Potential buyer made £1 bid

Ashford Colour Press struggles revealed

ACP: Turnover tumbled as clients changed tack

Ashford Colour Press fell foul of vacillating customer demand according to the latest report on the firm’s administration, which also details the six-figure sum paid for part of its business and assets.

The Gosport-based firm went into administration just under two months ago, with Pureprint Group stepping in to acquire its digital printing operation.

The latest report from joint administrators Nicholas Simmonds and Chris Newell at Quantuma Advisory includes information from ACP directors Jonathan Stevens-Hunt and Robert Hutcheson detailing a variety of challenges that eventually proved too much for the business.

This included a major flood in 2005 and asbestos contamination in 2016, with both resulting in disruption and additional costs.

Things appeared to be on the up after the company won a multimillion pound, multi-year contract with publisher Pearson for zero inventory production.

The firm also benefited from a boost in demand as publishers reshored work due to the Covid-19 pandemic, and “thrived” for the two years post-Covid.

However, as trade normalised publishers went back to printing overseas, and it emerged that some had over-ordered stock leaving to a drop-off in sales. An additional new contract win for zero inventory work was beset by delays at the customer’s side.

“Turnover tumbled accordingly”, the report stated.

The directors sought advice from Quantuma and concluded that the company was insolvent.

Unconnected newco Ashford Colour, set up by Pureprint Group, acquired certain business and assets in a pre-pack sale for £225,000.

Another potential purchaser changed their offer a number of times, “which ranged between £1 and £270,000”, and with a final offer of £215,000.

Quantuma said the Ashford Colour offer included the transfer of all existing staff, greatly reduced ACP’s liabilities, and could be concluded at speed.

At the date of the report the directors had not submitted a signed Statement of Affairs, but the estimated total deficiency detailed was just over £5m.

Unsecured creditors were owed nearly £1.9m according to the estimates.

Secured creditor Barclays Bank is expected to be repaid in full as are secondary preferential creditors.

Unsecured creditors are likely to receive 4.475p in the pound based on the anticipated distribution.

In its most recent accounts for the year ending 31 March 2023, Ashford Colour Press posted sales up 12% at £14.8m and an increase in pre-tax profits to £315,736 from £250,288. The firm had employed 86 at that time.