The strategy, which was embarked on at the beginning of last year, followed a two-year review of the firm's UK operation provoking a mixed reaction from its merchants.

Managing director Simon Ricketts (pictured) said the implementation of the new structure, which involved an enlargement of the firm's sales force, had been very successful.

"It was a courageous, but well-informed decision that we took," said Ricketts.

As a result the firm's sales volume increased and an initial bottom line target of 49,000 tonnes was exceeded. The firm is set to report sales of 66,000 tonnes for 2005.

According to Ricketts this was against 2004's figure of 69,000 tonnes, which had been mainly through merchants Howard Smith, Antalis and PaperCo.

He added that Arctic had enjoyed a good year in 2005 with PaperCo and Antalis, both of whom had "added value".

The plan for 2006 was to further embed the firm's approach, with Ricketts confident that 2006 would be "a big year".