Blue Star braces itself for tough times ahead
Sluggish conditions across Australia and New Zealand expected to impact on Blue Star's future performance.
Reporting earnings of $51.9 million for the year ending June 2008, the company also achieved revenue from sales of $490 million, an increase of 16. 7 per cent. Net profit after tax was $11.3 million, compared to $9 million the previous year. Overall, net debit was $172.4 million and total equity was $53.9 million.
A statement from the company's chairman and managing director identified pressure on margins affecting all areas of the business. "To some extent these pressures are being offset by a relentless focus on productivity with investment in press and bindery equipment upgrades continuing," said managing director, Chris Mitchell.
Following the company’s acquisition of Auckland-based Panprint and Spectrum in the South Island this year, Blue Star will continue to look at expanding its presence in the trans-Tasman and Asia (see Print 21 magazine article).
Chris Mitchell’s appointment as managing director in May this year saw Tom Sturgess retire from the company, which has plans of moving in different directions in order to combat the difficult conditions it faces in future.
"Blue Star Print Group believes that levels of economic activity within both New Zealand and Australia have slowed and expects this to impact both demand for print services and margin realisation," Mitchell said.
"Blue Star Print Group will look to achieve acceptable financial performance through ongoing revenue growth and cost focus."