Associated British Ports (ABP) Holdings plc says a 4% growth in turnover for the first half of 2004 was partly due to increasing volumes of forest products.

The group reported a 2% rise in underlying operating profit from core UK ports and transport activities for the six months ending June 30.

ABP said it intends to grow existing operations and develop new business through targeted investment, with new revenue-related investments totalling more than £33m so far in 2004.

The company said £49.8m of its £130m share repurchase programme, announced during the first of 2004, has been completed. A cost reduction programme will reduce group operating expenses by at least £3m per year from this year.

Group interim results will be announced on September 1.