PaperlinX Limited (PPX)



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General Information
Company Name: PaperlinX Limited
Stock Code: PPX
Website: www.paperlinx.com.au
GICS Sub-Industry: Trading Companies & Distributors
Market Cap ($M): 29
Equiv. Shares (M): 665

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 0.051 $ 0.044 $ 0.053 $ 0.044 $ 0.044 4,321,521 $ 0.007  15.909 %

Current Broker Consensus Recommendation more
Recommendation: Strong Sell (5)
Recommendation Date: 26th Sep 2014
Brokers Surveyed: 1

Company Overview

Business Description:
PaperlinX (PPX) is a global merchant company supplying the printing and publishing industry and office supplies. PPX distributes fine paper and sign and display, graphics and industrial packaging materials to a wide range of customers in Europe, United Kingdom, North America, Australia, New Zealand and Asia.

Strategy Analysis:
Following its exit from paper manufacturing, PPX is focused on improving its remaining merchanting businesses which have strong market share in Australia, US and European merchanting markets. International merchanting markets are large (estimated $30bn market value in North America, $22B in Europe). Strategies revolve around extracting efficiencies and reducing costs as well as expansion of its non paper merchanting operations. The company is undertaking a full strategic review of the business including addressing its unsustainable balance sheet structure. PaperlinX reported a net loss of $108m for the year ended 30 June 2011. Revenues from ordinary activities were $4.66bn, down 8% from last year. Basic and Diluted EPS was (21.4) cents compared to (38.9) cents last year. Net operating cash flow was $54.6m compared to $23.1m last year. No dividend was declared.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2013  F -30,666.5 -5.1 -- -1.0 0.0 0.0 0.0
2012  F -45,300.0 -7.5 -- -0.7 0.0 0.0 0.0
2011  A -37,200.0 -6.2 -- -6.9 0.0 0.0 0.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2011 A 2012 F 2013 F 2011 A 2012 F 2013 F 2011 A 2012 F 2013 F
Emeco Holdings (EHL) $123 M -- -- 0.0263 -- 26.9737 26.2821 0.00 0.00 0.00
PaperlinX (PPX) $29 M -- -- -- -- -- -- 0.00 0.00 0.00

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
PPX -- -- 0.80 -- 0.01
Market 0.99 15.4 1.26 1.70 1.52
Sector 1.08 11.8 0.99 1.34 0.46

Directors
Name Position Start Date
Mr Andrew Price Chief Executive Officer,Managing Director 01 September 2012
Mr Michael Barker Non-Executive Director 27 September 2012
Mr Robert George Kaye Non-Executive Director,Non-Executive Chairman 27 September 2012

Management
Name Position
Joost Smallenbroek Chief Financial Officer
Michelle Wong Company Secretary
Wayne Johnston Company Secretary
Andy Preece Executive General Manager, Australia, New Zealand & Asia
Cory Turner President, Canada

Substantial Shareholders
Holding Name
33,700,372 (5.53%) Raymond Gonzalez
111,432,010 (18.29%) Orbis Investment Management Pty Ltd and its related bodies
49,048,082 (8.05%) Maple Brown Abbott Limited
30,500,000 (5.01%) Communication Power Incorporated (Aust) Pty Ltd

Calendar of Events
Date Event
18 September 2015 Report (Annual)
19 August 2015 Report (Prelim)
19 February 2015 Report (Interim)
24 October 2014 AGM
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.

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