PMP says, “Trading conditions in Australia have continued to be tough for our major clients as publishers and retailers continue to experience difficult market conditions. In response PMP is tightly controlling all operational and discretionary expenditure including capital expenditure.”

According to PMP the New Zealand market conditions also remains difficult but the cost reductions made last year will enable this business to report an improved first half-year result.

PMP is forecasting an EBITDA of between $69-$72m for the year, down from $76m last year. It says it is on track to generate at least $32m in annualised savings in 2013-2014 thanks to its second phase of its transformation strategy, with its cost cutting and redundancy programme, which will see its press fleet fall from 21 to 15.

PMP is currently installing a 96pp manroland Lithoman press, and next year will upgrade its Perth facility, resulting in a significant reduction in headcount.

The company’s progress is being managed by new CEO Peter George, who took over from Richard Allely last month, who left a year earlier than planned.

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