Pre-Close Trading Statement

Printing.com plc 20 April 2005 TO BE RELEASED 7.00AM 20 APRIL 2005 PRINTING.COM PLC ('Printing.com' or 'the Company') Specialist retail chain with 102 Outlets (plus 17 pending) across the UK Pre close trading update * Robust trading to year end * Results in line with market expectations * Additional 7 Bolt-on Franchise Agreements completed * Additional 2 Printing.com Territory Franchise Stores open * 3 new Territory Franchises under Option * 119 Outlets, 102 operational plus 17 pending * Cash generation strong in second half * Prospect of maiden dividend * Directors optimistic that the outlook for the Group is positive Recent Trading and Market Expectations We are pleased to report that, post our last market update on 17 February 2005, trading continued to prove robust and in line with expectations. Additionally the estate expansion, for both Territory and Bolt-on Franchises, has proved encouraging. The Company's unaudited management accounts for the year ending 4 April 2005 indicate a pre tax profit in line with recent market expectations. Of particular note has been the strong generation of cash from operational activity during the second half of the fiscal year. Territory Franchise Development When last updating the market we reported our anticipation that the Coventry and Dublin North Territory Franchises would be open by 31 March 2005. These Franchise Agreements have now been completed. The Dublin North Territory Franchise is now operational, albeit from interim premises, whilst Coventry still requires the completion of certain property matters. We are also pleased to report that last month a further Store commenced trading in Luton (part of our Hertfordshire Territory Franchise) several months ahead of expectations. Encouragingly, property has now been secured for the Brighton Territory Franchise and the Store is currently undergoing shop fitting. An offer has also been made in respect of premises in the Manchester North area. Also, at the time of the last update, we reported that an Option had been taken out covering the Territory Franchise for our Nottingham Store and that a Management Buyout of our Sheffield Store was expected. We are pleased to report that both of these transactions were completed prior to the year end. In addition a further three Options (each involving the payment of a non-refundable deposit of £6,000) have been taken out, covering Birmingham East, Birmingham South West and Northamptonshire. This took the number of operational Stores by the year end to 32 (9 company owned), with a further 8 pending under 'Option'. The recent Franchise exhibition in London proved to be a success, adding to the number of high calibre prospective Franchisees being interviewed and assessed, and we are optimistic that additional Options will be granted in the first half of the next financial year. Bolt-on Franchise Development Since the last market update an additional 7 Bolt-on Franchise Agreements have been completed. This took the total number of operational Bolt-ons at the year end to 70 with a further 9 pending. The overwhelming majority of these additional Bolt-on Franchises were secured in territories where either a Company Store or Territory Franchise is in operation. This lends further weight to the belief that Bolt-on Franchise expansion will continue to accelerate with further development of the Territory Franchise structure. The Directors note the strong pipeline of prospective Bolt-on Franchises and are confident that additional agreements will be completed over the coming months. Cash We commented in the Company's Annual Report & Accounts for the year ended 31 March 2004 that the Company's model indicated that future cash flow should more closely follow profit. We are pleased to announce that this expectation has been realised during the year just ended on 4th April 2005. Indeed during the second half of the year the Company's operating cash flow exceeded the Company's unaudited operating profit. Commencement of Dividends With Printing.com's balance sheet now showing distributable reserves, albeit at a modest level at this juncture, it is anticipated that the Company will be in a position to declare a maiden dividend when it announces its preliminary results in June of this year; A further very important milestone in the Company's rapid development The Directors remain optimistic that the outlook for the future development of the Group is positive and that shareholders can look forward to further growth. 