Paper profits increase despite market’s declining volumes

The UK’s largest independent paper merchants kept the profits rolling despite operating “in a market of declining volumes”.

Sutton Coldfield-based Premier Paper Group increased its pre-tax profits by 3% to £13.0m in 2017. Sales also increased by 3% during the year, reaching £223.7m.

Premier Paper’s finance director Simon Taylor said: “Improving on the results of 2016 was not a given in a market of declining volumes, yet 2017 proved to be a year of improved sales and profitability as the company consolidated its position as the UK’s leading independent paper merchant.”

This follows the company’s acquisition of Paperlinx’s reel paper operations from administrators in 2015 and the launch of two divisions, Premier Packaging and Premier Display, in 2016.

Taylor said there had been “no sign of any let up in the general decline in the use of paper”, but Premier Paper has responded by increasing sales of added value products.

Premier Paper continues to look for ways to reduce costs and improve efficiencies, as it aims to maintain its growth. It is also wary of business failures in the printing sector, and a combination of strong credit control and credit insurance “enabled the company to minimise the cost of these bad debts on its profitability”.

The group employs nearly 450 people and has 15 branches from Glasgow to Devon, with its headquarters in Minworth. It remains positive that it can maintain its current levels of financial performance.

“The outlook for 2018 is for a period of consolidation and to further strengthen its UK market position at sustainable profit levels,” added Taylor.