Spicers back in the black as CEO steps down

Spicers, formerly known as PaperlinX, has bounced back with a statutory profit after tax of $6.3m compared to a statutory loss of $90.8m for the prior corresponding period (pcp); the results come as its CEO Andy Preece announces he will leave the company. The return to profitability is welcome news for the company after it suffered massive losses of $300m during the pcp, stemming from its floundering European operations. This led the company to change its name from PaperlinX to Spicers and consolidate its business to focus only on Australia, New Zealand and Asia (ANZA). While announcing the positive results for the company, Spicers also said its CEO and managing director, Andy Preece would step down from both his roles ‘by mutual agreement’. Spicers announced that after a 14 year service to the company, Preece will continue as CEO for the next 3 months while they search for a replacement. Chief financial officer, Wayne Johnston has already assumed the role of executive director.

Andy Preece: Outgoing CEO of Spicers

Andy Preece: Outgoing CEO of Spicers

The company’s continuing revenue fell 3.1 percent from $209m to $202.6m which was attributed to ongoing structural decline in the commercial print segment. Spicers’ Australian market underperformed in comparison to its New Zealand and Asian business, with its EBIT falling from $6.1m to $3.6m and sales taking a slight dip from $117m to $109m. This was attributed to a decline in the commercial print market and also competition pressures stemming from the depreciation of the Australian dollar. New Zealand and Asia performed comparably well, New Zealand’s EBIT grew from $3.4m to $4.1m and sales revenue jumped from $45m to $50m. Asia’s EBIT also increased from $308,000 to $729,000 but its sales revenue slumped from $46m to $43m. Commenting on the results, Spicers chairman Robert Kaye, says, “This improved result is reassuring and validates the strategic decisions taken to focus on the profitable ANZA businesses. The first half result represents a fresh beginning for the Spicers Limited business and a solid start to the journey.” Preece adds, “I am very pleased to report a profitable result for the half, notably the first Group profit delivered since 2008. With the Spicers businesses now exclusively focused in the ANZA region, the first six months of trading reveals a profitable platform from which to execute our well-defined diversification strategies.”

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

Leave a comment:

Your email address will not be published. All fields are required

Advertisement

Subscribe To Our Newsletter

Join our mailing list to receive the latest news and updates from our team.
Advertisement