The group’s results for the six months to 31 December 2012 were affected by $2.9 million in one-off costs, including $2.4 million in rationalisation and restructuring costs. The group posted a $2.4 million profit in the first half of 2011-12.
Chief executive Cliff Brigstocke told ProPrint that Opus was aiming to return to profit by the end of 2012-13.
Comparisons with the previous financial year are inexact because the merger with McPherson's Printing occurred during that time.
However, if the figures are adjusted to assume Opus owned McPherson's for the entire year, it shows that Opus' revenue fell 13.5% to $59.3 million and underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 37.4% to $7.5 million.
The group's debt rose from $62.8 million in June 2012, to $64 million in December 2012, and to $66.6 million in January 2013. That includes a $3.4 million high-interest loan from major shareholders Knox Investment Partners and executive director Richard Celarc.
The market has not responded well, with the Opus share price falling 30% since the results were announced Wednesday to reach 14c, its lowest point since it floated on 10 April 2012.
[Related: Opus wins $5.7m contract]
The group has specific debt covenants agreed with its major lender, the Commonwealth Bank, that it must meet by 30 June.
Opus must ensure that its net debt at the end of the financial year is no greater than three times underlying EBITDA.
Opus has forecast an improved performance in the second half. If the group ends the financial year with underlying EBITDA of $18 million, it would need to reduce its debt from $66.6 million to $54 million by 30 June in order to remain within its covenants.
If second-half earnings are closer to its first-half EBITDA, it may need to reduce debt to $45 million.
Opus said: "These additional debt repayments will be funded through operating cash flows and a combination of potential further non-core asset disposals and the issue of new capital."
Brigstocke said Opus had positioned itself for future growth after doing a lot of hard work to integrate McPhersons and cut costs throughout the group.
"The completion of the restructuring and rationalisation initiatives mean that the Opus Group is now well positioned to take advantage of the opportunities which come through industry consolidation and the shift in customer demand for shorter runs with shorter lead times," he said.
"Our scale and Asia-Pacific footprint provide a platform for growth that will be supported by the strong technological capabilities of our business and our ability to provide a full service offering."
Opus said it recently renewed a multimillion-dollar contract with specialist publisher CCH Australia and had a 100% renewal rate on key Singapore accounts.
[Related: Ups and downs of Opus]
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