31 Jul 2008 07:00
PRINTING.COM PLC
("Printing.com" or "the Company")
AGM Statement
George Hardie, the Chairman of Printing.com, will make the following announcement at the Annual General Meeting to be held at 10.00am in Manchester today.
Current Trading
Since the last update, trading has continued at a level midway between the Company's internal budget and the figure recorded for the equivalent period during the previous year.
With the vast majority of Printing.com orders being used for promotional purposes, it is not surprising that in the present economic downturn, trading conditions are more difficult than in recent years. However, the fact that the Company is still trading above last year's level, albeit from an increased number of outlets, reflects our belief in the strength of the Printing.com offering. Also it reflects our belief that we can mitigate aspects of the present downturn with potent monthly offers and other such initiatives.
The expansion of the Bolt-on Franchise estate remains encouraging and in line with recent levels. Moving forward, we believe that the appeal of the Company's Bolt-on Franchise format should remain robust as established graphic-arts businesses seek to differentiate themselves within their local markets.
Other Developments
Since the last update, trips have been made to inspect the facilities of several prospective Master Franchise partners. Whilst no certainty exists that deals will progress, we remain in advanced discussions and continue to be cautiously optimistic.
The Network Partner initiative has now generated its first orders. This initiative allows third party manufacturers of complementary printed products to market and transact business via the Printing.com network. At present, a pilot group of Printing.com Franchisees are trialling the service prior to an anticipated rollout from September 2008.
Outlook
Whilst today we believe we can respond to many of the challenges in our marketplace, we are not wholly immune to the effects of the economic cycle and accordingly we must be somewhat cautious in our outlook for the shorter term.
Notwithstanding this, should trading continue on a similar trend and progress be achieved in our other initiatives, we believe that the prospect still exists for modest advancement in the present year.
In the medium to longer term, we still believe that significant potential exists for the material enhancement of earnings derived from not only our core operations in the UK and Ireland, but also from our fledgling operation in France, our planned launch in Australia and the continuing development of the Master Licence programme. We also see additional potential closer to home in the Websites by Printing.com and Network Partner programmes.
For further information:
Printing.com plc
Tony Rafferty (Chief Executive) 07966 517 336
Alan Roberts (Finance Director) 0161 848 5713
Cubitt Consulting
Brian Coleman-Smith/Nicola Krafft/James Verstringhe 020 7367 5100
Brewin Dolphin Ltd (Nominated Adviser)
Richard Evans 0845 213 4853
Background note:
Printing.com offers a broad product range including leaflets, booklets, postcards, promotional cards, invitations, letterheads and business cards to consumers and small and medium sized companies. Unlike its competitors, Printing.com's Stores and Franchises do not depend on any printing equipment on location. The Company's printing and ancillary equipment is based at the centralised Production Hub with the head office in Manchester. All work is produced in full four colour rather than two colour. The printing sector has traditionally been served by smaller printing companies or other On Demand Printers and is estimated to be worth some £1 billion.
Printing.com has three routes to market: Franchise Stores, Bolt-on Franchises and Company owned Stores.