Blue Star Print Group (BSPG) has reported sales revenue of NZ$304.4m for the six months ending December 2008, which represents a jump on the NZ$253.1m reported in the same period the previous year. However the company’s profits slipped, with earnings before interest, taxes, depreciation and amortisation (EBITDA) of NZ$25.8m reported at the end of 2008 compared with NZ$30.2m the year before, reflecting tightening margins.
The group says its business conditions and performance has encountered increasingly challenging business conditions throughout the last six months, which has been most noticeable in the New Zealand and Australian sheetfed businesses.Chris Mitchell's managing director's report to accompany the half yearly results outlines that its web business particularly Webstar Australia, and its Australian mail business continue to perform strongly. Meanwhile, the sheetfed businesses have experienced spend reductions across key client industries particularly the banking, insurance and retail sectors, together with continued and increasing pressure on margins.
The statement continues, “BSPG has developed a five year strategic plan focused around driving further profitable growth whilst optimising its cost base. As part of the first phase of the strategic plan BSPG has initiated a number of programmes to optimise its sheetfed cost base.” This has included moving the McMillan printing operating into its main Silverwater site, and consolidating its Canberra digital and seetfed operations.
A re-alignment of the New Zealand sheetfed cost base has also recently been completed to better match operating costs to operating conditions, according to Mitchell.
MItchell concludes that with the progress around implementation of these strategic initiatives it will be in a better position to address the difficult trading conditions expected throughout the next 12 months.
