Printing.Com Share Discussion Threads

[dd776] 15/11/2010 16:31

a small bounce. how many year ago it was trading near the 70pence mark. where the growth, over ten years, came to market at 20p, 25p, 30p ????

[spaceparallax] 12/11/2010 11:16

Cheers CW, a small bounce would be nice, although realistically I won't expect too much just yet.

[cw2000] 11/11/2010 21:36

IC magazine has tipped the share again!
Will probably see a small bounce tomorow.

An excerpt from their site:
At the year-end in June, Printing.com pledged to combat weak trading, particularly in Ireland, with moves to diversify both overseas and by servicing bigger customers such as retailers and banks.
Progress is now taking shape as the company announced the acquisition of Netherlands-based printing supplier Media Facility Group (MFG) for a total consideration of Euro2m (£1.73m) in cash and shares.

[dd776] 11/11/2010 01:24

u do not see them wanting a rights issue in 12 to 15 months time when the printing press is paid for and the green shoots are springing so they want to set up a european production plant.? or worse just a placing to raise capital with a venture capitalist, diluting our holding.

[richjp] 09/11/2010 16:04

dd776, In business terms it's relatively easy to build up an operation to the current turnover of the Dutch company. Taking that growth forward is a different matter which is probably part of the reason they wanted to sell. Also Holland has not experienced the same depth of recession that we have, although that may be yet to come

I am quite impressed with the various initiatives taken by pdc over the last year or so. They all seem fairly low risk in financial terms and should be good for the company in the longer term.

[dd776] 09/11/2010 12:55

how come the company they are buying can more than double sales in the difficult times but printing.com sales are slipping ?

[spaceparallax] 09/11/2010 09:24

TRex,

That part was true, but the rest was bizarre

[tyranosaurus] 08/11/2010 21:20

I said "Dividend would struggle to be covered by earnings and would be frozen again" in post 1653.
I was told I had bizarre ideas.

spaceparallax - this was true.

[spaceparallax] 08/11/2010 10:11

Reads okay to me, pretty much as one might expect in this difficult time. I like the MFG acqn, it makes sense in many ways.

[theophilus] 08/11/2010 07:06

Printing.com plc
("Printing.com" or "the Company")

Specialist retail chain with 291 Outlets across the UK & Ireland

Unaudited Interim Results for the period ended 30 September 2010

Chairman's & Chief Executive's Statement

Trading Results, Cash and Dividend

During the Interim Period, covering the 6 months ended 30 September 2010, your
Company recorded a Pre Tax Profit before exceptional costs of GBP0.71m (2009:
GBP0.87m); a decrease of GBP0.16m. Exceptional costs incurred during the interim
period in the acquisition of MFG BV of GBP0.09m reduced Pre Tax Profit to
GBP0.62m

Total Retail Sales (TRS), the measure that we believe best indicates
transactional volumes, decreased marginally by 0.8% to GBP13.07m (2009:
GBP13.18m). Turnover decreased by 0.4% to GBP7.10m (2009: GBP7.13m).

At 30 September, the Company had cash-in-hand of GBP1.61m (2009; GBP1.79m).
Cash generated by operating activities was GBP1.17m (2009: GBP0.99m). A Final
Dividend of GBP0.93m was paid in the period (2009; Final GBP0.93m plus a special
Dividend of GBP0.89m). During the Period working capital increased by GBP0.11m
(2009: GBP0.25m) and capital expenditure was GBP0.44m (2009: GBP0.40m),
principally being the ongoing investment in the Company's Flyerlink and system
software. Net funds at the close of the period were GBP1.08m (2009: GBP0.58m).

Your Board is proposing to maintain the Interim Dividend of 1.05p per share to
be paid on 10 December 2010 to shareholders on the register at 19 November 2010.

In doing so, we are mindful that the dividend remains uncovered and that such a
scenario cannot continue on an indefinite basis. Regard has been given to the
cash requirements of your Company and consideration made to the 'falling away'
of lease finance arrangements (of circa GBP0.70m per annum) during the first
quarter of the next financial year.

With the advent of the new initiatives outlined in this statement, our priority
remains the progression of earnings; in the first instance to the level where
the dividend is once again covered.

Trading Analysis

Historically, whilst trading patterns across the UK undulate, on a
region-by-region basis, the trading cycle has proved uniform. However, the
performance over the period under review is polarised between London/South East
and the rest of the UK. Over the Interim Period, London/South East showed growth
of 5.9%, in comparison to the Interim Period of the previous year. On a similar
basis, elsewhere across the UK, trading volumes contracted by 4.5%. Overall, UK
volumes contracted by 2.6%. Operational margins slightly contracted reflecting
ongoing promotional incentives.

