Sharechat Logo

PMP writes down value of NZ magazine distributor

Friday 3rd February 2012

Text too small?

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.


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar headed for 1.3% weekly gain on expectations of a Fed rate cut
RBNZ knock-back gives Resolution chance to low-ball AMP - Jarden
Rail hubs may not boost Napier Port log trade
O'Connor looks to overhaul Biosecurity Act, improve animal tracing
Denton Morrell undefended at liquidation hearing
Contact steam to heat Norske Skog pellet business secured
Air NZ to amend booking engine after lawyer’s complaint
Ross McEwan to take helm at NAB
KPMG says bank capital proposals will wreck havoc on dairy farmers
Mild weather saps Vector's June-qtr volumes

IRG See IRG research reports