CROWN Paints has announced a big turnaround in fortunes since a management buyout, turning a £2.8million profit.

The business, which employs half of its 1,400 staff at its Darwen headquarters, made sales of £179.2m in the 12 months to December last year, despite a continued decline in the global coatings market during the recession.

The news comes in contrast to the £11.4m loss incurred during the three months’ trading to December 31, 2008 against turnover of £37.8m.

Managing director Brian Davidson said that the company had undergone a “complex separation process” since a buyout from Dutch coatings manufacturer Akzo Nobel in September 2008, but was now on a “stable platform”.

Jake Berry, Darwen MP, said the profit shows that the company has a bright future in the town.

Cost-saving measures have included reducing the workforce by nine per cent add restructuring operations in Ireland.

Crown has also moved into oversees markets and plan to expand e-commerce channels and licensing agreements in the Middle and Far East.

Mr Davidson said: “I am delighted to report that hard work, determination and a resolute focus on stringent cost management, positive trading and strong cash generation have combined to put us on a sound financial footing.”

Mr Berry said: “This is fantastic news for Darwen and will hopefully secure the future of Crown Paints in the town.“The management team have worked very hard at turning things round, and this has been done with the support a first class, highly-skilled, workforce, who are mainly Darreners.”

At the beginning of this year, Crown secured a £25 million financing deal with Royal Bank of Scotland, providing them with the resources for normal day-to-day trading, and also for capital investment in plant, machinery and the development the Crown Decorator Centres.

Mr Davidson added that trading in the first half of 2010 has exceeded budget expectations, and at the half-year point, the company has reduced operating costs by £2m and are £20m ahead of the cash forecast.

But he sounded a note of caution as inflationary pressures begin to take effect and as a shortage of raw materials is set to increase the cost base for the coatings industry as a whole.