20 June 2007 — Fife (UK): Tullis Russell, the independent papermaker, has reported group profits of £500,000 ($996,000) for the year ended March 2007, significantly down on £4.2 million a year earlier.
Chairman Fred Bowden said: "This was a good performance in extremely difficult trading conditions, brought about by soaring energy costs and continued increases in other raw material and overhead costs.
"Despite the reduction in year on year profits, our cash position remains strong having generated £700,000 in cash during the year after £5.2 million of capital expenditure and £3.8 million of additional pension scheme funding. This has further reduced our net debt and brings our gearing down to 30 percent.
"Since the year end, energy costs have eased slightly, however other cost pressures remain fierce. We will respond to these conditions by continuing to focus on our cost base but also by increasing our selling prices."