With Coles representing a key client estimated at providing as much as $40 million worth of business for PMP, the move would signal another major blow to PMP just over a month after PBL, one of its most lucrative clients, opted to build its own in-house printing facility for its ACP magazine operations.

The move would also be a major boost to IPMG, who – it was recently revealed – have plans to build a new $100 million gravure printing plant in western Sydney.

PMP chief executive Brian Evans (pictured), however, has claimed in a statement to the Australian Stock Exchange today that “given the current work load in our printing business and the low price offered by competitors, we see more upside for PMP in concentrating our efforts with other opportunities.”

The company added that it will continue to “print a significant volume of catalogues for the Coles Group notwithstanding this decision.”

This conflicts somewhat with Evans’ claims last month that PMP would be grabbing a greater share of the catalogue market to compensate for the loss of ACP as a client.

The statement also did not address further reports that Salmat has also picked up the Coles catalogue distribution contract for Western Australia and Queensland, with PMP’s contract for the other states set to expire in June. Salmat handled Coles’ catalogue distribution prior to June 2006, when it was picked up by PMP.

PMP reported at its AGM last Friday that it expected its earnings to decline in the coming financial year.

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