PaperlinX announced a statutory loss after tax of $(90.2) million for the year ended 30 June 2013 compared to a loss of $(266.7) million for the prior corresponding period (pcp).
The key features of this result include:
• Continuing revenue of $2.8 billion, down from $3.2 billion pcp due to weaker trading conditions. On a like for like basis, after adjusting for differences in foreign currency translations, revenue was down 12%
• Underlying loss after tax(1) for the period is $(39.0) million compared to $(54.4) million pcp
• Underlying EBIT loss(1) of $(21.4) million compared to $(27.2) million for the prior year. Notably, the second half of this financial year delivered an underlying EBIT loss(1) of $7.7 million, compared to a loss of $17.6 million pcp
• Strong performances in the Canadian, Australian and New Zealand businesses
• Restructuring charges of $(26.0) million after tax are in line with plan. Extensive restructuring initiatives reduced FTE by 11.8% across the Group
• Negative operating cash flow of $(42.1) million was largely due to the trading loss and payments for restructuring that were only partially offset by an improved working capital position. The working capital position improved in 2H due to continued focus on inventory levels
Commenting on the result, Dave Allen, Chief Executive Officer said, “Our turnaround strategy is progressing, with significant restructuring initiatives undertaken, particularly in Europe. Our efforts this year are forecast to result in permanent cost savings of $35-40 million from FY14. To deliver this, very difficult decisions have been taken, but we are confident that these pave the way to profitability for the Group.”
