PaperlinX announces 2014 results
In a recent statement to the ASX (Australian Securities Exchange), international merchant group PaperlinX announced that in line with its forecast in February, the second half of FY14 delivered a positive underlying EBIT of A$2.6 million.
The company also reported a reduction in net debt of 24 percent since June 2013 and a two percent increase in sales revenue. Working capital balances were significantly lower than last year, a positive change that has seen an inflow of operating cash flow of A$50.7 million.
Managing Director and Chief Executive Officer, Andrew Price said: “There is a significant improvement in our underlying result, following strong performances in the Canadian and ANZA regions and improved positions in Europe but worldwide trading conditions in our established paper markets remain challenging and further reinforce the need to redefine our merchant model and focus on growing our diversified businesses as part of our longer term strategy.”
The Group’s diversified businesses, which include Packaging, which now represents 9.4 percent of total sales; VTS, 11.3 percent of total sales, and Graphic Supplies,2.7 percent of total sales, all show further potential for growth. PaperlinX says that it will seek appropriate bolt-on acquisitions to more effectively accelerate expansion in the future and that as part of a longer term strategy, it has also started research and development into product innovations that embrace new technologies and align with its existing product mix and customer base. Further details will be advised as projects are taken to market.
Andrew Price continued: “Our strategy of exiting low margin and unprofitable business in this segment is ongoing. To boost revenue, we will continue to improve our margin management and shift our focus to growing segments other than Commercial Print.”
He also added: “We have continued to lower our cost base through aggressive restructuring and achieved a drop in trading expenses by 11.9 percent in constant currency. With this cost benefit and by focusing on margin improvements and product innovation, we are progressing towards sustainable profitability,”
For further information visit: www.paperlinx.com