Powerflute suffers from weaking demand

Nordic packaging and paper group Powerflute suffered from weakening demand and price pressure in certain markets as a result of the "increasingly challenging economic environment".

Despite this, the firm expects the results for the full year to be slightly ahead of current expectations after operating profit from continuing operations in the second half was similar to that of the first half, despite the earlier period including a gain of €1.9m from the sale of Harvestia shares.

The group ended the year with net cash of €19.1m, consisting of cash and cash equivalents of €45.6m and total borrowings of €26.5m.

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In a statement this firm said: "The uncertain economic environment continues to affect consumer confidence and market conditions for Packaging Papers are more challenging now than they were for much of 2011.

"However, we are confident that the group is well positioned to benefit from any improvement in conditions as the year progresses and has the financial resources to take advantage of opportunities as they arise."

The share price fell 2.33% to 21p by 12:59.

NR