PMP scores a profit at halftime

In the midst of its leaner, stronger, more competitive transformation, the country’s biggest printer PMP is celebrating a return to the black, with a modest $770,000 profit for the first half of FY2014, on revenue of $465.9m.

The results are a welcome turnaround from last year’s halftime figures – a net loss of $24.3m, and while revenue was down by 9.7 per cent this would mainly be due to the directory business.

The company says its EBIT weighs in at $16.5m – down from $19.1m in 2013, and net debt was reduced to $81.3m – down from $134.5m.

Peter George, CEO of PMP, says it is ‘heartening’ to see a small bottom-line profit, and the company is now focusing on its third target – to build a more competitive business.

He says, “The company has been totally transformed over the past 18 months.

“We have substantially reduced the cost base of the business and also considerably reduced financial risk.”

PMP’s catalogue business has stood up to market pressures with steady volumes and magazine activity experienced a slight increase, though directory volumes (the opt-in White and Yellow Pages, for Sensis) were ‘much lower’.

PMP says distribution volumes across the company rose by 9.1 per cent. In Australia volumes were up by 7.7 per cent with the addition of two major new clients and a better uptake of more services by existing clients.

The country’s biggest printer is now in phase three of its transformation plan; it says its sustainable strategy and disciplined execution is delivering benefits.

George says, “From a greatly strengthened position we believe the company will be able to more effectively participate in the rationalisation that the industry desperately needs.”

He adds that industry volumes are forecast to remain volatile, though downward pricing pressure caused by excess capacity may be starting to reduce, with ‘recent aggressive pricing practices’ moderating to a more sustainable level.

Looking ahead, the company also expects to continue to reduce its debt over the year, hoping to reach between $60m and $65m by June 2014.

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