The country’s biggest printer PMP saw its razor thin $4.6m net profit after tax of last year’s first half turn into a loss this year of $24m, in a bleak set of figures, although the markets weren’t unhappy, shares rose 7.5 per cent today.
New CEO Peter George says he is also expecting a difficult second half, with overcapacity remaining in the heatset and lower volumes in the directories market. However he says, “The company’s turnaround journey is now well advanced and is delivering to plan. The business has been simplified with non-core assts being divested, our transformation plan to reduce our cost base is well advanced and a simplified management structure under new leadership is now in place.”
George also says that PMP Australia has secured most of its major print customers fore the next few years.
The company is also in the process of selling off and leasing back its premises, its Moorebank site in Sydney is likely to raise some $30m with the sale imminent, Walco raised $8.3m, and Clayton, Bibra Lake and Christchurch are being pursued.
PMP’s underlying profit was 8.8 per cent down to $8.1m, the company went into the red thanks to $41.4m in one off costs for non-cash asset impairments and restructuring.
Its EBIT was down 15.9 per cent to $19.4m from $23.1m in the corresponding period last year. Revenue slid by a not inconsiderable 11.2 per cent or $64.7m to $512.8m. PMP did reduce its net debt by $19m to $135m.
