Final Results

RNS Number : 2318W

Printing.com plc

09 June 2008

 



FOR RELEASE                                           7.00AM                                                  9 June 2008

PRINTING.COM PLC

('Printing.com or 'the Group')

Specialist retail chain with 261 Outlets opened and pending across the UK and Ireland

Preliminary Results for year ended 31 March 2008

	2008	2007	Change
Total Retail Sales	£24.58m	£21.28m	+15.5%
Turnover	£13.48m	£12.14m	+11.0%
Operating Profit	£2.29m	£2.17m	+5.5%
EBITDA	£3.67m	£3.20m	+14.7%
Profit Before Tax	£2.42m	£2.29m	+5.7%
Earnings Per Share - Basic	3.64p	3.55p	+2.5%
EPS – Fully Diluted	3.51p	3.38p	+3.8%
Dividend	3.00p	2.50p	+20.0%
Capital expenditure	£1.26m	£3.87m	-
Net Cash	£3.50m	£2.86m	+22.4%
Net Funds	£1.08m	£(0.23)m	-
Number of Outlets	249	198	+25.8%

• Sales, profits, earnings per share and dividends at record levels

• Cash position strengthens further

• Expansion continues with 51 new outlets open in the period

• 40 overseas outlets under licence

• Printing.com France successfully launched

• Planning to establish operations in Australia

• Network Partner programme launched

• Cautiously optimistic about prospects over the current financial year

For further information:

Printing.com plc

Tony Rafferty (Chief Executive)                                                  07966 517 336

Alan Roberts (Finance Director)                                                 0161 848 5713

Cubitt Consulting

Brian Coleman-Smith / Nicola Krafft / James Verstringhe           020 7367 5100

Brewin Dolphin Ltd (Nominated Adviser)

Richard Evans                                                                           0845 213 4853

  Background note:

Printing.com

Printing.com offers a broad product range including leaflets, booklets, postcards, promotional cards, invitations, letterheads and business cards to consumers and small and medium sized companies. Unlike its competitors, Printing.com's Stores and Franchises do not depend on any printing equipment on location. The Company's printing and ancillary equipment is based at the centralised Production Hub with the head office in Manchester. All work is produced in full four colour rather than two colour. The printing sector has traditionally been served by smaller printing companies or other On Demand Printers and is estimated to be worth some £1 billion.

Printing.com has three routes to market: Franchise Stores, Bolt-on Franchises and Company owned Stores.

A complete list of Printing.com's active Outlets is included at the end of the release.

  PRINTING.COM PLC

('Printing.com or 'the Group')

Specialist retail chain with 261 Outlets opened and pending across the UK and Ireland

Preliminary Results for year ended 31 March 2008

CHAIRMAN'S STATEMENT

Trading Results

Total Retail Sales ('TRS'), the Company's estimate of the value of Printing.com sales transacted by its Franchisees, increased 15.5% to £24.58m (2007: £21.28m) reflecting the continued momentum in the expansion of Printing.com. Revenue increased 11% to £13.48m (2007: £12.14m).  

During the year under review your Company recorded a Profit Before Tax ('PBT') of £2.42m (2007: £2.29m), an increase of 5.7%. The smaller increase in PBT reflects the increased depreciation charge, lease interest and other costs relating to the expansion of the Company's Manchester Hub. 

Also, the 2007 figure included 'Other Income' of £0.14m relating to the premium arising from the franchising of several stores. Save for this amount the Company's PBT from its ordinary activity advanced by £0.27m (11.8%).

Cash

I am pleased to report that cash generation has been very strong with net cash balances increasing by 22.4% with the expansion of the UK Hub now completed.  

The Company closed the year with cash reserves of £3.50m (2007: £2.86m), after paying dividends of £1.30m (2007: £0.83m) and investing gross £1.26m (2007: £3.87m) in capital equipment and software. Of the capital expenditure total £0.5m (2007:£2.96m) was financed.   

Dividends

In line with our aim to follow a progressive dividend policy, your Board is proposing a final dividend of 2p per ordinary share to be paid on 6 August 2008 to shareholders on the register at the close of business on 27 June 2008. Making a total dividend for the year of 3p per ordinary share (2007: 2.5p).

