National print group Opus half year results saw its revenue drop 6 per cent from the prior year from $42m to $39.6m, however its profit after tax grew 7 per cent from $3m to $3.2m.
Its EBITDA stayed the same coming in at $5.2m, its earnings per share came in at 3.37 cents with a fully franked dividend of 1 cent per share.
The company says debt free position and strong cash flow has is eyeing acquisitions to enable it to meet the challenges of the market.
Profit before tax of the core business increased from $4.3m in half-year ended 2016 to $4.5m in half-year ended 2017 which reflects the enhancement of productivity after the divestment decision made in the prior year.
Opus says it had a steady growth in profit before tax recorded in its core business, book and book-like printing in the niche markets within Australia. There was continued efforts for ongoing operational efficiency of the core Publishing Services business and strong cash flow generation enabling acquisition of selected speciality assets.
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Opus is also highlighting its increasing benefits from joint initiatives with its majority shareholder, Lion Rock Group (formerly known as 1010 Printing Group Limited), including ability to offer customers multi-country print solutions and procurement savings.
The business recorded a sales decline of 6 per cent or $2.3m over the prior comparative period. This has been driven by the net effect of commencement of new businesses in middle of 2016 and early 2017 and reduction of printing spend of existing customers through online publications.
Operating expenses from continuing operations of Publishing Services Division has been reduced by 6 per cent from $37.3m to $34.9m as a result of the synergies of partnering with Lion Rock Group to strengthen sourcing networks, bargaining power as well as cost efficiency management.
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Richard Celarc, chairman at Opus says, “Our half-year results with increased profit levels compared to prior year are a pleasing reflection of the progress we have made with a focused approach following last year’s considered steps to dispose non-core operations. The continued hands-on approach to manage our core operations in Australia is yielding positive outcomes for growth and operational efficiency.
“Our debt-free balance sheet and strong cash flow position enables the business to consider acquisition opportunities of select assets as we continue to meet ongoing challenges in our market space. Looking to the second half of 2017, we expect to be a group that continue to excel in faster delivery of high quality products to service our customers and deliver results to our shareholders.”
Opus says it is supported by a strong relationship with its Hong Kong listed 75 per cent shareholder, Lion Rock Group Limited, which is headquartered in Hong Kong with sales office in 12 major cities worldwide.
For the next financial year the board expects that solid progress will continue with the Group now well placed to execute on the opportunities in its Publishing Services Division and continue to meet and exceed the expectations of its stakeholders.
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