The revised outlook comes after the trading results for March were around 20 per cent below the expected results. PMP says It is evident this is a combination of structural issues, economic drivers and deferral of advertising spend into the first quarter of fiscal 2013.
PMP expects its full year EBIT (before significant items) to be in the range of $30m to $33m and net debt is likely to be in the vicinity of $150m to $155m.
As foreshadowed in the half year results, the company has initiated cost reduction programmes, particularly in the Australian print business. Following the new profit guidance the scope of this restructure has expanded.
PMP says these programmes are expected to deliver in excess of $40m in annualised savings.
To assist with the acceleration of the transformation of the Australian print business, PMP non executive director Peter George is resigning from the Board and accepting a position as chief operating officer of PMP.
Commenting on the appointment, Richard Allely, CEO of PMP says, “I’m delighted Mr George has accepted the role particularly given his previous experience as interim head of Print in 2009 and his considerable professional experience in managing major business change programmes.”
In other managerial movements, PMP has reported that Allely has taken direct control of the Australian print and distribution business. As a result of this move, the position of executive general manager print and distribution has been made redundant and Andrew Williams has left the business.
In a statement to the ASX, PMP says, “In reporting its half year results in February, PMP flagged a review of its Australian print business in response to difficult market conditions.
“This review is progressing well and has necessitated a streamlining of its executive management structure in preparation for a print transformation programme.”
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