Inveresk dividend set to return

PAPERMAKER Inveresk has bounced back in the second half and hopes to resume dividend payments this year after a two-year famine. Cost-cutting and falling pulp prices helped push pre-exceptional operating profits to £2.9m in the second half compared with a £1.1m loss the previous six months. Inveresk said that prospects this year were promising and justified an early resumption of the dividend.

The company has halved capital spending under executive chairman Ken Minton, the former Arjo Wiggins Appleton boss. It is closing its Kilbagie mill near Stirling and shedding 170 jobs across the group.

Profits before tax and exceptionals in the year to December were £200,000 against a £6.2m loss last time. Inveresk blamed the strong pound and falling selling prices of its products - paper used in offices and for packaging -for a 9% dive in sales to £106m.