Catalogue printer and distributor PMP has emerged from a three-year restructuring period with a 135 per cent jump in full-year profit.
The company posted a full-year net profit after significant items of $8 million on Tuesday – an increase of $3.4 million from last year – on sales revenue of $811.7 million, down 9.7 per cent.
The board declared a dividend of 1.8c a share, 50 per cent franked.
The turnaround has been attributed to pricing discipline in highly-competitive catalogue sector, which represent the bulk of PMP’s earnings, and cost reductions.
PMP chief executive Peter George was upbeat as the result was ahead of forecasts and net debt been reduced by 68 per cent.
“These solid results reflect the continued disciplined execution of the company’s strategy to become the most efficient integrated printer and distributor in Australasia,” Mr George said.
“Catalogues continue to be a key marketing channel and effective media for driving sales for retailers, and remain the company’s core activity.”
Mr George said the first two of three strategic priorities in the company’s transformation program had been achieved. These were cost base reduction and financial risk minimisation. The third is ongoing, he said.
“Our balance sheet has been substantially improved with net debt at June 2015 reduced to $16.3 million. PMP is on track to be net debt free in fiscal 2016 in accordance with our three-year goal.”