Opinion

Financial support in turbulent times

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The BPIF recently conducted an online survey of member companies in association with specialist professional services organisation Begbies Traynor Group. The results, published in October, showed that half of all respondents are pessimistic or very pessimistic about the future profitability of the UK printing industry. The top three risks to company profitability were identified as the current global financial crisis, the bargaining power of buyers and sustaining the right revenue streams. Others mentioned concerned rising costs (especially in paper), overcapacity and competition. The top three perceived risks to the sector's profitability were lack of sales, too much competition and the level of fixed overheads.

The top three areas for improvement were seen as consolidation to decrease overcapacity, more focus on customer service and advances in technology, with companies highlighting the need for help with profit improvement, credit and risk control and retirement/succession planning. More than half of companies surveyed were actively pursuing, developing or considering a merger, acquisition or disposal strategy and were also looking for support in this area.

It is fitting, therefore, that the BPIF has joined forces with Begbies Traynor Group to launch the BPIF Financial Alliance. Other Alliance partners include print finance specialists BPFL and credit insurance brokers IRC. The BPIF Financial Alliance will offer an integrated range of services for the health and welfare of businesses in the printing industry via an online portal to help combat the increasing economic and financial difficulties. The Alliance partners will provide support for BPIF member companies in mergers and acquisitions, commercial finance, tax and VAT advice, corporate intelligence, business improvement and credit insurance.

You can find our more by visiting our dedicated website at www.bpif-financialalliance.com or by calling your regional business centre.

Marcus Clifford is managing director of BPIF McInnes

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