Final Results

RNS Number : 2318W
Printing.com plc
09 June 2008
 



FOR RELEASE                                           7.00AM                                                  9 June 2008


PRINTING.COM PLC

('Printing.com or 'the Group')

Specialist retail chain with 261 Outlets opened and pending across the UK and Ireland


Preliminary Results for year ended 31 March 2008


 

 
2008
2007
Change
 
 
 
 
Total Retail Sales
£24.58m
£21.28m
+15.5%
Turnover
£13.48m
£12.14m
+11.0%
Operating Profit
£2.29m
£2.17m
+5.5%
EBITDA
£3.67m
£3.20m
+14.7%
Profit Before Tax
£2.42m
£2.29m
+5.7%
Earnings Per Share - Basic
3.64p
3.55p
+2.5%
EPS – Fully Diluted
3.51p
3.38p
+3.8%
Dividend
3.00p
2.50p
+20.0%
Capital expenditure
£1.26m
£3.87m
-          
Net Cash
£3.50m
£2.86m
+22.4%
Net Funds
£1.08m
£(0.23)m
-          
Number of Outlets
249
198
+25.8%



  • Sales, profits, earnings per share and dividends at record levels

  • Cash position strengthens further

  • Expansion continues with 51 new outlets open in the period

  • 40 overseas outlets under licence

  • Printing.com France successfully launched

  • Planning to establish operations in Australia

  • Network Partner programme launched

  • Cautiously optimistic about prospects over the current financial year


For further information:


Printing.com plc

Tony Rafferty (Chief Executive)                                                  07966 517 336

Alan Roberts (Finance Director)                                                 0161 848 5713

 

Cubitt Consulting

Brian Coleman-Smith / Nicola Krafft / James Verstringhe           020 7367 5100

 

Brewin Dolphin Ltd (Nominated Adviser)

Richard Evans                                                                           0845 213 4853

  Background note:


Printing.com


Printing.com offers a broad product range including leaflets, booklets, postcards, promotional cards, invitations, letterheads and business cards to consumers and small and medium sized companies. Unlike its competitors, Printing.com's Stores and Franchises do not depend on 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. 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 three routes to market: Franchise Stores, Bolt-on Franchises and Company owned Stores.


A complete list of Printing.com's active Outlets is included at the end of the release.

  PRINTING.COM PLC

('Printing.com or 'the Group')

Specialist retail chain with 261 Outlets opened and pending across the UK and Ireland


Preliminary Results for year ended 31 March 2008


CHAIRMAN'S STATEMENT



Trading Results


Total Retail Sales ('TRS'), the Company's estimate of the value of Printing.com sales transacted by its Franchisees, increased 15.5% to £24.58m (2007: £21.28m) reflecting the continued momentum in the expansion of Printing.com. Revenue increased 11% to £13.48m (2007: £12.14m).  


During the year under review your Company recorded a Profit Before Tax ('PBT') of £2.42m (2007: £2.29m), an increase of 5.7%. The smaller increase in PBT reflects the increased depreciation charge, lease interest and other costs relating to the expansion of the Company's Manchester Hub. 


Also, the 2007 figure included 'Other Income' of £0.14m relating to the premium arising from the franchising of several stores. Save for this amount the Company's PBT from its ordinary activity advanced by £0.27m (11.8%).


Cash


I am pleased to report that cash generation has been very strong with net cash balances increasing by 22.4% with the expansion of the UK Hub now completed.  


The Company closed the year with cash reserves of £3.50m (2007: £2.86m), after paying dividends of £1.30m (2007: £0.83m) and investing gross £1.26m (2007: £3.87m) in capital equipment and software. Of the capital expenditure total £0.5m (2007:£2.96m) was financed.   


Dividends


In line with our aim to follow a progressive dividend policy, your Board is proposing a final dividend of 2p per ordinary share to be paid on 6 August 2008 to shareholders on the register at the close of business on 27 June 2008. Making a total dividend for the year of 3p per ordinary share (2007: 2.5p).


People at Printing.com


Notwithstanding the essential role that the internet plays in the operation of the Printing.com business model, the hard work and endeavours of the people within the Printing.com network lies at the heart of your Company's continued progress and accordingly I thank them for their contribution


Outlook


Although trading has softened since the year end, revenues are still ahead of the corresponding period for the previous year. Also, the rate at which new Bolt-on Franchises have been granted since March is particularly encouraging.


We are mindful that PBT over the past two years has not advanced as materially as before. Now, with the Hub investment cycle behind us and an abundance of unutilised capacity in the Company's Hub, the need to make immediate capital investment, except for the ongoing development of the Company's Flyerlink software has diminished. Accordingly, if we are able to continue to grow our network revenues, the prospect of a greater flow through to PBT appears greater than over the past two years


Moving forward, it is anticipated that cash generation will remain strong. 


Our Master Licence partners in New Zealand and Iceland continue to make good progress with close to 40 operational outlets across these countries. We believe that this bodes well for future Master Licence development. 


We are making good progress in discussions regarding the grant of Master Licences in other territories and remain cautiously optimistic that new licences will be granted over the present financial year. 


Having invested heavily in the preparation for entering the French market over the past year, we anticipate that this initiative will breakeven during the present financial year, moving into a positive contribution in the following year.


With a client base in excess of 60,000 we believe that opening up our network, via the Printing.com Network Partner programme, which allows complementary printed services from selected suppliers across our network, will provide a material incremental revenue stream for our Franchisees and your Company. 


Whilst we are not immune to the undulations of the economic cycle, we believe there are many initiatives that we can pursue to provide your Company with the realistic prospect of continuing to gain momentum over the coming year. Accordingly, we remain cautiously optimistic about the Company's prospects over the current financial year. 



