HOUSEHOLD products manufacturer McBride has seen profits dip despite an increase in sales to record levels.

The firm, which employs more than 430 at its Burnley factory, said prospects for the current year were good.

McBride, Britain's biggest supplier of own label household products to supermarket chains, blamed production difficulties and higher raw material costs early in the year for the fall in profits, although sales had shown a healthy 10 per cent increase.

Turnover in the year to June 30 increased to £486 million from £441 million in 1995 and profits before tax fell from £27.1 million to £20.7 million.

Group managing director Mike Handley said: "The issues which gave rise to the weaker first half performance were resolved in the second half.

"Production problems have been rectified, raw material prices held and our operating margins have subsequently risen."

Mr Handley added that the own label market for toiletries and household products continued to grow.

Shareholders will receive a final dividend of 4.45p a share.

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