PMP outlines “turbulent and unsatisfying” year

The company notched earnings before interest and tax (EBIT) of $54.2 million for the year, a 36 per cent drop from 2007/08, with net profit before significant items coming in at $18.2m, down from $46.6m last year.

 

PMP chairman Graham Reaney cited the company’s much-vaunted “transformation plan” as one of the initiatives expected to revive the company’s fortunes, though acknowledged the $65.2m impact on its bottom line in redundancy costs and asset write-downs.

 

“These changes will position PMP competitively to deliver long-term, stable growth once the market recovers,” Reaney said. “However, the one-off costs associated with transformation, combined with a depressed print market, have necessarily dampened PMP’s financial results during 2008/9.”

 

The company further acknowledged problems with its Distribution division, citing “significant customer service issues” for a loss of market share which resulted in a 7.9 per cent EBIT decline to $7m.

 

“With the recent appointment of Andrew Williams, Executive General Manager, PMP Distribution and David Chesser, General Manager, PMP Distribution, the business now has a strong leadership team,” said PMP chief executive Richard Allely (pictured). “Under this experienced new management, the division is already making headway in repairing customer relationships and restoring profitability.”

 

Alley also described it as a “disappointing year” for the company’s Print business, with the division recording a 3.9 per cent drop in revenues to $696.4m as a result of a significant decline in print volumes.

 

“This, combined with substantial pressure on pricing, led to EBIT falling 36.5% to $41.6 million,” Alley said.

 

In other results, the company recorded operating revenue of $1.35 billion, down only 0.1 per cent, whilst net debt now stands at $208.4m, up from $199.6 million in June 2008.

 

Allely forecast further financial hardship for the company in the near-future, though reiterated his claims that PMP is now well-placed to survive these challenges.

 

“Market conditions are expected to continue to be challenging throughout 2010. We will therefore continue to focus on re-energising PMP as a lean, efficient, customer-focused print, distribution and media services company.”

 

“With a transformation agenda addressing supply chain management, sales force alignment and manufacturing excellence, PMP is rapidly improving its competitive position. Beyond fiscal 2010, the Group has enormous potential to generate good cash flows to pay down debt and reward our shareholders.”

 

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