George Hardie

Chairman

9 June 2008

 

  CHIEF EXECUTIVE'S STATEMENT



ESTATE DEVELOPMENT

During the year under review your Company has worked tirelessly to increase outlet numbers throughout the UK and Ireland. Reflecting our determination, we are now pleased to report the addition of 51 new outlets (2007:31), the structure of which is set out in the table below.



1 June 2008

31 March 2008

2 April 2007





Company Owned Stores

5

4

2

Franchise Stores (Open & Pending)

43

44

47

Bolt-on Franchises

213

201

149


              

              

              


261

249

198


              

              

              


The acceleration in the expansion of the estate was achieved following the development of new marketing processes to promote the Printing.com Bolt-on Franchise opportunity, with a particular accent on case studies highlighting numerous success stories. The growth is also attributable to the hard work of our Territory Franchisees, in identifying promising local Bolt-on Franchise opportunities. 


Prior to the start of the year, our directly owned Store count had dropped to just 2. This is lower than our objective of directly owning a small number of outlets for training and development purposes. Accordingly we repurchased several stores in situations where we believed it was prudent to do so. Moving forward we would anticipate the process of purchasing and re-franchising a small number of outlets to continue on an on-going basis. 


Across the UK and Ireland we aspire to expand the network to approximately 400 Printing.com outlets including circa 350 of the Bolt-on Franchise format which we continue to focus on as the most cost effective and efficient way to expand our network and bring increased volume to the Hub. We anticipate making further progress towards this objective over the coming year.


Production Hub and Infrastructure


In last year's annual report we highlighted the increase in capacity of the Manchester Hub from £20-25 million to £40-45 million via the adding of a new press and mezzanine floor coupled with SmartPack, a bespoke sortation system. The year under review saw the bedding-in of this infrastructure, further improving Printing.com's high operational standards and increased operational efficiencies.


Over the coming year, relatively little capital expenditure is anticipated for the Company's Manchester Hub as sufficient capacity still exists for our foreseeable requirements


During the year, we continued to invest and develop Flyerlink, the Company's proprietary software. Various important functional milestones were achieved, many relating to the Master Licence programme, including the provision of multi-language capability. 


  Grant of Master Licence Agreements('MLA') 


The Printing.com MLA enables Printers in other countries to copy the Printing.com business model without the cost, delay and risk involved in developing the systems and software that underpin operations.


The New Zealand MLA partnerPrintStopnow report that their estate has expanded to circa 40 outlets, with Printing.com's systems being used for every order. The second MLA covering Iceland has commenced operations and aside from a Store in Reykjavik, a small number of Bolt-on Franchises have been granted. 


Under the MLA, Printing.com is paid a fee at the outset together with a share of the local licence fees and circa 3% of network sales, on an on-going basis. 


We remain in negotiations regarding the grant of MLA's for a number of other territories, at this stage it is too early to say if these will progress to a positive outcome. 


Printing.com France


As with Ireland, it is commercially and logistically efficient to ship Printing.com products from the Company's Manchester Hub to France


Following over 18 months of extensive enquiry and evaluation, Printing.com is now actively engaged in the development of a network of French Bolt-on Franchises. At present as Printing.com enjoys limited brand-awareness in France these Bolt-on licences are granted for a nominal consideration on easy-in, easy-out terms


During the latter stage of the year under review, we hosted the first training course delivered in French, with 5 Bolt-on Franchises now in operation. Whilst transactional levels from the French business are still at a modest level, we remain encouraged by how well these first French outlets are operating and remain cautiously optimistic of France's potential. 


Once established it is our intention to progress a MBO/MBI of the French Printing.com business as we believe that the opportunity will be best developed under French ownership and direction. At such a point, it is anticipated that the business would then operate in a similar manner to other MLA's. 


Printing.com Australia


As reported, we intend to establish operations in Australia over the coming months. Unlike our master licence programme, we intend to grant the Australian Franchises directly from an Australian subsidiary. With the logistics of shipping to Australia impractical, an alliance with a suitably equipped Australian commercial printer is presently being sought whereby the provision of the Hub production infrastructure can be outsourced whilst the management of the network and IP remain under direct Company control. 


In common with Printing.com France, it is hoped that ultimately an exit will prove possible with the business subsequently operated under an MLA. 


Websites by Printing.com


Over the year under review Printing.com's Website initiative resulted in the production of over 500 websites. 


Retailing in the range from £200 to £800 the website proposition is positioned between the DIY template websites and the services of a conventional website designer.


Although revenues from this offering for the Company and on a per Franchise basis are still marginal we remain convinced that new media solutions naturally sit alongside the Printing.com offering and intend to invest further in the software development and infrastructure that facilitates this initiative over the coming year. 


Network Partner 


Across the UK and Ireland Printing.com has an extensive client base, exceeding 60,000 mainly SME's along with local government and corporate departments. 


The Network Partner programme opens up the Printing.com network to manufacturers of complementary personalised items such as pens, work apparel, awards and a plethora of other promotional items. 


Network Partners must be approved and pay a fee to join the programme with a prescribed formula dictating the revenue split between the partner and the franchisee. Printing.com receives circa 10% of the Network Partner sales. 


During the year under review the first Network Partner agreements were granted and to date six have completed the necessary training. 


Shortly the new service will be trialled from a small number of Franchises with the roll out planned across the network over the coming months. 


Current Trading


Following on from a solid quarter, marking the close of the year under review, trading has softened slightly although it remains materially above the corresponding level for the previous year. 


With 90%+ of Printing.com orders being used by the client for promotional purposes we attribute the softer conditions to the general drop in business confidence within the SME community. 


