The increase in turnover was largely the result of a £3.4m contribution from Netherlands-based print business MFG, which Printing.com acquired in November 2010.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 14.5% to £1.5m (2010: £1.3m); however, increased depreciation and amortisation arising from software development and the acquisition of MFG led to the drop in pre-tax profit.
The company said that "on a simplistic basis" the impact on profitability of its new channels was "in excess of £200,000 for the period" excluding increased depreciation also in the region of £200,000 principally attributable to the associated software development.
The group finished the period with cash-in-hand of £960,000 (2010: £1.6m), while cash generated by operating activities was £950,000 (£1.2m). Capital expenditure for the period was £900,000 (£440,000), the majority of which reflected the ongoing software investment.
Geographically, trading exceeded expectations across the Netherlands and Belgium, although it remained soft in the UK and Ireland, with the UK suffering a contraction from mid-June, which the company said reflected the further decline in SME confidence.
In contrast with recent years, revenue in Ireland rose 19% to £160,000. The French network also exhibited growth in the period, with revenue rising 11% to £230,000. MFG's online channels (Flyerzone.nl, Druckland.nl and PrintRepublic.nl) contributed revenues of £3.1m.
Following the FlyerZone, BrandDemand and TemplateCloud channel launches, Printing.com said that the challenge was "to achieve the necessary scale in an expeditious manner whilst generating a positive contribution as soon as is practicable".
TemplateCloud, which is the latest addition to Printing.com's new online channels, is an online library of editable graphic designs, which are supplied by freelance contributors who provide the creative content on a contingent basis.
It is intended to be used in conjunction with FlyerZone, thereby supplying SMEs with a library of relevant graphic designs that are converted into editable templates by Printing.com's proprietary software, with little or no manual intervention.
The contributors will be paid a fee, typically £5-10, which represents a share of the fee paid by the end client, whenever one of their designs is used by a FlyerZone client. The remainder of the revenue will be split between the franchisee and Printing.com.
TemplateCloud currently has around 4,000 editable templates uploaded and Printing.com said it was focussed on growing this over the coming year to provide the graphic design component for its other online sales channels.
