Shares in office products supplier, Corporate Express (CXP) fell 3.25% to a 52-week low of $5.65 after it said on Thursday its full-year net profit rose 0.6%, affected by increased interest expenses.
The company said net profit rose to $68 million from the previous year's $67.6 million.
"This was a result of increased borrowings that were required to fund an off-market share buy-back," managing director Grant Harrod said.
Full year revenue growth was up 5.1% with notable performances in the Canteen, IT and Facilities Supplies businesses.
Earnings per shares grew by 10.2% to 19.5 cents.
The outlook for the coming period is positive with the company going through fundamental change.
The changes will be applied to logistics/operations and will include implementing a long term plan in place for the company's IT systems.
In the period, Corporate Express acquired library supplies distributor Raeco, and it said it continues to review further opportunities.
The dividend payout ratio has been increased to 65% to improve capital efficiency. The Sydney-based business said the board has declared a fully franked final dividend of 13 cents per share, taking the total payout to 26.5 cents per share fully franked for the financial year 2007.
