Business Description:
PMP Limited (PMP) is a provider of consumer insight and printed communications solutions. PMP operates in the areas of data-driven market and customer analytics, creative advertising solutions, premedia, creative and photographic services, printing, letterbox distribution, magazine and book distribution through its Pacific Micromarketing, Dimension Studios, Dimension Solutions, Pinpoint (NZ), Maxum (NZ), PMP Digital, PMP Print, PMP Distribution, Gordon and Gotch, treeet, Catalogues4U, PMP Directories and Griffin Press businesses., in both Australia and New Zealand.

Strategy Analysis:
PMP continues to focus on increasing returns on marketing investments while providing consumer insight and printed communication solutions. The company has a three-year restructuring initiative that aims to fully restore financial health and will result in a more efficient cost base with lower levels of debt. The market environment is viewed as quite challenging, with problems of overcapacity, coupled with constant inflationary pressure on costs and slowing advertising expenditure. Falling consumer confidence in tough economic times places pressure on advertising yields. Maintaining ongoing vigilance over costs and extracting efficiency gains in this environment is therefore critical. The company is hoping to extract premium pricing from its new GPS tracking solution, but seems unlikely in the current tough market. . PMP reported a net loss of $11.31m for the year ended 30 June 2011. Revenues from ordinary activities were $1.19bn, down 1.5% from last year. Diluted EPS was (3.4) cents compared to 6.1 cents last year. Net operating cash flow was $70.23m compared to $74.72m last year. The final dividend declared was 1 cent, taking the full year dividend to 1 cent compared with nil last year.