Blue Star on target for year

By Phil Boeyen, ShareChat Business News Editor

Friday 8th March 2002

Privately held Auckland printing company, Blue Star Print (NZSE: BLU010), has reported an interim profit of $2.5 million on operating revenue of $149.4 million.

Earnings before interest, tax, depreciation and amortisation in the first half ended December was $17.4 million while earnings before interest and tax was $10.1million. Net cashflow for the period $22.5 million.

Blue Star, which operates printing and marketing communications services in New Zealand and Australia, says demand levels for print in the majority of its markets were steady during the period.

"Sales and Ebitda exceeded expectations for the period with the majority of business units producing on or above budget performance," the company says.

"However in the sheetfed sector, notably in Auckland and Melbourne, industry over-capacity continues to be an influence on margins."

The company says its key strategic initiative over the period was the launch of Webstar Australia, a new web offset operation in Sydney.

"Operationally the start up has gone reasonably well with anticipated press quality levels being achieved. Marketplace response has generally been positive and revenue build is progressing."

Blue Star says it anticipates meeting full year targets given a successful first six months and reasonable economic projections for the Australian and New Zealand economies over the next six months.

The company is represented on the NZSE through a $45 million subordinated bond which listed in October 2001.

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