The Polish-based speciality paper manufacturer recorded EBITDA of PLN 59m (£12.7m), a drop of 70.1% from PLN 198m a year earlier. Net profit for the three quarters was down 106.1% from PLN 101m in 2009, to a PLN 6.1m loss.

Garry Colyer, managing director of Arctic Paper UK, said: "The economic situation of our customers and the value of the pound are both challenges and opportunities for us all.

"Fortunately, the quality, volumetric aspects and environmental attributes of the Arctic range can help customers improve their situation."

Colyer added that the environment continues to play a key role for the company as well as its customers. "The environment has always been exceptionally important to Arctic Paper and we will continue to be at the forefront," he said.

Colyer predicted that pulp and exchange rates will continue to impact on paper companies, but said the business has "no increases planned for the UK at this time".

Arctic Paper recorded total sales of PLN 1.67n for the three quarters of 2010, up 22% from PLN 1.4bn a year earlier. It said growth in the total volume and sales revenue was driven by Grycksbo Paper Holding, which it purchased in March this year.

Demand for paper also increased compared to last year and was a contributing factor when implementing further price increases.

Michal Jarczynski, chief executive of Arctic Paper, said: "Results after the three quarters of this year have been under a huge pressure of unfavourable market factors, such as a persistently high price of our basic raw material, pulp and a strong appreciation of PLN and SEK against EUR.

"This has adversely affects the group's financial performance, primarily with regard to sales revenue generated by Arctic Paper."