The Italian specialist paper manufacturer said it had 2% growth in the first quarter of 2009, despite a general market decline of 25-30%.

Turnover for the eight months to December 2008 was €74m (£66m), when it also recorded a net income of €2.4m, representing a pro forma annual EBITDA of around 8%.

The company said it would pursue opportunities that fit in with its specialist products strategy, with an increased focus on digital and top-end specialist applications alongside its historical offering.

Favini Srl started operations on 1 May 2008, following the takeover of the assets of Favini Spa, which went into liquidation in January 2008. Private equity company Orlando Italy completed the asset purchase in February 2009 and now controls 60% of the new company's equity, while Vepafer holds the rest. The Favini family now has no stake in the business.

Favini Spa had two paper mills in Holland, which were put into liquidation in 2008. The new Favini now has no links with the two mills.

Favini chief executive Andrea Nappa said: "Last year we worked hard to improve profitability and offset the negative impact of high pulp and energy costs. As a result, in 2008 we have witnessed around a 20% increase in the average selling price of our overall products portfolio due to mix improvement."

However, he believes the industry has not seen the bottom of the market yet, but believes the current period of de-stocking will come to an end soon.