The private equity funded Opus Group stayed in the red zone for 2012-13, recording a $2.8m loss, and says it will look at divesting its outdoor media business.
The $2.8m loss compared with a $1.8m loss in the previous year, and was not predicted in the Group’s outlook earlier in the year. It came on the back of a $22m increase in revenue, up to $97.2m, driven mainly with the McPherson’s acquisition coming in for its first full year in the group. Underlying (EBITDA) dropped by almost a third to $14.1m.
Opus says by selling its outdoor business it will reduce its debt, which currently stands at $57m, down from $63m the year before. The company is currently renegotiating with its bankers over the terms of a $25m loan, the majority of which, some $20m is due to be repaid at the end of this month.
The Opus outdoor division is profitable, however full year outdoor media pro-forma revenue of $19.7m was five per cent below the prior year figure and its adjusted EDITDA was also five per cent down at $3.4m.
Opus told shareholders that its growth was being driven by its publishing division and the digital value chain, and this would be where it would focus its efforts.
Cliff Brigstocke, CEO at Opus says, “Market conditions for the year were challenging. However extending our service offering while reducing our cost base is bearing fruit.” Brigstocke says the Group’s strategy of spreading work across its network is also paying off, with an increased number of jobs now being printed in Singapore. He says the outlook is brighter, commenting “Trading conditions improved in the last quarter of FY13 with Group adjusted EBITDA improving on the same period last year by nine per cent. We anticiipate that these improved conditions will continue.”
It was a busy year for Opus, it sold its Singapore property, bought Blue Star Canberra and merged it into its existing business there, virtually immediately winning two major contracts, closed its Melbourne facility and moved kit out to McPherson’s, took a hit ion government print spending, signed major three year contracts with CCH Australia and CCH New Zealand, and renewed major contracts with Wiley-Blackwell and Harlequin Enterprises.
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