Exceptional charges of 2.1m, largely a provision for the deficit in the firms defined benefit pension scheme, saw the group post a pre-tax loss of 1.3m (2002 profit after exceptionals: 295,000).
While sales slipped by 8.4% to 19m in consumables, electronics sales increased to 4.77m from 4.49m last year, described as creditable especially as the 2002 figures included Ipex.
Joint managing director Gerry Mulvaney said there was plenty of interest in CTP, digital print and wide-format ink-jet, but getting customers the finance they need is the biggest problem, and the firm has developed new financing options as a result. We are not taking customers liabilities on ourselves, but we are looking at creative ways of getting customers the finance they need. Its one of the keys to growth in our electronics business, and is enabling us to get deals approved that otherwise wouldnt be, Mulvaney added.
Mulvaney said that given the circumstances the group was quite pleased with the results. We are a good mirror of what customers are doing. Theyre finding things reasonably tough, but at the same time a large proportion are investing in their businesses.
In consumables, Litho Supplies said its pressroom division was increasing market share on the back of investment in technical support, and the firm plans to continue to devote resource to this business.
Litho also anticipated seeing top line sales grow because of prices increases on analogue products from principals Agfa and Kodak Polychrome Graphics. The increases, of 5-6%, went through in July.
Analogue volumes have reduced so unit costs have gone up, Mulvaney said. Its the first increase for three or four years.
The group believes the trough trading conditions could force smaller competitors to consider leaving the market, potentially providing LS with expansion opportunities through bolt-on acquisitions.
By Jo Francis
