business success in association with


Print company has the mark of success


At a time when e-publishing and digital technology is changing the way we read, the success of one Gosport-based printing and manufacturing company is proving a real page-turner, writes Alison Dewar of The Business Magazine


Earlier this year, the directors at Ashford Colour Press successfully concluded a deal to buy back 100% ownership of the business from the private equity house which had acquired shares when it backed an MBO by the directors in 2002.


Backing the deal was the corporate banking team at Barclays, led by relationship director Stewart Bulpitt. Andy Hulse, finance director at Ashford Colour Press, says he was impressed with the bank’s performance.


“When we were looking at the deal, we went out to the normal high street banks and some other lenders, but it was Barclays who came back with the best package,“ he said. “They went about things the right way, they had the right prices and there were general warm feelings about the way they conducted themselves.“


The move means that together with Hulse, managing director Rob Hutcheson, production director Allan Gray, sales director Mark Jones and chairman Andrew Nash now have full control of the business which was founded in 1980.


Three of the team own 90% of the business and Hulse said: “They have all been with the business for 20 years, they have invested a lot of time and money so it was a massive deal for them and they needed it to be it right. They were pretty ecstatic when it came together and delighted to have full control once more.“


The transaction saw Barclays provide a combination of an asset-backed loan and invoice discounting facility, as well as day-to- day banking facilities for the company.


A leading manufacturer of educational books and training manuals, the Ashford Colour Press Group – which includes sister company Jellyfish Print Solutions – has a turnover of around £15 million, and employs some 140 people.


At present, it manufactures and prints between 10,000 and 20,000 books a day. Hulse acknowledges that the market for printed books is changing but says far from creating a downturn, the growth of digital technology has boosted business and helped win back orders from the Far East.


“Before, when customers wanted large quantities of books, it was cheaper to have


them printed in China, or somewhere similar, and ship them back, but delivery would take an average of 12 weeks,“ he said.


“Now, publishers are ordering smaller runs of books but doing so more regularly, perhaps ordering 50-100 at a time instead of 3,000- 4,000, so it is much cheaper and quicker to have the books digitally printed locally, which is helping us maintain a stable market.“


And whereas changes in the primary school education field have seen schools demand less reading books and more interactive training packages such as CDs, posters and cards, customers from the secondary school and higher education sectors still want printed books. Oxford University Press, Pearsons and McGraw-Hill are among its major clients.


“We do a lot of work in the higher education sector for universities and also for the business market, which so far have been less impacted by digital technology,“ said Hulse. “Students still buy their own books and the people lecturing still use books, although we recognise that it will evolve over time.“


Significant investment in technology and equipment is also helping the Ashford Colour Press team stay ahead of the competition. Hulse points out that it is not


THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – NOVEMBER 2012 www.businessmag.co.uk


17


simply the printing element which is important, but also the finishing equipment which adds the final touches to the books.


Specialist print finishing machinery costs in the £1.5m range and, keen to maintain their reputation for excellence, the directors are currently looking at buying a major new piece of equipment which they hope Barclays will look favourably on for its next investment.


Recognising that it does also need to explore new avenues, the team sees the largest growth coming from the additional services which the Group can offer.


Jellyfish Print Solutions currently contributes £3.5m turnover to the Group’s figures but Hulse believes demand for services such as web design, design for print and copywriting will increase considerably.


“A lot more companies are looking to outsource these areas and Jellyfish can bring the expertise together and add real value for clients. These are all services around the edge of print that also allow us to expand beyond the educational sector, working with SMEs and organisations in other areas, such as legal services, sports publishing and healthcare publishing,“ he said.


“We know what we need to do to keep things moving and we are very excited about seeing that side of the business grow in the future.“


Details:


Andy Hulse 01329-229780 A.hulse@ashford-colour-press.co.uk www.ashford-colour-press.co.uk


Stewart Bulpitt 07775-552713 Stewart.Bulpitt@barclays.com www.barclays.com/corporatebanking


The views expressed in this article are the views of the author alone and do not necessarily reflect the views of the Barclays Bank PLC Group nor should they be taken as statements of policy or intent of the Barclays Bank PLC Group. The Barclays Bank PLC Group takes no responsibility for the veracity of information contained in the third part guides or articles and no warranties or undertakings of any kind, whether express or implied, regarding the accuracy or completeness of the information given. The Barclays Bank PLC Group takes no liability for the impact of any decisions made based on information contained and views expressed.


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44