ONE of South Lakeland's largest manufacturers says it is much more upbeat about its prospects for the rest of the year.

James Cropper plc had forecast that papermaking profits would be hit by a double whammy of spiralling energy bills and rising raw material prices during the second half of the year.

But chairman James Cropper said the trading outlook had "improved significantly" since the Burneside company announced its interim results last November.

Mr Cropper said his prediction had been based on forward market projections of another substantial rise in gas prices, but this has had failed to materialise and his gloomy outlook now appeared to be "overly cautious".