PMP shares are on a tear after the printer resumes paying dividends

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Shares in PMP, which has been hard hit by a fall in print work, jumped after the company said it will be making a return to paying dividends.

The printer says it now has a high degree of confidence in the business outlook and expects full year earnings to be in the middle of the previously announced range of $25 million top $26 million, down from $51.7 million last year.

The board says it intends to resume paying dividends and perhaps launch a share buyback program.

Shareholders last received a dividend in the 2011-12 financial year.

The printer has been slashing costs and jobs after coming under pressure from declining print work, posting losses in 2011, 2012 and 2013.

PMP’s core business is printing and distributing sales catalogues in Australia and New Zealand.

And the company says catalogues are still a key marketing channel for driving sales for retailers.

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