Offshore rivals can’t keep Colorpak down

Loss of major contract overseas does not prevent folding cartons business, Colorpak, from making money.

Colorpak achieved Net Profit After Tax of $6.413 million for 2009-10, up by 14.1 per cent from $5.620 in the previous year.

Revenue from sale of goods amounted to $80.164 million, an increase of 3.2 per cent on the previous year. This increase came from a combination of solid sales growth from existing customers in the pharmaceutical, beverage and consumer goods sectors.

“This sales increase, whilst modest, is pleasing given the fact we lost a major cosmetics carton contract offshore, valued at $1.9 million pa during this year due to the closure of their local manufacture operation,” Colorpak said in a statement.

Capital expenditure was only $1.2 million for the year. The main item of expenditure for the year was a new eight-colour, narrow web flexo press, acquired when Colorpak bought the Remedies print business in April this year for $0.400 million, which included the operating assets and customer base.

Since the purchase, the business has been integrated with Colorpak’s flexibles division and relocated to its Regents Park facility.

“A near new eight-colour, narrow web, flexo press will provide Colorpak with the benefit of greater speed and flexibility, as well as enabling us to produce a broader range of flexible materials,” the company said.

Colorpak expects that the acquisition will contribute additional revenues of $1 million to $2 million to its flexibles operation.