Printing.com confident despite dip in profits
TOUGH trading has seen profits dip at Printing.com but the group said is it performing better than its peers and is well placed to capitalise on any recovery in the marketplace.
The Manchester-based group said in the six months to September 30, pre-tax profit fell 14.7% from £1.02m to £0.87m. Turnover was £7.13m compared to £7.18m last time.
The AIM-listed company said the dip in profits reflected in part increased discounting and promotional activity.
It said the group has £1.79m “cash-in-hand” compared to £2.94m last time. However the drop follows the £0.89m payout to shareholders in the form of a special dividend.
Despite tough trading, Printing.com increased its estate in the UK and Ireland. It now has seven company owned stores, 32 territory franchises and 251 bolt-on and boutique franchises. The total of 290 is a net increase of seven from March 31.
The group said its international expansion is progressing well. Its New Zealand master licence partner continues to make progress albeit the limited population of the country ultimately puts a constraint on the earning potential.
In France, the group is poised to open two stores early next year.
It said: “Our US partners, following on from their launch earlier this year, continue with their endeavours to establish Printing.com across Florida and Georgia. We remain optimistic for the potential of the Printing.com concept throughout the wider USA.”
Chief executive Tony Rafferty said 65% of its business is from smaller firms and the group has “sharpened its pricing” to enable its franchisees to “bang the drum” in terms of offering value to their customers.
He said: “While we have not been reckless in eroding margins, we have given our franchisees something to shout about.
Mr Rafferty added while conditions remain challenging, Printing.com is faring better than the printing sector at large.
He said: “To the best of our knowledge we are the only printing franchise to report a growth in its estate of late. Also the confidence to pay an additional special dividend during the interim period coupled with your company’s absence of net debt and continued cash generation highlights the robustness of the Printing.com business model.
“It is appropriate for us to remain cautious in the short term but to reiterate the previous sentiment, we believe that, as and when the economic situation across the UK and Ireland improves, Printing.com will be well placed to capitalise on its position.”
Printing.com declared an interim dividend of 1.05p per share.
