Prime Active Capital (PAC), the printing and card services groups formerly known as Oakhill, has reported a pre-tax loss of €2.65 million for the year ending December 31st.
This compares to a profit of €103,000 for 2006. The Peter Lynch-led investment firm reported a 3.7 per fall in revenues to €34.63 million due to the closure of its commercial print division in September 2006.
Two share placings in May and July last year saw the company's net cash rise to €7.80 million. This compares to a net debt of €3.83 million at the end of 2006. The aggregate cash raised after expenses from the placings was €16.19.
The company has two main business divisions; digital media division PAC Digimedia and telecommunications unit PAC Telemedia. PAC Digimedia's operating profit of €2.57 million on revenues of €34.48 million led to an operating margin of 7.5 per cent, up on the 5.6 per cent reported in 2006.
Adjusted earnings per share rose 78 per cent in 2007 from 4.19 cent to 7.45 cent.
Mr Lynch described 2007 as a transitional year as the credit squeeze and global reduction in capital pressurised margins.
"Nobody enjoys an environment like this, but PAC is adequately financed for the opportunities contemplated by it at present . . ."
'We have seen these circumstances before and we have been successful in them, but none of us should underestimated the difficulty of the trading environment faced by any business in the next couple of years," he said.
