PMP changes tact as ACCC makes ruling
PMP Limited’s CEO, Richard Allely, has detailed a ‘transformation’ plan that will ‘re-energise’ the company and position it for an improvement in market conditions.
Allely, who was only made CEO recently, has told the Australian Stock Exchange that phase one changes driven by volume declines resulting from the economic downturn, had already delivered short-term savings of $26 million .
“Phase one of the transformation is a swift and decisive response to the changing shape of the print market, which has seen a fall in print volumes and increased competitive rivalry…Our aim is to make the business much less complex and hence a much lower cost producer at a time when volumes are in decline in order to underpin and drive substantially improved earnings when the market improves,” Allely said.
This follows a ruling by the Australian Competition and Consumer Commission (ACCC) that the company provided ‘some of its customers with reports that included incorrect pamphlet delivery statistics’.
PMP Distribution (part of PMP Limited) delivers advertising material, publications and product samples to Australian households through a network of distributors and deliverers, known as ‘walkers’, who deliver materials by hand to letterboxes.
“During 2007 and 2008 PMP Distribution, a wholly owned subsidiary of PMP Limited, provided some of its customers with reports that included incorrect pamphlet delivery statistics – claiming deliveries had taken place in certain areas when they had not. The irregularity came to light as a result of an internal audit by PMP Distribution. When it discovered the problem, it contacted affected customers and approached the ACCC to resolve any Trade Practices Act concerns,” ACCC chairman Graeme Samuel said.
PMP released a statement welcoming the ACCC announcement, pointing out that it voluntarily alerted the ACCC of the issue when it first came to light in November 2008 following an internal audit, and kept the ACCC fully informed throughout its subsequent internal review process.
The ACCC said that it recognised all undertakings have been implemented and believed no further action needed to be taken.