The Kettering, Northamptonshire-based company, which was established in 1896, was split into two wings last year following a restructure that saw the firm stop manufacturing conventional litho presses. This reorganisation was reported to have resulted in the loss of “between 30 and 40 jobs”.
As a result of the move, Timsons became a purely digital press manufacturing business while Timsons Engineering became the component manufacturing side of the business to maintain the firm’s installed base of litho presses. Timsons Engineering is not part of, or affected by, the liquidation.
Insolvency practitioner Business Recovery and Insolvency (BRI) said Timsons is currently still trading but is due to go into liquidation on 4 February, when John Warbuton, managing director of BRI, is expected to be formally appointed as liquidator at a creditors meeting.
Timsons had planned to carry on producing the digital T-Press, which was launched at Drupa 2012, but it received no further orders for this machine following the company restructure.
In a statement released on Friday (9 January), a company spokesman said: “After a significant drop in the sales of printing presses Timsons Ltd announced a restructure of the business in 2014. It ceased production of conventional lithographic presses in order to concentrate on the manufacture of digital printing equipment.
“Unfortunately in the period since restructuring Timsons Ltd has been unable to attract further orders for digital equipment and as a result trading losses have continued.
“These losses have meant Timsons Ltd can no longer continue to trade and the directors have taken steps to place the company into a creditors’ voluntary liquidation.
“This will result in the closure of Timsons Ltd and the loss of 25 jobs.”
It is currently unclear whether creditors will be paid.
The firm's financial statements for the year ending 31 March 2014 showed that turnover for 2014 was £6.95m, down from £12.8m in 2013. UK sales had decreased from £3.84m to £3.42m while rest of the world sales dropped from £9m to £3.52m. Its gross margin though increased from 10.3% in 2013 to 22.9% in 2014.
The director’s strategic report had highlighted that digital sales had been growing prior to the business’ digital refocus. It said: “The restructuring programme identified last year was completed by the start of the new financial year and has assisted in reducing the cost structure in a market that remains weak. The historical core business of litho book presses has continued to decline which can be seen in the reduction of turnover.
“Sales of digital presses, and associated finishing equipment, for the book market strengthened and interest remains positive. Despite this sales volumes were lower than anticipated in the first half of the year but improved during the latter part of the year.”
At the time of writing PrintWeek was unable to reach managing director Jeff Ward for further comment.
