In the 12 months to 30 June 2011, the packaging company’s revenue jumped 57% from $80m to $125m. Earnings before interest, tax, depreciation and amortisation (EBITDA) reached $15.8m, an 8.2% increase. After-tax profits grew 10% from $6.5m to $7m.

However, the CHH buyout put the squeeze on margins, with full-year EBITDA representing 12.6% of turnover, down from 18.2% in 2009-10, and after-tax profits at 5.6% of revenue, a year-on-year fall from 8%.

Managing director Alex Commins (pictured) told ProPrint that the next 12-18 months would be challenging as the company works to normalise “CHH’s distressed assets”.

“Customers need to be aware that the industry is under massive pressure due to globalisation,” he said.

Commins said the first step had been to increase prices, adding that CHH’s customers had been receptive to the slight hike.

“They need to understand that the pricing has to be right because if you haven’t got oxygen, you are not going to be around for very long.

“The acquisition of the CHH assets has not only been a company-changing event, but indeed an industry-changing event,” he added.

“However, there is a substantial amount of work to be done to complete the integration of these operations.”

Colorpak finalised its takeover of CHH’s folding carton assets in March this year. The buyout followed a decade of acquisition activity, including its 2010 takeover of flexo firm Remedies Print and the 2004 move on Castle Graphics.

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