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PMP posts $19m loss despite IPMG boost

Wednesday, 28 February 2018
By Print21

The region’s largest printing company PMP has posted a net loss of $19 million for the six months ended December 31, 2017, despite a 52% jump in sales driven by the acquisition of IPMG.

Total sales revenue was $398.5 million, up from 262.2 million in the prior corresponding period (pcp). Net loss (after tax and significant items) was $19.5m, compared to a loss of $14.5m (pcp). Cash significant items totalled $14.6m, with $16.8m cash out  for redundancies and press relocations. EBITDA before significant items was $20.2m.

‘The board and management are not satisfied’: new PMP CEO Kevin Slaven.

“Whilst sales are significantly high pcp, this is because of the inclusion of IPMG Print and Marketing Services revenue, partially offset by lower sales at PMPNZ and Distribution,” said newly named CEO Kevin Slaven, who had been acting as interim CEO since the retirement of Peter George in December.

“Whilst the overall heatset print volumes in Australia were slightly ahead of guidance given in November 2017, this was offset by lower than expected average prices due to a change in work mix mainly in the publishing/newspaper sector and some minor cost-out timing variances,” Slaven said. “The board and management are not satisfed with this result and are working hard to ensure we improve the underlying Print Australia results.”

Print Australia revenues jumped 117.9% to $244.7m – with a $132.3m boost in heatset sales from the inclusion of six months of IPMG print revenues.

Retail market conditions continued to remain very tough with many retailers controlling costs via format changes/pagination while magazine publisher print runs and titles being published are also reducing.

As announced in a profit downgrade earlier this month, PMP’s guidance for FY18 is now $40m-$50m EBITDA (before significant items). Net debt at June 2018 is now expected to be $35m-$40m.

“Whilst PMP remains confident that the changes to industry structure and its continued focus on costs will provide the opportunity to improve profitability over the medium term, it recognizes the ongoing challenging conditions in the retail, publishing and newspaper industries,” said Slaven.

 

 

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