Agfa is bullish about its prospects in the UK, despite the US slump that has lopped its return on turnover from 10% last year to 6.4% for the first six months of the year.

I dont see the business as gloomy in the UK, said Laurence Roberts, director of Graphic Systems in the UK.

The UK will be fine. People say August has been bad, but firms go bust all the time. A good test is: will you have a big fat Sunday Times in October or the same size as in August? Its a good sign of economic activity, advertising and confidence.

However, a fifth of group trade came from the US and business was unlikely to pick up soon. Roberts expected a struggle to be too joyful at Septembers Print 01 exhibition in Chicago.

This has not deterred Agfa from adding plate production capacity at its New Jersey plant. It will add the Thermostar thermal plate and visible-light N91 plate to its current analogue capacity.

Group earnings, before interest and tax fell 39.5% to 100m (e159m) to June. Turnover fell 5.5% to 1.5bn.

Graphic Systems earnings dropped 14% to 35m in the first six months and turnover fell 3.7% to 612m.

Roberts shrugged this off, saying the acid test is from September to November key months for print ads and newspaper pages.

Second-quarter results were more successful than first, with the divisions turnover rising 5.3%, due to rises in sales of digital printing plates and CTP equipment.

Agfa expected group turnover for 2001 to be down 4%, while earnings may slide about 35%. It aims to restore profits to 10% from 2002, but is keeping secret its Horizon Plan of business initiatives.

Story by Jez Abbott