Rexams interim results vindicate its decision to jettison non-core activities to concentrate on consumer packaging.

For the first six months of the year Rexam recorded sales of 1.8bn, up 6% on the same time last year, and a pre-tax profit of 103m, an increase of 11%. It is expected to switch to the larger support services sector of the FTSE, which should increase investor interest.

The company has continued to reduce borrowing through disposals, and has realised 675m of its target of 800m for the period 2000 to 2001. During the period the company sold Rexam DSI for 192m, MiTek for 275m as well as European beverage can plants at Runcorn and La Ciotat in France for 52m.

It is also in the process of negotiating the disposals of Rexam Image Products, TBS and its third beverage can plant in Germany.

Chairman Jeremy Lancaster said: Consumer packaging is a non-cyclical business characterised by generally consistent growth and good cash generation.

Story by John Davies