Tullis Russell is putting a brave face on its first ever pre-tax loss, saying it is on firmer foundations after job losses and closures.


The loss of nearly 3m came after the company in Glenrothes, Scotland, saw its turnover rise from 127m to 134m.


Group chief executive Fred Bowden said last autumn was a 30-year low for the industry. Its severity was down to a strong dollar, weak euro, high pulp prices, weak market in the UK, slow trade in Europe and a decline in trade with America, he said.


"Given the currency situation, that we are a major exporter, and that our raw material costs have been rising very steeply, weve weathered it pretty well."


The firm closed an old paper machine and made nearly 100 staff redundant last year. It slashed costs on warehouse distribution and admin, but spent on increasing capacity and computer-based systems.


"There are many uncertainties, but we have laid a foundation for better times," said Bowden.


He added that more job losses were unlikely. "You can never say never, but we are looking to build and capitalise."


Tullis Russell reported a loss of 92,000 before tax and the cost of redundancies and closures in the year to 31 March. It reported a pre-tax profit of 1.1m last year.


Chairman Howard Browning said the 1,000-staff firm was on the up since its lowest ebb last November.


"The closures and redundancies will reduce costs this year. The paper industry has been in turmoil in the UK. But in comparison with others we have weathered the storm fairly well."


Dividend per share is being held at 1.9p.


Story by Jez Abbott