Australia’s biggest paper merchant Spicers returned to profit in 2015/16 following its humungous losses accrued in its European disaster the previous year.
The company achieved a net profit of $5.3m on sales of $392m. That compares with a loss last year in the same business division of $14m on sales which were 2.8 per cent higher at $402m. Spicers is now fully focused on its local Australian, New Zealand and to a lesser extent south east Asian operations.
Last year Spicers, which was then named Paperlinx, made a catastrophic loss of $392.3m as its European adventure crumbled to dust, causing the company to sell or close all its businesses there.
Pointing to a focus on its core commercial print business as well as growth through acquisition, chairman of the board Robert Kaye says, “Under the strong leadership of the new CEO David Martin we will focus on maximising results in the commercial print business, and continuing to grow diversified operations via a combination or organic growth and suitable acquisition opportunities.”
During the year former Avery exec Martin replaced Andy Preece as CEO.
Sales revenue in Australia was down by 3.9 per cent, and in Asia by a sixth or 16.1 per cent, however New Zealand bucked the trend with a 7.8 per cent increase.
Underlying EBIT in Australia was down by 42 per cent on the prior year to $5.4m. The company says Australia was a ‘challenging year’ and says it was impacted by ‘competitive pressure’.
In this financial year underlying overall EBIT was up by 42 per cent to $4.5m. EBIT in Asia was up to SG$1.6m from SG$700,000. EBIT in New Zealand was up 18 per cent to NZ$7.8m.
Diversified operations – the sign and display hardware and consumables business – performed strongly with gross revenue up by a quarter, and this part of the business now represents almost a quarter of total Group gross margin.
Kaye says, Achieving a statutory profit and an improved underlying EBIT result validates strategic decisions taken in 2015 to refocus the business son ANZA region only. The profitable ANZA operations of the company have reported solid overall results and pleasingly delivered string growth in diversified operations.
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