To mitigate this effect we will be adding to the potency of our monthly offers and promotional campaigns along with the broadening of our offering via the Network Partner programme. We remain confident that our unique business model places us favourably against our competitors who are also feeling the impact of the softening market conditions.


Encouragingly the Company has enjoyed a buoyant start to the year in terms of the development of the Printing.com estate across the UK and Ireland, with some 14 additional Bolt-on franchises (compared to 7 for the same period last year) having so far been granted.  

 


Tony Rafferty

Chief Executive 

9 June 2008

  

FINANCIAL REVIEW



Total Retail Sales (TRS) 


TRS is the Group's key metric, being the estimated retail price paid by the client, and provides the clearest indication of the growth of the network. The ongoing development of Printing.com is clearly illustrated with estimated TRS increasing by 15.5% to £24.58m (2007: £21.28m).


Like For Like TRS


This metric reports on the like for like progress of our Territory Franchisees (or equivalent Group owned operations) that have operated for a minimum of three years. Therefore, the earliest figures that could be reported for a Territory Franchise are its third versus second year. In presenting these figures we believe that it is essential to consider both the performance of the Store within the Territory Franchise and the growth in revenues from its associated Bolt-On Franchises. On this basis like for like growth during the year under review was 16.44% (2007:13.46%) with 29 (2007:20Territory Franchises (or Group owned equivalents) contributing to this metric.  


Accounting Policy Change


Both the parent company financial statements and the Group financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the EU ('Adopted IFRSs').  


Revenue


Overall revenue increased by 11.0% from £12.14m to £13.48m. This was despite the franchising of the Group owned Birmingham & Oxford Stores in 2007 with the resultant loss of the retail premium during 2008. Network growth has principally been driven by the increase in the number of Bolt-on Franchises.  


Gross Profit


The Group's simple definition of Gross Profit is revenue less direct materials (including the cost of distribution, when made direct to customers).


Gross Profit increased by 10.7% from £8.14m to £9.01m. In percentage terms it remained relatively constant at 66.9% (2007: 67.1%) of revenue.


EBITDA


At £3.67m (2007: £3.20m) EBITDA improved by 14.7%. TRS and EBITDA increased by £3.30m and £0.47m respectively over the year. 


The increase in EBITDA for 2007 included non-recurring revenue relating to the Website initiative of £0.15m. Save for this non-recurring revenue in 2007 the increase in EBITDA is £0.62m or 18.8of the increase in estimated TRS flowed through to EBITDAAs previously suggested, moving forward, we expect additional TRS, from core UK performance, to increase EBITDA by circa 20%.  


Pre-Tax Profit


The Group recorded a pre tax profit of £2.42m (2007: £2.29m) being 18.0% (2007: 18.9%) of Group revenue and 9.8% (2007: 10.8%) of TRS. We believe this sustained level of pre tax profitability, in both absolute terms and on these key metrics, validates our franchise centred strategy


Staff costs increased in the year to £3.22m (2007:£3.01m) but fell as a percentage of revenue from 24.8% to 23.9%. Franchising Group Stores resulted in savings. The majority of the increase related to the Group's Production Hub with the effect of higher volumes and the payment of premiums for the increase in 7 day 24 hour rotas. The depreciation charge for the year was £1.38m (2007: £1.04m) which rose as last year's additions were depreciated for the full year.


Other Income / Interest Received and Charged


With no Group Stores being franchised during the year Other Income was nil(20070.14m). There were no other items in Group revenue which would be considered unusual or non-recurring.


Interest received of £0.24m (2007:£0.19m) reflects interest on the cash balances held and interest charged to Franchisees on loans to them from Printing.com. Interest paid of £0.19m (2007:£0.21m) primarily on lease finance repayments.


Taxation

In the year the standard rate for tax was 30%. The charge for the current year is £0.79m or 32.6% of PBT (2007: £0.71m or 31.0%). 

 

The effective tax rate was increased due to disallowed expenses, overseas expenses and the fact that share based payments are disallowable for tax purposes.


Earnings Per Share (EPS)

Basic EPS improved to 3.64p (2007:3.55p), the weighted average number of shares used was 44,892,441. Diluted EPS improved to 3.51p (2007:3.38p), the weighted average number of shares used was 46,547,410. The year closed with 44,993,465 ordinary shares in issue, with 200,000 of these held in Treasury by the Group


Cash Flow

At the year end the Group had cash balances of £3.50m (2007: £2.86m) and Net Funds of £1.08m (Net Debt 2007:£0.23m). Operational cash inflow improved strongly to £4.06m (2007: £2.92m). The most significant cash outflow being dividends paid of £1.30m (2007: £0.83m).  


Capital Expenditure

The total expenditure for the year was £1.26m (2007: £3.87m). The major items were Software development and computing infrastructure £0.43m; and Production Hub equipment £0.60m. Equipment in the final phase of the Production Hub upgrade was financed totalling £0.5m (2007:£2.96m).


Share Capital and Share Options

Employees' options over 146,965 shares and Franchisee options over 100,000 shares were exercised during the year. There were no options granted.


Treasury Policies and Financial Risk

Surplus funds are intended to support the Group's short term working capital requirements. These funds are invested through the use of short term deposits and the policy is to maximise returns as well as provide the flexibility required to fund on-going operations. It is not the Group's policy to enter into financial derivatives for speculative or trading purposes. 


Interest rate risk, liquidity risk and currency risk


Interest rate risks are limited to the fixed element of finance lease or hire purchase agreements. The Group uses leasing or hire purchase at periods of up to 5 years to finance purchases of some of its assets where it is considered to be a more effective use of funds.


