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Silver lining in red report

Thursday, 18 August 2011
By Print21

PMP’s print division takes centre stage in the strongest balance sheet the Group has reported in a decade, with print margins tipping 10 per cent.

According to CEO Richard Allely (pictured), the full-year report highlighted what is arguably the highest earnings-to-sales ratio of any print company in the world.

“Despite revenue falling 4 per cent to $472.4m, the print division delivered an improved result with EBIT increasing by 16 per cent to $55.4m on improved product mix and margin management around paper while tight cost controls continued around freight, outside work and logistics.

After paying down $27m of debt from $168.1 at June 2010, PMP is now operating with “the lowest debt level it has had in a decade, and our gearing ratio at 40 per cent gives us significant headroom to manage growth,” he said.

The last fiscal year has seen the profit restoration of PMP’s letterbox distribution business and the renegotiation of its debt. It has added certainty to debt funding by extending the maturity date on its existing debt facilities from May 2012 to September 2014.

Graham Reaney, chairman for PMP, says the company continued to benefit from the substantial restructuring that began in early 2009. “The full year result delivered an EBIT (before significant items) of $56.7m up 8.5%. Higher profits resulted from another very good performance at Print Australia combined with profit improvements at both Distribution and Print New Zealand."

The longest serving of three directors who are due to retire in the next three to four years, Reaney has decided to retire at this year’s AGM after nine years as chairman. Non-executive Director, Ian Fraser will take over as chairman.

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