Print management wins improve sales at M2 Digital

PRINT management firm M2 Digital grew sales by 23% in the year to March 31 and increased its earnings before interest, tax, depreciation and amortisation (ebitda) by almost 300% to £2.6m, according to newly-filed accounts.

The company, which employs around 190 people across three UK offices cited a growing focus on offering managed print services to customers – where it supplies printers and other machines to customers who then pay for usage – as the key to its improved revenues.

M2 Digital is majority owned by ECI Ventures following a £20m buyout from founders Peter Quinn and Mike Driver in 2006. Quinn remains as chief executive but Driver left the business last year.

Managing director John Taylor said that the company is targeting organic growth rates of around 30 per cent in the coming year and was not ruling out the possibility of future acquisitions.

“These figures demonstrate a solid turnaround from 2008/09, and are testament to our colleagues who have demonstrated great commitment and energy during tough market conditions,” said Taylor.

He added that the firm had recently signed heads of terms with two new companies in recent weeks which would give the firm access to new distribution channels with more than 5,000 UK businesses on board. He also said that it has recently won preferred bidder status on tenders issued by three FTSE 100 companies.

“We have a great offering which lends itself to the current economic climate, in that we are demonstrably saving customers significant costs.”

Accounts for parent company M2 Smile Ltd show that despite its improved profitability on an operational level, the company declared a pre-tax loss of £1.1m – reduced from £3.3m a year earlier – following interest payments on bank debts and loan notes totalling more than £22m. As a result, the group’s net liabilities increased to £5.3m from £3.9m a year earlier.