In a telling insight into the current state of the domestic printing industry the company also reports its revenues from ordinary activities are down 24.6 per cent to $209m, from the $277m it recorded in the latter half of 2008.

CPI told shareholders today that in view of the still difficult conditions in the industry it has determined not to declare a dividend for the time being. CPI’s share price plummeted 22 per cent following the release of its figures.

Bernard Cassell, managing director of CPI says, “During the six months to December 31, conditions remained difficult due to the depressed levels of activity in the economy generally, and the printing industry particularly. Volumes were significantly affected with anecdote evidence suggesting the industry volumes were down by 20 per cent.”

In some good news for the company, net debt stood at $39.3m at December 31, the lowest level in more than two years. As a consequence of this action the Group has been able to reduce its required finance facility by some 40 per cent, which was previously reported by i-grafix.

Cassell also says that in line with the difficult conditions the Group has focused strongly on cost and balance sheet control. He says, “Cost control initiatives which had begun in the previous financial year, were continued and consolidated. Overheads for the first six months were 17 per cent below the prior year, exceeding the targets that had been set.”

Commenting on the decision to sell its Graphics Division, with Komori presses, to Ferrostaal Cassell says, “The opportunity was taken to further rationalise product ranges and clear out discontinued lines. This process is now well advanced.”

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