Opus Group has reported a net loss after tax of $1.8m for the 2012 financial year, which is a 65 per cent improvement on the previous year, and was the result of one off $4.6m costs associated with its buyout of McPherson’s.
The Asia Pacific technology based business services and communications group reported revenue of $96.1m. The results include three months trading for McPherson’s Printing (MPG) and the merger with MPG on March 30, 2012. The results also include pre-tax costs related to transaction, merger and restructuring costs activities of $4.6m.
Cliff Brigstocke, CEO, Opus Group says, “The merger with MPG has resulted in a significant step change to the group’s scale and diversity. The integration has created a significant number of opportunities, particularly extending our business services offering to major publishers operating in the $109bn global market for publishing services.”
In the first three months following the acquisition of MPG, Opus Group restructured the business across two core divisions, Publishing and Outdoor Media.
Brigstocke says, “We are bringing two businesses together to create efficiencies and a more compelling and competitive customer proposition, through the wider international network and scale. Pleasing merger benefits are tracking ahead of plan with the business having already secured annualised cost savings of $3.3m with further savings expected in FY2013.”
Brigstocke believes the company is winning significant mandates as a result of the Opus Group strategy, a key element of which is utilising the Asia Pacific network combined with the move from traditional to digital print.
The publishing division contributed $75.3m in revenue a 26 per cent increase on the previous financial year and $15.5m in adjusted EBITDA (14 per cent increase on FY2011) for the year.
Lower revenue was achieved by MPG in the first six months of the financial year. The revenue declines were impacted by a 20 per cent decline in retail selling opportunities, which followed the collapse of REDgroup Retail in 2011.
Brigstocke says, “We are seeing early stages of recovery in the read-for-pleasure market. The business is also benefiting from the early stages of what Opus believes is a structural shift to print on demand ordering, a market trend which suits the Group’s flexible service offering.”
In FY2012, Outdoor Media contributed revenue of $20.8m, up 5 per cent on the previous fiscal year. Adjusted EBITDA of $3.6m for the period was 8 per cent below the previous year.
Brigstocke believes the market was slowing down in the June 2012 quarter as a result of the uncertain economic and advertising markets resulting in price competition.
Opus Group was awarded ‘World’s Best Building Wrap’ at the 2011 Rugby World Cup.
Andrew Tribute
