King's Lynn-based Palm Paper presses ahead with better set of results
PUBLISHED: 10:34 07 October 2015 | UPDATED: 09:58 08 October 2015
Leading newsprint manufacturer Palm Paper reported a better set of results for last year, thanks to an uplift in the price of paper in the first six months.
The King’s Lynn-based mill, which produces paper for news organisations across the country, had recorded a £7.6m pre-tax loss in 2013.
But last year the EDP Top100 firm’s like-for-like loss had dropped to £157,776.
Overall sales volumes for newsprint last year were in line with plan, and 3.8pc above 2013, according to the German-owned firm’s end-of-year accounts for 2014 filed on Companies House.
The directors’ report said: “The improved result was generated by price increases during the first half of 2014, coupled with high production efficiencies realised on PM7. A market price reduction in the second half of the year reduced the result attained.”
In the report, the directors said a structural reorganisation in the group had led to a reduction in the average number of employees from 198 to 187.
It also said demand for newsprint in the UK had decreased by 5.5pc, but this was offset by European machine closures, resulting in a favourable demand and supply balance.
Turnover for the year was £162.3m, down from £167.4m in 2013.
“Customer satisfaction continues to be a focus, because of the demanding level of quality and service required to supply both newsprint and corrugated case materials in the UK,” the report said.
“Customers also expect the high percentage of deliveries made on time in a just-in-time environment.”
The directors said the main objective for the group in 2014 was to maintain high production volume levels of newsprint on the machine in King’s Lynn.
“In striving for this objective it was essential the high quality of product established and demanded by UK pressrooms is maintained,” they said.
“The drive to maximise production without compromising quality remains the main goal.
“The sales initiative to increase volumes in improved newsprint grades will continue.”
The report also said sales of corrugated case materials were marginally below forecast. The mill produces paper for many of the UK’s newspapers, including the Telegraph, the Daily Mail and the Eastern Daily Press.
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