Covid, a resin crisis, soaring energy costs and transport issues couldn’t stop Dundee company Discovery Flexibles from making its best profits in 25 years.
The packaging company has operated from the same site in Kemback Street since 1866.
But the factory’s machines were close to being turned off forever when Jimmy Urquhart took control of the business at the end of 2018.
Discovery Flexibles, which has a workforce of 70, was on the verge of administration after accumulating losses of £2.6 million over four years.
Under his leadership, the business turned the corner and in 2019 made a profit of £9,412. It gave employees confidence the company could be saved.
Despite the impact of Covid in 2020, Discovery Flexibles made a pre-tax profit of £240,000. New accounts show this more than doubled to £502,000 in 2021.
Mr Urquhart said: “This is the highest profit the company has made since 1996.
“Given everything that this business has been through, it’s an absolutely incredible result.
“I am so proud of what we have achieved. It’s been a real team effort.”
‘New norm is constant chaos’
Discovery Flexibles provides packaging for everything from bread to ready meals. It can print and laminate plastic film, paper, aluminium and nylon.
The accounts might tell a story of growing sales and profits, but Mr Urquhart said the sector had faced constant turmoil over the past three years.
Staff coped admirably with challenges brought about by Covid.
But a freak winter storm in the Gulf Of Mexico then led to an industry-wide resin crisis, with price increases caused by the Ukraine war the latest challenge.
“We’ve done our bit to share the pain with our customers but clearly we couldn’t just sit back and hope it went away as it hasn’t.
“The Russian war has directly impacted on our industry. Much of the raw material components used in flexible packaging are sourced from Russia. This was not entirely obvious within the supply chain until now.
“That has caused another supply shortage and rocketing prices once again. Meanwhile our energy bills are eye watering.
“Consumers are seeing the knock on effect of it all in their weekly shop.
“It’s horrible right now. I think that the new norm is constant chaos to be honest.”
This year, the business aims to add another £1m in revenue to its sales of £13m last year.
Some of this income will come from businesses moving their supply chain back to the UK.
“Customers are really starting to look at security of supply and questioning the huge freight costs of shipping product half way round the world,” the manager said.
“We continue to make small and steady investments in the business, which helps us prepare for the next chunk of targeted growth.”
Long-serving workers replaced with ‘beginners’
Last year Discovery Flexibles employee Gerry Colston retired after 52 years.
Two printers retired within a week of each other last month – one with 44 years’ service and another with 45 years’ service.
Mr Urquhart adds: “It really makes me proud to know that the actions taken in 2019 to save the business have kept these guys in employment. They have been able to retire at a time of their choosing.
“We’ve all grown up together in this business. Since 2019 I’ve directly overseen five people retire from the company, all of them on more than 40 years’ service. That’s quite an achievement in itself.
“Those five people had 236 years of service between them.
“We’ve been aware of this coming and have people trained to take over their roles.
“Some of these are just beginners with only 15 years or so experience! They have big boots to fill.”
In its long history Discovery Flexibles has had several owners, including Low & Bonar and Constantia.
It has been known as Wellfield Works, Bonar Packaging Films, Teich Flexibles and Danapak Flexibles.
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