PMP recorded a pre-tax profit for the full year of $109.5m, down by $17.5m from last year’s figure of $127m, but this was on sales that increased to $1.347bn, up from $1.288bn the year before.

However CEO Brian Evans painted a rosy picture of the group’s immediate prospects, claiming that strong growth in its retail catalogue printing and distribution business and the completed integration of Times Printers meant the company is well positioned.

PMP’s printing division was the group’s biggest revenue generator, producing slightly more than three quarters of revenue, 77 per cent, recording an increase of 7.4 per cent over the year to $724.9m. According to Evans his retail catalogues busines sis gorwing at between six and seven per cent a year .

The growing retail catalogue sector is cited by Michael Hannan as one of the primary reasons behind his decision to set up a new print site in Warwick Farm. Brian Evans believes that Hannan is planning to close Alexandria once the new site is up and running, with a view to cashing in on the real estate value of the site, but Hannan is adamant that the new $150m Warwick Farm site will be in addition to Alexandria.

PMP’s profits from printing fell by 19.2 per cent to $65.5m, although this was due in part says Evans to reorganisation costs following the purchase of Times Printers in Melbourne. The company said that it had to pay significant overtime costs as work had to initially be transferred to less efficient older presses.

The sluggish New Zealand economy and a slump in Australian magazine sales were cited as the primary reason for the profit fall. Australian magazine sales have suffered their biggest decline in sales for some time, as consumers rein in discretionary spending. ACP title Women’s Day saw sales fall by 10 per cent, with stablemate NW recording a 12 per cent drop.

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