Russell Croisdale, who has been managing director of the group since 2007, and group finance director Mike Williamson will both leave the business on Sunday (28 February).

Croisdale will be succeeded by group production director David Cooper, supported by existing board members sales director Craig Allen, operations director Mark Eyeington and financial director Gary Joyce.

Croisdale said: “Over the years, we have had the privilege to work with the very best people in our industry, who have all helped to create the successful and financially strong company we are today, with a renowned reputation both in the UK and globally.

“With the business in such a strong position, it felt like the right time to step down, and I’m confident we are leaving Encore in the safest of hands.”

He added: “Between them, the four directors have been part of The Encore Group for more than 75 years, so it gives the management team a greater degree of continuity.

“Having said that, I am going to miss it – the team the most. I’ve worked in envelopes for 29 years and paper beforehand, and I was a part of the industry for a total of 40 years, so I’ve met a lot of people along the way; a lot are friends first and foremost, and colleagues after.

“However, when we took over Encore in 2007, the aim was always to build a profitable and well-respected business – both among our employees and our peers – and I think we did that.

“I’m still going to be around for advice as and when the team need it, but I’m looking forward to seeing them make their own way.”

Croisdale, whose first grandchild is due in May, said he will continue to hold a non-executive director role with Encore, as well as remaining on the boards of the European Federation of Envelope Manufacturers and the Global Envelope Alliance.

Cooper, who has been with the company for more than 25 years and a director since 2003, added: “This succession plan has been years in the making but it is still difficult when the time comes for members of the board to step down and retire.

“However, the board and I are looking forward to the challenge and developing the company further.”

The Encore Group, which comprises envelope manufacturer Encore Envelopes and Encore Packaging Solutions, operates from sites in Peterlee, Washington and Dewsbury, West Yorkshire. It employs 290 staff and has a turnover of £35m.

The company is owned by the directors and Croisdale and Williamson will retain a minority share when they step down.