The company also reported that all major printing contracts have been successfully retained, however revenue declined by three per cent due to the impact of lower volume requirements.

The negative impact of this and further restructuring expense, was largely offset by gains in operating efficiencies. The business continues to pursue cost reductions through internal efficiencies and investment in technology as well as assess other strategic opportunities in the sector.

McPherson’s also says that trading for the first few weeks of the 2008/09 year has been encouraging, with Simon Rowell, chairman of the company saying it was well placed to meet challenges ahead.

He says, “The strength of brands like Wiltshire and Multix and the broad product range mean there are McPherson’s products in every home, marketed through all major retailers.”

“The strong balance sheet and satisfactory gearing rate will enable us to continue to grow both organically and by making selective acquisitions.”

The company also reported that strong operating cash flow reduced gearing (net debt to shareholders funds) to 69 per cent, from 75 per cent last year. Gearing reduced despite the expenditure of $14m on two acquisitions during the year.

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