We believe this reflects improved confidence within the SME community within the
London/South East area, with the converse true in other regions of the UK. The
figures do encourage the belief that as and when confidence improves in the SME
community then volumes will indeed show a positive progression.

In Ireland, as reported last year, trading contracted sharply during the second
half of the year. The trading pattern is now stable and volumes in the period
under review are in line with the second half of last year. Encouragingly, and
while still at an early stage, French trade increased by 40% and is now on the
cusp of overtaking Ireland in terms of volumes.

Current Trading

Post the close of the interim period trading has continued to follow a similar
pattern with London/South East exhibiting growth, but overall, volumes remain
slightly below those of last year.

Estate Development

Notwithstanding the difficult trading conditions, during the period, your
Company was able to record a net increase of outlets across the UK and Ireland.

Estate Development

Notwithstanding the difficult trading conditions, during the period, your
Company was able to record a net increase of outlets across the UK and Ireland.

+--------------------------+------------+----------+-+--------+-+
| | 30 | 30 | 31 March |
| | September | September | 2010 |
| | 2010 | 2009 | |
+--------------------------+------------+------------+----------+
| Company owned Stores | 8 | 7 | 8 | |
| | | | | |
+--------------------------+------------+----------+----------+-+
| Territory Franchise | 26 | 32 | 28 |
| Stores | | | |
| | | | |
+--------------------------+------------+------------+----------+
| Bolt-on & Boutique | 257 | 251 | 252 |
| Franchises | | | |
+--------------------------+------------+------------+----------+
| | | | |
+--------------------------+------------+------------+----------+
| Total Outlets | 291 | 290 | 288 |
+--------------------------+------------+------------+----------+
| | | | | | |
+--------------------------+------------+----------+-+--------+-+


Like for Like

The Printing.com like for like metric takes into account the growth of turnover
in defined Territories (in geographic terms outside of London these are
typically the size of a county) embracing not only the Store, but also the
Bolt-on Franchises under the umbrella of the Territory. Only Territories with
Stores that have been operational for over three years are included.

Reflecting the more challenging trading conditions, like for like growth proved
negative during the interim period (0.2)% versus contraction of (2.47)% for the
similar period last year.


Online Channels and the Targeting of Higher Value Clients

The Company has now launched its online 'template-driven' solution 'Brand
Demand' targeting larger clients. Previously, the Printing.com offering has been
centred on the needs of the SME community. Accordingly, the Brand Demand system,
offers the scope to open up a new domestic market for the Company.

This system delivers a strategic solution for larger businesses and public
sector departments. The solution is aimed at clients with a higher annual spend
of circa GBP20,000 to GBP100,000 per year. From the client's perspective, the
elimination of job by job artwork cost and the speeding up of the procurement
process are the principal benefits and the reason we believe the service will
have appeal.

Whilst this service addresses the needs of a different market via an alternative
online channel, the product remains the same. This provides the scope to deliver
additional volumes through the Company's Manchester Hub.

Following initial marketing, the Company has a strong pipeline of interest, and
anticipates the first Brand Demand systems going live imminently.

Acquisition of Media Facility Group BV
Your Company previously reported that it would look for new ways to exploit its
technology internationally. To this end, we are pleased to announce that the
Company has completed the acquisition of Media Facility Group BV ("MFG"), a
Netherland's-based supplier of a similar range of products to Printing.com.
Consideration paid, comprising cash and the allotment of ordinary shares of the
Company amounted to of EUR2.00 million.
MFG supplies, via online channels, the Dutch market with a range of flyers,
leaflets, business stationery, posters and the like. MFG is the proprietor of
Flyerzone.nl, Druckland.nl and Printrepublic.nl. MFG has annualised sales in the
region of EUR6.7million.
The rationale for the acquisition reflects the synergies between Printing.com
and MFG:-
� The Printing.com template system will be added to the MFG offering,
enriching and commercially exploiting their infrastructure;
� MFG also has a number of resellers operating in its domestic marketplace.
These, it is hoped, will form the basis for the establishment of 'Bolt-on'
Franchises in the Netherlands;
� MFG does not presently manufacture, but relies upon contractual
arrangements with commercial printers. This provides Printing.com the scope to
supply some of the Dutch product directly from the Manchester Hub - thereby
exploiting unutilised UK capacity.

Other International Developments
Trading across our Master Licence partners in New Zealand and the US continues
at similar levels. Further, we continue to actively explore the scope to
establish Printing.com through similar arrangements in other territories.

