The result consolidates Blue Star’s bronze medal spot on print’s Olympic dais, behind PMP and IPMG, but ahead of Geon, Salmat (print revenue), Franklin and AIW.
Despite a net profit rise of 25 per cent from last year ($13.2m up from $10.5m) Blue Star cautioned that the current year might not see similar growth. The company believes levels of economic activity within both Australia and New Zealand have slowed, and it expects this to impact both demand for print services and margin realisation.
Blue Star says it will look to achieve acceptable financial performance through ongoing revenue growth and cost focus.
According to the company, there has been an increase in the variability in print demand across the majority of its businesses over the last six months, although the web businesses in both Australia and New Zealand have continued to successfully build revenues to fill recently increased capacity.
The company says there continues to be pressure on margins across all businesses. To some extent these pressures are being offset by a relentless focus on productivity with investment in press and bindery equipment upgrades continuing.
In the year Blue Star generated cash flow from operating activities of $39.2m. Overall net debt at June 30 was $201.6m, and total equity was $63m. Total assets as at June 2008 were $426m.
In May, Chris Mitchell replaced long time Blue Star managing director Tom Sturgess. The company says it continues to focus on expansion through the selective acquisition of print businesses. It acquired two Kiwi printers during the latter part of the financial year: Auckland based Panprint and South Island based Spectrum.
