Opus achieves debt free position

Opus has grown its revenue by 8 per cent to $86.9m for the full year, with the company boasting a debt-free status, which it says gives it the opportunity to invest in equipment and technology.

The EBITDA has risen 13 per cent, from $10.9m to $12.4m. The profit before tax is up 26 per cent to $10.5m from $8.4m. Its operating expenses grew 6 per cent from $71.2m to $75.3m.

Richard Celarc, CEO, Opus says, “Our debt free status has allowed us to continue to invest in newer equipment and take advantage of changing technology, particularly in digital print where speed quality and price are now converging.”

Operational results delivered at $14.9m profit after tax, the earnings per share of 15.5 cents enabling a fully franked final dividend of 1 cent per share, making total payment of 12 cents fully franked dividend for 2016.

The company says revenue growth can be attributed to the commencement of new business in late 2015 and the middle of 2016, on top of securing existing core customers, and successful commissioning of new digital colour inkjet lines.

The 13 per cent increase for the EBITDA is due to the successful cost restructure since last 2014 but is partly offset by increased competition, which continues to pressure margins.

Celarc says, “Our full year 2016 result is in line with then plans agreed with the Opus major shareholder 1010 at the time of recapitalisation in 2014.

“With 2015 being a year of consolidation and back to basics, 2016 saw us further consolidate and rationalise the business. Simplifying the business and working hard at the core capabilities of each of our operation is proving successful.

“As a team operating with a continuous improvement mentality, we are determined to remain at the top of our game. Our strategies have been set using simple business principles which our customers, staff and suppliers can all relate to.

“We look forward to continuing the close working relationships our business has enjoyed with key customers and suppliers in 2017 and refine the speed, quality and value proposition we provide.”

Opus says its strong cash flow generation is enabling acquisition of selected specialty assets. The company is experiencing increasing benefits from joint initiatives with its majority shareholder, 1010 Printing Group, including the ability to offer customers multi-country print solutions and procurement savings.

Opus is now completely manufacturing in Australia with Celarc saying, “Opus is now manufacturing in Australia exclusively, and focusing on niche markets; Ligare in Sydney, CanPrint in Canberra and McPherson’s Printing in country Victoria.”

Last August Opus sold display printer Cactus Group to APN for $6.1m, saying it gave the company a clearer focus on the publishing services business.

Richard Celarc is due to retire in May as CEO but will continue as chairman for the next three years.

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