Further annual losses for PHS

Major Turriff employer Pelikan Hardcopy Scotland (PHS) has reported further annual losses.

The firm, which manufactures and distributes film products and office consumables, has also seen a further widening of its pension fund deficit.

Figures just released by Companies House show PHS made pre-tax losses of £2.59million in 2011, compared with a deficit of £2.03million the year before. Operating losses in the latest period were £2.05million, against a £1.43million shortfall previously.

Turnover was also down last year, to £ 9.23million from £10.57million in 2010.

Malaysian- owned PHS has been in the red for years. In its latest accounts, bosses said the 2011 trading performance was “acceptable” but added: “The increase in the operating loss does not bring it to an acceptable level.

“We still face negative margins in the majority of our products. According to our sales managers, this negative margin is due to the highly competitive industrial thermal transfer ribbons market.

“As a result of the investments planned and made so far, we anticipate becoming more competitive in this market in the near future.”

PHS, which employed 102 people on average last year, said closure of a competitor in 2011 meant it was confident of increased sales. A £300,000 investment in new machinery in 2009 was producing efficiency savings expected to be worth at least £325,00 a year.

The pension scheme deficit grewto£8.84million last year, from £7.42million in 2010.