Athlone Extrusions has reported a 21 per cent rise in pre-tax profits to A3.14 million (£2.5 million) in the six months to March 31st on the back of a 28 per cent increase in turnover to A22.07 million.
The firm attributed the decline in operating margins to rising raw material prices. While the plastics maker is concerned about rising input prices, it expects strong demand to continue in the second half of the year.
Athlone's finance director, Mr Enda Cunningham, said the firm was increasing its stock levels to counter the rising value of sterling. Some 50 per cent of raw materials were purchased in Britain and the firm generated about half its turnover in the market, so this was a "natural hedge" against the currency, he added.
The company said it was investigating potential strategic alliances with a view to exchanging products with other companies in the sector.
Chief executive Mr James McGee said most growth in the first half of its financial year was generated by sales of its specialised engineering plastic, ABS.
The firm had expanded its business in France and Italy. It had also entered and saw further opportunities in the New Zealand and Polish markets. Its next expansion would be in Hungary and Russia, said commercial manager Mr Jackie Browne.
