The company is installing a new production facility which will make the equivalent of 214 full-time staff redundant, costing $30 million.

A greater proportion of the redundancies will be paid out in 2005-06 than expected, reducing earnings per share. About $26 million in redundancies was paid in the first half of the current year, with $3 million to be recorded in the second half and the remaining $1 million in 2006-07.

The upgrade is now expected to cost 18.3c per share, up from earlier estimates of 10.4c. But in 2006-07 the cost to earnings per share will be 5.6c, down from an earlier estimate of 12.9c.

“This change reflects the earlier expense of the full redundancy cost,” says directors. Once the presses were running, earnings per share would rise 3.4c in 2007-08. The full benefit would be felt the following year.

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