Industrial supplies group Unidare is hopeful that this year's interim results can match those returned in 2003, the company's annual general meeting heard yesterday.

Mr Jack Hayes, executive chairman, told the meeting that, last November, he had predicted that the disruption associated with relocating its Dutch subsidiary, Daalderop, would make it difficult to match 2003's interims.

However, yesterday he said the company was now hopeful that this year's first-half, which ends on March 31st, would be broadly in line with 2003, when first-half profits were €2.3 million.

Mr Hayes explained that the company was seeing some improvements in US distributor ORS Nasco and UK wholesaler Eland.

"Daalderop's underlying business remains steady which, combined with sizeable reductions in both central and finance costs, could compensate for Daalderop's disruption costs, now substantially behind us," Mr Hayes said.

Responding to questioning from shareholders, he said that the company would begin to pay dividends once it had achieved substantial debt reduction.

In his statement to the meeting, Mr Hayes said that Unidare's net debt was declining, and he added that the board was committed to restoring dividend payments.