Business

Powerflute, the Finnish containerboard manufacturer chaired by Dermot Smurfit, is continuing to search for "suitable acquisition opportunities" after reporting interim results in line with expectations.

Sales rose 17% to £37.6m (€55.8m) in the first six months of the year. Although overall pre-tax profit fell by a third, this was largely attributable to the costs involved in the firm's stock market flotation in May, and pre-tax profit from ordinary operations increased by 52% to £3.7m.

Powerflute's Savon Sellu mill is one of three in the world that produces Nordic semi-chemical fluting – a market estimated to be growing by 2-3% each year. Its main markets are boxes for fresh and frozen foods.

Smurfit said the company was looking for "underperforming or orphan assets" arising from structural changes in the forest products industry, but that it was "agnostic as to the grade of paper and location".

"Our board has experience in most theatres of the world and virtually every grade of paper, so we are able to do whatever best benefits the company," he said.

Despite a strong market, Smurfit said the company faced a "continued escalation" in raw material costs. However, he said the outlook going into 2008 was "very bullish", and the company was in a good situation to take advantage of the shortage of Nordic semi-chemical fluting.