Promentum buys Vic digital print facility

The plan is to relocate the assets to Promentum’s existing production site in Mt Waverley. The business currently generates approximately $1 million in annual sales. Promentum has indicated it will run the facility in a similar fashion to its digital operation in Sydney, a NexPress site the company inherited when it purchased the Pongrass business in 2004.

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. Profits were solid but not earth shattering at 5.2 per cent of total revenue, the $7.26 million figure representing a 65.2 per cent rise on the previous year’s figure.

Promentum attributes the rises to a number of factors. Mainly, the acquisition of the Pongrass business, the successful integration of PMP’s sheetfed business earlier this year and the strong organic growth of its New South Wales and New Zealand operations.

These strengths were not reflected in the company’s Queensland operations, which ‘performed poorly incurring losses’ in the second half of $1.2 million due to competitive pressures and disruptions related to the relocation to the new site at Ormeau. Promentum claims the site is now settled in and showing improvements with several key contracts secured.

While the company concedes it remains cautious over the effect that economic conditions will have on the bottom line over the next 12 months, it is nonetheless confident of continued growth and expects revenue for the 2005/06 financial year to exceed $180 million.