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31 Jul 2008 07:00
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PRINTING.COM PLC
("Printing.com" or "the Company")
AGM Statement
George Hardie, the Chairman of Printing.com,Β will make the following announcement at the Annual General Meeting to be heldΒ at 10.00am inΒ ManchesterΒ today.
Current Trading
Since the last update,Β trading has continued at a level midwayΒ between theΒ Company'sΒ internal budget and the figure recorded for the equivalent period during the previous year.Β
With the vast majority of Printing.com orders being used for promotional purposes,Β it is not surprising thatΒ in the present economic downturn,Β trading conditions are more difficult than in recent years. However, the fact that the Company is stillΒ trading above last year's level, albeit from an increased number of outlets, reflects our beliefΒ in the strength of the Printing.com offering. Also it reflects our beliefΒ that we can mitigate aspects of the present downturnΒ withΒ potent monthly offers and other such initiatives.Β
TheΒ expansion of theΒ Bolt-onΒ FranchiseΒ estateΒ remains encouragingΒ andΒ in line with recent levels.Β Moving forward, we believe that theΒ appeal of theΒ Company'sΒ Bolt-on FranchiseΒ format should remain robustΒ as established graphic-arts businesses seek to differentiate themselvesΒ within their local markets.Β Β
Other Developments
Since the last update, trips have been madeΒ to inspect the facilitiesΒ ofΒ several prospectiveΒ Master FranchiseΒ partners.Β Whilst no certainty exists that deals will progress, weΒ remainΒ inΒ advancedΒ discussionsΒ andΒ continue to beΒ cautiously optimistic.
The NetworkΒ PartnerΒ initiative has now generated its first orders.Β This initiative allows third party manufacturers of complementary printed products to market and transactΒ business viaΒ the Printing.com network.Β At present,Β aΒ pilot group of Printing.comΒ Franchisees areΒ triallingΒ the serviceΒ prior to an anticipated rolloutΒ fromΒ September 2008.Β Β
Outlook
WhilstΒ todayΒ weΒ believe we canΒ respond toΒ manyΒ of the challenges in our marketplace, we areΒ notΒ whollyΒ immune to theΒ effectsΒ of the economic cycleΒ and accordingly we must beΒ somewhatΒ cautious in our outlook for the shorter term.Β
Notwithstanding this, should tradingΒ continue on a similar trendΒ and progress be achieved in ourΒ otherΒ initiatives,Β we believe that the prospect still exists for modest advancement in the present year.Β
In the medium to longer term, we still believe that significant potential exists for theΒ materialΒ enhancement of earnings derived from not only our core operations in the UK and Ireland,Β but alsoΒ fromΒ our fledgling operation in France,Β our planned launch in Australia andΒ theΒ continuing developmentΒ of the Master Licence programme. We also seeΒ additionalΒ potential closer to home in theΒ Websites by Printing.comΒ and Network Partner programmes.Β Β
For further information:
Printing.com plc
Tony Rafferty (Chief Executive) 07966 517 336
Alan Roberts (Finance Director)Β 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 inΒ 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 Β£1 billion.
Printing.com has three routes to market: Franchise Stores, Bolt-on Franchises and Company owned Stores.
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