Annual Report to Shareholders 1997

Review of Operations

Bob Lockley, General Manager

The web-fed printing division has continued its objective of growth. The acquisition of the Canweb Printing operation in Canberra completes the plan to have similar printing plants in all States and Territories in Australia. The operation at Canweb includes a Goss Community SSC pressline, which was one of the latest models installed. Canweb includes a significant pre-press operation which complements the press and provides a one-stop service to printing clients.

The upgrade of plant and equipment throughout the other printing sites has continued, with additional colour capacity being installed at Nowra and additional units at Murray Bridge in South Australia. Colour enhancement capabilities are being planned for many of our other presslines to cater for the increasing demand in full colour reproduction. Rural Press now provides an in-house full colour scanning service at all of its major print centres.

The rebuilding programme of printing presses has been successful during the past year and will continue at an increased rate during the new year.

External revenues in the current financial year represented 60% of the printing division's total revenue. The printing market was very competitive with a number of new presslines introduced by competitors. This placed pressure on margins.

Despite this, the client base continued to grow with many new clients utilising the services of our print centres across Australia. A pleasing addition to our printing schedule is the Saturday Australian Financial Review, planned to commence in September. There was welcome relief with lower newsprint prices during the year, after several years of price increases.

The heatset operations at North Richmond and Ballarat have proven to be successful, with the Ballarat plant producing increased levels of colour work on gloss coated stocks.

The Occupational Health & Safety plans are continually updated to ensure the health and safety of staff is at its optimum level. Safe working procedures are in place to ensure that operations are within the guidelines of the relevant Work Safety Acts.

Rationalisation of the New South Wales printing sites continued with the Bega and Queanbeyan plants being phased out, and the work being transferred to either Nowra or Canweb printing operations.

List of printing sites