Commercial web operation AIW saw both its sales and profits dip during the last financial year ended June 2012, with net profit down by more than a third.
The company turned over $103m for the year, down from $108.3m the previous year, a result which was down from $123m in 2009/10, while net profit in 2011-12 fell to $5.6m, from $9.1m the previous year.
Paul Ward, chief executive of AIW told Australian Printer, “We were pleased with our profit results given the challenging times the industry is facing. We believe it is important for any business to be obsessed with their customer base, innovate, understand their cost base and market demand and adjust and price accordingly and we like to think we do that.”
Ward says, “Sales fell between financial years 2010 and 2011 due to some volume loss and lower pricing based on a lower cost base. Profits increased that year. Between financial years 2011 and 2012 sales and profit declined simply from market price erosion and/or the inability to recover cost increases in the market, which is also essentially erosion, due to the competitive nature of the well talked about industry over capacity.”
Looking at 2013 Ward says “It is still a tough market. You have both structural (the digital world) and cyclical (consumer confidence) changes impacting retail demand and too much supply capacity. Thus we see a continuing competitive trend until the market over capacity position is resolved via one, or both, demand and supply elements.”
On the positive side net assets rose by ten per cent o $39.7m while bowing costs fell by a quarter to $1.2m. Staff costs rose by eight per cent although staff figures remained steady at 118.
AIW is regarded as one of the most advanced printers in the country. It was established by Peter Clarke 12 years ago, taking advantage of a gap in the market coming from demise of the ill-fated Diamond Press. Clarke retired 18 months ago.
