PICERS LIMITED 2016 INTERIM RESULTS
Spicers returns to profitability
Spicers Limited (ASX: SRS), formerly PaperlinX Limited, today announced a
statutory profit after tax of $6.3 million for the six months to 31 December 2015
compared to a statutory loss of $(90.8) million for the prior corresponding
period (pcp).
The result represents a return to profitability for the Company after a period of
significant losses stemming from its underperforming European businesses,
which led to the Company consolidating its operating footprint. Spicers is now
focused exclusively on Australia, New Zealand and Asia (ANZA), with a
platform of profitable businesses from which to implement its ongoing
diversification strategies.
Key features of the 2016 Interim results:
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Continuing revenue of $202.6 million, fell 3.1 percent from $209.0 million(2)
pcp due to ongoing structural decline in the Commercial Print segment,
which was partially offset by robust growth in diversified revenue
Continuing trading expenses decreased by 12.2 percent versus pcp(2) due
to cost reductions from continued actions to ‘right-size’ business operations
Underlying EBIT(1) for the Group’s continuing operations of $3.2 million was
a 3 percent improvement on pcp(2)
The New Zealand (NZ) and Asian businesses delivered EBIT results ahead
of pcp. NZ in particular delivered a strong performance demonstrative of a
well-diversified business
The Australian business, whilst remaining profitable with solid gross profit
margins, delivered an EBIT result behind pcp(2) due to continued structural
decline in the Commercial Print market and competitive pressures caused
by the depreciation of the Australian dollar over a sustained period
Sales and margins from diversified segments continued to grow strongly.
Total gross margins increased by 29 percent. The Sign & Display segment
grew vigorously, a product of both organic growth and a contribution across
the full period from the recently acquired NZ business ‘Total Supply’
Corporate/Unallocated costs (continuing operations) were down 22 percent
on pcp(2), reflecting cost reduction benefits from consolidating the
Company’s operating footprint to ANZA only during 2015
(1) Non-IFRS measure – refer Appendix 2
(2) Restated – refer Appendix 2
