Directors at manufacturing firm Encore Envelopes have hailed a strong year after growing turnover 24% following a key acquisition.
The Washington business has posted results for the year ending 30 November 2018 showing a big leap in turnover to £32.7m, along with a 12% jump in operating profit to £1.318m.
The increase comes as it increased its market share and cemented its position as the UK’s largest independent manufacturer of printed envelopes after acquiring Leeds based Great Northern Envelope Company Limited (GNE) out of administration in February 2018.
Encore stepped in at the eleventh hour to buy the business, saving scores of jobs.
The acquisition comes three years after snapping up a UK subsidiary of Spanish competitor Tompla Envelopes and took the total workforce to an average of 256 during the accounts year.
Looking ahead, the firm said it will concentrate efforts of increasing revenue streams, and in improving efficiency in its operations, adding: “The directors aim to maintain the management policies which will ensure that the company retains its position as the largest independent manufacturer of printed envelopes in the UK.
“The company will continue to provide quality service and product to both existing and new customers.”
Russell Croisdale, managing director at Encore Group, said the UK industry remains highly competitive, and said that a further fall in mailing volumes led to a continuation of aggressive pricing within the industry.
As a result, the firm has seen a drop in its gross profit margin, which has fallen from 17.1% to 16.0%.
He said: “The results vindicate our decision to acquire GNE which we have now relocated to a modern unit in West Yorkshire that has proved to be perfect for our sales and overprinted envelope operation down there.
“Meanwhile the product which was previously actually manufactured at GNE is now being produced at our efficient plant here in Washington, where we have invested further and safeguarded jobs for the future.”
“Encore is now able to offer a diverse range of products and quality of service which cannot be matched anywhere else in the UK.”
