Xpress Holdings, the provider of fast turnaround print solutions, says net profit for the financial year ended 31 July 2010 (FY2010) amounted to $8.5 million compared to $13 million a year ago, a decline of 35%.

Profit before tax rose 11.9% to $4.7 million from $4.2 million a year earlier despite challenging operating conditions in the global printing industry.

Xpress says its operating profit for FY2010 was achieved on the back of revenue of $59.6 million, 8.3% higher compared to $55.0 million in FY2009, despite challenging market conditions.

For FY2010, apart from recording smaller gains from sale of investments and the absence of tax write-backs compared to a year earlier, the group did not equity-account any share of profits of its print partner Jiaxinda which had ceased to be an associate. (Xpress had recognised $0.7 million of Jiaxinda’s profits in FY2009).

Net profit for the three months ended 31 July 2010 (4Q2010) declined to $5.2 million from $7.1 million in 4Q2009, largely due to lower gain from disposal of investments (the group recorded a gain of $4.3 million from disposing shares in a former associated company compared to a gain of $5.1 million from disposing shares in the same company a year earlier) and the absence of $1.2 million in tax credits recorded in 4Q2009.

The directors have proposed a first and final dividend of 0.06 cents per ordinary share.