The company reported a pre-tax profit of £44.1m for the six months to 31 October 2008, down from £56.1m in the same period a year earlier.

Group revenue increased to £1.1bn, up from £942.7m the same time a year earlier.

Chairman Peter Johnson said: "Our focus on maintaining the group's sound financial position was reflected in good cash generation and our successful extension of the group's financing facilities."

However, the company expects trading conditions to remain difficult and it said it will continue to take concerted action to support its market positions.

It will implement an action programme to focus on cost reduction and cash generation. This comes after the company implemented a further price increase for its corrugated products following weaker market conditions and high energy costs.

Group communications director Peter Aubusson said: "We're trying to make sure that our capacity is appropriate for the lower level of demand.

"One key challenge for 2009 is that we keep cutting back on capital expenditure."

However, he said it is difficult to predict what the market will be like next year: "What we do know is that we have to continue to be adaptable."

Earlier this year, the company acquired New Thames Paper Mill from M-real for £60m.