CPI says the result reflects the culmination of a number of difficult decisions taken by the Board in previous periods. This has provided the company with a conservatively provisioned and lowly geared balance sheet with a profitable business model that is able to take advantage of the trading conditions in the Industry.

In addition to the improvement in earnings, the Group was able to continue its improvement in working capital savings despite a significant rise in revenues. Operating cash flows were strong, leading to continued reductions in net debt.

CPI says the improvement in earnings was due to a combination of:

• the closure of the loss making imaging division;
• the capital equipment division trading breaking even following losses in prior periods;
• the papers division continuing to perform profitably;
• continued emphasis on cost control; and
• interest savings due to lower net debt levels.

Revenues increased due to increased capital equipment sales and the acquisition of the Boomerang Paper Group completed in February 2004. The closure of the loss making imaging division has significantly offset some of the increased revenues from these areas.

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