A paper mill increased sales by 10% to £54.4 million helping it plug a gap in its pension scheme.

Swan Mill Paper Company, which trades as Swantex, contributed £660,000 to its defined benefit pension fund in the year to the end of March 2016, its latest accounts show.

This was part of a four-year recovery plan to address a £2.2 million deficit in the scheme.

Operating profit flatlined at £4.7m at the Swanley-based company, which makes and distributes paper tableware, Christmas crackers, decorations, packaging and greeting cards.

Bosses said strong cash flow would support more investment and takeovers of rival firms
in the near future.

The company, which employs about 290 people and has operations in Asia, bought greeting card design and production firms Ling Design and Velvet Olive during the year.

It also bought the assets of Caroline Packaging Trading Company, a business similar to IDA Distribution, which it bought in 2013.

Directors said they “will continue to assess the market with a view to capitalising on any well positioned opportunities as they arise”.

In his company report, finance director Graham Rogers said: “The directors are pleased to report the acquisitions have performed well.”