People at Printing.com

Notwithstanding the essential role that the internet plays in the operation of the Printing.com business model, the hard work and endeavours of the people within the Printing.com network lies at the heart of your Company's continued progress and accordingly I thank them for their contribution. 

Outlook

Although trading has softened since the year end, revenues are still ahead of the corresponding period for the previous year. Also, the rate at which new Bolt-on Franchises have been granted since March is particularly encouraging.

We are mindful that PBT over the past two years has not advanced as materially as before. Now, with the Hub investment cycle behind us and an abundance of unutilised capacity in the Company's Hub, the need to make immediate capital investment, except for the ongoing development of the Company's Flyerlink software has diminished. Accordingly, if we are able to continue to grow our network revenues, the prospect of a greater flow through to PBT appears greater than over the past two years. 

Moving forward, it is anticipated that cash generation will remain strong. 

Our Master Licence partners in New Zealand and Iceland continue to make good progress with close to 40 operational outlets across these countries. We believe that this bodes well for future Master Licence development. 

We are making good progress in discussions regarding the grant of Master Licences in other territories and remain cautiously optimistic that new licences will be granted over the present financial year. 

Having invested heavily in the preparation for entering the French market over the past year, we anticipate that this initiative will breakeven during the present financial year, moving into a positive contribution in the following year.

With a client base in excess of 60,000 we believe that opening up our network, via the Printing.com Network Partner programme, which allows complementary printed services from selected suppliers across our network, will provide a material incremental revenue stream for our Franchisees and your Company. 

Whilst we are not immune to the undulations of the economic cycle, we believe there are many initiatives that we can pursue to provide your Company with the realistic prospect of continuing to gain momentum over the coming year. Accordingly, we remain cautiously optimistic about the Company's prospects over the current financial year. 

George Hardie

Chairman

9 June 2008

  CHIEF EXECUTIVE'S STATEMENT

ESTATE DEVELOPMENT

During the year under review your Company has worked tirelessly to increase outlet numbers throughout the UK and Ireland. Reflecting our determination, we are now pleased to report the addition of 51 new outlets (2007:31), the structure of which is set out in the table below.

	1 June 2008	31 March 2008	2 April 2007
Company Owned Stores	5	4	2
Franchise Stores (Open & Pending)	43	44	47
Bolt-on Franchises	213	201	149
	261	249	198

The acceleration in the expansion of the estate was achieved following the development of new marketing processes to promote the Printing.com Bolt-on Franchise opportunity, with a particular accent on case studies highlighting numerous success stories. The growth is also attributable to the hard work of our Territory Franchisees, in identifying promising local Bolt-on Franchise opportunities. 

Prior to the start of the year, our directly owned Store count had dropped to just 2. This is lower than our objective of directly owning a small number of outlets for training and development purposes. Accordingly we repurchased several stores in situations where we believed it was prudent to do so. Moving forward we would anticipate the process of purchasing and re-franchising a small number of outlets to continue on an on-going basis. 

Across the UK and Ireland we aspire to expand the network to approximately 400 Printing.com outlets including circa 350 of the Bolt-on Franchise format which we continue to focus on as the most cost effective and efficient way to expand our network and bring increased volume to the Hub. We anticipate making further progress towards this objective over the coming year.

Production Hub and Infrastructure

In last year's annual report we highlighted the increase in capacity of the Manchester Hub from £20-25 million to £40-45 million via the adding of a new press and mezzanine floor coupled with SmartPack, a bespoke sortation system. The year under review saw the bedding-in of this infrastructure, further improving Printing.com's high operational standards and increased operational efficiencies.

Over the coming year, relatively little capital expenditure is anticipated for the Company's Manchester Hub as sufficient capacity still exists for our foreseeable requirements. 

During the year, we continued to invest and develop Flyerlink, the Company's proprietary software. Various important functional milestones were achieved, many relating to the Master Licence programme, including the provision of multi-language capability. 

  Grant of Master Licence Agreements('MLA') 

The Printing.com MLA enables Printers in other countries to copy the Printing.com business model without the cost, delay and risk involved in developing the systems and software that underpin operations.

