14-03-2004 - Printing.com - Growth continues : Results in line with market expectations - Printing.com Plc
The Company is pleased to report that, since its last market update, trading has proved satisfactory and, indeed, its unaudited management accounts indicate a pre-tax profit in line with recent market expectations. Importantly, the momentum across both the Territory Franchise and Bolt-on Franchise estates continues to build.Since the last update, Stores pertaining to Territory Franchises have opened in Lancaster and Watford, Whilst the Harrow Franchise Agreement has been completed and the Store is currently being fitted out with opening expected in early May. Property has been secured for Reading and a June opening is being targeted.
Options currently exist for a further seven Territory Franchises but in some instances we continue to be frustrated by both the absence of suitable retail premises and our objective that the Franchisee should not overpay for any property. Nevertheless, we remain optimistic that a steady stream of new Store openings will now continue throughout the year.
Recent Franchise exhibitions and other marketing initiatives have swelled the number of quality prospective Franchisees with whom we are currently in discussion and clearly we believe that this bodes well for the future. One Territory Franchise, previously under option, has now lapsed as the candidate did not meet the necessary high standard post training. Whilst this demanding approach clearly reduces the speed of openings, it reflects the Company’s belief that the selection of high calibre Franchisees is pivotal to maximising Printing.com’s potential.
The Company Stores in Baker Street, Hampstead and Leicester (and their associated Territories) have now been Franchised – with the latter very pleasingly being an MBO.
When last updating the market the Company intimated a “wave†of new Bolt-on agreements early in 2004. Since then an additional 20 agreements have been completed. Importantly the majority of these agreements have been instigated via local marketing from the relevant Territory. This success, leads the Directors to believe that our planned UK structure of 66 Territory Franchises, each operating a Store and developing a network of Bolt-on Franchises, will establish Printing.com as the pre-eminent brand within the sector.
To date the Company has 30 Operational & Pending Stores plus 60 Operational & Pending Bolt-ons, which represent an estate of 90 outlets beside the prospects currently being pursued.
The Directors are clearly optimistic that additional ongoing revenues will be derived from the current pipeline of new Franchises and that additional suitable Franchise partners will continue to be found. Post the move to the new Hub the Company still enjoys significant unutilised capacity meaning that additional revenues can be transacted with a marginal increase in the central overhead. It is for these reasons that the Directors are increasingly optimistic about the prospects of Printing.com.
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For further information:
Printing.com plc
Tony Rafferty (Chief Executive) 07966 517 336
Alan Roberts (Finance Director) 0161 848 5713
Beattie Financial
Brian Coleman-Smith / Jo Clewlow 020 7398 3300
The Directors of Printing.com plc take full responsibility for this announcement.
Background note:
Printing.com
Printing.com offers a broad product range including leaflets, postcards, promotional cards, invitations, letterheads and business cards to consumers and small and medium sized companies. Unlike its competitors, Printing.com Stores do not have any printing equipment on location. The Company’s printing and ancillary equipment is based at the centralised Production Hub with the head office in Manchester. All work is produced in full four colour rather than two colour. Delivery to the customer is usually within three days. The printing sector has traditionally been served by smaller printing companies or other On Demand Printers and is estimated to be worth some £1 billion.
Printing.com has four routes to market: Franchise Stores, Bolt-on Franchises, Company owned Stores, and via the Company’s website where online design and ordering are facilitated.
Printing.com Outlets
Customer Region Town Post Code
Color Co. - Edinburgh Scotland Edinburgh EH2 2PA
Expocentric - Wardour London Soho W1V 3AU
Color Co. - Canary Wharf London Canary Wharf E14 4PZ
Expocentric - Dover London Mayfair W1X 3PH
Color Co. - Chelsea London Chelsea SW10 0XF
Colour Box Design North East York YO23 1NA
Granthams - Preston North West Preston PR1 2UQ
Granthams - Blackpool North West Blackpool FY1 4PE
Bradbury Graphics Northern Ireland Belfast BT7 1BS
Print Design Warehouse North West Marple SK6 7AD
Full Colour Store London Clapham SW17 9SH
Kaleidoscope Midlands Leamington Spa CV31 1BZ
TRS Graphics South East Croydon CR2 6EB
RAS Limited North West Chester CH3 5AG
Xpress Creative Northern Ireland Newtonabbey BT36 4PU
Print Express London Colindale NW9 5DL
0800 Promote London Finchley N3 1TR
Printer Net Services London Wimbledon SW19 8TY
Albry Printing Company Midlands Wallingford OX10 9DA
Pollyprint London Ealing W5 4UA
Final Imaging Midlands Sawtry PE28 5SB
Felix Communications South East Rochester ME2 4HZ
Silverback North West Isle of Man IM1 2LA
Mailboxes North West Stockport SK1 1LE
Dove Signs Midlands Nuneaton CV11 6GX
Platinum Promotions Midlands Bingham NG13 8AQ
Multiprint Midlands Normanton WF6 2AF
Anneset South West Weston-Super-Mare BS23 3DE
Quantum Publishing North West Liverpool L18 6HB
London Print Compamy London Shaftesbury Avenue WC2H 8EB
Custard Creative Midlands Northampton NN3 6WL
Presto Print South West Christchurch BH23 1QD
Plymouth Store South West Plymouth PL4 0AU
Printhouse London Nottinghill W11 3HT
Palladian Press South East Colchester CO2 7EZ
Cre8ive Design Midlands Kenilworth CV8 1JD
Liverpool Store North West Liverpool L2 2HF
Newcastle Store North East Newcastle NE1 5EE
Glasgow Store Scotland Glasgow G3 8LZ
Oxford Store Midlands Oxford OX2 7HT
Ashford Store South East Ashford TN24 8UU
Leeds Store North East Leeds LS1 3DL
For Colour Midlands Newark, Nottingham NG24 1LE
0800 Promote London North Finchley N12 9QG
Sign It Midlands Beeston, Nottingham NG9 2AY
Print House Direct North East Bishop Auckland DL14 0LZ
Ozmedia Print Midlands Barrow Upon Soar LE12 8JH
Blah D Blah North Wales Bangor LL57 1NY
Mooney Media Northern Ireland County Down BT32 4QD
Central London Store London Baker Street NW1 6UY
Hampstead Store London Hampstead NW3 5HS
Lancaster Store North West Lancaster LA1 1XN
Watford Store London Watford WD17 1RA
The Factory North East Leeds LS12 2DS
Printel North West Widnes WA3 8LG
ER Design & Print North West Alsager CW2 5PR
Studio Direct South East Chelmsford CM2 6HE
Pewter Design Midlands Market Harborough LE16 7DS
Maskerade Design North East Sunderland SR2 7PR
Leicester Store Midlands Leicester LE1 1LB
Manchester Store North West Manchester M3 4BQ
Sheffield Store North East Sheffield S1 4GF
Hull Store North East Hull HU1 2AG
Nottingham Store Midlands Nottingham NG1 6DQ
Birmingham Store Midlands Birmingham B5 4JL
Ealing Store London Ealing W13 8SB
Bristol Store South West Bristol BS1 3LZ
Edinburgh Store Scotland Edinburgh EH3 6QY
Edinburgh Store Scotland Edinburgh EH3 9LY
Dublin Store Ireland Dublin Dublin 2