Pegasus eyeing profit growth and $13m of new business after shocker 2011

Pegasus Print Group will sign up to $13 million of new business this year, as it returns to profit following the double-whammy of a $7.5 million loss and $7 million overdue tax bill.

Chief executive Wayne Finkelde told ProPrint that the group had recently won a labels contract that would generate $1.5 million this financial year and also signed point-of-sale and publishing deals valued at a combined $1.5 million.

He also said the 225-staff operation had a strong chance of winning more contracts worth a total of $10 million.

The group's size and diversity have enabled it to defy the challenging market and keep growing, said Finkelde.

According to its most recent ASIC filing, which is now more than a year old, Pegasus Print's revenue was stable at $54.4 million in 2010-11.

But the group posted a $7.5 million loss in 2010-11, largely due to an $8.5 million write-off. Pegasus posted a $1.5 million profit in 2009-10.

Finkelde said all four of the group's divisions had grown in 2011-12 and forecast further growth in offset, digital, labels and warehousing and distribution in 2012-13.

Pegasus is on track to top $60 million of turnover this year on the back of 10% growth, following 8% growth in 2011-12, he said.

Finkelde told ProPrint that Pegasus had posted a profit in 2011-12 and would do so again in 2012-13.

The ASIC filing noted that Pegasus owed $7.2 million in overdue taxes as of 30 June 2011, but had worked out a payment plan with the Australian Taxation Organisation.

Finkelde said only $1.5 million of outstanding tax remained and that it would be paid within nine months.

Click here to read ProPrint's interview with Wayne Finkelde.