Finance director Tim Hughes said the company, which celebrates its 75th anniversary later this year, is planning to improve logistics and install a new slitter to upgrade facilities. The new investment followed other improvements, which included a new roof over its coating facilities. Technical staff are also working on expanding its ink-jet papers range for digital printing.

"In general, we have bucked the trend and our performance has been solid, with sales growing steadily," said Hughes.

Although turnover of 13.5m and pre-tax profits of 700,000 for 2003 were both slightly down on the previous year, Hughes said the firm was fortunate that its niche business has taken it into higher margin areas.

Slater's joint venture JV Synthetic Coaters, a 50-50 partnership with Tullis Russell Coaters, is starting to bear fruit. Formed 18 months ago, Hughes said JV was planning to develop new products, in response to customer requirements.

The company specialises in coating synthetic substrates including polypropylene, polyester and Tyvek. It offers coatings to add colour and properties, such as ink-jet ink adhesion and solvent resistance. JV Synthetic Coaters is a combination of Slater Harrison's technical knowledge and Tullis Russell Coaters sales contacts.

Slater, formed in 1929, employs more than 100 staff. It manufactures products such as Centura Pearl coated papers for the gift-wrapping market and Educraft metallic papers.