The Glasgow-based group there were signs that the economic backdrop was improving, but this has not led to a significant upturn in demand. Chairman Graeme Bissett said: "Caution remains the watchword, but we see opportunities in those sectors which are exhibiting recovery and growth." His comments came as Macfarlane reported broadly flat sales of £68.1 million for the six months to the end of June, but lower costs helped pre-tax profits before one-off items rise to £1.6m, from £1.3m a year earlier. Net debts at the group fell to £7.2m, from £7.8m a year ago, and the interim dividend, to be paid in October, was held at 0.5p a share. Bissett added: "The increase in group profit before tax and exceptional items in the first half of the year, coupled with recent new business successes, provides a platform for further growth as we enter the traditionally busier second half."