GREETINGS cards and stationery group Creative Publishing today announced a rise in profits to £15.2 million.

The firm, which split from Fine Art Developments last October, saw pre-tax profits increase 12 per cent.

Its sites including Hambledon Studios in Accrington, where more than 500 staff produce millions of greetings cards a year.

"Following demerger and rationalisation the group is now clearly focused on the markets in which it operates and well positioned for further growth," said chairman Keith Chapman.

"Trading prospects for the current year are encouraging with everyday sales and booked orders for Christmas, 1998, comfortably ahead of last year."

Mr Chapman said the company continued to lead the industry in its approach to product development.

"We continue to strengthen our design capability and the studios are working very closely with many of the leading art colleges and universities."

Rationalisation caused turnover to fall three per cent to £155.3 million but operating margins increased to 13.2 per cent.

European sales increased by more than ten per cent this year, despite the strength of sterling.

Sales in America remained level year on year.

Card sales to supermarkets and high street multiples increased by 18 per cent.

Directors recommend a final dividend of 5.75p a share, up around five per cent.

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