A surge in debt at glassmaker Ardagh has triggered a 50 per cent fall in pre-tax profits from €7.96 million (£6.27 million) to €3.78 million (£2.98 million) in the first six months of 2000.

Trading profits were hit by a €11.4 million charge for deferred financing costs related to the acquisition of the UK Rockware group last year. The underlying trend was positive, though, with Rockware contributing to an 82 per cent increase in turnover to €151.4 million. Group trading profit was 60 per cent higher at €18.8 million. The figures also include rationalisation costs of €200,000.

The board has announced no change in the interim dividend for shareholders at €1.65 gross per share.

In a statement, Ardagh chairman Mr Paul Coulson said the group's performance was ahead of budget targets and last year's out-turn. He said the overcapacity problem in the European glass industry has continued to put pressure on profit margins.