Paper and packaging distribution company Denmaur Independent Papers has posted a strong set of results for its 2022 financial year.
A recent filing at Companies House showed that Denmaur’s sales in the 12 months to the end of April 2022 were £98.4 million. This marked a significant recovery from the prior year, when revenue was around £63 million.
The reduction and removal of the majority of COVID-19 restrictions led to a 40% increase in volumes as the wider UK economy recovered. In fact, overall volumes were very close to pre-pandemic levels. However, the change of product mix, with an increase in added-value – versus commodity – products, contributed to increased profitability.
The company reported a pre-tax profit of £4 million, while EBITDA was £5.1 million. These numbers were both significantly higher than in the previous financial year.
In his annual report statement, Chairman Harry Gould said demand had returned to more normal levels, with sales expanding at both existing and new customers. This included “considerable growth” at Denmaur’s paperboard and packaging division, alongside “good demand” for its Revive brand of recycled paper.
Gould added: “The world is not without its challenges at present, with the knock-on effects of COVID, the war in Ukraine, political uncertainty, rising energy costs, high inflation and well-publicised global supply disruptions. Nevertheless, we still look forward to seeing Denmaur expand our business further into 2023 and beyond, with a combination of organic growth and further possible acquisitions to add to the recently completed purchase of the trade and assets of Middleton Paper Company and Vision Paper and Board.”
Gould said the first four months of fiscal 2023 were an improvement on the prior year and that Denmaur continued to be “very happy” with Middleton’s performance.