The vault at Fort Knox in Kentucky serves as the depository for the bulk of the US bullion reserves and is considered by many to be the most secure safety deposit box on the planet - not least of all because it surrounded by many men with large guns, also known as the US Army.

While Milton Keynes-based Mailcom, a £12m-turnover independent outsourcing company whose clients span the transactional, direct mail and fulfilment spectrum, cannot boast quite the same level of firepower, it would argue that security of its clients' data is no less a priority.

"The transactional print market is where the growth has been most prominent recently. We knew we had to step up our expertise in that field to manipulate and print the variable data required to provide the transactional mailing services that the big brand names need," says Mailcom managing director Neil Shotton.

Transactional work now generates around half the 260-staff company's turnover, while data and contact centre work provides another 40%. The remaining 10% stems from direct mail custom. However, this was not always the case.
Mailcom was originally established in Bletchley in the summer of 1982 by Shotton's father, Eddie, as a data management business and a specialist in direct mail. 15 years later, the business was sold to South African media group Primedia, which had 1,500 staff and a turnover of £32m.

This proved to be a step backwards for the company as, according to Shotton, business began to suffer.

"The company lost direction following the sale and turnover gradually declined," says Shotton.

Finally, after a number of sales for the business, Shotton led a takeover in September 2006, since when he has held the role of managing director. "In that time, we've consolidated two sites to create a stronger Mailcom image and got rid of the non-profitable parts of the business," he says.

Mailcom today reflects the growth of the transactional print sector and has built upon its core products with contact centre and fulfilment services. But, unwilling to rest on their laurels, Shotton and his team are focused on growing the transactional side of the business, looking to double its output to 2m statements every day.

Investment programme
However, this level of increase will not happen by magic nor overnight and an increased demand for colour printing from its clients has seen Mailcom engage in a steady investment programme over recent years. In early 2008, the company bought four Océ VarioStream 8650 high-volume continuous-feed mono presses, which complement three Océ 5160 cutsheet printers and an Océ VS7450. In addition, it has also invested in finishing kit from Pitney Bowes and Buhrs.
Despite heavy investment in digital print technology, Shotton points out that there is a surplus of technology in the sector. "Among the trends we see in the transactional print space are that digital print has been hit particularly hard. There is an over-supply of technology in a market where demand is still very low. We need to see a dramatic shift in manufacturers' pricing to start a recovery," he says.

But investing for Mailcom has catalysed growth within its business, not stifled it. Shotton says: "Generally speaking, outsourcing in the sector has continued to grow, probably as a result of the recession, rather than despite it. Those outsourcers who have invested in new technologies can print and produce a better quality product at a lower unit cost than an in-house operation - full stop."

He adds that it is difficult for a mailroom manager to justify spending millions of pounds, especially in the middle of a recession.

While transactional print is the core of Mailcom's offering, Shotton is keen to explore new areas of the business and grow them to help increase the company's services. "Going forward, we believe multichannel communications and digital technology is still in its infancy," he says. And, despite an unwillingness to discuss the details at present, acquisitions look likely to be on the cards soon too. "We are in negotiations to acquire a business that will accelerate our move into this space as well as augment our scanning, hosting, mobile, and e-billing capabilities," Shotton says.

Whatever route the company is yet to take, from present evidence it's looking likely that it is going the way of Shotton's beloved Sunderland FC, on the up, step-by-step.

Mailcom factfile
Managing director Neil Shotton
Staff 260
Turnover £12m
Equipment includes 10 Océ digital colour and monochrome engines, five Pitney Bowes APS/FPS intelligent insertion machines, six Buhrs high-speed intelligent enclosers, various other print, prepping, and enclosing lines.
Clients Mainly financial institutions, high-street banks, mobile telecommunications firms, utilities and government bodies