The Kendal-based specialist papermaker also said its paper division continued to suffer from adverse trading conditions, and would report a small operating loss for the six months to 27 September. Group profit before tax for that period would not be more than 100,000, it said.
Despite the conditions, the company still believes that considerable expansion opportunities exist for the paper division within the UK and some of its export markets.
The weak US dollar has also continued to have an effect on the US sales margins of its converting and technical fibre products divisions.
The group will announce its results for the six months to 27 September on 18 November.
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"Gosh! That’s a huge debt - especially HMRC! It’s a shock that HMRC allowed such an amount to be accumulated."
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