LONDON (ShareCast) - Restructuring and cost-cutting helped nappy and protective clothing producer Fiberweb break into profit at the half way stage.

The firm reported a profit before tax from continuing operations for the six months ended 30 June of £1.8m versus a £36.1m loss a year earlier. Underlying pre-tax profit jumped from £500,000 in 2007 to £4.4m this time on revenue up 10% to £260m.

It said further cost reductions are expected by the end of 2009, with annual benefits of at least £5m on a full year basis. Debt dropped by £18.7m to £118.9m.

“The benefits of on-going simplification and investment are clearly evident,” said chief executive Daniel Dayan. “Management actions to increase efficiencies and reduce costs further are expected to benefit the second half, mitigating an uncertain macroeconomic environment and volatility in raw material prices.”

“The board continues to anticipate progress in the group's turnaround for the year as a whole,” he added.

The interim dividend was maintained at 1.7p per share.

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