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Blue Star says underlying earnings improve in tough times

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, Aug 26 NZPA - Blue Star Group Ltd said a strong second half and a restructuring of its business helped lift its underlying profit in a still challenging printing industry environment.

Earnings before interest, tax, depreciation, amortisation, restructuring charges and one off items rose 14.6 percent to $42.9 million in the year to June 30.

The company reported a net loss after tax of $2.656m.

Sales revenue fell 1.5 percent to $569.2m.

The sheetfed printing operations, which make up approximately 44 percent of group revenues, took the biggest hit from the global financial crisis. Volumes fell in a market with over capacity and this resulted in lower margins.

"Blue Star Group has responded, as indicated in the 2009 annual report, by actioning significant cost reduction programmes and implementing major operational enhancements to adapt to the changing environment," managing director Chris Mitchell said.

The web, label and print management business was strong.

The company has debt securities listed.

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