Taylor stated that a "high percentage" of printers were prepared to price work significantly below cost, and that firms without strong balance sheets would be unable to weather the conditions or invest for the future.
Sales in the six months to 30 June slipped 2% to £20.6m. But the fall in commercial print sales would have been almost 18% but for the contribution from Quadracolor, acquired in February. Operating profit, prior to exceptionals, was £2.2m – down 6%. Operating margin remains in double digits, at 10.6%.
Exceptional costs totalled £933,000 and related to the relocation of WE Baxter and the closure of niche laser-cutting operation Lasercraft.
There was better news in books: cover printer White Quill and paperback operation Bookmarque performed strongly, and now account for 24% of group turnover. Bookmarque is on course for annualised sales of £5m (excluding paper). Additional investment includes a new spot UV varnisher and Gietz foiler and embosser. And the first of two 12-colour Speedmasters is now up and running at Fulmar Colour.
Fulmar’s share price fell by 18% this week to 62.5p. Taylor has recently upped his holding to 56.4%. "The shares were trading at two-thirds of asset value, so it seemed rude not to," he said.
Story by Jo Francis
Picture of Mike Taylor