The Group has no overseas assets or liabilities, apart from minor trade related debtors and creditors, and thus any currency movements have no material impact


Alan Q. Roberts 

Finance Director

9 June 2008

  Group Consolidated Income Statement

for the year ended 31 March 2008 


 
Note
 
 
2008
2007
 
 
 
 
£000
£000
 
 
 
 
 
 
Revenue
3
 
 
13,479
12,136
Changes in inventory of finished goods and work in progress
 
 
 
 
5
 
(20)
Raw materials and consumables used
 
 
 
(4,473)
(3,977)
 
 
 
 
             
             
Gross profit
 
 
 
9,011
8,139
Staff costs
 
 
 
(3,218)
(3,007)
Other operating charges
 
 
 
(2,123)
(1,928)
Depreciation and amortisation
 
 
 
(1,378)
(1,039)
 
 
 
 
              
             
Total expenses
 
 
 
(6,719)
(5,974)
 
 
 
 
             
             
Operating profit
 
 
 
2,292
2,165
Financial income
 
 
 
316
194
Financial expenses
 
 
 
(187)
(207)
 
 
 
 
             
             
Net financing income/(costs)
 
 
 
129
(13)
Profit on sale of stores to franchisees
 
 
 
-
141
 
 
 
 
             
             
Profit before taxation
 
 
 
2,421
2,293
Taxation
4
 
 
(789)
(707)
 
 
 
 
             
             
Profit for the year attributable to equity holders of the Parent
 
 
 
 
1,632
 
1,586
 
 
 
 
             
             
Basic earnings per share
5
 
 
3.64p
3.55p
Diluted earnings per share
5
 
 
3.51p
3.38p




The operating profit for the year arises from the Group's continuing operations.


  Statement of Changes in Equity


Group - year ended 31 March 2008

 
Share
Capital
Share
premium
Merger
reserve
Retained
earnings
 
Total
 
 
£000
£000
£000
£000
 
 
 
 
 
 
Profit for the year
-
-
-
1,632
1,632
 
             
             
             
             
             
Total recognised income and (expense)
-
-
-
1,632
1,632
Equity settled share based payments
-
-
-
71
71
Tax on equity settled share based payments
-
-
-
(11)
(11)
Own shares acquired
-
-
-
(82)
(82)
Shares issued
3
38
-
-
41
Dividends paid
-
-
-
(1,300)
(1,300)
 
             
             
             
             
             
Total movement in shareholders’ funds
3
38
-
310
351
Opening shareholders’ funds at 3 April 2007
447
3,833
211
2,316
6,807
 
             
             
              
             
             
Closing shareholders’ funds at 31 March 2008
450
3,871
211
2,626
7,158
 
             
             
             
             
             

Group - year ended 2 April 2007

 

 
Share
Capital
Share
premium
Merger
reserve
Retained
earnings
 
Total
 
 
£000
£000
£000
£000
 
 
 
 
 
 
Profit for the year
-
-
-
1,586
1,586
 
             
             
             
             
             
Total recognised income and (expense)
-
10
-
1,586
1,586
Dividends
-
-
-
(828)
(828)
Issue of new shares
-
10
-
-
10
Equity settled share based payments
-
-
-
114
114
Tax on equity share based payments
-
-
-
(16)
(16)
 
             
             
             
             
             
Total movement in shareholders’ funds
-
10
-
856
866
Opening shareholders’ funds at 1 April 2006
447
3,823
211
1,460
5,941
 
             
             
             
             
             
Closing shareholders’ funds at 2 April 2007
447
3,833
211
2,316
6,807
 
             
             
              
             
             

 Group Balance Sheet

At 31 March 2008

 
 
Group
 
 
 
2008 
2007 
 
 
£000
£000
Non-current assets
 
 
 
Property, plant and equipment
 
5,217
5,700
Investments in subsidiaries
 
-
-
Intangible assets
 
1,139
921
Deferred tax assets
 
25
140
Other receivables
 
470
581
 
 
             
             
Total non-current assets
 
6,851
7,342
 
 
             
             
Current assets
 
 
 
Inventories
 
109
104
Trade and other receivables
 
3,210
3,368
Cash and cash equivalents
 
3,502
2,855
 
 
             
             
Total current assets
 
6,821
6,327
 
 
             
             
Total assets
 
13,672
13,669
 
 
             
             
Current liabilities
 
 
 
Other interest-bearing loans and borrowings
 
(804)
(918)
Trade and other payables
 
(1,759)
(1,809)
Current tax payable
 
(377)
(220)
Accruals and deferred income
 
(1,094)
(1,013)
Other liabilities
 
(182)
(229)
 
 
             
             
Total current liabilities
 
(4,216)
(4,189)
 
 
              
             
Non-current liabilities
 
 
 
Other interest-bearing loans and borrowings
 
(1,613)
(2,170)
Deferred tax liabilities
 
(685)
(503)
 
 
             
             
Total non-current liabilities
 
(2,298)
(2,673)
 
 
             
              
Total liabilities
 
(6,514)
(6,862)
 
 
             
             
Net assets
 
7,158
6,807
 
 
             
             
Equity attributable to equity holders of the parent
 
 
 
Share capital
 
450
447
Share premium
 
3,871
3,833
Merger reserve
 
211
211
Retained earnings
 
2,626
2,316
 
 
             
             
Total equity
 
7,158
6,807
 
 
             
             




  

Group Cash Flow Statements

for year ended 31 March 2008

 
 
Group
 
 
 
2008 
2007 
 
 
£000
£000
Cash flows from operating activities
 
 
 
Profit for the year
 
1,632
1,586
Adjustments for:
 
 
 
Depreciation, amortisation and impairment
 
1,378
1,039
Financial income
 
(316)
(194)
Financial expense
 
187
207
Gain on sale of property, plant and equipment
 
-
(22)
Equity settled share-based payment expenses
 
71
114
Foreign exchange gains
 
75
-
Taxation
 
789
707
 
 
             
