Print gets in Christmas spirit with record fourth quarter

A record November has brought an early bout of Christmas cheer to the print industry and contributed to growing confidence for the year ahead.

While trading conditions have clearly been challenging over the past 12 months, a surge in activity since the Olympics has led many to report a strong fourth quarter.

The Lettershop Group mailed more than 22m products in November, a record performance for the Leeds-based direct mail printer that helped counterbalanced the slow summer months.

"In terms of volume, October and November into December has been the busiest it has ever been," said commercial director Dave McGolpin.

"The market is still very competitive and there is always a question about volumes but we have made some good progress this year, which looks to continue in 2013."

Similarly, Inc Direct sales director Andy Bailey said the firm has been flat out in the run up to Christmas, marking a reversal to the typically quiet year-end.

This has resulted in a strong start to the company’s 2012/13 financial year, following a record performance in the year to 30 June 2012.

"Our turnover and profitability this year has been the best since the company began trading in 2000 and trading over the first six months of the current financial year looks set to beat that," said Bailey.

DXG Media has also reported record sales in 2012, building on its previous best last year, when it recorded a £3.5m turnover. The Cheshire-based company said it has seen a 15% increase in profitability this year.

Managing director Duarte Goncalves said: "We’ve attacked the sales side of the business and increased our sales team. The work is there if you are prepared to go out and look for it."

He wished for "more of the same" as the company pushes on from 2012, the first year DXG Media has been recognised in PrintWeek’s Top 500.

Alison Branch, managing director of Park Communications, which took home two gongs from the PrintWeek Awards for the second year running in 2012, said orders in the run up to Christmas and early 2013 were looking good.

She added: "2012 brought continued pressure on margin and volumes but we have accepted that these conditions will continue and we must build our business against this backdrop."

However, while there was plenty of good news to report from the sector’s leading lights, their experience was far from universal, with only 30% of respondents to a printweek.com poll reporting busier trading year-on-year in the build up to Christmas.

BPIF chief executive Kathy Woodward warned: "It looks like business was holding up well in November, but December is always a difficult month. It will create cash flow pressures going into January because orders are notoriously low from the middle of the month."

Eclipse managing director Simon Moore conceded that the direct mail market was notorious for slackening off at the end of the year, but added that recent high enquiry levels were encouraging for 2013.

Nevertheless, Eclipse hit its target for the fourth quarter and achieved its 15% growth objective for 2012. Moore expects a £14m turnover boost from 4DM in Eclipse’s first full year since taking full control of the business that could bring the group’s turnover to £40m for 2013.