In a statement outlined on the New Zealand stock exchange, the company says, “The decline in profits was due to difficult trading conditions in Australia and New Zealand, as a result of the most challenging downturn ever experienced in the Print Industry.” Blue Star also states that the sales growth, in part, relates to the group’s approach to managing the print management needs of large customers, which are not always printed by BSPG.

Blue Star management has reduced the Group’s overall cost base by approximately 5 per cent although the full benefit has not flowed through into this year’s results due to timing.

The company adds that its financial position has been significantly strengthened and augmented as a result of the restructuring actions taken throughout the year and its ultimate parent, Sirius NZ Holdco Limited (SNZHC ) reaching an agreement with its senior lenders to reset the company’s banking covenants.

An important component of this financial structure is a deleveraging and consequent strengthening of SNZHC company’s balance sheet through an additional NZ$10m shareholder funds provided to SNZHC, according to Blue Star.

Comment below to have your say on this story.

If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.  

Sign up to the Sprinter newsletter