Printing.Com Share Discussion Threads

[eburne1960] 10/6/2009 21:15

Yes, ON THE REGISTER the 12th, it went ex today, shares go ex a couple of days before the register date to allow time for holders to get on the register. Have a look at the PDC page on the London Stock Exchange website, it says XD under "Special Conditions".

[cw2000] 10/6/2009 20:04

The special div appears to go xd on the 12th.
From their results:

Special Dividend

The Directors are declaring a Special dividend of 2.00p per qualifying ordinary
share, amounting to GBP887,000, payable on 26 June 2009 to shareholders on the
register as at 12 June 2009.

[eburne1960] 10/6/2009 16:23

Well it's up today, as it's gone ex the special div.

[richjp] 09/6/2009 22:07

With the yield I am getting and with what looks to me like a pretty good future, I am not too bothered about a few sellers.

If the wider market pulls back, which I think might happen in the next few months, I may well buy a few more.

[i036327] 09/6/2009 21:31

Looks like there is a large seller. At least 2 of the last 3 days, there has been a 200k sell around 2pm. Shame as there has been a lot of small buys going through which i suspect would have seen at least one of the 0.5p rises of the last 3 days stick.

[spaceparallax] 08/6/2009 12:41

Good results in tough times.

[mr hangman] 04/6/2009 15:02

Mentioned in Shares Mag this morning, good income trade...

[dd776] 03/6/2009 08:07

thanks for posting that information. Realy just want some good news on the economy front and growth to push the company along.

[cw2000] 02/6/2009 22:40

For those interested, the IC has rated PDC as a buy as of today:

Harder times are testing Printing.coms mettle
Created: 2 June 2009 Written by: Nigel Bolitho
In early November 2008 Printing.com reported interim 2008-09 profits up five per cent to £1.02m and was hoping that 12 month's profits would be close to last year's figure of £2.42m. But then came that Guy Fawkes moment when sales forecasts suddenly blew up and sales volumes fell seven per cent. At the same time the company had to administer plasters in the form of more than £100,000 of marketing support to franchisees (the latest "offer of the month" is half price business cards) - and take a £200,000 bad debt hit.

But Printing.com has two big advantages: a strong cash flow that allows it both to buy in shares and pay a special 2p a share dividend plus, critically, a much reduced interim capital spending (capex) programme. In 2008-09 capex more than halved to £590,000 and probably won't be much more than that for the next three years. The reason is that its Manchester printing hub can cope with total retail sales of over £40m compared to last year's figure of £26.3m.
A strong cash flow also allows Printing.com to spend money developing overseas offshoots. A venture in Iceland is on ice but 10 French franchises are close to breakeven and the New Zealand master licensee seems to be making good progress with 46 outlets - compared to 283 in the UK up a net 34 last year. Printing.com has also awarded a US master licence starting off in Florida. Broker Brewin Dolphin forecasts little changed 2009-10 sales and profits.

Year to 31 Mar Turnover (£m) Pre-tax profit (£m) Earnings per share (p) Dividend per share (p)
2005 10.7 1.51 2.74 0.50
2006 12.3 2.41 4.12 1.75
2007 12.1 2.29 3.55 2.50
2008 13.5 2.42 3.64 3.00
2009 14.5 2.06 3.28 3.15*
% change +7 -15 -10 +5

Ex-div: 24 June Payment: 23 July
Aim: Business support services.
*Excludes a special 2p payment

That's a fair evaluation while the shares remain a definite buy for income - almost double digit returns without the special payout.

Last IC View: Buy, 32.5p, 19 November 2008

[theophilus] 02/6/2009 16:10

The latest Hardman report



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This morning's full year results from Printing.com showed PBT in
line with our expectations but surprised on the upside with a
substantial 71% hike in the total dividend payout, including a oneoff
special dividend of 2p/share. On the basis of current trading,
we are maintaining our estimates. These assume group sales and
PBT will hold steady in 2009/10 before rising again in 2010/11.
Key points from the results are:

• Total group sales up 7%, ahead of our estimates.

• A reduction in EBITDA margin, from 27.2% to 22.6%, reflecting an increase in staff costs as the number of company stores increased, higher provisioning for bad debts and the extension of marketing support to franchises. PBT was down 15% to £2.06m. Eps was down 6.8% to 3.3p.

• Continued good cash generation, with cash inflow from operating activities amounting to £3.52m (vs. EBITDA of £3.3m) and a debt free balance sheet.

• A better-than-expected 5% increase in the ordinary dividend to 3.15p and a special dividend payment of 2p/share, giving the shares a current yield of 14%.
Dividends have been a major casualty of this recession so we view this cash return as particularly encouraging.

• 62 new units opened during the year. All of these were bolt-on units. The total number of active franchised units actually increased by less than this – from 249 to 283. Three territory franchises were taken back in house and
25 existing bolt-on franchises left the network.

• A modest first time contribution from the international outlets following a near sixfold increase in sales to £388k. We expect total retail sales and volumes to fall in the current year. The decline is likely to be marginal rather than dramatic, however, as more outlet closures (c.40) and a decline in turnover per outlet due to pricing pressures is partially offset by a push into the corporate and public sector marketplace and further additions to
the bolt-on estate. The latter ought to be possible because existing
print/design businesses that are finding life very difficult at the
moment can simply plug into the Printing.com model with none of the financial outlay (people, software, equipment) normally associated with adding a new revenue stream.

