Paper Firm In Profit Despite Difficult Trading

With profits of GBP0.5m in the year to March, Tullis Russell Group has stayed in the black despite what it described as exceptionally difficult trading conditions.

The independent, employee-owned papermaking and coating company's results compare with a profit of GBP4.2 million for the year before.

Tullis Russell chairman, Fred Bowden, commented: "This was a good performance in extremely difficult trading conditions, brought about by soaring energy costs and continued increases in other raw material and overhead costs.

Despite the reduction in year on year profits, our cash position remains strong having generated GPB0.7m cash during the year after GBP5.2m of capital expenditure and GBP3.8m of additional pension scheme funding.

This has further reduced our net debt and brings our gearing down to 30 per cent." He added: "Since the year end, energy costs have eased slightly but other cost pressures remain fierce.

We will respond to those conditions by continuing to focus on our cost base but also by increasing our selling prices.".

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