The company is forecasting a more challenging business environment in the year ahead and expects to face increased cost and margin pressures.

Blue Star, which has substantial operations in Australia, has reported a 17.7 per cent decline in after-tax profit to $7.06 million for the year to June.

Revenue was $434.8m for the year ended June, and earnings before interest, tax, depreciation and amortisation was steady at $52.8m, excluding restructuring, bond issue and management costs from the previous year.

Net debt at the end of June was $176.6m and total equity was $27m. Total assets as at June 2007 were $307.3 million.

Blue Star completed $54.7m worth of asset sales during the year, of which $28.7m was used to repay debt.

"Notwithstanding this BSPG expects to achieve acceptable financial performance due to the anticipated benefits of new revenue initiatives together with benefits from an ongoing focus on production cost and productivity," the company said.

Blue Star is 84 percent owned by funds advised by CHAMP Private Equity, with senior management and managing director Tom Sturgess holding the remainder. It operates under about 15 brand names, including Webstar, Format and McCollams. Parts of Webstar used to be known as Government Print.

The company bought Canberra-based National Capital Printing in June 2007, while its parent company bought Sydney-based McMillan Print and Canberra-based Pirion Printing. It has continued to invest in new capacity, including major new press installations at both Webstar Australia and Webstar New Zealand.

Blue Star is privately held but has corporate debt listed on the New Zealand exchange.

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