8 February 2012 – trading update

A disappointing trading update from the group has revealed lower sales in both the Speciality Papers business and the Converting business.  This means that profits are now only likely to be at last year’s level.  The group has also revealed that it is to re-organise its US operations by establishing a new manufacturing facility although the latter is not expected to break even until 2015.  There will also be an additional charge of £0.5m relating to relocation and refurbishment which will be taken in the current financial year.  Given the uncertainties surrounding the shares and the fact that there is better value elsewhere they are a SELL.