Colour printing capacity helps boost Rural results

Improved yield from the use of more colour in advertising helped push Rural Press' earnings margin up to 29.9 per cent. Overall the company had a revenue lift in the financial year just ended of three per cent to $588.4 million.

Australian agricultural publishing revenues proved the star earner for the diverse publishing company growing by five per cent with volume gains in special publications, property and livestock advertising. Regional/Metropolitan publishing advertising volume growth was relatively modest, although gains were achieved in all advertising categories. The New South Wales publications dampened the overall growth rate, reflecting the slower State economy.

Rural Press’ role as a commercial printer expanded last year, undoubtedly boosted by the new colour capabilities of its MAN Roland presses. Revenues increased by 5.5 per cent, earnings improved by 2.6 per cent after absorbing significant depreciation and funding costs from the capacity upgrades at Ballarat, Canberra, Launceston, North Richmond and Port Macquarie sites late in the prior year.

New Zealand agricultural publishing performed strongly, benefiting from an expanded market offering with the Central Districts Field Days. The company’s flagship rural newspaper, Straight Furrow, was confirmed as having New Zealand’s largest rural readership.

Rural Press Chairman, John B. Fairfax, AM said, “The earnings growth highlights the strength of the company’s diverse businesses, the management and the staff. Strong earnings growth was generated without the benefit of major acquisitions and after absorbing costs associated with the significant press upgrades at the company’s larger press facilities.

“Management and staff have produced a pleasing result and we look forward to the challenges and opportunities ahead,” he said.