Print firms, on the whole, are not known for being particularly nomadic. The logistics of upping sticks and shifting your entire operation are, well, complicated. Not only do you have to find the right building, but you have to time the move to cause the least disruption, ensure you’re getting the best finance deal and then move a few million quids’ worth of kit in a way that does not put your earning power on hold for weeks.

It is, in short, a world of headaches that many tend to avoid at all costs.

Bishops Printers, however, has moved twice in the past 10 years. Eight years ago, the company moved from its first home in the centre of Portsmouth to the outskirts of the city. Then, last summer, it moved again, doubling its floorspace from 4,000sqm to 8,000sqm. Gluttons for punishment, you may think. Not at all, says managing director Gareth Roberts, it’s a case of needs must.

"We were at a point where growth would have been inhibited and efficiency compromised," he explains. "We were after more space so we could lay everything out exactly as we wanted to maximise efficiency, while giving ourselves room for further expansion in the future."

The original plan was that if the company continued to grow during 2010 and 2011, a move would be considered for early 2012. But then a former hot tub manufacturing factory became available in February 2010 for £5.5m, just a few minutes drive from the existing Bishops factory. Roberts saw that it would fit the bill perfectly and that the proximity to the existing site would mean minimum upheaval for staff. He made a cheeky offer of £4.1m. Three months, later he shook hands at £4.25m.

Finding funding
Roberts made the initial offer without talking to the bank, although he says he knew roughly what he could afford. When things started progressing, however, he went to RBS/Natwest with a formal proposal that enabled him to negotiate a deal that put equity of the existing property and a small amount of cash down in order to secure a mortgage for £3.85m of the asking price. He calls the variable 2.35% over LIBOR interest rate "competitive" and says, overall, the bank was fair and efficient in its lending. 

"The interest rate offered a decent balance to reflect their desire for margin and my need to secure a workable deal," he explains. "But you do have to go the extra mile to sell yourself personally as well as the company and I would really urge anyone in the same position to make a really professional effort at every stage of bank dealings to generate confidence in the plan."

The purchase price, however, was not where the financial considerations ended. Roberts also had to budget for a £140,000 moving bill; the costs of any lost work while the move took place, although disruption was kept to a minimum; renovations to the new property, which included a £20,000 bill for painting; and for the fact that it might take some time to find a tenant for the existing property (Roberts has budgeted for it to be empty for a year). With the danger of hidden costs also lurking, Roberts negotiated an additional £250,000 loan with the bank that could be used if cash was needed quickly to keep the move afloat. Fortunately, it was not needed.

Roberts says that’s because of the time and effort he and the rest of the company put into planning the relocation project, but credit for the move itself goes to Hampshire-based independent Heidelberg engineers S&C Graphic Machinery.

Roberts says that this company was "absolutely fantastic" as it proved that it "understood that every hour the press wasn’t running equated to lost revenue" for the printer.

With this in mind, the move was completed in a three-week period at the start of August last year, and, according to S&C partner Stephen Upson, it all went extremely smoothly.

"The scale of the job was huge and the timescale extremely tight, but the planning was so meticulous we had no problems," he says.

Which is quite an achievement when you consider that the team dismantled and rebuilt four B2 Heidelberg 10-colour Speedmasters, including two XL 75s and a two-colour GTO 52. And that’s just the presses. A whole range of finishing and pre-press kit, including two new platesetters, also made the journey, along with 172 staff and countless pieces of office and IT kit.

"We had one team at that end dismantling the kit and sending it off in sections, while another at this end put it back together when it arrived," explains Upson. "It was a massive logistical job and when we sat down with a beer afterwards, we couldn’t believe how quickly and how well everything had gone."

From Bishops’ point of view, the move was equally smooth. Roberts made use of a "spare" 10-colour press to cover the work of each press that was in transit, so the company’s capacity remained the same throughout the move.

Efficiency boost
And six months on, that move is looking to be a shrewd decision. The spare press, which was previously used for extra capacity, is no longer needed, such are the efficiencies gained from having a factory laid out to the most practical footprint – taking into consideration things like paper line-up, pallet moving and plate transport. These same efficiencies have led to some very impressive bottom-line figures.

"We have just finished our financial year and our turnover per head has increased by almost £4,000 since the move, pushing us very close to £100,000 per head for the first time in our history," reveals Roberts. "Our growth was 21% up on the year before with a turnover of £15.8m from £13m. This would have been impossible without the move – much of that growth was due to our performance in the second half of the year when we were in the new site."

But can it all be so rosy? Well, Roberts admits to a "healthy sense of fear and uncertainty". A site move represents a substantial investment in the future and Roberts believes next year will be the toughest yet. Rather than a risk, however, Roberts sees the move as a catalyst for driving the business forward; for avoiding complacency and ensuring the long-term future of the company. He points to the opportunities the new space brings and how he has the capacity now to put in a digital facility, a mailing house, a perfect binding line or even three more ten-colour presses – "we are in a position to go in any direction we wish," he says.

For now, though, Bishops is settling into its new surroundings, enjoying the benefits of higher efficiencies and boosted confidence the site move and the growth that has occurred as a result have generated. But don’t call it consolidation, says Roberts, moving site does not mean an end to his ambition.

He explains: "The move means we have no excuse not to be a success as we have everything in place to do a better job than we have ever done before. It’s not consolidation for us, I’d expect us to grow again this year to hit a turnover of near £18m."

Moving site may be a headache for printers, but if Bishops is anything to go by, the pay off is well worth the pain. Of course, any financial outlay is a risk, but if the business case is there to move, then the benefits are there to be reaped by taking the plunge and packing your bags.

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TOP FIVE TIPS MOVING PREMISES
1 Ensure it’s the right decision A site move is a major upheaval and a massive commitment, you need to explore every avenue available to ensure this really is the best move for your business and that your future plans require and would benefit from a site move

2 Planning Making sure that you plan the move thoroughly is key to the transition working smoothly and getting maximum uptime on the presses. When things start moving, you want to know that you have planned for every eventuality. Any delays will extend your press downtime and have an impact on the bottom line

3 Don’t overstretch Be realistic about the timescales, don’t be overly ambitious and promise customers things will be ready when there is no guarantee – err on the side of caution and if things do move quicker, it is an unexpected bonus, not a requirement you rely on

4 Be sensible with finance You need to have a sound financial plan in place that will provide you, the moving company and its partners financial security and ensure cashflow

5 Trust is key For the move itself, find a partner that you know you can trust with your kit and that, preferably, you have dealt with before so that you know how the business works

Stephen Upson, partner at S&C Graphic Machinery