International household products firm IWP has reported a modest rise in profits, but is confident of healthier growth this year as the benefits of a restructuring plan come through.

The group reported a 2 per cent increase in pre-tax profits to #28.3 million (£22.3 million) in 2000 compared with #27.8 million the previous year. Profit growth was largely due to lower tax rates, with restructuring costs of more than #6 million depressing the full-year outturn.

Announcing the results yesterday, chief executive Mr Joe Moran said the group had changed significantly over the past two years. "It's been a good and bad year. We have had a good performance relative to other players in the personal care sector and we are now focused on becoming a significant player in the niche brands," he said.

Mr Moran suggested the firm could achieve a market capitalisation of #240 million, up from current levels of around #135 million, over the next two years.

Operating profits rose 1 per cent to #39.8 million. Earnings per share were marginally lower at 29 cents while shareholders will be paid a 5.3 per cent increase in dividends to 9.5 cents per share.

Its household products division contributed an extra 19 per cent to operating profits.