M2 positive on growth prospects
OLD Trafford-based managed print services firm M2 Digital has won new contracts and retained existing customers to grow sales.
Newly-filed accounts for parent company M2 Smile show turnover at the business increased 8% to £31.3m in the year to the end of March.
Operating profits grew from £1.8m to £2.1m. But pre-tax losses widened to £1.5m from £1.3m after taking into account amortisation, exceptional costs and finance charges.
Over the past few years the firm has moved away from selling photocopiers and printers towards providing more added-value managed print services.
In their report the directors said: “M2 continued to win new major contracts and successfully implemented previous period contract wins in the period.
“All these together with strong renewal of major customers in the period helped grow our recurring annuity revenue stream significantly year-on-year.”
They added: “Whilst the broader economic experience and outlook remained weak, with managed print services having a strong cost reduction proposition, this limited the impact of the negative economic outlook.”
The company employed 178 during the period, up from 165 the previous year. Net debt grew by £1m to £26.1m
The company is majority-owned by private equity firm ECI Partners, which invested £12m for a majority stake in the business in 2006.
