Packaging group ILP has returned to profits following losses in 1998. The year had started well and prospects were "very good", according to the Leixlip group's managing director, Mr Paul McLaughlin.. ILP will record profits in 1999, he added.

Latest results showed a net loss of £916,000 (€1.16 million) in 1998, up on the loss of £570,000 (€724,000), in the previous year. Mr McLaughlin said the company recorded a trading profit of £685,000 in 1998 but non-recurring charges of £1.5 million led to a loss.

The non-recurring costs included a write-off of the joint venture proposal with an American partner, of £1.06 million, manufacturing consultancy costs of £261,000 and termination payments of £187,000.

Sales grew by 28 per cent to £18.49 million. ILP said its joint venture companies in Malaysia and Galway had shown good growth in turnover and profits. Progress has continued at Ire-Tex Malaysia which has expanded into mainland China.

And its new 50 per cent joint venture in the Czech Republic has "performed well", according to ILP.

Its plants in Limerick and Northern Ireland are said to have enjoyed good turnover and profits with a better performance. Trading at Leixlip was below expectations but has improved in the second six months. This trend is continuing.

In November, ILP announced a £2 million rights issue, the departure of managing director, Mr Paul Burke, to a non-executive role and a £1 million write-off against a Northern Ireland joint venture, as part of a restructuring.