The New Zealand MLA partner, PrintStop, now report that their estate has expanded to circa 40 outlets, with Printing.com's systems being used for every order. The second MLA covering Iceland has commenced operations and aside from a Store in Reykjavik, a small number of Bolt-on Franchises have been granted. 

Under the MLA, Printing.com is paid a fee at the outset together with a share of the local licence fees and circa 3% of network sales, on an on-going basis. 

We remain in negotiations regarding the grant of MLA's for a number of other territories, at this stage it is too early to say if these will progress to a positive outcome. 

Printing.com France

As with Ireland, it is commercially and logistically efficient to ship Printing.com products from the Company's Manchester Hub to France. 

Following over 18 months of extensive enquiry and evaluation, Printing.com is now actively engaged in the development of a network of French Bolt-on Franchises. At present as Printing.com enjoys limited brand-awareness in France these Bolt-on licences are granted for a nominal consideration on easy-in, easy-out terms. 

During the latter stage of the year under review, we hosted the first training course delivered in French, with 5 Bolt-on Franchises now in operation. Whilst transactional levels from the French business are still at a modest level, we remain encouraged by how well these first French outlets are operating and remain cautiously optimistic of France's potential. 

Once established it is our intention to progress a MBO/MBI of the French Printing.com business as we believe that the opportunity will be best developed under French ownership and direction. At such a point, it is anticipated that the business would then operate in a similar manner to other MLA's. 

Printing.com Australia

As reported, we intend to establish operations in Australia over the coming months. Unlike our master licence programme, we intend to grant the Australian Franchises directly from an Australian subsidiary. With the logistics of shipping to Australia impractical, an alliance with a suitably equipped Australian commercial printer is presently being sought whereby the provision of the Hub production infrastructure can be outsourced whilst the management of the network and IP remain under direct Company control. 

In common with Printing.com France, it is hoped that ultimately an exit will prove possible with the business subsequently operated under an MLA. 

Websites by Printing.com

Over the year under review Printing.com's Website initiative resulted in the production of over 500 websites. 

Retailing in the range from £200 to £800 the website proposition is positioned between the DIY template websites and the services of a conventional website designer.

Although revenues from this offering for the Company and on a per Franchise basis are still marginal we remain convinced that new media solutions naturally sit alongside the Printing.com offering and intend to invest further in the software development and infrastructure that facilitates this initiative over the coming year. 

Network Partner 

Across the UK and Ireland Printing.com has an extensive client base, exceeding 60,000 mainly SME's along with local government and corporate departments. 

The Network Partner programme opens up the Printing.com network to manufacturers of complementary personalised items such as pens, work apparel, awards and a plethora of other promotional items. 

Network Partners must be approved and pay a fee to join the programme with a prescribed formula dictating the revenue split between the partner and the franchisee. Printing.com receives circa 10% of the Network Partner sales. 

During the year under review the first Network Partner agreements were granted and to date six have completed the necessary training. 

Shortly the new service will be trialled from a small number of Franchises with the roll out planned across the network over the coming months. 

Current Trading

Following on from a solid quarter, marking the close of the year under review, trading has softened slightly although it remains materially above the corresponding level for the previous year. 

With 90%+ of Printing.com orders being used by the client for promotional purposes we attribute the softer conditions to the general drop in business confidence within the SME community. 

To mitigate this effect we will be adding to the potency of our monthly offers and promotional campaigns along with the broadening of our offering via the Network Partner programme. We remain confident that our unique business model places us favourably against our competitors who are also feeling the impact of the softening market conditions.

Encouragingly the Company has enjoyed a buoyant start to the year in terms of the development of the Printing.com estate across the UK and Ireland, with some 14 additional Bolt-on franchises (compared to 7 for the same period last year) having so far been granted.  

Tony Rafferty

Chief Executive 

9 June 2008

FINANCIAL REVIEW

Total Retail Sales (TRS) 

TRS is the Group's key metric, being the estimated retail price paid by the client, and provides the clearest indication of the growth of the network. The ongoing development of Printing.com is clearly illustrated with estimated TRS increasing by 15.5% to £24.58m (2007: £21.28m).

