CPI board is 'disappointed' at losing $19.9 million

Over $13 million in abnormal charges, including a $2 million write-off in goodwill, are standout features in the unaudited draft results released by the company. Despite its disappointment however, the board is confident of the future and claims the group has returned to a sound financial state. It predicts a return to profitability in the coming year.

The Group had a positive cash flow in the second half of the year and has used the money to reduce debt, which now stands at $33 million with gearing of 64 per cent. It claims a net tangible asset value of approximately 82 cents per share, which are trading at 64 cents.

CPI is now focussing on its core paper business into which it integrated Boomerang Paper mechant business during the year.

After losing the FujiFilm agency and attempting to make a go of it with replacement lines from Agfa and Screen, it bit the bullet earlier this year and closed the loss-making imaging division. It still retains a substantial press dealership in the Komori agency as well as a solid portfolio of finishing products. In recent weeks it has taken to selling the EFI Best proofing.

The company registration of Komori (Australia) in February indicates renewed attention by the Japanese company to the local market. Industry sources speculate on increased support for CPI in its press dealership, which is headed by Gerard Wintle. The success of the Komori line has remained one of the few bright spots in the company’s recent troubled showing.