Chief executive Pierre Darrot said the company was now recovering from its annus horribilis in 2001, when it made a loss for the first time in a decade.

"It's likely that we will participate in the consolidation of the merchanting sector now that we are back on our feet," he said.

Darrot said the fact that the group had managed to bounce back from the verge of bankruptcy showed it had a good, strong foundation.

One of the main reasons for the improvement had been the reorganisation of its sales to focus on customer segments.

In terms of products, he said Antalis had a richer mix than some of its competitors, which made it quite unique in Europe.

Recent results for the year to end of 2003 had shown the group was moving on the right track, with net losses reduced by a third to 3.8m.

Sales were 1.5bn, a fall of 5% on 2002, while net profits before exceptional items recovered from a loss of 4.3m to a profit of 4.3m for 2003 (PrintWeek, 15 April).

In terms of growth, he said Antalis would look to grow in its business segments area, in particular, secondary packaging.

"This will be a most exciting step for us," he said, but declined to comment further.

Investment in its UK operations will continue, as Darrot said the company was moving into a more challenging position, where it was important to continue to invest given the competition.

"Several millions" have been spent by Antalis this year, which included its new logistics centre at Dartford, Kent, in April, with 3,716m2 of warehouse space.

A purpose-built envelope factory at Dagenham has also been added, along with a 1,140m2 warehouse and office unit in Belfast.

Story by Andy Scott