Like For Like TRS

This metric reports on the like for like progress of our Territory Franchisees (or equivalent Group owned operations) that have operated for a minimum of three years. Therefore, the earliest figures that could be reported for a Territory Franchise are its third versus second year. In presenting these figures we believe that it is essential to consider both the performance of the Store within the Territory Franchise and the growth in revenues from its associated Bolt-On Franchises. On this basis like for like growth during the year under review was 16.44% (2007:13.46%) with 29 (2007:20) Territory Franchises (or Group owned equivalents) contributing to this metric.  

Accounting Policy Change

Both the parent company financial statements and the Group financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the EU ('Adopted IFRSs').  

Revenue

Overall revenue increased by 11.0% from £12.14m to £13.48m. This was despite the franchising of the Group owned Birmingham & Oxford Stores in 2007 with the resultant loss of the retail premium during 2008. Network growth has principally been driven by the increase in the number of Bolt-on Franchises.  

Gross Profit

The Group's simple definition of Gross Profit is revenue less direct materials (including the cost of distribution, when made direct to customers).

Gross Profit increased by 10.7% from £8.14m to £9.01m. In percentage terms it remained relatively constant at 66.9% (2007: 67.1%) of revenue.

EBITDA

At £3.67m (2007: £3.20m) EBITDA improved by 14.7%. TRS and EBITDA increased by £3.30m and £0.47m respectively over the year. 

The increase in EBITDA for 2007 included non-recurring revenue relating to the Website initiative of £0.15m. Save for this non-recurring revenue in 2007 the increase in EBITDA is £0.62m or 18.8% of the increase in estimated TRS flowed through to EBITDA. As previously suggested, moving forward, we expect additional TRS, from core UK performance, to increase EBITDA by circa 20%.  

Pre-Tax Profit

The Group recorded a pre tax profit of £2.42m (2007: £2.29m) being 18.0% (2007: 18.9%) of Group revenue and 9.8% (2007: 10.8%) of TRS. We believe this sustained level of pre tax profitability, in both absolute terms and on these key metrics, validates our franchise centred strategy. 

Staff costs increased in the year to £3.22m (2007:£3.01m) but fell as a percentage of revenue from 24.8% to 23.9%. Franchising Group Stores resulted in savings. The majority of the increase related to the Group's Production Hub with the effect of higher volumes and the payment of premiums for the increase in 7 day 24 hour rotas. The depreciation charge for the year was £1.38m (2007: £1.04m) which rose as last year's additions were depreciated for the full year.

Other Income / Interest Received and Charged

With no Group Stores being franchised during the year Other Income was nil(2007:£0.14m). There were no other items in Group revenue which would be considered unusual or non-recurring.

Interest received of £0.24m (2007:£0.19m) reflects interest on the cash balances held and interest charged to Franchisees on loans to them from Printing.com. Interest paid of £0.19m (2007:£0.21m) primarily on lease finance repayments.

Taxation

In the year the standard rate for tax was 30%. The charge for the current year is £0.79m or 32.6% of PBT (2007: £0.71m or 31.0%). 

The effective tax rate was increased due to disallowed expenses, overseas expenses and the fact that share based payments are disallowable for tax purposes.

Earnings Per Share (EPS)

Basic EPS improved to 3.64p (2007:3.55p), the weighted average number of shares used was 44,892,441. Diluted EPS improved to 3.51p (2007:3.38p), the weighted average number of shares used was 46,547,410. The year closed with 44,993,465 ordinary shares in issue, with 200,000 of these held in Treasury by the Group. 

Cash Flow

At the year end the Group had cash balances of £3.50m (2007: £2.86m) and Net Funds of £1.08m (Net Debt 2007:£0.23m). Operational cash inflow improved strongly to £4.06m (2007: £2.92m). The most significant cash outflow being dividends paid of £1.30m (2007: £0.83m).  

Capital Expenditure

The total expenditure for the year was £1.26m (2007: £3.87m). The major items were Software development and computing infrastructure £0.43m; and Production Hub equipment £0.60m. Equipment in the final phase of the Production Hub upgrade was financed totalling £0.5m (2007:£2.96m).

Share Capital and Share Options

Employees' options over 146,965 shares and Franchisee options over 100,000 shares were exercised during the year. There were no options granted.

