News

M J Maillis Group, the supplier of end-of-line packaging systems, improved profit margins and reduced costs during the second quarter to 30 June and said its operational turnaround is "on track".

The group achieved sales growth of 1% to €95.6m (£77m) in the second quarter and EBITDA of €6.3m, an increase of 5%.

A pre-tax loss of €7.7m in the second quarter of 2007 has been narrowed to a loss of €4m in the same period in 2008.

However, first-half sales were 1% lower than the first six months of 2007 at €185.4m and EBITDA was 37% lower at €10.4m.

M J Maillis chief executive John Kourouglos said: "I am pleased that much progress has been made during the last several months. From an operating performance perspective, each month has been better than the previous one, with the company achieving in July an EBITDA of €3.9m."

Second quarter sales growth was driven mainly by steel strap (up 8%). Sales of stretch film and machine tools were flat, while plastic strap sales were 8% lower.

Total operating expenses for the first half were down 12% to €4.7m as a result of cost efficiency programmes across the group.

"We believe our operational turnaround is on track and that we have in place a robust recovery strategy," said Kourouglos.

"While I am very pleased with the progress made over the last five months, there is much more that can be accomplished."

Greece-based M J Maillis manufactures and distributes steel and plastic strapping, stretch and shrink wrapping and carton tape, hand strapping tools and machines, stretch wrapping, shrinking and carton sealing machines and special bands.

The group serves customers in more than 52 countries worldwide through a network of 28 owned affiliate companies and more than 350 independent distributors.

Its UK operation is based in Nottingham.