Spicers net sales revenue for the HY is $195.2m, down 3.7 per cent from last year’s HY of $202.6m, with the company blaming ‘challenging trading conditions and structural change’ for the commercial print market in Australia.
Were it not for stronger performances in Asia, New Zealand and in diversified areas such as sign and display and pressure sensitive labels the drop would have been significantly more.
Underlying EBIT was up by $100,000m to $3.3m. Statutory profit after tax was $3.6m, well below last year’s result of $6.3m, which the company explains as ‘due entirely to non-recurring items related to discontinued previous operations in Germany’.
The Australian net sales revenue was $102.8m, down from last year’s result of $109.2m, alongside poorer figures in Asia of SGD$41m from SGD$43.4m. Both decreases were partially offset by a slightly improved New Zealand result of NZD$55.8m, up from NZD$55.4m.
It also points to profit after tax from continuing operations of $1.4m being consistent with the prior year, while ‘profit after tax on discontinued operations of $2.2m arose from settlement of obligations related to the Group’s previous operation in Germany at an amount significantly less than the provision value held by Spicers.’
David Martin, CEO, Spicers, says, “While trading conditions in our core commercial print markets continue to be challenging, particularly in Australia, we have been able to maintain overall group earnings with good results from the New Zealand and Asian businesses.”
The company also notes ‘solid growth in diversified revenue streams, particularly sign and display, and pressure sensitive labels product categories, partly offset this decline.’ This is seen in an increase in the underlying EBIT of 8.1 per cent in New Zealand, NZD$4.3m from NZD$4m.
EBIT for the HY stayed consistent from last years figure of $2.8m, with an underlying EBIT of $3.26m, holding from last years $3.21m.
The company says its net cash inflow from operations this HY of $0.2m compared to its outflow of $22.3m last HY is due to a management focus on working capital performance, with inventory levels tightly controlled and creditor terms improved with key suppliers.
It also says that reductions in working capital balances during the 2016 calendar year contributed to a ‘net cash’ position of $29.5m, improving $8.5m from last year.
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