16 March 2005

2004 BPIF Printing for Profit shows increase in profit before tax

Five out of the eight profit ratios in the 2004 BPIF Printing for Profit Survey have showed modest increases however all three which have declined relate to operating profit showing that the industry must still seek to improve both productivity of both £ of wages and operating assets. The number of companies reporting a loss also declined from 21.3% to 18.0% however this still suggests that almost 1/5 of companies in the sector do not make money. The highest profit ratios were exhibited by small general printers (turnover less than £1 million) and origination houses but were still only 6.52% and 5.75% respectively for profit before tax as a % of sales. Book production shows the highest operating profit as a % of sales at 14.38%. Conversely the worst results before depreciation were exhibited by larger general printers, with those turning over £4 million+ at the bottom of the league table of net profit (before tax) which as a % of sales at 1.47% is well below the national average. BPIF director of corporate and external affairs Cicely Brown urges the industry not to become complacent following the busy Christmas period: “Many printers saw a buoyant final quarter to 2004 but it is clear that the industry is not out of the woods yet. All companies, but in particular generalist printers, need to strive to develop their product offering and the value that they can add to their customers’ businesses. The BPIF’s long term goals are to turn this industry around so that in ten years we have doubled the average profit margins that we are seeing today. By continuing to develop our business support to the industry and our initiatives with government and customer markets we have a real chance of success. But it won’t be easy.” Robson Rhodes are sponsoring this year’s Printing for Profit Survey Report which is issued free to participating BPIF member companies. Level 2 (personalised) reports are available to participants for £120 while non-participating BPIF member companies can buy the full Report for £250 by contacting [email protected] or phoning 020 7915 8317. Reports are available to non-members for £500, also from Kyle Jardine.