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Tullis Russell Group Press Corner
Profit Rise Achieved At Tullis Russell In Face Of Tough Conditions
Increases in sales volume and productivity, together with cost savings at Tullis Russell, the Glenrothes-based paper and paper products group, resulted in a pretax profit of £1.1 million, up from £1.09 million, on turnover of £127.4 million compared to £117.6 million, in the year to 31 March 2000.
The pretax profit was struck after deducting £1 million worth of shares to be distributed to the group’s employee shareholders. Gross profit was up by 9 per cent at £32 million and a dividend of 1.9p per share, the same as last year, will be paid.
Howard Browning, Chairman, said: ‘the year has been yet another where conditions for UK manufacturers were extremely difficult. Sterling strengthened yet again and prices rose for both pulp and oil. By increasing sales and productivity and by making cost savings, we have achieved a very similar result to last year. Of course, we had hoped to do better’.
Dr Browning added that the Group had made good progress in absorbing its recently acquired decal paper business in Ansan, South Korea. Additional Group sales in the year came from 7,000 tonnes more paper and 37,000 more square metres of coated paper product. A further £5.8 million in capital expenditure was allocated in the year to developments at all four of the Group’s manufacturing sites.
Such a positive outcome should be seen in the context of a difficult trading environment, said James Daglish, Chief Executive. ‘We have to learn how to operate and generate better performance despite the pound being overvalued by as much as 30 per cent.
‘We have a range of programmes designed to give us new products and we will not relax our efforts to restore realistic margins. At the same time we will continue to reduce our manufacturing and selling costs, increase our volumes and seek steady growth through the development of new markets’.
ENDS
For further information please contact Dr Howard Browning, Chairman, James Daglish Group Chief Executive, or George Wishart, Group Finance Director, on 01592 753311.
Issued by Drew Johnston at Corporate Media, 0141 332 3766 28 June 2000
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