BPIF warns of 'testing times' as printers report uplift in trade

More than 60% of print businesses experienced an uplift in trading conditions during the final three months of 2009, but the BPIF has warned that such an improvement could be seasonal and that "testing" times lie ahead.

In the print federation's latest Printing Outlook report, it noted that 62% of the 109 companies surveyed, which employed more than 9,500 staff with a combined turnover of £1bn, claimed a pick-up in trade in autumn.

Likewise, only 10% experienced a deterioration in trading conditions throughout the season. However, the BPIF urged caution among print companies, stating that just over half of those interviewed had anticipated a decline during December into early 2010.

Andrew Brown, corporate affairs director at BPIF, said: "The uplift reported by respondents to our autumn survey is very welcome news indeed. However, it is important to remember that this improvement is due to seasonal factors."

The Outlook survey also reported that only 9% of companies were "bullish" about gaining new business, with 51% expecting a drop in output, while only 17% predicted an increase.

Liam Crane, group business development manager at Packpost Solutions, said that while his company predicted a quiet first quarter, it was expecting a busy 2010 overall.

"People are naturally cautious at the beginning of the year, but there is plenty in the pipeline to keep us busy and we're looking at a very busy year with a view to expanding the business," he said.

The improvement in trading conditions throughout the period also helped boost profitability among printers, with only 3% making a loss compared to 17% in the previous three-month period.

According to the survey, no printers raised their prices during the period, but nearly half said margins remained the same, with a fifth reporting a rise in price margins.

Brown added: "Uncertainty about the prospects for the winter months is clearly reflected in less sanguine forecasts for this period, with 56% believing that trade will worsen, compared with just 15% that believe the recent momentum will continue through the winter. Trading conditions remain extremely testing."