FY2019 Retrospective

It was the best of times, it was the worst of times… (with apologies to Charles Dickens1) FY2019 was a year of change – both positive and negative – for Solution Dynamics Limited (“SDL” or the “Company”) Dealing with the negative issues first; these manifested in the domestic print and mailhouse sector, still the largest individual component of the Company’s revenue and earnings SDL lost three medium sized contracts, all the result of customers moving their print volumes to a single source supplier In each case, the majority of each customer’s requirement was offset printing; SDL only undertakes digital printing and was not able to provide the full range of print services each customer required A further factor was NZ Post’s postage price hike on 1 July 2018 This resulted in many customers accelerating the rate at which they were migrating from paper to electronic delivery, particularly transactional mail customers (about half SDL’s domestic volume is transactional mail, as opposed to direct or promotional mail) The combination of these factors – along with the inevitable lag in reducing costs following the volume declines – meant pressure on margins in New Zealand operations.

Click here to read the full Solution Dynamics Management Discussion & Analysis FY2019