Wrexham-headquartered paper cup maker Benders has reported a return to profit in its latest accounts, despite suffering from a "critical machinery breakdown" at the start of the financial year.
The company, which can trace its roots back to 1894, also secured funding towards the end of 2015 to support investment in new machinery.
According to recently filed accounts for F Bender Ltd, a pre-tax profit of £12,000 was achieved in the 12 months to 31 December 2015, compared to a loss of £101,000 the year before. Turnover remained static at £25.4m.
The return to profitability was secured despite a "critical machinery breakdown" at the start of the year which prevented turnover growth.
The breakdown delayed the planned capital investment programme by several months which in turn had a significant impact on production outputs and service levels.
The issue has since been resolved and production capacity restored.
In December 2015 it was revealed that Benders had agreed a finance deal worth £9m with Lloyds Bank. This will be invested in new machinery in order to increase production capacity and boost turnover to the £40m mark.
In their report accompanying the accounts, the directors said: "The owners acknowledged the strategic importance of the business and its markets by investing £2m of additional share capital in December 2015.
"This investment will support a further £8m of capital expenditure in 2016 and beyond, as well as strengthening the company balance sheet. This will satisfy the need for both manufacturing efficiencies and additional capacity.
"The directors are confident that the on-going investment will reap rewards both in the short and long terms. The company has been successful in renewing contracts with its major customers and expects these to deliver growth in the future."
Benders began making Christmas crackers and doyleys in 1899, launching its first range of paper cups eighty years later following its move to Wrexham from London.
It was bought by European cup manufacturer Flo, Nupik and Dopla in 2012 and currently supplies customers including Unilver, Nestle, Broderick's and Aimia Foods.