Losses widen to €13.8m at Oakhill

Pre-tax losses at print group Oakhill grew to €13.8 million last year from €4.8 million in 2001, according to accounts filed last night.

Revenues from continuing business fell to €62.18 million from €68.07 million at the group, which was demerged from James Crean in 1999. The group said in a statement that trading conditions in its Irish, British and US operations were difficult and that an uplift expected last autumn failed to materialise.

Citing a reorganisation last August, it said: "The new financial year has started on a more positive note and operating profits for the first three months are ahead of last year. Certain areas of the speciality print division remain soft and actions are being taken to address these areas."

It added: "The managed services division is already benefiting from the revised strategy put in place together with significant additional investment in equipment and a stronger presence in the marketplace."

The figures reflected exceptional losses of €11.9 million which followed a review of operations initiated last August. They included reorganisation costs of €2.3 million and €3.8 million in closure costs.

There was also an impairment provision of €7.2 million in respect of its Meridian Print operation in the US and Technique Labels in Britain. This reflected the current prospects for the business in accordance with new accounting regulations.

Disposal of its packaging division reduced net debt to €16.26 million from €34.02 million, decreasing its debt-equity ratio to 49 per cent from 75 per cent.

With adjusted earnings per share at 2.11 cents, 70 per cent lower than the 6.98 cents reported in 2000, the group said operating profits before goodwill amortisation and exceptional was 33 per cent weaker at €5.46 million.