The challenging print environment saw IPMG’s income fall by 7.9 per cent from $489m to $450m, with profit from operating activities also falling, from $13.7m last year to a loss of $12.6m this year. The company’s net assets reduced from $604.2m to $586.7m, while cash generated from operating activities increased from $7.1m to $29.3m.
IPMG suffered from a continuation of tough trading conditions in most sectors in which the company operates, and says about half of the revenue shortfall was due to the closure during the year of its print management business and its sheet fed business Craft. It also closed its print management arm Snyc Communications.
Stephen Anstice, CEO, IPMG says “We knew when we made the decision to close Craft and relocate Hannaprint to Warwick Farm we would face two expensive and challenging years to profitably meet the needs of our clients with a well-equipped, efficient and versatile print facility.”
Anstice does not expect any significant improvement in trading conditions during 2013 but says IPMG will have the benefit of improved efficiencies from the new plant.
Anstice says the scale of IMPG’s endeavour should not be under-estimated, and believes it is the biggest relocation in the history of the printing industry in Australia. The relocation of Hannanprint to Warwick Farm is expected to be completed by early 2013. Already one manroland Rotoman is operating, and the new monster sized 96pp Lithoman has been built and is currently going through its paces.
Volume in the company’s print business fell by 3 per cent in the year, due to the reduced print volume in the magazine and newspaper insert sectors. according to IPMG.
He says, “IPMG’s financing costs have also increased significantly during the 2012 financial year as more debt has been incurred to install new equipment, pay redundancies and meet the relocation costs.”
Despite the reduction in profitability associated with the tough trading conditions, the closure of Craft and the relocation of Hannaprint, the company generated positive operating cash flow during the 2012 financial year of nearly $30m.
He says, “While the new plant at Warwick Farm has been the major focus for the year we have continued to invest in Offset Alpine and Inprint.”
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
