Specialist engineering and plastics group McKechnie PLC (Leighswood Road, Aldridge, GB-Walsall WS9 8DS) reported increased turnover and profit for the sixth year in succession although profit was severely dented by the cancellation of a problem contract in North America. Turnover for the year to 31st July 1997 rose by 11.3% to GBP 650.6m (GBP 584.6m) but pre-tax profit advanced just 2.6% to GBP 51.6m (GBP 50.3m) following a GBP 4m charge incurred after a process for painting plastic mouldings failed to work adequately at a North American plant established for this purpose. Another problem area for McKechnie was the Australasian market where in consumer products, weaker demand, lower margins and increased administration and distribution costs forced these operations into a significant loss. The overall effect was a halving of pre-interest profit for its consumer products division to GBP 8.1m. McKechnie is a major supplier of curtain track and rods, window blind components, and injection mouldings for the furniture, building and DIY markets. It has operations in the UK, North America, Belgium, Netherlands, Germany, Australia and New Zealand.

On the positive side the European operations of its plastics division performed well. Paxton (Green Lane, Walsall, GB-West Midlands WS2 7PB), a manufacturer of materials handling products, won further business from supermarkets for its "Maxi-Nest" range of RTP (returnable transit packaging). Its plastics sector also includes five plants in the UK primarily supplying injection moulded parts for telectronics as well operations in Australia, USA, UK and Spain to supply automotive components (wheel trims and brake and fuel components).