Annual Report to Shareholders 1996

From the Chairman

J.B. Fairfax AM

In reviewing another year I strive, like any Olympic athlete, to show you that while we may not have achieved all that we set out to achieve, we have nonetheless produced a "personal best". The result, achieved while "running into the wind", is one of which we can be proud.

Conditions, particularly in the second half, have been tough and continue to be so. The reasons are varied, but fundamentally there is an element of caution across most communities. Building industry activity is very low and therefore the flow-through effect to many other businesses has been greatly diminished.

It is historically not usual for the two main commodities in agriculture, wool and beef, to experience a simultaneous low point. This has been the case for many months and coming on the back of drought and recession, it is not an easy time for most farmers and the country towns that serve them. Many small businesses have disappeared and some estimates indicate that as many as 30,000 regional jobs have been cut in New South Wales alone over the past decade.

Despite these adversities, the Rural Press flag is flying, and flying high. We have had our wins during the year. We have produced a profit result which has demonstrated our strength and versatility through controlled geographic and media diversification. We made a major acquisition which further strengthens our position in regional and rural Australia. Some of our employees, newspapers and radio stations have won awards.

Rural Press, like the Olympic symbol, has five elements linking its total operation. We have divisions in rural publishing, regional publishing, printing and broadcasting. The fifth link, which is embryonic but nonetheless emerging, is in the newer electronic publishing media.

During the year Mr Lex McCorquodale retired as a director after 12 years of dedicated service. His contribution to Rural Press Limited during a period of expansion and growth was much appreciated. Mr Ian Holmes joined the Board and we are delighted to have his knowledge and experience.

We have confidence in rural and regional Australia, and some signs exist that endorse even more our reasons for optimism in the years ahead. I believe our achievements have been significant and reflect well on our management and staff.

We are conscious of our role as an Australian media company operating among communities that have experienced cut-backs and hardship. In all situations we are part of those communities and we have a responsibility to provide understanding and encouragement.

For shareholders, we have been able to produce a "gold" result, with record sales, earnings and dividends.