Home grown packaging company, Colorpak, today announced a record full year profit of $6.413m (NPAT) up 14.1%. A special dividend of 1 cent per share in addition to the 1.75 cents final dividend will be paid as recognition of the company’s strong financial performance for the year.
Colorpak Managing Director, Alex Commins, said the business strategy of targeted acquisition and organic growth through profit reinvestment over the past five years has continued to pay off.
“Colorpak has recorded compound sales growth of 11.8% over the past 10 years and with more than $25m reinvested to drive operational efficiency over the past 5 years, it is well positioned to take advantage of any future opportunities of rationalisation or structural change in the $620m per annum folding carton market.
“The company over achieved its planned debt reduction with net debt at 30 June 2010 amounting to $22.7 million. Gearing, as measured by net debt / net debt+equity has fallen to 27.3% and continues to hit new record lows,” Mr Commins said.

Highlights:
NPAT
2010 - $6.413m
2009 - $5.620m_____14.1% change
EPS
2010 - 7.90 cents
2009 - 6.94 cents_____13.8% change
Revenue (sale of goods)
2010 - $80.164m
2009 - $78.764m_____3.2% change
Dividend
2010 - 4.25 cents (yield 9.2%)
2009 - 3.00 cents_____41.6% change
Net debt
2010 - $22.7m (27.3%)
2009 - $27.5m (33%)_____(17.5%) lowest on record

Acquisitions:
In April 2010 Colorpak completed its latest acquisition of a business formerly known as Remedies in NSW. The Remedies business has been successfully incorporated into Colorpak’s Flexibles division and relocated to its Regents Park facility.

Outlook:
In the current economic environment and market conditions, the company expects modest growth in sales and profitability for the 2011 financial year. Cash flows from operations are expected to continue to be robust, further strengthening the company’s Balance Sheet and enabling planned and opportunistic growth options to be considered.

FOR FURTHER INFORMATION
John Fergusson
0407 826 952

**About Colorpak - The Colorpak business dates back to the 1950s and has grown to become a prominent participant in the $620m folding carton segment of the paper and board packaging industry in Australia. It has grown from 36 people and 1.5m turnover in 1985 to 315 people and a turnover in excess of $80m in 2010. The company services the specialty segments of the market including healthcare and pharmaceuticals industries. It ranks third by size in the industry behind Amcor and Carter Holt Harvey, but number one by reputation. Over the past decade, Colorpak has been the most consistently rated No.1 folding carton supplier for reliable delivery and service with the highest quality standards by BIS Shrapnel Global business research and forecasting. It has operations in Victoria and NSW.