             
Operating cash flow before changes in working capital and provisions
 
 
3,816
 
3,437
Decrease/ (increase) in trade and other receivables
 
269
(865)
(Increase)/ decrease in inventories
 
(5)
20
(Decrease)/ increase in trade and other payables
 
(17)
323
 
 
             
             
Cash generated from Operations
 
4,063
2,915
Tax paid
 
(344)
(1,042)
 
 
             
              
Net cash inflow/(outflow) from operating activities
 
3,719
1,873
 
 
             
             
Cash flows from investing activities
 
 
 
Proceeds from sale of plant and equipment
 
150
82
Interest received
 
241
194
Acquisition of plant and equipment
 
(235)
(910)
Capitalised development expenditure
 
(530)
-
Dividends received
 
-
-
 
 
             
             
Net cash (outflow)/inflow from investing activities
 
(374)
(634)
 
 
             
             
Cash flows from financing activities
 
 
 
Proceeds from the issue of share capital
 
41
11
Repurchase of own shares
 
(82)
-
Interest paid
 
(187)
(208)
Payment of finance lease liabilities
 
(1,165)
(811)
Inter company transfers
 
-
-
Dividends paid
 
(1,300)
(828)
 
 
             
              
Net cash (outflow)/inflow from financing activities
 
(2,693)
(1,836)
 
 
             
             
Net increase/(decrease) in cash and cash equivalents
 
652
(597)
Exchange losses on cash and cash equivalents
 
(5)
-
Cash and cash equivalents at start of year
 
2,855
3,452
 
 
             
             
Cash and cash equivalents at 31 March
 
3,502
2,855
 
 
             
             


  Notes

(forming part of the financial statements)

1     Basis of preparation

Printing.com plc (the 'Company') is a company incorporated and domiciled in the UK. 

The Group financial statements are authorised for issue by the Board of Directors on 9 June 2008.  European Union law (EULAW) (IAS Regulation EC 1606/2002) requires that the financial statements of the Group are prepared in accordance with International Financial Reporting Standards as adopted by the EU (EU-IFRS).  The financial statements have been prepared on the basis of the recognition and measurement requirements of EU-IFRS that are endorsed by the EU and effective at 31 March 2008.

The financial information does not constitute the Company's statutory accounts for the years ended 31 March  2008 or 2 April 2007 (but is derived from those accounts).  Statutory accounts for 2007 have been delivered to the registrar of companies, and those for 2008 will be delivered in due course.  The auditors have reported on those accounts; their reports were (i) unqualified, (ii) did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their reports and (iii) did not contain statements under section 237 (2) or (3) of the Companies Act of 1985. The statutory accounts for the financial year ended 31March 2008 will be delivered to the Registrar of Companies following the Company's Annual General Meeting. 

2     Accounting policies

Transition to Adopted IFRSs

Both the Group and the Company are preparing their financial statements in accordance with Adopted IFRS for the first time and consequently both have applied IFRS 1. An explanation of how the transition to Adopted IFRSs has affected the reported financial position, financial performance and cash flows of the Group will be provided in the statutory accounts. There have been no changes in the restatement from those published in the prior year. 


IFRS 1 grants certain exemptions from the full requirements of Adopted IFRSs in the transition period. The following exemptions have been taken in these financial statements:

  • Business combinations - Business combinations that took place prior to 1 April 2006 have not been restated.


3     Segmental analysis

The principal components of revenue are the design and production of publicity and marketing material, and franchise fee income. All of the revenue is in one continuing business segment being the development of the Printing.com Franchise and originates principally in the United Kingdom and Republic of Ireland

Analysis by geographical destination

 
               Revenue
                     Assets
            Capital expenditure
 
2008
2007
2008
2007
2008
2007
 
£000
£000
£000
£000
£000
£000
 
 
 
 
 
 
 
 
United Kingdom
12,738
11,548
6,807
6,501
1,186
3,854
Republic of Ireland
684
522
356
302
5
-
Rest of the world
57
66
35
4
68
12
 
             
             
             
             
             
             
 
13,479
12,136
7,158
6,807
1,259
3,866

  

4     Taxation

Recognised in the income statement

               
2008
2007
 
£000
£000
 
 
 
Current tax expense
 
 
Current year
808
492
Foreign tax
4
-
Adjustments for prior years
(290)
-
 
             
             
 
522
492
Deferred tax expense
 
 
Origination and reversal of temporary differences
31
209
Movement due to change in tax rate
(49)
-
Adjustments for prior years
285
6
 
             
             
Total tax in income statement
789
707
 
             
             

Reconciliation of effective tax rate

               
2008
2007
 
£000
£000
 
 
 
Profit for the period
2,421
2,293
Total tax expense
(789)
(707)
 
             
             
Profit after taxation
1,632
1,586
 
             
             
Tax using the UK corporation tax rate of 30% (2007: 30%)
726
688
Permanent differences
54
13
Overseas tax losses not recognised
4
-
Effect of equity settled share based payments
8
-
Deferred tax on shares
51
-
Adjustments in respect of prior periods – current tax
(290)
-
Adjustments in respect of prior periods – deferred tax
285
6
Movement due to change in tax rate
(49)
-
 
             
             
Total tax expense
789
707
 
             
             

It has been announced that the corporation tax rate applicable to the Company has changed from 30% to 28% from 6 April 2008. The deferred tax asset/liability as at 31 March 2008 has been calculated at 28%.

 

Notes (continued)


5     Earnings per share

The calculations of earnings per share are based on the following profits and numbers of shares.

