Corporate Express delivers the goods

Some great news on CXP in an otherwise bleak day! Good forecasts by the company in the second half also. I have been a long term holder of CXP and this justifies me holding on! Any views out there on CXP and it shareprice?

mycall101

Corporate Express delivers the goods
August 2, 2002
Provider of office products and services, Corporate Express (CXP) today announced a first half net profit after tax of $21.4 million, an increase of 40% over the previous year. It also said it expects results for the second half to be “equal” to first half results.

The company also announced it has appointed a new CEO.

“Our profitability was driven by strong top line growth combined with a focus on expense reduction”, Ted Nark, managing director of Corporate Express said.

Sales increased to $362 million compared with $298 million in the corresponding period last year, a 22% increase, the company said.

Mr Nark said the company’s revenue increase was driven by strong organic growth resulting from market share gains, as well as an improved economic environment in both Australia and New Zealand.

The company's specialty divisions’ revenue increased 39% over the corresponding period last year.

The company completed two acquisitions in the first half totalling approximately $18 million in annualised revenues, acquiring office products dealer Transcript and Planet Cellars, thus entering the corporate liquor market.

“We now have the ability to be a single source provider to our customers for their office supplies, computer supplies, print management, promotional marketing, IT hardware, furniture, liquor, coffee, catering and janitorial needs,” Mr Nark said.

Corporate Express also revealed it is currently in negotiations with two additional acquisition candidates, representing $20 million in annualised revenues.

SHAW Stockbroking analyst Scott Marshall said the result was better than the market expected, highlighting the company’s growth from organic sales, increased market share, cost reductions and acquisitions.

Corporate Express also announced today that it had appointed Grant Harrod as managing director and CEO of the company following the resignation of Ted Nark, effective 2nd August.

“Mr Grant has 20 years experience in the Australian office products and IT supplies industry,” the company said, spending the last six with Corporate Express.

At market close yesterday Corporate Express shares were 24c higher to $4.60