PACKAGING group RPC, which employs 240 at its Blackburn site, has seen profits jump despite rising raw materials costs.

The firm reported turnover rose by 20 per cent to £95 million in the year to April with pre-tax profits up by eight per cent to £8.64 million.

Chairman Lindsay Mackinlay said after a first half of unprecendented increases in raw material costs the second six months had seen a "more normal trading environment".

He said the current year had started well and heavy investment in the business would pay dividends.

The Blackburn RPC Containers site manufactures plastic containers for products as diverse as paint, peanuts, coffee and indian spices.

The group was created from the buy-out of two businesses within the SCA Group and is now the leading manufacturer in its field in the UK.

This year was the fifth in succession that the firm has reported improved turnover, profit and earnings per share.

Shareholders will receive an increased dividend of 3.8p up from 3.45p.

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