Our product offering extends beyond paper. Robert Horne Group in the UK supplied the material – KYDEX® T thermoplastic alloy – and technical support for the production of new curvilinear benches for Manchester Airport’s departure concourse. KYDEX® T benches manufactured by Robert Horne Group customer, Hutchfield Furniture, to a design by public artist and sculptor, Mel Chantry.
Overall business results
All eyes on our global Merchanting platform
PaperlinX links customers and suppliers through a global network of locally focused merchants. Providing customers what they want, when they want it, backed up by global scale, and an expanding offering in Sign and Display, Industrial Packaging, Converting and Graphics.
PaperlinX is one of the world’s largest global merchants with operations in 26 countries and sales exceeding three million tonnes of paper annually.
We stock and market own branded paper, and we distribute well known mill brands in office, commercial print, printing and publishing paper. We offer a diverse range, superior product knowledge and technical expertise. We provide professional and timely solutions, and ongoing support until the job is completed. We are expanding our offerings in Sign and Display, Industrial Packaging and Graphics. We offer supply chain assurance that the wood fibre used in the paper we sell is sourced from sustainably managed forests. We support independent certification systems, such as the FSC accreditation process and the Programme for Endorsement of Forest Certification (PEFC).
MERCHANTING OVERALL – RESULTS
|Sales volume||’000 tonnes||2,989||3,424|
|Earnings before interest and tax before significant items||A$m||82.3||185.7|
|Return on average funds employed||%||4.8||10.9|
- Overall sales volume for Merchanting was down 13 per cent, in line lower volumes in key markets. Second half volumes were down 19 per cent.
- Revenue in Sign and Display, Graphics and Industrial Packaging was down in source currency, with these non-paper businesses accounting for 17 per cent of gross profit.
- Sales revenue for the total Merchanting business was down 3 per cent, benefiting from currency translation to Australian dollars.
- Margins benefited from an improved ratio of warehouse sales (higher margin) to indent sales (lower margin).
- Trading expenses were down in all regions. Across all merchanting businesses headcount was down 8.1 per cent, adjusted for the sale of Australian Paper.
- Average working capital was $1.1 billion, similar to the prior year while the year end working capital reduction of $71 million ($127 million at a constant currency) versus the prior year was a decrease of 8 per cent despite negative currency translation impacts. Notwithstanding second half volume falls, year end inventory days were down from 64.5 to 58.9 across Merchanting as a result of improved processes.