Price pressure places strain on McPherson’s Printing Group

Weaker market conditions and competitive pressures lead to drop in sales revenue for McPherson’s Printing Group.

The printing division of McPherson’s Limited reported a drop in sales revenue to $64.3 million as of 30 June 2010 – down from $68.4 million the previous year. Earning were also down, coming in at $3.8 million, a slight decrease on the $4.3 million reported in the year before.

Sales revenue was below the previous year, due to the continuation of subdued market conditions and competitive pressures, particularly in the area of professional reference publications. However, McPhersons reported that volumes in the ‘read for pleasure’ sector held up well. Profit margins overall were at similar levels to the previous year, with strong cash flows generated.

In a statement, the company said that the business remains focussed on cost containment and efficiency improvement through technology-based initiatives.

Overall, McPherson’s Limited announced an after-tax profit of $25.6 million, an increase of 33 per cent over the prior year. Paul Maguire, managing director, expects a slight pick up.

“Despite … uncertainties, the company is anticipating modest growth in 2011, with revenue and profit outcomes for the first two months of the new financial year consistent with that expectation,” he said.