                                  
2008
2007
 
£000
£000
 
 
 
Profit after taxation for the financial year
1,632
1,586
 
             
             

Weighted average number of shares.

               
2008
2007
 
Number of
shares
Number of
shares
 
 
 
For basic earnings per ordinary share
44,892,441
44,730,883
Exercise of share options
1,654,969
2,173,229
 
             
             
For diluted earnings per ordinary share
46,547,410
46,904,112
 
             
             


6     Dividends

 
2008
2007
 
£000
£000
 
 
 
Final dividends paid in respect of prior year but not recognised as liabilities in that year
850
559
Interim dividends paid in respect of the current year
450
269
 
             
             
Total dividend paid in the year
1,300
828
 
             
              

After the balance sheet date dividends of 2p per qualifying ordinary share (2007:1.9p) were proposed by the Directors. The dividends have not been provided for.

  

Customer

Region

Town

Post Code





Sign It (Nottm) Ltd

Central England

Beeston, Nottingham

NG9 2AY

Graphic Results

Central England

Belper

DE56 1BA

East Birmingham Store

Central England

Birmingham

B26 3JR

South West Birmingham Store

Central England

Birmingham

B16 9RD

Birmingham Store

Central England

Birmingham

G3 8LZ

Artichoke Design Ltd

Central England

Birmingham

B18 6NN

Vicki Interiors Limited

Central England

Burntwood

WS7 3GL

Coventry Store

Central England

Coventry

CV2 4BE

ADECS Ltd

Central England

Coventry South

CV4 8HX

Image I.T. Limited

Central England

Daventry

NN11 8RY

Sportwise Marketing Ltd t/a Immediate Design

Central England

Derby

DE1 3QB

Synergy

Central England

Derby - Crewton

DE24 8SR

Multiprint & Embroidery Limited

Central England

Derby - Littleo

DE23 6FP

FSeven Design Solutions

Central England

Digbeth

B9 4AA

Kualo Limited

Central England

Gloucester

GL2 2AT

Hussellworks 

Central England

Halesowen

B63 3HR

Clientel Systems Limited

Central England

Kibworth

LE8 0HS

Leicester Store

Central England

Leicester

NG1 6DQ

4si Solutions Ltd

Central England

Leicester

LE3 0LE

For Colour Ltd

Central England

Lincoln

LN2 4US

Trident Design & Print

Central England

Lutterworth

LE17 4EE

Penz n Print Ltd

Central England

Market Rasen

LN8 3EN

For Colour 

Central England

NewarkNottingham

NG24 1LE

Northampton Store

Central England

Northampton

NN1 5QJ

Custard Creative

Central England

Northampton

NN3 6WL

Nottingham Store

Central England

Nottingham

L2 2HF

Oxford Store

Central England

Oxford

OX2 7HT

Peterborough Store

Central England

Peterborough

PE2 8AN

ITS-Ideas Taking Shape Ltd

Central England

Rugby

CV21 2SD

Mail Boxes Etc.

Central England

Shrewsbury

SY1 1HN

Boomerang Print Design Ltd

Central England

Solihull

B91 3RT

High Tide Media Limited

Central England

Sutton Coldfield

B72 1NE

Runtime Print Ltd

Central England

Telford

TF2 8AJ

Albry Printing Company Ltd

Central England

Wallingford

OX10 9DA

Wolverhampton Store

Central England

Wolverhampton

WV1 4BL

Red Hot Media

East

Lowestoft

NR33 0AA

Goldengate Productions

East

Suffolk

IP30 9QS

Keith Nolan Limited

Ireland

Athlone

EE1 1EE

Kwik Kopy

Ireland

Ballymena

BT43 6EB

Malik Bond

Ireland

Belfast - South

BT7 2JA

Twist Design

Ireland

County Donegal

EE1 1EE

Dublin Store

Ireland

Dublin

Dublin 2

  

