Chairman John Ward issued the statement ahead of the Glasgow-based packaging groups AGM as he said that the businesses are experiencing mixed trading conditions during this year.

Finance director John Love said the group would also continue to rationalise its distribution sites, a programme it started following its acquisition of National Packaging last April.

It took over some 40 sites in the purchase, which Love said led to an element of duplication with its existing 22 UK locations.

Love said that the group would continue its consolidation programme of moving smaller sites into larger units, selling off the surplus sites where possible.

The trading results for the packaging distribution business will be offset by the profits generated from the sale of the surplus sites.

Love said that in terms of trading conditions, the group saw no signs of recovery, but he said the labels business supplying the toiletries and food retail outlets had remained strong.

Story by Andy Scott