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Sign & Display delivers for Spicers

Wednesday, 28 February 2018
By Print 21 Online Article

Paper merchant Spicers reported a statutory profit after tax of $1.9 million for the half-year ended December 2017, with net sales down 1 percent to $193.2 million.

Spicers CEO David Martin

Spicers CEO David Martin said underlying earnings jumped 38.9 percent to $4.5 million, due to a combination of cost savings and improved trading performance in Australia.

“I am pleased to be able to report a significant increase in group underlying earnings for the first-half of the 2018 financial year, a result of our people across the group successfully executing against our strategies over the past year.

“Going forward we will continue to focus on optimising operating returns and cash flows in print and packaging categories, while generating profitable revenue growth in sign and display and other new growth categories.”

The Australian business reported earnings up 69.9 percent to $3.1 million. The rate of decline in print and packaging sales revenue moderated in comparison to recent periods, while sign and display revenue streams grew strongly.

 “As promised, we are realising cost savings in our Australian organisation by improving operational efficiency and streamlining administrative activities. Further, our structured approach to portfolio management and market engagement is driving improvements in trading and profit returns across all our product revenue streams.”

“We continue to closely manage working capital and cash across all our businesses,” said Martin. “Inventory levels, in particular, have reduced in comparison to both June 2017 and prior year balances, driven by our focus on supply chain efficiency and return on inventory investment in every product portfolio.

 “Our Asian operations have grown their revenues and earnings, particularly in print and packaging categories in Malaysia. Our New Zealand business continues to deliver healthy returns in flat market conditions, with the recent Sign Technology acquisitions contributing revenues and profits as expected.”













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