Exceptional operating costs of 10.3m and a 1.5m loss on termination of businesses the group closed its Dunstable plant and began the closure of the Watmoughs press hall during the year resulted in a pre-interest profit of 25.7m. The 95.8m surplus following the bond buy-back allowed the group to cover its 56.9m interest bill of which 34m is payable in cash leaving a retained profit of 64.1m, compared to last years 100.5m loss.
Chief executive Barry Hibbert was surprisingly bullish considering the gloom affecting many of the groups competitors. He described the results as "a good performance achieved in difficult markets" and said a solid platform for growth had been created. "For the current year as a whole we are expecting similar profit growth to last year and hope partly to reverse the fall in sales experienced in the last 12 months," said Hibbert, who also warned that market conditions remained "fragile and unpredictable".
The previously up-for-sale packaging division was singled out for praise following a major turnaround at the operation.
Polestar has made major reductions in cost and headcount across its operations during the year, with staff numbers reduced by around 10%. However, the group has also retained a 35m provision for business closures on its balance sheet.
Story by Jo Francis
