Local packaging firm Colorpak has reported half year revenues of $42.6m, a 5.6 per cent jump from the last year’s $40.3m, which the company attributes to a boost in sale as well as strong operational efficiencies.
The company’s net profit also increased from $3.3m last year to $3.7m, which is the highest six monthly profit in the company’s history. Colorpak says sales growth was steady indicating the resilient nature of the industries the company serves.
The company also outlines that the increases in revenue along with improvement in the company’s margins yielded the increased profit and boosted earnings per share to 4.63 cents.
In a statement directors said, “This level of profitability is considered to be another solid achievement in the face of cost and competitive pressures in the current economic climate.”
Net cash generation from operations for the half year was an inflow of $4.6m, enabling a further $2.8m reduction in net debt since June 2009 to $25.1m, according to directors.
The statement continues, “Net capital expenditure in the first half totalled $0.4m and capital expenditure on plant and equipment in the second half of the year will be contained to less than $1m.
The company maintains adequate cash reserves and undrawn bank credit facilities to meet its expected working capital requirements for the foreseeable future.”
