The paper merchant and equipment vendor posted a pre-tax profit of $1.3m for the 2009/10 financial year.

Group sales revenues fell $105m (22%) year-on-year from $478m to $373m. Gross margin fell $10m (12.8%) from $78m to $68m. Earnings before significant items rose 6.2% to $7.8m.

The $1.3m net profit represented a return to the black after last year’s $2.1m loss. The company also reduced its net debt from $69.8m to $35.8m over the course of the year.

The results are more or less in line with the company’s preliminary forecasts, despite warning in July that its final results “could materially alter depending on the final outcome of the Quality Group exposure”. Quality Group entered liquidation in June owing up to $3.5m to CPI Paper.

Cassell (pictured) told ProPrint “there are no more changes” planned for CPI in the foreseeable future.

“The company’s done a lot of hard work restructuring itself in response to the GFC, and we are now confident that the restructuring is behind us,” he said.

Cassell said the company’s restructuring – which included the consolidation of its South Australian operations and the sale of its offset business to Ferrostaal – explained the improved results despite the tough economic climate.

“I’m very proud of our team; they’ve done an excellent job. Not many organisations have had to cope with as many changes as we have, and their ability to cope with that degree of change is just extraordinary,” he said.

Cassell didn’t expect the fallout over the Quality collapse to impair CPI’s results further down the track.

“Our position is still that we believe we’ve got a valid second mortgage,” he said.

Click here for the latest headlines from across the printing industry.

Comment below to have your say on this story.

If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.  

Sign up to the Sprinter newsletter