GRA.L Regulatory News (GRA)

28 Jun 2007 07:30

Printing.com plc28 June 2007 FOR RELEASE7.30am28 JUNE 2007 PRINTING.COM PLC ("Printing.com or "the Group") Specialist retail chain with 205 Outlets opened and pending across the UK and Ireland ANNUAL REPORT POSTED RECORD YEAR 42.9% INCREASE IN THE DIVIDEND ANNUAL GENERAL MEETING FRIDAY, 3 AUGUST 2007 The Company has today posted its Annual Report and Accounts to all shareholders.An electronic copy of the full Annual Report which includes the Chairman'sStatement, Chief Executive's Review and the Finance Director's Review can beviewed and downloaded from the Company's website: www.printing.com from 6.00 pmthis evening. The Annual General Meeting will be held 11.00 am on 3 August 2007 at theCompany's Head Office at Focal Point, Third Avenue, The Village, Trafford Park,Manchester M17 IFG. In his statement in the Report and Accounts, George Hardie, the Chairman,reported on another record year, a 42.9% increase in the dividend, from 1.75p to2.50p, and made the following comments regarding the outlook for the Company inthe current year: "Importantly, in the year under review, significant infrastructure was put inplace that should position your Company for further growth over the comingyears. At the Manchester Hub, capacity was increased from £20-25m to £40-45m andthe first International Master Licence was granted for New Zealand. This allowsa printer operating in that marketplace to utilise Printing.com's, Flyerlink(R)software, its systems and collateral in return for royalty payments. Over the coming year we expect to see material growth across our UK and Irishfranchise network that feeds our Manchester Hub. Having invested £3.9m in theyear under review, we once again have an abundance of unutilised capacity.Looking ahead, as volumes increase we would expect to see a proportionate netincrease in your Company's EBITDA. As a rule of thumb, assuming we are able tomaintain or improve current operational metrics, we would expect EBITDA toincrease by around £1m for each £5m of additional Total Retail Sales. In the UK, we have launched our first 'new media' offering, 'Websites byPrinting.com'. Following significant development over the past year, themajority of franchises are now trained in the service and the first websites arenow live. We believe there is great scope for this offering to further assistour clients to better promote their own businesses, and for our franchisees andyour Company to generate incremental profits. In 2003 we commenced shipping to the Republic of Ireland to test our systemswithin the Euro zone, and this has proved very successful. In September thisyear we will begin a similar operation in France. Over the past 18 months wehave invested in this new initiative and firmly believe that, by distributingvia Bolt-on Franchise partners, a great opportunity exists without the need todirectly invest in stores. The gestation period, for the granting of international Master Licences, appearslonger than we would have hoped and its launch more costly than anticipated.However, the success that has been achieved to date in New Zealand, coupled withthe granting of the second such agreement and the progressed negotiations in theUS, gives us confidence that in the years to come we will be able to exploityour Company's intellectual property. Collectively, we believe these initiatives herald an exciting time ahead foryour Company, reflected by our confidence in the acceleration of the dividend.In the current year, we are cautiously optimistic that the International MasterLicence programme will make a material contribution to your Company's profits." For further information: Printing.com plcTony Rafferty (Chief Executive) 07966 517 336Alan Roberts (Finance Director) 0161 848 5713 Cubitt ConsultingBrian Coleman-Smith / Leanne Denman / James Verstringhe 020 7367 5100 Background note: Printing.com Printing.com offers a broad product range including leaflets, booklets,postcards, promotional cards, invitations, letterheads and business cards toconsumers and small and medium sized companies. Unlike its competitors,Printing.com Stores and Franchises do not depend on any printing equipment onlocation. The Company's printing and ancillary equipment is based at thecentralised Production Hub with the head office in Manchester. All work isproduced in full four colour rather than two colour. Delivery to the customer isusually within three days. The printing sector has traditionally been served bysmaller printing companies or other On Demand Printers and is estimated to beworth some £1 billion. Printing.com has three routes to market: Franchise Stores, Bolt-on Franchisesand Company owned Stores. This information is provided by RNS The company news service from the London Stock Exchange