Penfold Buscombe claims nine per cent of local sheetfed market

Alistair Hill, managing director, and Ian Elliot, chairman, made the bullish claim in the company's annual results, in a discussion of the impact of the PMP transaction on Penfold Buscombe's full-year financial performance.

“This further strengthens our sheetfed printing business and increases the lead we have over our competitors,” says the report. “Our estimated market share is now approximately nine per cent, with our closest competitor holding approximately half this share. It [the PMP acquisition] makes Penfold Buscombe the largest dedicated sheet-fed print communications business in Tasmania, as well as Victoria, New South Wales and Queensland.”

Overall annual results for Promentum were positive, with the company locking in sales revenue of $139 million, an increase of 27.9 per cent from the previous year, and profits clocking in at $7.26 million.

More acquisitions are on the cards in the new financial year, though the company warns potential sellers to be realistic in the prices they can expect fro their companies. “Our gearing is now a reasonably conservative 26 per cent… So we will continue with this programme as long as each acquisition adds value to our business.”

Promentum reports a blip in demand for print over the last financial year, but asserts that the softening was short lived with business returning to its previous encouraging levels. It indicates a cautiously optimistic approach will be taken to the coming year.

Other highlights of the year, as reported in the review were:

Cairns re-equipped with up-to-date printing equipment.

Brisbane operations relocated into Penfold Buscombe's new Greenfield site at Ormeau. Old PMP site at Zillmere was exited.

A press was relocated from the Sydney site of PMP Moorebank over to the print centre at Banksmeadow.

Melbourne saw significant changes, with all suitable PMP equipment relocated to the Mt Waverley site and supplemented with a new ten-colour press and additional bindery equipment. The PMP Cheltenham site was exited.

Hobart operations saw a notable increase in capacity, with the introduction of additional five-colour presses. The company sold and leased back PMP's old Hobart property.