North Dublin Store

Ireland

Dublin

Dublin 7

Trivium Limited

Ireland

Maynooth - Coun

EE1 1EE

Graphic Facilities

Ireland

Mullingar

EE1 1EE

Creative State Limited

Ireland

Naas - County K

EE1 1EE

Desktop

Ireland

Omagh 

BT78 1DW

Tullow Manufacturing Limited

Ireland

Tullow

EE1 1EE

Thomas Hughes & Sons Ltd

Ireland

Wexford

EE1 1EE

Central London Store

London

Baker Street

BS1 3LZ

Alpha to Omega

London

Beckenham

BR3 3HX

Plug and Play Design

London

Bramley

GU6 8JJ

Shiver

London

Camden

NW1 0AG

Fireworks Design and Print

London

Catford

FK9 5GQ

DNA Creative

London

Clapham

SW11 1TH

City & Clerkenwell Store

London

Clerkenwell

EC1M 5QA

Print Express

London

Colindale 

NW9 5DL

Last Print LLP

London

Docklands E16

E14 0JY

Ealing Store

London

Ealing

W13 8SB

0800 Promote Ltd

London

Finchley

N3 1TR

Creekside Press

London

Greenwich

SE10 9QX

Guildford Store

London

Guildford

GU2 4BE

Hampstead Store

London

Hampstead

NW1 6UY

Colour Division

London

Hampstead

NW6 1SD

Digipix Ilford

London

Ilford

IG1 4DU

Envisualise Ltd

London

Kingston

KT2 6LX

London Office Services

London

London 

W1G 8JR

1st Creative

London

London SE1

SE1 3ER

Marmoset Media Ltd

London

London SW17

SW17 7PJ

Expocentric Communication Ctrs

London

Mayfair

W1S 4LW

Endgold Ltd

London

Nottinghill

W11 3HT

Orpington Store

London

Orpington

BR6 0JY

Reading Store

London

Reading

RG1 4QA

Ditto Office Services Ltd

London

Sevenoaks

TN13 1AS

London Print Compamy

London

Shaftesbury Avenue

WC2H 8EB

DNA Solutions UK Limited

London

Slough

SL1 4JG

Toppers Print & Design Ltd

London

Stevenage

SG1 3HR

Cloudmire Limiter

London

Swiss Cottage

NW3 6JP

Kink Design

London

Thornton Heath

EC2A 3LT

Source Grafik Design

London

Thornton Heath

SE6 1TJ

Wernham Printers Ltd

London

Tottenham

N17 6QD

Printroomsoho Ltd

London

Wardour Street

W1F 0TS

Watford Store

London

Watford

WD17 1RA

Creographics

London

Wimbledon

SW19 8TY

Centrepoint Print

Midlands

Birmingham - Erdington

B23 6LR

Kaleidoscope Press Ltd

Midlands

Leamington Spa

CV33 9GX

Ozmedia Print Solutions

Midlands

Loughborough

LE11 5AA

Pewter Design

Midlands

Market Harborough

LE16 7DS

  

St Ives Quickprint Ltd.

Midlands

St Ives

PE27 3WS

Modus Print

Midlands

Worcester

WR1 1JZ

Astral Graphics

Midlands

Worksop

S81 8AP

Indigo Print & Design

North East

Alnwick

NE66 1HB

Documentshop.com limited

North East

Barnsley

S70 2HG

Smart Card International Limited

North East

Beverley

HU17 0TB

Fountains Associates Limited

North East

Bishop Auckland

DL14 7EL

Bradford Store

North East

Bradford

BD1 3BA

John Siddall (Printers) Ltd

North East

Cleckheaton

BD19 3JL

RT Design

North East

Consett

DH8 6BP

Total Graphics

North East

Darlington

TS18 3TQ

Doncaster Store

North East

Doncaster

DN1 1HT

Tigher Limited

North East

Durham

DH1 1RF

Washington Direct Mail

North East

Gateshead

NE11 0SH

Loyalty Matters Ltd

North East

Harrogate

HG3 2XA

Winny Limited

North East

Hartlepool 

TS25 5TG

Pink Custard Design Ltd

North East

Hull

HU1 1PS

Ryedale Printing Works Ltd

North East

Kirbymoorside

YO62 6YB

Leeds Store

North East

Leeds

LS1 3DL

The Factory Partnership Ltd

North East

Leeds

LS12 2DS

Ideas Start Here Ltd

North East

Leeds

LS8 2HU

Middlesbrough Store

North East

Middlesbrough

TS1 1LY

Mix Marketing Ltd

North East

Mirfield

WF14 8AH

Newcastle Store

North East

Newcastle

B5 4JL

Direct Business Products

North East

Newcastle

NE12 9UP

Via Creative Consultants Ltd

North East

Redcar

TS10 5SH

Bluprint

North East

Rotheram

S60 2LZ

Desk Top Publishing Ltd

North East

Scunthorpe

DN15 6LJ

Sheffield Store

North East

Sheffield

S1 4GF

Runway 24

North East

Sheffield - Hillsborough

S6 4GH

Eidos Design Limited

North East

Slaithwaite

HD7 5BQ

Marckell Business Solutions Ltd

North East

South Shields

NE33 1TL

Stuart Lockerbie T/A Maskerade.

North East

Sunderland

SR2 7PR

G3 Advertising

North East

Thirsk

Y07 1HL

Goweb Print Ltd

North East

Wakefield

WF2 9BL

Colour Box Design Company Ltd

North East

York 

YO24 1AR

ER Design & Print Service Ltd

North West

Alsager

CW2 7AX

Ardwick - One21 Designs

North West

Ardwick

M12 6JH

Rhino Design

North West

Ashton-under-Lyne

OL6 6XJ

Gud Design Ltd

North West

Birkenhead - Ea

CH41 1EU

Granthams

North West

Blackpool

FY1 4PE

Print Hub Design

North West

Bolton

BL1 3QN

Digeridoo

North West

Bolton

BL7 9NY

Moorish Idol

North West

Bolton - South

BL3 5AB

Wild Thang

North West

Bootle

L20 8LQ

Fluidmedia.net Ltd

North West

Bury

BL9 0LL

  

