PMP share price has jumped high following its forecast to triple profits and pay more than $30m worth of debt this financial year. The company’s share price skyrocketed by 18.3 per cent to 55c on the news, with analysts encouraging investors to buy now as its fair valuation could be as high as 70-80c.

Peter George, CEO of PMP

The share price has risen 31 per cent overall in the past year, compared to just one per cent for the ASX average. The figures are a reflection of the country’s biggest printer predicting an EBIT of $25-26m and EBITDA of $57-58m, both of which are down slightly on last year as it focuses on improving margins even if sales fall somewhat. Share holders of the company are set to receive dividends for the first time in more than three years, with $5m on the cards next financial year. It may also do a share buyback. While PMP is not revealing the expected profit forecast, the company says the $5m dividend is calculated as up to half its net profit after tax, which would triple it from last year’s $3.4m. Debt will again be slashed, from $51.7m to $19m, as PMP continues its quest to become debt-free by 2017, having been $650m in the red during its darkest days. Free cash flow will increase to $34m. Chief executive of PMP, Peter George, has been instrumental in the positive forecast and the company’s massive turnaround that has halved its workforce, reduced its press numbers, and shed a plethora of unprofitable businesses. The company in its forecast attributes the results to three years of ‘intensive restructuring that have made it a profitable, cash generative and sustainable company’. “Coupled with the emergence of improved market conditions, as indicated by more stable print industry volumes and heat-set prices, PMP now has a higher degree of confidence in the outlook for the business,” it says.

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