Price wins PaperlinX shareholder backing

Despite threats from a shareholder group to seriously question the actions of the new PaperlinX board the company’s AGM passed off relatively smoothly.

This was mainly because the new board has managed to stem the disastrous losses of $267m in 2012 down to $90m this year, still huge but within reigning-in range. Sales for the year fell by some 14 per cent, down to $2.76bn from $3.2bn.

All proposals on the agenda were passed with strong majorities. Price highlighted the company-wide rebranding, particularly across Europe, and said the company was an attractive career proposition for high caliber staff.

The company reported that Australia is profitable for PaperlinX. The company said it is looking to diversify its product base, which is still 80.7 per cent paper. Packaging currently accounts for 7.7 per cent of sales, while Visual Solutions (wide format) now generates 11.6 per cent of sales.

The board gained support of shareholders in the so called PIGS – the PXUPA Investment Group – who were not fans of new CEO Andrew Price, and slammed a recent profile piece in a UK print trade magazine and its sister Aussie version as ‘spin and misleading’.

However the group emerged from the AGM as supporters, saying it was the best AGM for five years and applauding the ‘candour’ of the board. It believes the company is in ‘real transition’.

GO TO MORE AUSTRALIA NEWS