Email script token adding line break

Hi

This is my first post here so not sure if I am posting it in the right forum, hope this doesn't offend anyone if it's not.

I am having some issues with a custom email token:

##Capitalise first letter of First Name
#set ($fname = ${lead.FirstName})
#if($fname.equals(""))
  there
#else
  $display.capitalize($fname)
#end

And I insert it in an email like this:

Hi {{my.Capitalise First Name}}. Thanks for getting in touch

However it adds a space before and after the variable and a line break:

Hi   Nancy . Thanks for getting in touch

I have checked 57 times and there are no spaces in the code itself, has anyone had this issue? Any ideas?

Many thanks