Penfold Buscombe commits to print management strategy
Penfold Buscombe, Australia's largest sheet fed printer today announced a half yearly trading profit of $2.1 million and a profit before tax of $952,000 on revenue of $48.8 million and after accounting for significant restructuring costs of $1.16 million. No interim dividend was declared.
Announcing the company's results, outgoing chairman, Will Penfold said, "the result was satisfactory in the current economic environment and this once-off expenditure has enabled Penfold Buscombe to complete the consolidation of a number of smaller printing businesses into one new organization."
Alistair Hill, managing director said, "The company has been actively seeking major print projects. The changes we have made in bringing all of the businesses under one roof now allow us to deliver to our clients all of the quality and economic advantages of scale. The early response from current and prospective clients leads us to believe that our strategy for the future is correct."
The company consolidated well-known Sydney printing companies, RT Kelly, Mockridge Bulmer and Concord Communications into a greenfield site in Botany over the Christmas period.
"While our brands are among the oldest, Penfold Buscombe is also the newest face in printing, offering the benefits of scale matched with personal service. Personal service was at the heart of the success of all of the businesses we have now consolidated. It is ingrained into our culture," said Alistair Hill.
"The company's plan at the beginning of 2002 was to integrate the various Sydney businesses that all operated under different brands and premises and to relocate them to a new site in East Botany. We are now the largest sheet-fed printer in Australia with the very latest in technology, including a new Heidelberg ten-colour printing press. We have two and a half acres of plant all housed under one roof and located within ten minutes of the CBD. This restructure has also resulted in a reduced cost base."
"The company now presents itself as a more attractive proposition to the large print buyers like banks, telcos and the insurance and finance sectors, while maintaining an appeal to smaller clients with regular print requirements."
Changing of the board
Will Penfold has stepped aside to allow advertising guru, Ian Elliott to take over as chairman of the company – Mr Penfold will continue as non-executive deputy chairman.
Ian Elliot brings to the non-executive role a history of advertising and media involvement as former CEO of George Paterson Bates and current chairman of Zenith.
“My experience in the advertising and media sectors all points towards further consolidation of budgets and bulk deals. There is little room in any markets for mid-size players any more,” he said.
“This is a company with great heritage and the strategic changes and structural investments made by the board will deliver a value proposition that is extremely relevant to major corporations."
In the reshuffle Hayden Hills and Ross Cameron retired from the board.
Will Penfold said, "Ian Elliot has a great deal to offer
Penfold Buscombe. His long history in the advertising and marketing sectors and knowledge of business in Australia are attributes that will help take our business forward as we build awareness among key decision makers of our capabilities."
The Board's view is that industry conditions are still challenging and are forecast to remain tough for the rest of FY03. However, it is confident that the company’s repositioning will enable it to attract a greater share of the market.
