Paper and plastic packaging group Mpact said on Friday its basic and headline earnings a share for the six months to the end of June were expected to increase by more than 20%.

The company is forecasting lower estimated finance costs for the six months, compared with the previous year, as a result of net debt having been substantially reduced as part of the capital restructuring, prior to its listing on the JSE in July last year.

This would result in basic earnings for each share and headline earnings for each share exceeding the previous corresponding period by more than 20%.

The company said in a statement that an earnings range could not be accurately estimated at this stage and that it would issue a further trading statement in due course.

Mpact traded at R17.05 a share on Friday afternoon – up 0.35% on the previous day.