Speaking after the company's Annual General Meeting (AGM), Denton said the first green shoots of recovery were finally being seen, albeit fragile ones.

"As I sit here today, all the forecasts say that we will return to profitability in the full-year for 2004."

The St Andrews-based speciality paper maker reported the loss in June this year, after posting profits of 1.28m in 2002.

The losses were attributed to high raw material prices.

This led to a review of its business operations and a move to a single site operation with the closure of its Dalmore mill in July and the loss of 125 jobs (PrintWeek, 3 June).

Curtis also announced at the AGM that it had switched bankers from Bank of America to Royal Bank of Scotland.

"With the changes that we are making what we need right now is more of a relationship banker."

Although he envisaged there would be no further job cuts, Denton stressed the need to be a lower cost-base operation, delivering niche products. "We are cute enough to know you can never say never," he said.

Denton said he was committed to making sure the company focuses on its customer base, and paid tribute to their support during the transfer to a single site.

Investment in the moving of equipment and people is forecast to reach 1.5m by the end of 2004, with some 1.1m to move an entire papermaking machine together with other equipment.

Story by Andy Scott