In arriving at our current year estimates we have assumed provisioning and marketing subsidies will run at a similar level to the 2008/09 financial year. In the absence of these, profits would move sharply higher suggesting Printing.com is very well-placed for when the economy turns.

Share Price: 36.5p
12m High: 41p
12m Low: 22p
Market Cap: £16.3m
Shares in Issue: 44.70m
NAV/Share: 12p ex intangibles
Gearing: Nil. Net Funds (cash less lease creditor finance) £1.8m
Interest Cover: n.a. (Net Interest Income)

Also sees dividend of 3.30 and 3.60 in subsequent years


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Th.

[alibongo612] 02/6/2009 14:17

Said the man who gets a big share of that divi !

[dd776] 02/6/2009 13:47

Printing.com bullish after increasing turnover by 7.3%
Simon Nias, printweek.com, 01 June 2009

Printing.com has recorded an increase in annual turnover, coupled with a drop in pre-tax profit, in its preliminary results for the year ended 31 March 2009.

The Manchester-based print franchise business posted a 7.3% increase in turnover, to £14.5m, but was hit by a 15% slide in pre-tax profit, which fell from £2.4m to £2.1m.

However, the fall in profitability was in-line with market expectation – given the recession – and Printing.com's share price rose by 17.2%, to 37.5p, in early trading following publication of the results.

Printing.com chief executive Tony Rafferty attributed the decline in margins to the financial assistance the company has given to its franchisees, in the form of marketing ventures worth "several £100,000" and an increase in sales of discounted items.

Rafferty added that the company had deemed it prudent to make some provision for a number of doubtful debts, although this had not yet been called on.

The chief executive was bullish about the company's prospects, especially in comparison to its traditional competitors.

He said: "The fact we centralise production means that we can offer far more pungent prices than if we produced work locally, and I would argue that we produce a more comprehensive suite of marketing collateral than any of the other high-street printers.

"Moving forward, I think we are very well positioned, provided we can hold our own and assist our franchise partners, to emerge a much stronger creature [after the recession]."

Printing.com increased its number of outlets from 249 to 283 over the course of the year, leading to a 7% increase in total retail sales, from £24.6m to £26.3m.

Meanwhile, the company also granted a Master Licence Agreement in the US, to Florida-based Raintree Graphics.

Printing.com also announced the payment of a special dividend of 2p per qualifying ordinary share, in addition to the total annual dividend of 3.15p per ordinary share, thus returning an additional £887,000 to shareholders.

Rafferty said: "The reality is that we are cash generative and, even taking a cautious view, we felt it was appropriate to return that additional £887,000 to shareholders.

"We are aggressive, well-placed and, even given the difficult times, structured in such a way that we can do that."

[dd776] 02/6/2009 13:22

the share options by my understanding where not for the directors but a way in which to reward franchise owners

[glennborthwick] 01/6/2009 17:23

remind me did i buy 293 000 at sub 10p on loq which are now 80p. Oh yes i did..

[mr hangman] 01/6/2009 17:16

Remind me again, how much has LOQ paid out in dividends so far...?

[glennborthwick] 01/6/2009 17:01

to shore up the price would be my guess.

[mr hangman] 01/6/2009 16:55

i just don't see the point of buying back, if you don't cancel the share out,but award them to directors.

[cw2000] 01/6/2009 16:36

There are pros and cons for share buy backs. For a company like PDC to mop up some on the cheap recently was a great idea. The management is unlikely to do so as the price increases. I see the average price paid was about 34p - so not too bad a call.
I don't believe that share buy backs are correct for all companies, however, in this case it was appropriate.
I managed to mop up some shares at a great price, I trust others did too

[mr hangman] 01/6/2009 16:00

Question:
"how is it pointless for the share buyback when they are now held in treasury to satisfy future share options"

Answer:
Their is no point in buying back shares to hold in treasury, to at a later
date, award to directors who already hold bucket loads.
Total waste of time, all this does is increase the share capital, to were
we started, far better to increase the dividend & pay the odd special then
everyone is happy.
Unless they cancel the buy back shares, what is the point.

[dd776] 01/6/2009 15:42

how is it pointless for the share buyback when they are now held in treasury to satisfy future share options

[mr hangman] 01/6/2009 12:09

lol, i wondered how long it would be before the first poster, moaned about
the pointless buy backs, 4 hours 19mins

[cw2000] 01/6/2009 11:28

Nice set of results.
Whilst I was delighted with the extra div. it's a a shame that the buy back of shares was not successful.
With the US now having an additional 5 bolt ons, there should be great growth in the US in the future. Also nice to have confirmation that no great investment is required in Manchester.
Whilst I don't see this share doubling due to the difficult economic times, I shall be content to continue to hold this one.

[purplerain2] 01/6/2009 11:19

good results. like the bit about france to turn positive this year.
America will turn out to be a big winner. due a rerating. Think the company has been slow to take advantage of the low share price.

[slapdash] 01/6/2009 10:12

well everyone else was right and I was wrong!!!!!!!!!!!! looks like she will be ok.... Slap

[glennborthwick] 01/6/2009 09:08

a good performance all round