Revenue was $5.07bn, down 19 per cent from $6.295bn the year before, however PaperlinX says its debt had been reduced by about $1.2bn in 18 months, with net debt now standing at $164m, down from $1.06bn in December 2008.

Commenting on the result, Tom Park, CEO of PaperlinX said the past year had been the most difficult but also the most transformational in the history of PaperlinX. He says, “Whilst the results are disappointing, we have completed a range of major strategic initiatives, which have resulted in the company being more focussed, streamlined and flexible.”

The company, which said it would not be paying a final divided, outlined it would be taking steps to further reduce overheads and working capital.

Park says, “Now, with the distractions of the refinancing, exit from historical lenders, and the closure of Tasmanian operations and various restructurings behind us, we are able to focus fully on our underlying business.

“Diversified business growth in areas including sign and display, graphics, digital, industrial packaging and converting will improve with overall economic improvement.

“Upside leverage also exists against our new cost and working capital base in our core paper merchanting activities if markets and volumes improve.”

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