The "disagreement" was reported in The Scotsman newspaper as the group announced its year-end results for 2004.

Walker said both sides were laughing at the reports, which was over an agreement by Inveresk in August last year to sell its Boreland Reservoir.

A replacement deal went through in April this year, which was referred to by the Inveresk board as a straight substitution.

However, had the deal not been included in the 2004 results the firm's 184,000 profit for the year would have been a 417,000 loss.
Walker said the strength of the euro had played a part in affecting the results, especially pre-tax profits.

"Sales pricing is not moving in line with inflation, and when the euro is strong we suffer due to our exposure to export markets," said Walker. "It's a question of paddling a bit harder just to stay on the spot."

Sales for the year increased 2.4% to 40.7m, but pre-tax profits slumped from 3.1m in 2003 to just 184,000 in 2004.
Inveresk's shares remained stable at 12.5p.

Story by Andy Scott