Brightspark Design & Print

North West

Carlisle

CA2 7AJ

RAS Limited

North West

Chester

CH3 5AG

William Seabrook Associates Ltd

North West

Chorlton - Manchester

M21 8UP

Kingfisher Print

North West

Clayton-le-Moors

BB5 5JQ

Northstar Creative Design & Advertising LLP

North West

Colne

BB8 9BD

Mail Boxes Etc

North West

Didsbury

M20 6UG

ScissorsPaperStone

North West

Eccles

M30 8GH

First Impression Limited

North West

Glossop

SK13 8ER

Lancaster Store

North West

Lancaster

LA1 1XN

Liverpool Store

North West

Liverpool

NE1 4AE

Elite Invite Limited

North West

Liverpool

L22 4QD

RPG Print Ltd

North West

Liverpool West

L7 0ES

Plinkfizz Limited

North West

Longton

ST3 4HY

Infinity Creative

North West

Macclesfield

SK11 6HN

Copycat Print Ltd

North West

Maghull

L31 2HB

North Manchester Store

North West

Manchester

M4 5AG

Manchester Store

North West

Manchester

LE1 1LB

Alert 2 Media

North West

Manchester

M1 1DZ

Chilli Cactus Limited

North West

Manchester

SK9 1RA

The Agency Creative limited

North West

Manchester

M17 1DZ

Creation Publicity Ltd

North West

Manchester

M17 1DZ

Print Design Warehouse Ltd

North West

Marple

SK8 1DW

Red Fred Limited

North West

Nantwich 

CW5 6PQ

SmartStudios 

North West

North Manchester

M4 4DE

The Creative Hub (UK) Ltd

North West

Ormskirk - Live

L39 3AJ

Granthams

North West

Preston

PR1 2UQ

Daleprint

North West

Rochdale

OL16 2AW

Chris Thew Design & Print Limited

North West

Rossendale

BB4 8EQ

Hashem Media

North West

Sale

M33 6RH

The Graphics Department

North West

Salford

M3 6BF

Impressions Design & Print Ltd

North West

Sandbach - Ches

CW11 1DA

I Design

North West

Southport

PR9 0NS

Masterprint (NW) Ltd

North West

St Helens

WA10 1DH

Studio Three Ltd

North West

Stockport

SK2 6NG

Impact Digital

North West

Timperley

WA14 1PJ

The Hub

North West

Trafford Park

M17 1FG

AF Reprographic

North West

Tyldesley

M29 8DS

Warrington Store

North West

Warrington

WA1 1EN

Printel UK Ltd

North West

Widnes

WA8 9LG

Mooney Media Ltd

Northern Ireland

County Down

BT32 3QD

Go Fish Design & Print

Northern Ireland

Lisburn

BT28 1AG

Xpress Printing

Northern Ireland

Newtonabbey

BT36 4PU

Native Print

Noth East

Newcastle - Heaton

NE6 5HL

The Business Boutique UK Ltd

Scotland

Aberdeen

AB24 5BW

Steptoe Creative Limited

Scotland

Ayr - Scotland

EE1 1EE

J&J Cornfield T/A Printing.com

Scotland

Coatbridge

ML6 9AF

  

Dundee Store

Scotland

Dundee

M3 4EN

Edinburgh Store

Scotland

Edinburgh

S1 4GF

Elevate You Limited

Scotland

Edinburgh

EH11 4EP

Digisnaps Ltd

Scotland

Edinburgh

EH2 2PJ

Glasgow Store

Scotland

Glasgow

NW3 5HS

SPD Print Solutions Ltd

Scotland

Glasgow

G40 4DU

Triple 333 Ltd

Scotland

Glasgow - City

G4 0QR

J&J Cornfield Partnership

Scotland

Hamilton

ML3 6DS

Republique Limited

Scotland

Linlithgow

BN3 3LL

Delta Design Ltd

Scotland

Livingstone

EH54 8PT

Glasgow Print

Scotland

North Glasgow

G20 9AY

Creative Concept UK Ltd

Scotland

Paisley

PA1 1TX

South Glasgow Store

Scotland

South Glasgow

G5 9RR

Tangerine Industries Ltd

Scotland

Stirling

FK8 1JW

Brighton Store

South

Brighton

BN1 4JB

Talon Graphics

South

Brighton

CR7 8DD

Tudor Printers Limited

South

Worthing

BN11 1UY

Ashford Store

South East

Ashford

TN24 8UU

Cambridge Store

South East

Cambridge

CB3 0AX

Think IMG Ltd

South East

Canterbury

CT1 2NR

Studio Direct (Printing) Ltd

South East

Chelmsford

CM2 6JP

Inprint

South East

Colchester

CO1 1PB

TRS Graphics Ltd

South East

Croydon

CR0 1QR

Jellybean Graphics

South East

Croydon

CR9 6YJ

Dorking Print Solutions Ltd

South East

Dorking

RH4 2ES

Home Counties Graphics Ltd

South East

Dunstable

LU6 1SX

Accomplice Limited

South East

Hailsham

BN27 1AU

JBS Print & Design

South East

Leatherhead

KT22 0AN

Luton Store

South East

Luton

LU1 2PL

Clearmist Designs Limited

South East

Maidenhead

SL6 1NB

Colourwave Printers

South East

Maidstone

ME16 0JZ

Norwich Store

South East

Norwich

NR1 1PL

Graphics One Limited

South East

Norwich

NR7 0EQ

Colourwave

South East

Ramsgate

CT11 8NT

Felix Ltd

South East

Rochester

ME2 4HZ

Colour Creatives Limited

South East

Sidcup - Kent

DA14 6ES

Grow Marketing Limited

South East

Whitstable

CT3 4JH

Print Creative.

South West

Bath

BA1 2JB

Digillicious

South West

Bexhill

TN40 1JB

Bournemouth Store

South West

Bournemouth

BH11 8PN

Bristol Store

South West

Bristol

EH3 9LY

Imageglossy Ltd

South West

Christchurch

BH23 1QD

Exeter Store

South West

Exeter

EX4 3AJ

Paw Print Design

South West

Gosport

PO15 7HH

Wessex Direct Ltd

South West

Minehead

TA24 5BJ

Full Colour Store

South West

Newton Abbott

SW6 6SE

Plymouth Store

South West

Plymouth

PL4 0AU

  

Neil Cheesewright T/A Chalk and Cheese Design

South West

Ruislip

HA4 6HH

Southampton Store

South West

Southampton

SO15 2AE

Wessex Direct Ltd

South West

Taunton

TA2 6BB

Wessex MAlthouse Direct Ltd

South West

Torquay

TQ1 3AW

Printing South West

South West

Totnes

TQ9 5DW

Whitman Design & Print Limited

South West

Truro

TR1 2HE

Anneset Productions

South West

Weston-Super-Mare

BS23 3DE

Cardiff Store

Wales

Cardiff

CF5 1JF

Australian Welsh

Wales

Cardiff

CF14 3JP

Colourbox 

Wales

Swansea

SA1 5TY


This information is provided by RNS
The company news service from the London Stock Exchange
 
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