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PMP writes down value of NZ magazine distributor

Friday 3rd February 2012

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Printer PMP has written down the value of Gordon and Gotch, New Zealand’s largest magazine distributor and says its New Zealand printing business is encountering difficult market conditions.

The A$2.2 million write down of goodwill for Gordon and Gotch New Zealand was revealed in a profit warning issued by the company to the ASX on Thursday.

News Corp previously sold Gordon & Gotch to John Fairfax Ltd who in turn sold it to PMP.

PMP, which has printing operations in New Zealand and was once run by former All Blacks captain David Kirk, said earnings before interest and tax for the 2012 financial year will be down 20 percent on guidance given at the annual meeting in November last year.

First-half EBIT is expected to be between A$22.5 million and A$23.5 million with full-year EBIT between A$43 million and A$47 million.

The reduction in earnings outlook was driven by lower revenue.

Managing director Richard Allely said the printing business in New Zealand has been hurt by weak markets. Existing customers have reduced activity and competition for new business is intense, the company said.

The company also signaled A$8 million of significant items in the second half but did not say if they were in New Zealand.


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