Outlook
The improved performance across London/South East reaffirms our belief that
demand for the Company's core services, via its established channels, will move
forward as and when economic conditions improve. However, given the ongoing
uncertain economic outlook we must remain cautious as to the likelyhood of this
happening in the short term. Without retracting from our established domestic
market it is appropriate that we endeavour to engineer growth in other ways.
The integration of MFG and the launch of the Brand Demand platform represent
important opportunities to generate incremental revenue from additional markets
and accordingly, represent important steps in the development of your Company.





Th.

[theophilus] 08/11/2010 07:03

Acquisition



TIDMPDC

RNS Number : 7508V
Printing.com plc
08 November 2010

?
For Release
7:00am
8 November 2010
PRINTING.COM PLC
("Printing.com" or "the Company")
Acquisition of Media Facility Group BV
Printing.com plc, a chain with 291 printing outlets (principally franchises)
across the UK and Ireland, is pleased to announce that it has acquired the
entire share capital of Media Facility Group BV ("MFG"), a Netherland's-based
provider of a similar range of products to Printing.com.
The consideration paid for the acquisition being EUR2.00 million - paid part in
cash and in part by the issue of ordinary shares in the Company.
The share consideration comprised 2,562,164 ordinary shares in Printing.com to
be satisfied by the issuance of 1,948,462 new ordinary shares and 613,702
ordinary shares from Treasury. The shares were issued at a price of 33.2p being
the price of the Company's shares when the principles of the transaction were
agreed. Half of the Shares allotted pursuant to the transaction, are subject to
a 'lock-in' period of one year, the remainder two years. All of these shares
will be admitted to trading on AIM as soon as it is practicable to do so.
The total cash consideration amounted to EUR1million, with EUR0.5 million funded
from Printing.com's existing cash resources. The remaining cash tranche was met
via the issue of a Convertible Loan note, repayable (or convertible, at the
option of the vendors, into ordinary shares also at 33.2p) in equal tranches at
months 3,6,9 and 12 post completion.
Information on MFG
MFG's last filed accounts for the year ended 31 December 2009 showed a profit of
EUR14,000 for the year and net assets of EUR(61,000). Post this, the Company's
enquiries show that MFG has traded close to breakeven, allowing for exceptional
costs, relating to this transaction, of circa EUR170,000 including professional
fees and compensation paid to an outgoing director.
MFG operates from Rotterdam, Holland and employs 25 staff across sales,
marketing and operations. MFG vends a range of printed items, including flyers,
leaflets, business cards and letterheads, the products and services are similar
in nature to those of Printing.com.
Across the Netherlands, MFG operates a number of online channels via its
proprietary websites Flyerzone.nl, Drukland.nl and Printrepublic.nl.

Appointment of director
Previously, Hans Scheffer, the present Managing Director of MFG, led a
management buy-out of the company in 2008. Under his stewardship the Company's
enquiries show that MFG's annualised sales have grown from circa EUR2.3 million to
EUR6.7 million.
Following the acquisition, Hans Scheffer is continuing in the same capacity and
is joining the Board of Printing.com plc. Hans contracts his executive services
via a holding company and is paid EUR150,000 per year. He is entitled to a bonus
of up to 15% of fees per year linked entirely to growth in earnings of
Printing.com plc. The contract is subject to an initial 12 month notice period
reducing to six months after the first year. Additionally, should the Company
terminate his contract for convenience he is entitled to a payment equivalent to
one year's fees.
Further information relating to Hans Scheffer (aged 28)
Current directorships: Media Facility Group BV, HS Invest Holding BV.
Past directorships: 2 Go Events BV
There are no further matters in connection with the appointment of Hans Scheffer
that need to be disclosed under Schedule Two paragraph (g) of the AIM Rules.
As a result of the acquisition of MFG, Hans Scheffer has an interest in
1,281,082 ordinary shares in the Company representing 2.73 per cent of the
issued ordinary share capital.
Reasons for the acquisition:-
+--+-------------------------------------------------------------+
| | In line with Printing.com's stated strategy, as detailed in |
| | the 2010 final results, the acquisition will enable the |
| | Group to exploit its intellectual property in other |
| | international markets and the Directors believe that the |
| | acquisition of MFG represents an excellent way to achieve |
| | this objective; |
+--+-------------------------------------------------------------+
| | The management of MFG has shown entrepreneurial endeavour, |
| | expanding MFG as they have done. By adding elements of |
| | Printing.com's software, systems and know-how, the |
| | Directors believe that they can assist the MFG team in |
| | taking the MFG business to the next level; |
+--+-------------------------------------------------------------+
| | MFG's management were already looking at ways to add |
| | 'template' technology to their online channels, of a |
| | similar ilk to that being introduced by Printing.com and |
| | accordingly this provides an excellent way to commercially |
| | exploit Printing.com's new template technology; |
+--+-------------------------------------------------------------+
| | Currently, MFG subcontracts its printing processes and does |
| | not have printing facilities itself. This provides the |
| | scope to transfer some of MFG's production requirement to |
| | Printing.com's Manchester Hub. By doing so, presently |
| | unutilised capacity at the Manchester Hub can be exploited; |
+--+-------------------------------------------------------------+
| | MFG has many clients who resell the services onto their |
| | clients. The Directors believe that this provides an |
| | excellent basis for the launch of the Printing.com |
| | 'Bolt-on' formula in the Netherlands; |
+--+-------------------------------------------------------------+
| | Moving forward, and as-and-when it is commercially prudent |
| | to do so, the additional volumes from MFG, coupled with |
| | those from Printing.com France, could provide the necessary |
| | volumes to justify an additional Printing.com Hub in |
| | continental Europe; |
+--+-------------------------------------------------------------+

