BIG rises in fuel costs are still eating into the profits of one of South Lakeland’s largest manufacturers.
Papermaker James Cropper said severe increases in energy costs, mainly for gas, had dominated the group’s performance in the first three months of the year.
Chairman James Cropper said as a result the firm’s main papermaking operation had traded as a loss during the first quarter, underlining the difficult trading climate facing the subsidiary Speaking at the Burneside company’s annual meeting, he said: “To illustrate the challenges we face, volatility in forward gas prices over the last month has been sufficient, at its peak, to potentially reduce our results for the group as a whole for the full year to a loss.
“Based upon current market projections, the cost of gas consumed in the current financial year could exceed £5.5 million, compared with £2.7 million in the previous financial year.”
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