Treasury Policies and Financial Risk

Surplus funds are intended to support the Group's short term working capital requirements. These funds are invested through the use of short term deposits and the policy is to maximise returns as well as provide the flexibility required to fund on-going operations. It is not the Group's policy to enter into financial derivatives for speculative or trading purposes. 

Interest rate risk, liquidity risk and currency risk

Interest rate risks are limited to the fixed element of finance lease or hire purchase agreements. The Group uses leasing or hire purchase at periods of up to 5 years to finance purchases of some of its assets where it is considered to be a more effective use of funds.

The Group has no overseas assets or liabilities, apart from minor trade related debtors and creditors, and thus any currency movements have no material impact

Alan Q. Roberts 

Finance Director

9 June 2008

  Group Consolidated Income Statement

for the year ended 31 March 2008 

	Note			2008	2007
				£000	£000
Revenue	3			13,479	12,136
Changes in inventory of finished goods and work in progress				5	(20)
Raw materials and consumables used				(4,473)	(3,977)
Gross profit				9,011	8,139
Staff costs				(3,218)	(3,007)
Other operating charges				(2,123)	(1,928)
Depreciation and amortisation				(1,378)	(1,039)
Total expenses				(6,719)	(5,974)
Operating profit				2,292	2,165
Financial income				316	194
Financial expenses				(187)	(207)
Net financing income/(costs)				129	(13)
Profit on sale of stores to franchisees				-	141
Profit before taxation				2,421	2,293
Taxation	4			(789)	(707)
Profit for the year attributable to equity holders of the Parent				1,632	1,586
Basic earnings per share	5			3.64p	3.55p
Diluted earnings per share	5			3.51p	3.38p

The operating profit for the year arises from the Group's continuing operations.

  Statement of Changes in Equity

Group - year ended 31 March 2008

	Share Capital	Share premium	Merger reserve	Retained earnings	Total
		£000	£000	£000	£000
Profit for the year	-	-	-	1,632	1,632
Total recognised income and (expense)	-	-	-	1,632	1,632
Equity settled share based payments	-	-	-	71	71
Tax on equity settled share based payments	-	-	-	(11)	(11)
Own shares acquired	-	-	-	(82)	(82)
Shares issued	3	38	-	-	41
Dividends paid	-	-	-	(1,300)	(1,300)
Total movement in shareholders’ funds	3	38	-	310	351
Opening shareholders’ funds at 3 April 2007	447	3,833	211	2,316	6,807
Closing shareholders’ funds at 31 March 2008	450	3,871	211	2,626	7,158

Group - year ended 2 April 2007

	Share Capital	Share premium	Merger reserve	Retained earnings	Total
		£000	£000	£000	£000
Profit for the year	-	-	-	1,586	1,586
Total recognised income and (expense)	-	10	-	1,586	1,586
Dividends	-	-	-	(828)	(828)
Issue of new shares	-	10	-	-	10
Equity settled share based payments	-	-	-	114	114
Tax on equity share based payments	-	-	-	(16)	(16)
Total movement in shareholders’ funds	-	10	-	856	866
Opening shareholders’ funds at 1 April 2006	447	3,823	211	1,460	5,941
Closing shareholders’ funds at 2 April 2007	447	3,833	211	2,316	6,807

 Group Balance Sheet

At 31 March 2008

		Group
		2008	2007
		£000	£000
Non-current assets
Property, plant and equipment		5,217	5,700
Investments in subsidiaries		-	-
Intangible assets		1,139	921
Deferred tax assets		25	140
Other receivables		470	581
Total non-current assets		6,851	7,342
Current assets
Inventories		109	104
Trade and other receivables		3,210	3,368
Cash and cash equivalents		3,502	2,855
Total current assets		6,821	6,327
Total assets		13,672	13,669
Current liabilities
Other interest-bearing loans and borrowings		(804)	(918)
Trade and other payables		(1,759)	(1,809)
Current tax payable		(377)	(220)
Accruals and deferred income		(1,094)	(1,013)
Other liabilities		(182)	(229)
Total current liabilities		(4,216)	(4,189)
Non-current liabilities
Other interest-bearing loans and borrowings		(1,613)	(2,170)
Deferred tax liabilities		(685)	(503)
Total non-current liabilities		(2,298)	(2,673)
Total liabilities		(6,514)	(6,862)
Net assets		7,158	6,807
Equity attributable to equity holders of the parent
Share capital		450	447
Share premium		3,871	3,833
Merger reserve		211	211
Retained earnings		2,626	2,316
Total equity		7,158	6,807

