John Hirst says the Nuplex group has been positioned for future growth. Photo / Dean Purcell
John Hirst says the Nuplex group has been positioned for future growth. Photo / Dean Purcell
KEY POINTS:
Resin maker Nuplex is forecasting significant profit growth this year after posting a record full-year revenue.
Revenue for the year ending June 30 was $1.45 billion, up from $1.3 billion the previous year, while operating profit was up 6 per cent at $40.3 million.
Managing director John Hirstsaid he was very satisfied with the outcome.
"I think the results speak for themselves," Hirst said. "It's a year in which we've positioned the group for future growth."
The current financial year was expected to deliver significant growth in operating profit, he said, but he did not provide specific information.
Hirst said there was greater prospect for raw-material price stability this year.
"I would like to think that there's always prospects for lower raw material costs in the next 12 months."
Nuplex expected to fully recover any raw-material cost increases through pricing.
"The market is much more attuned to that these days, and certainly our sales people are much more competent in doing that."
Trading profit (earnings before interest, tax, depreciation and amortisation) was up 7 per cent at $104.1 million, with between 85-90 per cent expected to come from overseas currencies - roughly half Australian and a quarter each in euros and US dollars.
Shares closed up 5c yesterday at $6.60
First NZ Capital analyst Jason Familton said operating earnings were slightly ahead of expectations.
"As for the outlook comments, I think they were relatively similar to what most people were thinking. This year's been a year of restructuring and they've been successful in getting through that."
Net profit of $26.2 million was down from the previous year's $62 million, which included $24.7 million from the sale of Environmental Services.
The net profit result included an $11.5 million deficit of unusual items, including $6.1 million of redundancy and write-down costs from operations in Britain.
Those operations were expected to be profitable late this financial year.
The write-down and closure of operations in Brazil cost $4.2 million, after a four-month delay in the hope of selling some assets increased the bill by $1.4 million.
