Shares in PMP have risen sharply after the trans-Tasman printing group said it would resume paying dividends to shareholders.
PMP also says it could launch a share buyback, after enjoying solid earnings growth this financial year.
It expects its underlying full year earnings will be in the middle of its previously forecast range of $25 million to $26 million.
Debt is expected to fall to $19 million.
The advertising brochure printer said its board intends to commence paying dividends and/or launch a share buyback by returning to shareholders up to half of this year's net profit.
"In line with the board's strategy and following three years of intensive restructuring, PMP has become a more profitable, cash generative and sustainable company," PMP said on Thursday.
"Coupled with the emergence of improved market conditions, as indicated by more stable print industry volumes and heat-set prices, PMP now has a higher degree of confidence in the outlook for the business."
PMP shares had risen 5.5 cents, or 11.83 per cent, to 52 cents at 1058 AEST.
PMP last declared a dividend for shareholders when it announced a $4.6 million net profit for the first six months of the 2011/12 financial year.
But demand from the publishing and retail markets subsequently deteriorated amid tough economic conditions.
PMP was forced to cut costs, reduce staff numbers, and sell assets in a bid to become leaner, stronger and more competitive, particularly in its printing business in Australia.
PMP booked annual losses for the 2011, 2012 and 2013 financial years.
The company returned to a small annual net profit in the 2014 financial year but did not pay any dividends.
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