02 September 2018 Business

Encore, hit by dip in mail, pushes on in packaging

Encore Envelopes has reported a fall in sales as direct mail volumes bite, but is bolstering its packaging solutions business.

Encore Envelopes is embarking on an expansion plan, buoyed by a return to profits of more than £1 million. This was a move the pretax profit of £758,000 reported for 2016, but on revenues that slipped by £2 million to £26.3 million from £28.3 million.

Managing director Russell Croisdale says that pricing has remained aggressive as mail volumes slip. “This pricing has led to come competitors failing,” he says, naming Rapid Envelopes and Great Northern Envelopes. The assets of this business were acquired from the administrator in February and will boost 2018 sales.

GNE had sales of £12 million and moving work to the Washington factory from Leeds will protect jobs and deliver cost savings, Encore said at the time. The group swelled by 120 employees with the deal.

Croisdale says: “The GNE acquisition has guaranteed continuity of supply for GNE customers whilst providing more volume for our efficient factory here in the North East. We’ve invested further in our manufacturing capability and as a consequence are creating more job opportunities here in the North East.”

This has included recruitment to Encore Packaging Solutions with Chris Reilly joining as technical design and studio manager; Danny Moloney joins to run the Cad machine and prepress with additional experience in die making and printing; Alison Betts joins as internal sales manager and Gosia Grochowina is joining the client services team.

Encore Packaging at Peterlee is earmarked for further growth Having achieved BRC Global Standards accreditation this year. This enables the company to produce direct food contact printed packaging, opening up new potential for the business.

Production of envelopes at the two envelope factories has become more clearly defined. The Leeds operation will more to a new factory and continue to offer overprinting and overnight production with the Washington factory for volume products.

Gareth Ward

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