Times still tough for Corporate Express
“We are not yet seeing any real signs of a sustained upturn in demand, either from major corporate clients or in the middle market,” the company said.
"We don’t expect that to change significantly in the near term.”
The company added that although it had made no acquisitions in the previous year, it would look to acquisitions in its core business area in 2010.
Corporate Express also said it was pro-actively attempting to improve business efficiencies in anticipation of an upturn in business. These include new computer systems and supply chain improvements.
Looking at the results for the year, revenue fell 9.3% to $1.16 billion, while EBITDA of $108.2 million was down 5.6%.
Corporate Express’ discretionary products businesses – IT, print and promotional materials, and furniture – were hardest hit, and are down 21% when compared to the previous period.
Commenting on the result, managing director Paul Hitchcock said the past twelve months had been a tough and challenging period, both for the company and for customers.
”Our strengths lie in our robust single-source model, coupled with the fact that what we sell is necessary for our customers to do business, “ Mr Hitchcock added.
The board declared a dividend of 12.5c per share for the six months, bringing the total dividend payout for the twelve months to 31 January 2010 to 22.5c per share, down 15% from the previous corresponding period.
At the close Monday, Corporate Express shares were $4.30 each.
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