Turnaround story PMP Limited's (ASX: PMP) share price is flat today after the commercial printer and distribution company reported a 4.9% rise in net profit before significant items to $7.8 million.
It's been a torrid decade for long-term shareholders in PMP with the company facing a near death experience which saw the share price plummet from a high of $2.09 a share in 2007 to just 13 cents in 2013.
After significant attention by management, major structural readjustments and an improved balance sheet, PMP is on a much firmer footing these days.
For the six months ending December 31, PMP reported an 8.6% decline in sales revenue to $390.5 million, a 5.9% decline in earnings before interest and tax to $14.8 million and a small rise in earnings per share to 2.4 cents per share (cps).
Importantly, net debt continued to decline and now stands at just $10.4 million.
Improving free cash flow and lower debt levels have allowed PMP to continue with capital management initiatives. An unfranked interim dividend of 1.2 cps has been declared with a record date of March 22 and a payment date of April 6.
PMP also announced plans to extend the current buyback by a further $1.9 million, which should result in a total buyback value between February 23 and June 30 of $5.4 million.
Foolish takeaway
On an underlying basis, it would appear that PMP's business has found some form of base level however whether there is much upside left in the current share price remains to be seen.
Having rallied by over 125% from its lows, the biggest gains have likely been made already and like its peer Salmat Limited (ASX: SLM) the market would appear to be factoring in mediocre future potential.
PMP's situation is quite a different proposition to the tailwind outdoor advertisers are enjoying at present with stocks such as APN Outdoor Group Ltd (ASX: APO) and oOh!Media Ltd (ASX: OML) achieving bumper profits which you can read about here and here respectively.
