Potts' litho future under review

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29 August 2002

Thomas Potts is seriously considering exiting the commercial litho market because of competitive pressures, but says that the print management sector will offer long-term opportunities.

It is assessing its position in a group-wide review by chief executive Mark Scanlon. A more positive alternative under consideration is to expand and become a bigger player in the litho arena. “We fully intend to continue to invest in print management services in the belief that it represents a long-term opportunity for the group,” said chairman Stephen Hargrave.

The company has also announced a 32% increase in pre-tax profits to £1.6m on a turnover of £38.2m (2001: £21.7m) for the year ending in March.

But, according to Hargrave, the figures disguise a “very mixed picture” among the group’s operating subsidiaries.

And he said that this year would be one of “retrenchment”, which would have a “materially adverse impact” on Thomas Potts’ financial performance.

London-based litho printer Premier Metropolis and digital printer G&E in Peterborough both experienced difficult trading conditions, but G&E was more profitable than in 2001.

Screen printer Serigraphic performed consistently well, but due to a “sudden” major account loss, resulting in 12 redundancies last month (PrintWeek, 19 July), Thomas Potts has had to reduce expectations for the year.

Its print management company, CCS, was also hit by two major account losses, but prospective new business looked promising, said Hargrave.

However, long-run print outsourcing subsidiary Eurographics and the newly acquired Slough-based Fairway print logistics business both exceeded expectations.

Story by Rachel Barnes