Group Cash Flow Statements

for year ended 31 March 2008

		Group
		2008	2007
		£000	£000
Cash flows from operating activities
Profit for the year		1,632	1,586
Adjustments for:
Depreciation, amortisation and impairment		1,378	1,039
Financial income		(316)	(194)
Financial expense		187	207
Gain on sale of property, plant and equipment		-	(22)
Equity settled share-based payment expenses		71	114
Foreign exchange gains		75	-
Taxation		789	707
Operating cash flow before changes in working capital and provisions		3,816	3,437
Decrease/ (increase) in trade and other receivables		269	(865)
(Increase)/ decrease in inventories		(5)	20
(Decrease)/ increase in trade and other payables		(17)	323
Cash generated from Operations		4,063	2,915
Tax paid		(344)	(1,042)
Net cash inflow/(outflow) from operating activities		3,719	1,873
Cash flows from investing activities
Proceeds from sale of plant and equipment		150	82
Interest received		241	194
Acquisition of plant and equipment		(235)	(910)
Capitalised development expenditure		(530)	-
Dividends received		-	-
Net cash (outflow)/inflow from investing activities		(374)	(634)
Cash flows from financing activities
Proceeds from the issue of share capital		41	11
Repurchase of own shares		(82)	-
Interest paid		(187)	(208)
Payment of finance lease liabilities		(1,165)	(811)
Inter company transfers		-	-
Dividends paid		(1,300)	(828)
Net cash (outflow)/inflow from financing activities		(2,693)	(1,836)
Net increase/(decrease) in cash and cash equivalents		652	(597)
Exchange losses on cash and cash equivalents		(5)	-
Cash and cash equivalents at start of year		2,855	3,452
Cash and cash equivalents at 31 March		3,502	2,855

  Notes

(forming part of the financial statements)

1     Basis of preparation

Printing.com plc (the 'Company') is a company incorporated and domiciled in the UK. 

The Group financial statements are authorised for issue by the Board of Directors on 9 June 2008.  European Union law (EULAW) (IAS Regulation EC 1606/2002) requires that the financial statements of the Group are prepared in accordance with International Financial Reporting Standards as adopted by the EU (EU-IFRS).  The financial statements have been prepared on the basis of the recognition and measurement requirements of EU-IFRS that are endorsed by the EU and effective at 31 March 2008.

The financial information does not constitute the Company's statutory accounts for the years ended 31 March  2008 or 2 April 2007 (but is derived from those accounts).  Statutory accounts for 2007 have been delivered to the registrar of companies, and those for 2008 will be delivered in due course.  The auditors have reported on those accounts; their reports were (i) unqualified, (ii) did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their reports and (iii) did not contain statements under section 237 (2) or (3) of the Companies Act of 1985. The statutory accounts for the financial year ended 31March 2008 will be delivered to the Registrar of Companies following the Company's Annual General Meeting. 

2     Accounting policies

Transition to Adopted IFRSs

Both the Group and the Company are preparing their financial statements in accordance with Adopted IFRS for the first time and consequently both have applied IFRS 1. An explanation of how the transition to Adopted IFRSs has affected the reported financial position, financial performance and cash flows of the Group will be provided in the statutory accounts. There have been no changes in the restatement from those published in the prior year. 

IFRS 1 grants certain exemptions from the full requirements of Adopted IFRSs in the transition period. The following exemptions have been taken in these financial statements:

• Business combinations - Business combinations that took place prior to 1 April 2006 have not been restated.

3     Segmental analysis

The principal components of revenue are the design and production of publicity and marketing material, and franchise fee income. All of the revenue is in one continuing business segment being the development of the Printing.com Franchise and originates principally in the United Kingdom and Republic of Ireland. 

