A Fife business that makes 7,000 paper bags every minute has invested £4m in new equipment after reporting continued sales growth.
Smith Anderson make paper bags for all the main foodservice restaurant chains in the UK. It is also the largest supplier of pharmacy bags.
Its extraordinary rate of production means it can make over 70 million paper bags every week.
Newly published accounts for the year to September 2021 show the firm’s turnover rose from £28.9m in 2020 to a record £36m last year.
‘Excellent’ result despite pandemic
In a report published alongside the figures, outgoing chief executive Michael Longstaffe said: “Despite the continued challenges of the pandemic, the company delivered an excellent result.”
He highlighted a growth in profit for the third consecutive year, whilst adding that growth in the home delivery and takeaway sectors saw Smith Anderson deliver record sales.
Mr Longstaffe added: “Our 46 year partnership with McDonald’s restaurants in the UK and key European markets remains especially strong.”
The firm, based in Kirkcaldy’s Rosslyn Commerce Park, reported a pre-tax profit of £2m, a slight increase from £1.9m in 2020.
Mr Longstaffe, who joined the business in 1996, said last year was “extremely challenging” given the ongoing impact of the pandemic.
He adds: “Keeping our staff safe has always been our top priority and we have rigorously applied Covid-19 protocols, from a factory-wide one-way system, mask wearing, increased hygiene regimes and numerous process changes.”
Smith Anderson investing in equipment
Mr Longstaffe retired as chief executive in April and has been succeeded by Keith Verden-Anderson
Mr Verden-Anderson is the form’s new managing director follows in the footsteps of his father, William Verden-Anderson, who held the same role in the 1970s and 1980s.
The 163-year-old family business has increased its workforce by 45 people in the past two years, from 237 to 282.
The firm had to deal with high levels of staff absences, which led it to recruit more employees, some to cover self-isolation, the rest to fuel continued growth requirements.
Mr Longstaffe also revealed plans to invest the £4m in new equipment, in addition to £1.3m investments made last year.
“The previous year we invested in three additional paper bag making machines.
“Smith Anderson continues to refurbish existing and invest in new machinery.”
New boss at Fife paper bag firm
The new investment in paper bag machines will allow the company to expand capacity for existing markets and also create additional volume for new opportunities.
The latest machines, which arrived on site last month, are two large paper tape handle machines for making printed carry-out delivery bags.
The new managing director believes these will help the firm sustain its positive trajectory.
Mr Verden-Anderson said: “I believe that with the fantastic resources of our dedicated and experienced employees, coupled with our great and loyal customers, the company will continue to grow from strength to strength.”
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