 per cent to £6.5 million in the year to the end of June. Announcing the 12 month outturn yesterday, the group warned that, while demand remained strong throughout the year, over capacity across Europe had put further pressure on prices.

Much of this was offset by gains in productivity and efficiency yielding, a "satisfactory" result. The board is recommending a total dividend of 5.85p for shareholders which will be paid on November 20th.

In the current year, trading is running slightly ahead of budget but, as indicated, is below last year's levels. The board is examining the group's financial resources as part of its efforts to reposition Ardagh as a competitive force in the Irish and British markets.

In a statement, the company pointed to the trend for increased consolidation in the glass container sector, which has created pressure for new alliances and increased mergers. The company insists it is "well placed" to participate in this restructuring.

The board has been radically changed this year, with entrepreneur Mr Paul Coulson taking over as chairman. The new board is expected to take a more aggressive approach to acquisitions but has yet to expand its operations. Ardagh is now facing domestic competition in the glass sector from a Co Fermanagh businessman, Mr Sean Quinn. He is building a £60 million glass plant in Derrylin which will compete with Ardagh in the Irish market and with glass makers in Britain.