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.
Continuing revenue of $202.6 million, fell 3.1% from $209 million due to ongoing structural decline in the Commercial Print segment, which was partially offset by robust growth in diversified revenue.
Sales and margins from diversified segments continued to grow strongly. Total gross margins increased by 29%. 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’.
Commenting on the result, Spicers CEO, Andy Preece said, “I am very pleased to report a profitable result for the half, notably the first Group profit delivered since 2008. With the Spicers businesses now exclusively focused in the ANZA region, the first six months of trading reveals a profitable platform from which to execute our well-defined diversification strategies. The movement in Working Capital has been a disappointment but the non-recurring factors and drivers causing this are clearly known, with solutions already implemented and an improvement expected in the second half.”
Spicers (formerly PaperlinX Limited) is a merchant group with market leading positions in Australia, New Zealand and Asia.
