Melbourne, Australia – February 6, 2006 - Colorpak Limited (CLK) today announced strong growth for the first half of 2005/06, with revenue up 25.7% and net profit up by 10.4% over the first half of the previous year to 31st December 2005.
In brief, the results were:
| $M | Increase % |
Revenue from ordinary activities | 35.064 | 25.7% |
EBITDA | 6.475 | 15.4% |
EBIT | 4.340 | 10.7% |
NPAT | 3.023 | 10.4% |
Dividend
Directors declared a fully franked dividend of 1.0 cent per share for the half.
Commentary
Colorpak’s Managing Director, Mr Alex Commins, said the results were very pleasing and demonstrated that the company was on a sustainable growth path as it had managed strong sales growth to lift overall profitability.
“The growth in sales is attributable to both organic growth and the acquisition of Castle Graphics. Organic growth, which represented 15.8% of total growth for the half, came from our blue-chip portfolio of existing and new customers across all our major markets including pharmaceutical/healthcare, food, beverage and fast moving consumer goods. Supporting this sales growth, the 2005 launch of PharmaKit, which allows pharmaceuticals companies to source a suite of packaging elements that can be certified and delivered in one solution, has been an unqualified success and we expect further growth over coming years. It is a good example of the specialist, tailored solutions that we provide to our customers.”
“Also, the commissioning of new printing plant at our Braeside (Melbourne) site was successful and it contributed well to increased productivity.”
The strong profit growth flowed directly from increased revenue and after taking account of substantial costs which were not included in the previous comparable period, being a bad debt of $90,000, legal costs of $68,000 associated with fending off an infringement to our trading name rights by a foreign company, and a further $115,000 included for the senior executive incentive plan.
Outlook
Mr Commins said he was confident the company would meet expectations in the second half of 2005/06.
“The earnings guidance provided at the 2005 Annual General Meeting indicated sales growth of 10% - 15% and earnings per share growth of at least 5% for the full year. Cash from operations in the second half is expected to be in excess of $4.5 million.
“We believe these targets will be achieved,” said Mr Commins.
“Key events for 2006 include the opening of our new facility in the Sydney suburb of Auburn and the commissioning of new plant for the site. This is scheduled for May. A finished goods warehouse adjacent to our manufacturing plant in Braeside is also due for completion and it will enhance our logistics. When both these facilities are fully operational, they will further increase our productivity and customer service levels,” said Mr Commins.
Colorpak is Australia’s third largest specialist packaging company and has operations in Melbourne and Sydney. It listed on the Australian Stock Exchange in April 2004.
For Further information:
Alex Commins
Managing Director
Colorpak Limited
(03) 9587 8333
0418 311 508
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