Printing.com cautious amid ‘soft’ trading
PRINTING.com, which provides services to small businesses to produce marketing flyers and posters across Europe, says domestic trading is ‘soft’ as a result of weak confidence.
The Trafford Park-based AIM-listed company said that while it is cautious over short-term prospects following a fall in SME sentiment from June onwards, it has invested in new services and products.
Half year results to September 30 showed turnover – boosted by the acquisition last year of Dutch firm Media Facility Group – rising 51% to
£10.73m.
Ebitda before non-recurring costs nudged ahead to £1.61m from £1.39m, but as a result of increased depreciation and amortisation arising from software development and the acquisition of MFG, profits were down 12.7% at £620,000 from £710,000 last year.
The company held its interim dividend at 1.05p per share.
Printing.com said during the period it had launched three new trading channels – Flyerzone.co.uk, Flyerzone.fr (France) and BrandDemand (France). It also made progress with the fledgling BrandDemand UK business, which is a product targeted at larger, multi-site companies including other franchise networks.
While its product range is similar to Printing.com, the service uses proprietary ‘template’ software that enables users to eliminate the need for a professional graphic designer, while maintaining brand integrity.
Looking ahead the firm said trading “remains soft” in the UK and Ireland, but exceeds expectations in the Netherlands and Belgium.
Despite the challenging backdrop Printing.con said it remains profitable and cash generative.
“Given the present economic uncertainty coupled with the many new channel launches, the board is appropriately cautious in the short term but, moving forward remains optimistic.”
