Market pick up sees Blue Star rising

Tough times keep earnings at $20 million for the six months to January, still below the 2008 figures.

The figure represents a 163% improvement on the previous six months but, reflecting the depth of the financial crisis, is still below the figure of $27.6 million earned in the six months ended 31 December 2008. In a half year preliminary annouocement to the NZ Stock Exchange, revenue for the six months to 31 December 09 was $295,618,000, a decrease of 2.96%.

According to Chris Mitchell, (pictured) CEO, market conditions are tough and print volumes remain volatile. However he does see some improvement in customer sentiment and demand. “We have seen a solid improvement in operating profit over the last six months and we are in good position to continue our transformation plan,” he said.

The painful restructuring and repositioning of the company continues with little sign of it being able to pay the suspended interest on its bonds. Senior bank debt was reduced by $20 million.

In an interview, Mitchell indicated print volumes were still down 20 to 25% from where they were before the GFC. He indicated that at the darkest period volumes crashed to almost half.  He is skeptical of the possibility they will ever return to re-crisis levels.

"There is so much volatility in the market. So many companies deferred their communication campaigns it is impossibile to predict. Our focus is on continuing the Agile transformation of the group and driving operating profit," he said. "We are making good progress."

According to Graeme Archer, CFO, it must be remembered that the previous corresponding reporting period, to Dec 31 08, was before the GFC hit. The rebound in revenues, although still down on that period, is an indication of the company's performance.

Capital investment for the group is focused on the development and implementation of software to complement its Agile programme. There are no plans to buy presses or other heavy equipment in the near future.