Ofex-traded Supreme Plastics, which makes re-sealable flexible plastic packaging, is considering new acquisitions after reporting a 15 per cent increase in pre-tax profits to £1.2 million, writes Robert Tyerman.

Supreme made £1.16 million pre-tax in the year to August on sales of £15.6 million. During the year, the company bought Malpack, maker of printed flexible plastic packaging for the food industry, from the receiver of its parent company, Malpack Converters, and the stationery division of Accolade Enterprises, which makes concertina files, storage cases, legal wallets and Arianex files.

Chairman David Halpern says Supreme has been able to fund these acquisitions out of its own cash flow and intends to pay in the same way for new acquisitions now under consideration. A recently established joint venture with Pliant Corporation of the USA is, he claims, providing the company with a 'relatively low-risk direct entry into the American market'.

Supreme was floated on Ofex in 1998 at 65p. After trading this year between 33.5p and 50.5p, the shares now stand at 40.5p.