Print giant PMP’s half year results show the company’s sales sliding 8.6 per cent from $427m to $390m in first half of 2016 financial year, while profits crashed by more than half thanks to a $2m bad debt from Dick Smith. Part of the reason for the sales slip was due to a print customer buying their own paper, knocking $24m out of the figure, but falling sales has become a pattern for the company in the face of declining print magazine circulation. In FY16, its profit after significant items took a major hit, falling 58.8 per cent from $4.3m in FY15 to $1.8m. PMP blames this on bad debt owed by failed electronics company Dick Smith, which went into receivership in January.

Peter George, CEO of PMP

PMP states Dick Smith left an impairment of $2.7m post tax, with PMP’s net profit after tax before significant items showing an increase of 4.9 per cent to $7.8m. There was some relief for the company, it managed to decrease its net debt by 74.1 per cent from $40m to $10.4m. PMP CEO Peter George comments, “The company has delivered another good result, slightly ahead of our expectations when full year guidance was announced. “Net debt has been reduced by 74.1 per cent over the last 12 months and is at a new all-time low. This is a clear sign of our cash generating capability and the continued tight control undertaken over working capital and capital expenditure.” In January, PMP’s distribution arm Gordon and Gotch announced a takeover of Bauer Media’s magazine distribution services in Australia and New Zealand. PMP expects this deal will bring a much needed $1.5bn boost to its sales over the next five years.

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