Sales revenue for the printing division was $58.9m, down from $64.3m the year before while the group’s total revenue also dropped to $348.8m from $354m last year.
Profits were further affected due to an $8.5m impairment charge reflecting a write down of goodwill from acquisitions made by the printing business more than 10 years ago.
In a statement to the ASX the company says the sales revenue for its printing division was affected by a combination of “subdued market conditions”, which also placed additional pressure on profit margins.
Paul Maguire, managing director of McPherson’s says, “Trading conditions are expected to remain challenging due to a subdued retail sales environment and continued upward pressure costs.
“However, the high proportion of non discretionary items in the company’s product range, the strength of our brands and our sourcing and product development capabilities mean we will remain well placed to contend with these challenges.”
McPherson’s outlines that its printing business remains focused on costs containment and efficiency improvement through “selective investment” in modern printing technology.
During the year the company commissioned new sheet fed colour printing equipment at its Mulgrave plant, which allowed two older presses to be decommissioned.
The company has also committed to invest in a “state-of-the-art” digital inkjet press, said to be an HP T400 web fed inkjet giant, which will be commissioned at its Maryborough plant next year.
The ASX statement continues, “These investment will increase efficiency and provide opportunities to expand competitively into additional market sectors, with the full benefits to be realised progressively in 2012.”
Commenting on the Group’s outlook, Simon Rowell, chairman of McPherson’s says, “Opportunities to grow the consumer products business through acquisition continue to be evaluated. The company’s balance sheet is strong and offers considerable flexibility in this regard.”
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