Penfold Buscombe goes from strength to strength

Good news travels fast when you’re a public company and the largest dedicated sheetfed printing company in Australia was quick off the mark to let the world know it has enjoyed a good year.

Based on unaudited results to May 2004 and expectations of June trading, the
company anticipated that it will report a net profit before tax for the year of approximately $6.7million, on increased sales of approximately 16 percent. This compares to a net profit before tax for the previous year of $1.77million or $3.07million when restructuring costs are excluded. The expected result will give a net profit before tax for the second half of approximately $2.4million, compared to $0.95million for the corresponding period last year.

Penfold Buscombe Chairman, Ian Elliot said: “The results are testament to Penfold
Buscombe’s ability to create a competitive cost base and build its market position through strong organic business growth and acquisition”.

Penfold Buscombe Managing Director, Alistair Hill, commented: “Over the past 12 months we have gone from strength to strength on the basis of achieving one uniform business in a highly fragmented market. This has given us a clear advantage in defining our business in the market and building our presence through scale and sales.”

Pongrass is bedded down

The company reports that the printing business acquired from Pongrass Communications Group (PCG) in April, is performing in line with expectations and the major part of the business and equipment has been successfully integrated into the East Botany site. The digital printing business will be relocated within the next two months

Costs associated with the relocation of the equipment and inventories totaling $0.2million have been expensed in the year and are reflected in the expected trading result referred to above. As the PCG business was acquired in April 2004, it has only had a marginal effect on the results this year.