High dollar will offset gains, says Vertex

Plastics company Vertex Group expects sales growth and operational improvements to lift its half-year profit by as much as 15 per cent to $2.5 million.

However, the company said rising costs of raw materials and the high kiwi/aussie cross rate would offset these gains in the second half and its full-year result was not expected to be much different from last year.

The company said it anticipated a net surplus after tax for the six months to September 30 of between $2.4 million and $2.5 million, up 12 to 15 per cent on the same period last year. "This result has come from sales growth and improvements in operating performance which have delivered an increase in earnings before interest and tax expected to be in the range of 8 per cent to 9 per cent," the company said.

This is "despite unprecedented increases in raw material prices and growing strength in the New Zealand dollar against the Australian dollar".

The company said those factors were forecast to stay strong during the second half and could only be partly offset. "Consequently, the company advises that the full year result should not be expected to be significantly different from the previous full year."

- NZPA