The Courier & Advertiser (Fife Edition)
Investment in historic Fife mill pays dividends
Millions have been spent upgrading the Sapphire mill in Leslie which is now operating ‘efficiently’
A strong performance by a Fife mill helped its owners achieve a sales boost of 13% last year.
Fourstones Paper Mill owns the Sapphire Mill at Fettykil in Leslie, formerly the Smith Anderson site.
It manufactures cellulose wadding and hospital disposable underpads and converts tissue for UK healthcare and industrial markets.
The firm also operates the South Tyne Mill at Hexham in Northumberland and has a workforce of 155.
Recently filed accounts at Companies House show sales rose from £25.4 million to £28.6m for the year ending March 31.
Pre-tax profits increased by 21% from £754,000 to £911,000.
The Fife operation has seen millions of pounds spent on investments in recent years, with managing director Peter Duxbury stating the facility was now operating “efficiently”.
“The trading result was in line with expectations and with the Fettykil site now operating efficiently, the business achieved revenue growth of 12.8%,” he wrote in his strategic report in the annual accounts.
“While this revenue growth is positive, external cost pressures continue to be considerable with waste paper and chemical costs increasing by 10% and heat and power increasing by 19%.
“Consequently, gross profit margin has decreased by 1.8%.”
He added that he was confident the businesses was in a “strong” position and will show an improved performance in the future.
Established in 1763, Fourstones Paper Mill has a tradition of manufacturing specialist paper.
The firm underwent a management buyout in 2000 with the death of previous owner GT Mandl. Since then the company has spent millions of pounds on upgrading its equipment and developing new products.