Troubled stationery company Paperlinx has posted yet another loss but says it has taken steps to return to profitability in 2014.
The paper merchant posted a first half loss of $57.3 million for the six months to December 31.
The result was still a six per cent improvement on the $60.9 million loss in the previous corresponding period.
It also included a $24.7 million impairment charge from Paperlinx' computer software and proprietary brands in Europe.
While the company has been loss-making for years, chief executive Dave Allen said he expected recent restructuring and investment for growth in packaging and sign and display would turn the business around by 2014.
"Although the loss is significant given the impairment charge, actions taken during the half have laid the foundations for Paperlinx to return to profitability in 2014," he said.
"Canada and ANZA (Australian, New Zealand and Asia) continue to be our strongest performers and we will take the learnings from these regions regarding a single brand to market to Europe and the UK."
He said the poor first half result reflected its weak operating structures in Europe which were not aligned with changing market conditions.
"Redesigning our operating structure is at the crux of the current cost-focused restructuring program which is progressing as planned and we expect these activities to continue as part of our everyday business management," he said.
Paperlinx's restructuring costs for the first half were $6.4 million and relate to programs in the UK and some smaller parts of the business in Denmark and Spain.
The restructure is expected to cost between $20 million and $25 million for the full year but is anticipated to deliver savings of $35 to $40 million over that time.
The company would develop its packaging business in ANZA and was developing a broader range in Australia.
CMC Markets chief market analyst Michael McCarthy said the market was unimpressed with Paperlinx's forecast of returning to profitability in 2014.
"It's not what the market wants to hear," he said.
He said there was also a concern that the restructure may take management's focus off external factors.
Paperlinx shares were 0.7 cents, or 7.22 per cent, lower at nine cents at 1442 AEDT.