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 7053 6400 The Directors of Printing.com plc take full responsibility for this announcement. Outlet Region Town Post Code Red Hot Media East Lowestoft NR32 1EB Goldengate East Suffolk IP30 9QS Dublin Store Ireland Dublin Dublin 2 North Dublin Ireland Dublin Dublin 7 Central London Store London Baker Street NW1 6UY Hampstead Store London Hampstead NW3 5HS Watford Store London Watford WD17 1RA Harrow Store London Harrow HA7 2QJ Reading Store London Reading RG1 4QA Ealing Store London Ealing W13 8SB Orpington London Orpington BR6 0JY Luton London Luton LU1 2PL Expocentric - Wardour London Soho W1V 3AU Expocentric - Dover London Mayfair W1X 3PH London & General London Chelsea SW10 0XF Full Colour Store London Clapham SW17 9SH Print Express London Colindale NW9 5DL 0800 Promote London Finchley N3 1TR Printer Net Services London Wimbledon SW19 8TY London Print Compamy London Shaftesbury Avenue WC2H 8EB Printhouse London Nottinghill W11 3HT 0800 Promote London North Finchley N12 9QG Birmingham Store Midlands Birmingham B5 4JL Oxford Store Midlands Oxford OX2 7HT Leicester Store Midlands Leicester LE1 1LB Wolverhampton Midlands Wolverhampton WV1 4BL Nottingham Store Midlands Nottingham NG1 6DQ Kaleidoscope Midlands Leamington Spa CV31 1BZ Albry Printing Company Midlands Wallingford OX10 9DA Final Imaging Midlands Sawtry PE28 5SB Dove Signs Midlands Nuneaton CV11 6GX Custard Creative Midlands Northampton NN3 6WL Cre8ive Design Midlands Kenilworth CV8 1JD For Colour Midlands Newark, Nottingham NG24 1LE Sign It Midlands Beeston, Nottingham NG9 2AY Ozmedia Print Midlands Barrow Upon Soar LE12 8JH Pewter Design Midlands Market Harborough LE16 7DS St Ives Quickprint Midlands St Ives PE27 3WS Artichoke Design Midlands Birmingham B18 6NN The Ideas Room Midlands Leicester LE3 0DL Ideas Taking Shape Midlands Rugby CV21 2SD Graphic Results Midlands Belper DE56 1AY The Studio Midlands Walsall WS1 1JQ Hussellworks Midlands Halesowen B63 3HR Hull Store North East Hull HU1 2AG Newcastle Store North East Newcastle NE1 5EE Leeds Store North East Leeds LS1 3DL Middlesbrough North East Middlesbrough DL16 7HH Sheffield Store North East Sheffield S1 4GF Colour Box Design North East York YO23 1NA Multiprint North East Normanton WF6 2AF Print House Direct North East Bishop Auckland DL14 0LZ The Factory North East Leeds LS12 2DS Maskerade Design North East Sunderland SR2 7PR Pro-Actif Communications North East Darlington DL3 7TD GOWEB North East Wakefield WF2 9BL Creative Web design UK North East Alnwick NE71 6EA Blah D Blah North Wales Bangor LL57 1NY Manchester Store North West Manchester M3 4BQ The Hub North West Trafford Park M17 1FG Liverpool Store North West Liverpool L2 2HF Lancaster Store North West Lancaster LA1 1XN Warrington North West Warrington WA1 1EP Granthams - Preston North West Preston PR1 2UQ Granthams - Blackpool North West Blackpool FY1 4PE Print Design Warehouse North West Marple SK6 7AD RAS Limited North West Chester CH3 5AG Silverback North West Isle of Man IM1 2LA Mailboxes North West Stockport SK1 1LE Printel North West Widnes WA3 8LG ER Design & Print North West Alsager CW2 5PR Impact Advertising North West Timperley WA15 7SP Masterprint North West St Helens WA10 1DH Copycat North West Maghull L31 2HB Alert 2 Media North West Manchester M1 1DZ Print Hub Design North West Bolton BL1 3QJ Bradbury Graphics Northern Ireland Belfast BT7 1BS Xpress Creative Northern Ireland Newtonabbey BT36 4PU Mooney Media Northern Ireland County Down BT32 4QD Edinburgh Store Scotland Edinburgh EH3 6QY Edinburgh Store Scotland Edinburgh EH3 9LY Glasgow Store Scotland Glasgow G3 8LZ Color Co. - Edinburgh Scotland Edinburgh EH2 2PA Glasgow Print Scotland North Glasgow G64 1RX Hamilton (662c) Scotland Hamilton ML3 7AR Ashford Store South East Ashford TN24 8UU TRS Graphics South East Croydon CR2 6EB Felix Communications South East Rochester ME2 4HZ Studio Direct South East Chelmsford CM2 6HE Lussh Creative South East Chesterfield S40 2BY Inprint South East Colchester CO1 1PB Haus of Print South West Andover SP11 6RU Bristol Store South West Bristol BS1 3LZ Plymouth Store South West Plymouth PL4 0AU Bournemouth South West Bournemouth DT1 1HS Anneset South West Weston-Super-Mare BS23 3DE Presto Print South West Christchurch BH23 1QD Malthouse South West Taunton TA1 3EP Wessex Direct South West Minehead TA24 5UB Print Creative South West Bath BA1 2JB Printing South West South West Totnes TQ9 5DW Australian Welsh Wales Cardiff CF14 3JP This information is provided by RNS The company news service from the London Stock Exchange
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