Generation-spanning family business profits from clever property portfolio

Print is often described as an old man's game. The average age of print workers is well above 40 and 50-year-old men with 35 years' experience are ten-a-penny.However, there aren't too many 91-year-olds still turning up for work every day, and there are probably even fewer 91-year-olds in print who didn't break into the sector until their eighth decade, but that is the situation at Sidcup-based Lefa Print and Allied Services.

Frank Arthur, chairman at Lefa, started his own company in 1957. This business was firmly based in the engineering and security sectors and he probably never dreamed that he would end up in the printing industry. Nor indeed would it have appeared likely when he sold the business, while hanging on to the property interests, in the early 1990s. At the time, the company had sites in Lancashire, Norfolk, York, Heathrow and the site in Sidcup now occupied by Lefa.

For the next few years, Arthur continued to manage the properties. However, when office supplies business Alkens got into trouble in 1998 and he was asked to help out, he couldn't turn his back. At that time, the office supplies industry had much in common with the print landscape of today: the onset of digital technology had hit it hard and businesses were under severe pressure.

Sadly, just three months after Arthur invested in the business, Alkens' managing director died. "What started out as a good turn, ended up taking up much more time than I had intended," he says. "But I hate to see a company fail, I hate to see people lose their jobs."

Arthur built up the print management side of the business and progressively it became a print management company.

The company worked closely with printer Hartley Reproductions. Progressively that relationship grew and Lefa's role in print became stronger. The move was completed in the past two years with the acquisition of Hartley, along with two other printers, Schofield and Parham, and Cadence.

At the end of last year, Arthur brought the four businesses in under the one roof at Sidcup and economies of scale are now being realised.

Return on investment
Lefa is in a better position than most print firms, thanks to Arthur's investment acumen: the print business represents just £2.25m of Lefa's £20m turnover, with the rest being derived from property interests - Lefa owns most of the Sidcup industrial estate on which it is built and generates most of its income from rent.

That's not to say that Lefa doesn't take print very seriously indeed and Arthur is looking to invest in other struggling print companies.

He says: "We are in the market for any print companies with financial problems that would benefit from joining us. We have the financial resources to make a business viable. We don't have to worry about banks, we have cashflow there."

The other advantage of owning the land around its site is that there is plenty of room to expand Lefa's print operations as necessary.

Arthur now has a ready-made successor in the shape of his grandson Edward, who has taken on the day-to-day managing director's role. He took a bit of coercing to start with, but is now fully engrossed in the role.

Edward Arthur says: "We agreed that, so far as we could, we would make this business a long-term family one. All the shareholders are family members."

And the future owner of the business has big plans going forward. He believes that the business can achieve a £5m turnover in the current facility, an ambition his grandfather shares. He is also keen to bring the print business up to date technologically - he is concentrating on getting the digital business going and also wants to bring all finishing in-house.

He is intent on working with new technologies and media rather than against them. "The traditional print business model doesn't hold water any more, I will be wrapping print up in other services."

Print may be an old man's game, but this is one instance in which age and youth have come together to build a stronger business. The experienced business head of Frank Arthur and energy and enthusiasm of Edward Arthur are combining to move this business - and print itself - into the 21st century and as a result, Lefa is well placed to keep its chairman busy right up until retirement - whenever that is.


LEFA FACTFILE
Based
Sidcup
Managing director Edward Arthur
Chairman Frank Arthur
Formed 1962, renamed Lefa Print and Allied Services in 2005
Print staff 35
Print acquisitions Schofield and Parham, Hartley Reproductions and Cadence