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Good times still to come for PMP

Tuesday, 18 September 2007
By Print 21 Online Article

Strong results for the 2006-07 year promise a positive future for PMP.


"PMP today is comparatively in a much stronger position than it was three years ago, and better equipped to face ongoing challenges," said Graham Reaney, chairman.

In the company’s annual report, PMP recorded $90 million in EBIT, a 48.3 per cent increase on the previous year, a 3.5 per cent increase in sales totalling $1,288.1 million along with a major increase in balance sheet strength.

"The improved results for 2006-7 reflect both the gains from the upgrade of printing equipment and the continued restructuring of the group resulting in efficiency improvements and cost reductions," Reaney said.

CEO Brian Evans said that the high EBIT performance was particularly noteworthy.
"It comes amid some of the most competitive pricing pressures seen in our primary markets for some time," he said. "An increase in print volumes was particularly encouraging and in line with expectations, reflecting steady growth in utilisation of new equipment installed in fiscal 2006."

New heat-set print equipment performed well in terms of both increased tonnage and reductions to energy and water consumption and wastage. The report claimed that large print customers were also impressed with the company, and many who were previously using PMP’s competitors returned. Another major success for the year was securing long-term contracts such as Woolworth’s catalogue work. But the jewel in the crown was securing the contract to print the year’s most-hyped book, Harry Potter and the Deathly Hallows, the final in the series.

PMP Australia wasn’t the only shining star. Evans also pointed to PMP in New Zealand as reflective of the company’s overall success. "New Zealand once again delivered a healthy operating result … extending the consistently steady performance of recent years," he said.

"PMP consolidated strong market positions in both web-fed and sheet printing during the year, and now offers the most efficient and diversified print capacity in the local market. Particularly sluggish conditions in New Zealand’s magazine market contributed to a modest trading result for Gordon & Gotch, while growth in catalogue volumes helped offset intense price pressure in letterbox operations."

These results provide a stable platform for unlocking growth potential, according to Evans. "PMP’s result this year speaks to the renewed strength of the group’s diversified business platform and the focus of our executive leadership," he said.

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