Commenting on the acquisition, Printing.com's Chief Executive Tony Rafferty
said, "We're looking forward to working with our new partners at MFG to
establish a pre-eminent position in the Dutch marketplace. This provides an
excellent opportunity for Printing.com to further exploit its intellectual
property within the Euro zone."
Hans Scheffer, Managing Director of MFG, added: "We were of the belief that MFG
could have reached the point where listing its shares on a public market made
practical sense, but partnering with Printing.com in this way, makes eminently
more strategic sense than unilaterally developing our business".
"By adding Printing.com's new template systems, we'll achieve speed to market
and scalable systems in a way that would have otherwise proved expensive in time
and money."


Th.

[spaceparallax] 01/11/2010 12:17

A modest increase by 3GC - nevertheless, a worthwhile sign of faith.

[spaceparallax] 26/10/2010 13:50

looking forward to the imminent Results

[theophilus] 08/10/2010 13:41

Hi Tyro,

You say,

"not tomorrow, but sometime more distant." ---- Could be Mon 8th Nov? :-)

I would be quite happy if div is frozen. An increase would be a bonus.

"Boring"? For a pre-close statement I found it quite interesting.

But then we are all entitled to our own views and to different degrees of optimism or pessimism.

Have a good day (today, and on 8/11)

Th.

[spaceparallax] 08/10/2010 12:58

No wonder you're extinct with such bizarre ideas

[tyranosaurus] 08/10/2010 12:29

Boring.
Annual results will be pathetic.

They are offering jam, not tomorrow, but somtime more distant.
Dividend will struggle to be covered by earnings and will be frozen again.

[mr hangman] 08/10/2010 10:49

Divi, reading the last hardman note, looks quite safe

[spaceparallax] 08/10/2010 10:18

Indeed, divi has been superb.

[cw2000] 08/10/2010 09:44

The web site now shows:
19 outlets in the US
20 in France
only 7 in Ireland

Great news about France, however, the result from Ireland is dire.
The US is of lesser importance as there is less of a franchise fee from here - and they don't utilise the press in Manchester.

However, I still hold a tranche - good for the income!

[mr hangman] 08/10/2010 09:19

Looking forward to the results, could be turning the corner here, with slightly
better trading, expanstion in the states, + cost savings in 18 months, maybe
a small increase in the dividend..

[dd776] 08/10/2010 09:18

Love it at long last some price movement, on such big share deals?

[theophilus] 07/10/2010 19:21

PRE CLOSE STATEMENT

Post the last market update, trading across London and the south east of England has shown some improvement and is slightly above the level of the previous year.

Outside of London and the South East trading remains slightly below the level of the previous year. Trading margins have slightly contracted principaly due to marketing support provided via monthly special offers.

Across the UK and Ireland, the network shows a slight increase in the number of outlets, reversing the previous decline.

The Company has enjoyed strong interest following the advanced marketing of its template driven online solution and is optimistic that this will contribute incremental revenues during the remainder of the financial year.

The Company looks forward to announcing its Interim Results on Monday 08
November 2010.

----------------------------------------------------------------------------

Hope I am not reading too much into the last sentence. But the "looking forward" seems reasonably optimistic.

Also a note of "optimism" in the penultimate paragraph.

Th.

[spaceparallax] 07/10/2010 18:25

Yes, the TS looks pretty solid on balance, hopefully we'll see a recovery towards 40p.

[jeff h] 07/10/2010 16:56

A bit better TS than what I was expecting....managed to bag 20k just before the bell.....nice little divi earner.