Results for group sales for the first half of 2004, which now include Carbonless Europe, were down 2% on the previous year to 694m (E1bn). Operating profits also fell 7% to 50m for the same period, while net profits improved by 7% to 24.2m.

A spokesman said margins had been squeezed by the increase in pulp prices in the first half, which was not offset by higher selling prices for paper. The firm's Antalis paper merchanting operation fared somewhat better. Sales for the division were 803m, a fall of 1%, while a positive net profit of 3.4m was achieved for the first time in four years. Operating profits were up 64% to 16m for the period.