Analysis by geographical destination

	Revenue		Assets		Capital expenditure
	2008	2007	2008	2007	2008	2007
	£000	£000	£000	£000	£000	£000
United Kingdom	12,738	11,548	6,807	6,501	1,186	3,854
Republic of Ireland	684	522	356	302	5	-
Rest of the world	57	66	35	4	68	12
	13,479	12,136	7,158	6,807	1,259	3,866

4     Taxation

Recognised in the income statement

	2008	2007
	£000	£000
Current tax expense
Current year	808	492
Foreign tax	4	-
Adjustments for prior years	(290)	-
	522	492
Deferred tax expense
Origination and reversal of temporary differences	31	209
Movement due to change in tax rate	(49)	-
Adjustments for prior years	285	6
Total tax in income statement	789	707

Reconciliation of effective tax rate

	2008	2007
	£000	£000
Profit for the period	2,421	2,293
Total tax expense	(789)	(707)
Profit after taxation	1,632	1,586
Tax using the UK corporation tax rate of 30% (2007: 30%)	726	688
Permanent differences	54	13
Overseas tax losses not recognised	4	-
Effect of equity settled share based payments	8	-
Deferred tax on shares	51	-
Adjustments in respect of prior periods – current tax	(290)	-
Adjustments in respect of prior periods – deferred tax	285	6
Movement due to change in tax rate	(49)	-
Total tax expense	789	707

It has been announced that the corporation tax rate applicable to the Company has changed from 30% to 28% from 6 April 2008. The deferred tax asset/liability as at 31 March 2008 has been calculated at 28%.

Notes (continued)

5     Earnings per share

The calculations of earnings per share are based on the following profits and numbers of shares.

	2008	2007
	£000	£000
Profit after taxation for the financial year	1,632	1,586

Weighted average number of shares.

	2008	2007
	Number of shares	Number of shares
For basic earnings per ordinary share	44,892,441	44,730,883
Exercise of share options	1,654,969	2,173,229
For diluted earnings per ordinary share	46,547,410	46,904,112

6     Dividends

	2008	2007
	£000	£000
Final dividends paid in respect of prior year but not recognised as liabilities in that year	850	559
Interim dividends paid in respect of the current year	450	269
Total dividend paid in the year	1,300	828

After the balance sheet date dividends of 2p per qualifying ordinary share (2007:1.9p) were proposed by the Directors. The dividends have not been provided for.

Customer	Region	Town	Post Code
Sign It (Nottm) Ltd	Central England	Beeston, Nottingham	NG9 2AY
Graphic Results	Central England	Belper	DE56 1BA
East Birmingham Store	Central England	Birmingham	B26 3JR
South West Birmingham Store	Central England	Birmingham	B16 9RD
Birmingham Store	Central England	Birmingham	G3 8LZ
Artichoke Design Ltd	Central England	Birmingham	B18 6NN
Vicki Interiors Limited	Central England	Burntwood	WS7 3GL
Coventry Store	Central England	Coventry	CV2 4BE
ADECS Ltd	Central England	Coventry South	CV4 8HX
Image I.T. Limited	Central England	Daventry	NN11 8RY
Sportwise Marketing Ltd t/a Immediate Design	Central England	Derby	DE1 3QB
Synergy	Central England	Derby - Crewton	DE24 8SR
Multiprint & Embroidery Limited	Central England	Derby - Littleo	DE23 6FP
FSeven Design Solutions	Central England	Digbeth	B9 4AA
Kualo Limited	Central England	Gloucester	GL2 2AT
Hussellworks	Central England	Halesowen	B63 3HR
Clientel Systems Limited	Central England	Kibworth	LE8 0HS
Leicester Store	Central England	Leicester	NG1 6DQ
4si Solutions Ltd	Central England	Leicester	LE3 0LE
For Colour Ltd	Central England	Lincoln	LN2 4US
Trident Design & Print	Central England	Lutterworth	LE17 4EE
Penz n Print Ltd	Central England	Market Rasen	LN8 3EN
For Colour	Central England	Newark, Nottingham	NG24 1LE
Northampton Store	Central England	Northampton	NN1 5QJ
Custard Creative	Central England	Northampton	NN3 6WL
Nottingham Store	Central England	Nottingham	L2 2HF
Oxford Store	Central England	Oxford	OX2 7HT
Peterborough Store	Central England	Peterborough	PE2 8AN
ITS-Ideas Taking Shape Ltd	Central England	Rugby	CV21 2SD
Mail Boxes Etc.	Central England	Shrewsbury	SY1 1HN
Boomerang Print Design Ltd	Central England	Solihull	B91 3RT
High Tide Media Limited	Central England	Sutton Coldfield	B72 1NE
Runtime Print Ltd	Central England	Telford	TF2 8AJ
Albry Printing Company Ltd	Central England	Wallingford	OX10 9DA
Wolverhampton Store	Central England	Wolverhampton	WV1 4BL
Red Hot Media	East	Lowestoft	NR33 0AA
Goldengate Productions	East	Suffolk	IP30 9QS
Keith Nolan Limited	Ireland	Athlone	EE1 1EE
Kwik Kopy	Ireland	Ballymena	BT43 6EB
Malik Bond	Ireland	Belfast - South	BT7 2JA
Twist Design	Ireland	County Donegal	EE1 1EE
Dublin Store	Ireland	Dublin	Dublin 2

