Trans-Tasman printing group PMP saw a 58.8% drop in first half profit and is pointing the finger directly at retailer Dick Smith.

PMP booked a $2.7 million impairment related to the money it is owed by Dick Smith, which went into receivership in January with total debts of about $400 million.

Today, the company said it had incorporated the one-off hit into its first half accounts, pushing net profit for the six months to December 31 down to $1.78 million.

Its profit was $4.31 million a year earlier.

PMP said it was unlikely to recover the total $3.9 million owed by Dick Smith.

Total revenue dropped 8.7% to $392.3 million, with most of the decline due to customers supplying their own paper.

Meanwhile, catalogue print volumes were down four per cent in Australia as the company exited low margin contracts, but distribution volumes were up six per cent.

Lower publishing volumes in New Zealand were mostly offset by cost savings.

PMP will pay a  1.2 cents per share unfranked interim dividend.

This story first appeared in Appliance Retailer