Northern Ireland packaging group Boxmore has continued its record of strong growth, with profits in the half-year to the end of June up over 12 per cent to £8.56 million sterling.

The group is also expanding into the Chinese market and has set up a joint venture company to manufacture plastic containers for the Chinese and other Asian markets. A new factory is under construction on a greenfield site near Shanghai and production is expected to begin in the current quarter.

Net profits rose from £5.1 million to £6 million and would have been £370,000 higher were it not for the strength of sterling. Boxmore's turnover for the half-year was up over 12 per cent to £50.9 million. While sterling strength will continue to be a negative factor in the second half, chairman, Mr Harold Ennis said that 1997 results would show a satisfactory improvement. The results are bang in line with market forecasts and analysts expect full-year profits of around £16.5 million.

There was a 26 per cent increase in sales in the group's pharmaceutical and healthcare division to £22.5 million. The food and drink packaging division, which takes in the plastic operation in Ballyconnell, Co Cavan, increased sales by almost 8 per cent to £15.6 million, while the South African joint venture is trading ahead of budget and already contributing to profits.

The strength of sterling, against the French franc in particular, impacted most on the chemical and industrial business where sales were ahead only marginally to £9.7 million. Without the rise in sterling, sales would have been up 14.5 per cent.

Net debt at the end of the half-year was just £3.1 million - a gearing of 7.5 per cent - and the group is good shape financially for expansion.