News

Margins fell at more than half of UK packaging materials companies in the year 2006/7, according to a Plimsoll Publishing report.

Almost a third of these companies are running at a loss, states the analysis, due to be published on 1 May.

More than a third of companies reported declining sales, with fears of a global credit crunch causing recessionary behaviour.

Demand for short-term finance was also up, at a time when banks and financiers are tightening up restrictions on loans.

As many as one in six packaging materials companies could be forced to close if this trend continues, the report predicts.

Small companies, with their concentration on local and domestic markets were found to be least affected.

Plimsoll senior analyst David Pattison said: “I was surprised to see just how much the packaging materials market is feeling the pressure.”