Earnings were also down to $3.8m, compared with $4.3m the year before. A company statement outlined however that volumes in the ‘read for pleasure’ sector, held up reasonably well and profit margins overall were at similar levels to the previous year with strong cash flows generated.

Overall sales revenue for the group came to $354m down 0.8 per cent on $356.8m the year before. Total earnings received a boost with the company posting $44.5m, a 21 per cent improvement on the 2009 financial year. The company also reduced it net debt to $71.9m compared with $104.2m the previous year.

Paul Maguire, managing director of McPherson’s says, “The 2010 result was a solid outcome given the mixed market conditions, particularly affecting the retail sector in the second half. Although a continuing stronger currency would benefit consumer products margins going forward, competitive pressures and the present uncertain economic environment may also impact 2011 earnings.

“Despite those uncertainties the company is anticipating modest growth in 2011, with revenue and profit outcomes for the first two months of the new financial year consistent with that expectation.”

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