Chairman Tony Langley said the former sheetfed division of Manroland, which Langley bought out of administration in February, was financially self-sustaining.

He said: “Since February we have been supporting the management to re-align the Manroland business to current levels of demand and to adjust from the institutional management style of the former Manroland AG.

“The business is trading within expectations and has generated positive cashflow during these first five months and is standing on its own feet financially, which I expect it will continue to do so, albeit at a much reduced level to that enjoyed just a few years ago.

“We have not incorporated the Manroland division into the group at this stage and it will remain outside until completing its first full year of trading under our stewardship,” added Langley.

He said Manroland’s insolvency had been “one of Germany’s largest corporate failures in recent years” but that it had been “significantly restructured” during its brief insolvency, leaving a “viable investor proposition”.

Commenting on the state of the sector in general and the plight of Manroland’s rivals, Langley said: “Others in the sector languish with hopelessly disproportionate costs, which I expect will keep margins depressed for quite some time yet, but longer term the fundamentals look right for businesses that successfully adapt.”

For the six months to 30 June 2012, Langley Holdings recorded a pre-tax profit of €39.3 million ($45.9 million) on a turnover of €238.2 million.

Click here to read about the Manroland insolvency.

This article originally appeared at printweek.com

Comment below to have your say on this story.

If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.  

Sign up to the Sprinter newsletter