PMP tips flat result in tough times

PRINTING and publishing business PMP says it cannot see any real increase in its earnings this year due to tough trading conditions.

PRINTING and publishing business PMP says it cannot see any real increase in its earnings this year due to tough trading conditions.

PMP expects its financial 2013 earnings before interest and tax, and before significant items will be between $31 million and $34 million.

If the result is as expected, it would be broadly in line with the $32.7 million PMP achieved in the 12 months to the end of June.

The company on Tuesday said earnings before interest, tax, depreciation and amortisation and before significant items was forecast to be between $69 million and $72 million, compared with $76.5 million the previous year.

"Trading conditions in Australia have continued to be tough for our major clients as publishers and retailers continue to experience difficult market conditions," PMP said.

"In response, PMP is tightly controlling all operational and discretionary expenditure including capital expenditure."

The New Zealand market also remained difficult but PMP expected its first-half result there to improve thanks to cost reductions.

Its transformation plan was on track to provide $32 million of annualised savings over 2012-13 and 2013-14, PMP said.

New chief executive Peter George will outline plans at the November 22 annual meeting.

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