The Courier & Advertiser (Fife Edition)
Bag company unwraps £4m new machines
AFife business that makes 7,000 paper bags every minute has invested £4 million in new equipment after reporting continued sales growth.
Smith Anderson make paper bags for all the main food service restaurant chains in the UK. It is also the largest supplier of pharmacy bags.
Its extraordinary rate of production means it can make more than 70 million paper bags every week.
Newly published accounts for the year to September 2021 show the firm’s turnover rose from £28.9m in 2020 to a record £36m last year.
Outgoing chief executive Michael Longstaffe said: “Despite the continued challenges of the pandemic, the company delivered an excellent result.”
He highlighted a growth in profit for the third consecutive year, while adding that growth in the home delivery and takeaway sectors saw Smith Anderson deliver record sales.
Mr Longstaffe added: “Our 46-year partnership with McDonald’s restaurants in the UK and key European markets remains especially strong.”
The firm, based in Kirkcaldy’s Rosslyn Commerce Park, reported a pre-tax profit of £2m, a slight increase from £1.9m in 2020.
Mr Longstaffe said last year was “extremely challenging” given the ongoing impact of the pandemic.
He retired as managing director in April after 27 years of service.
He has been succeeded by Keith Verden-Anderson who follows in the footsteps of his father, William Verden-Anderson, who was managing director in the 1970s and 1980s.
The 163-year-old family business has increased its workforce by 45 people in the past two years, from 237 to 282.
The firm had to deal with high levels of staff absences, which led it to recruit more employees, some to cover self-isolation, the rest to fuel continued growth requirements.
Mr Longstaffe also revealed plans to invest the £4m in new equipment, in addition to £1.3m investments made last year.
“The previous year we invested in three additional paper bag making machines,” he said.
“Smith Anderson continues to refurbish existing and invest in new machinery.”
The new investment will allow the company to expand capacity for existing markets and also create additional volume for new opportunities.
The latest machines, which arrived on site last month, are two large paper tape handle machines for making printed carry-out delivery bags.
The new managing director believes these will help the firm sustain its positive trajectory.
“I believe that with the fantastic resources of our dedicated and experienced employees, coupled with our great and loyal customers, the company will continue to grow from strength to strength,” Mr Verden-Anderson said.