Event

HSBC's confidence in Pindar leads to 13m debt facility

Event by
Business

Pindar has secured additional backing from HSBC as the group charts a course towards "consistent group-wide profitability".

The results for the UK operating company Pindar PLC have just been filed, and chairman Andrew Pindar said the firm’s underlying performance was positive, despite it posting a loss.

"Our group numbers are much improved on last year and the trend is better still, although we still have a lot to do," he said.

In the year to 30 September 2010, Pindar PLC – which includes the Scarborough-based web offset and digital businesses, sheetfed printing at Preston and its Agility software wing – posted a 2.5% increase in sales to £58.6m.

It slipped to an operating loss of £993,000 (2009 profit: £574,000) due to "legacy operational issues in some corners of our business" along with a £1m-plus increase in staff costs. The bottom-line loss for the year was £1.4m.

Pindar said the increase in staff overhead at the 523-employee group was mainly sales-related. It took on additional salespeople in advance of Avon moving its catalogue contract to RR Donnelley, and as part of a sales push for Agility.

"We were full in February, which was our first month without any Avon work, and were also full in March," he stated.
"We planned for it and we did something about it."

Its web-offset business made a profit and Pindar described the firm’s EBITDA as "distinctly better than other people’s if I look at a like-for-like comparison."

The new banking facilities with HSBC have been increased from £10m to £13m, although the bank’s conditions will require Pindar to dispose of certain yet-to-be-disclosed assets as a result.

Pindar is also tackling a £26.7m deficit in its final-salary pension scheme.

With the approval of its trustees it has suspended payments to the scheme pending the triennial valuation, which should be completed by December.

The results for the ultimate holding company GA Pindar & Son, which carried the multimillion-pound exceptional charges attached to Cooper Clegg, will be filed later in the year.

Pindar PLC 2010 results
Turnover £58.6m (2009: £57.2m)
Operating loss £993,000 (£574,000 profit)
Pre-tax loss £1.9m (£527,000)
Net loss £1.4m (£385,000)
Business Results