18-01-2006 - Printing.com - Hardman Monthly
PRINTING.COMThe growth continues at Printing.com with interim results showing a 75% increase in pre-tax profits, a 54% increase in fully diluted eps and a maiden interim dividend.
The company now operates a chain of 147 high street print outlets that channel print work electronically through a central print hub in Manchester. Of these outlets the 'Territory Franchises' provided the fastest growth, at 72% in terms of retail equivalent sales. Sales from Bolt-On Franchises, which are recruited by the Territory Franchises and report through them, also grew rapidly. At store level, we expect customers to spend around £19m in Printing.com outlets during the current financial year, rising to possibly £26m in the year to March 2007.
Looking ahead, plans are being laid to move overseas via the sale of master franchises. These are being priced from £0.17m upwards, with an annual royalty of 3% of sales. We have not yet included any of these in our forecasts, but we have always said that the Printing.com model has clear potential for roll-out in other countries.
In other news, we understand institutional demand for the shares continues to be strong with chief executive Tony Rafferty disposing of 2.6 million shares in early December partly to satisfy demand. He now holds 20.3% of the issued share capital of the company.