The group reported revenues of NZ$293.3m (A$216.1m), a 0.8% fall from NZ$295.6m it recorded in the six months to 31 December 2009. Its EBITDA (earnings before interest, tax, depreciation and amortisation) was up 3.3% to NZ$25.3m
The best performer in terms of margin was its Australia Print business; although revenues fell by 9.4% to NZ$133.8m, its earnings rose 12.3% to NZ$8.2m, or 6.1% of revenue.
Webstar, meanwhile, posted a substantial 10.8% increase in revenue, but still saw a fall in earnings of 8% to NZ$13.4m, or 16.8% of revenue.
Geographically, revenues fell 4.7% in Australia to NZ$182.9m but rose 6.5% in New Zealand to NZ$110.4m.
Chief financial officer Graeme Archer said that while the New Zealand economy as a whole was still flat, it should be seen as “empirical support for [Blue Star’s technology platform] Agile that we are still getting improvements from a flat market”.
Blue Star used the results to announce it had secured a refinancing package. Chief executive Chris Mitchell stressed this included a “cash commitment from our shareholders”.
“The senior lenders have approved an extension of their financing package from its current expiry of 2012 through to 2015. That is dependent on further cash contribution from our shareholders [private equity owners CHAMP], which they have agreed to.”
It follows a recent announcement of private-equity backed rival Geon that it had restructured its finances, believed to be a write-off of debt in return for future equity.
Mitchell said: “Clearly we are reasonably pleased with the progress we are making. We are seeing a steady improvement and our senior lenders and shareholders have confidence in the strategy.”
Blue Star’s refinancing package is also dependent on restructuring the terms of its Subordinated Capital Bonds, “including an extension and other concessions”.
The bonds are traded on the New Zealand Stock Exchange. Interest payments have been suspended since September 2009 because Blue Star’s debt-to-earnings ratio is too high.
The refinancing package is separate to the capital already used to fund its Webstar New Zealand start-up, which is expected to be operational in around a month.
The facility, which was driven by Blue Star’s win of ACP’s NZ magazine contract, is centred around a pair of Manroland Rotoman web presses recently brought into the country.
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