North Dublin Store	Ireland	Dublin	Dublin 7
Trivium Limited	Ireland	Maynooth - Coun	EE1 1EE
Graphic Facilities	Ireland	Mullingar	EE1 1EE
Creative State Limited	Ireland	Naas - County K	EE1 1EE
Desktop	Ireland	Omagh	BT78 1DW
Tullow Manufacturing Limited	Ireland	Tullow	EE1 1EE
Thomas Hughes & Sons Ltd	Ireland	Wexford	EE1 1EE
Central London Store	London	Baker Street	BS1 3LZ
Alpha to Omega	London	Beckenham	BR3 3HX
Plug and Play Design	London	Bramley	GU6 8JJ
Shiver	London	Camden	NW1 0AG
Fireworks Design and Print	London	Catford	FK9 5GQ
DNA Creative	London	Clapham	SW11 1TH
City & Clerkenwell Store	London	Clerkenwell	EC1M 5QA
Print Express	London	Colindale	NW9 5DL
Last Print LLP	London	Docklands E16	E14 0JY
Ealing Store	London	Ealing	W13 8SB
0800 Promote Ltd	London	Finchley	N3 1TR
Creekside Press	London	Greenwich	SE10 9QX
Guildford Store	London	Guildford	GU2 4BE
Hampstead Store	London	Hampstead	NW1 6UY
Colour Division	London	Hampstead	NW6 1SD
Digipix Ilford	London	Ilford	IG1 4DU
Envisualise Ltd	London	Kingston	KT2 6LX
London Office Services	London	London	W1G 8JR
1st Creative	London	London SE1	SE1 3ER
Marmoset Media Ltd	London	London SW17	SW17 7PJ
Expocentric Communication Ctrs	London	Mayfair	W1S 4LW
Endgold Ltd	London	Nottinghill	W11 3HT
Orpington Store	London	Orpington	BR6 0JY
Reading Store	London	Reading	RG1 4QA
Ditto Office Services Ltd	London	Sevenoaks	TN13 1AS
London Print Compamy	London	Shaftesbury Avenue	WC2H 8EB
DNA Solutions UK Limited	London	Slough	SL1 4JG
Toppers Print & Design Ltd	London	Stevenage	SG1 3HR
Cloudmire Limiter	London	Swiss Cottage	NW3 6JP
Kink Design	London	Thornton Heath	EC2A 3LT
Source Grafik Design	London	Thornton Heath	SE6 1TJ
Wernham Printers Ltd	London	Tottenham	N17 6QD
Printroomsoho Ltd	London	Wardour Street	W1F 0TS
Watford Store	London	Watford	WD17 1RA
Creographics	London	Wimbledon	SW19 8TY
Centrepoint Print	Midlands	Birmingham - Erdington	B23 6LR
Kaleidoscope Press Ltd	Midlands	Leamington Spa	CV33 9GX
Ozmedia Print Solutions	Midlands	Loughborough	LE11 5AA
Pewter Design	Midlands	Market Harborough	LE16 7DS

St Ives Quickprint Ltd.	Midlands	St Ives	PE27 3WS
Modus Print	Midlands	Worcester	WR1 1JZ
Astral Graphics	Midlands	Worksop	S81 8AP
Indigo Print & Design	North East	Alnwick	NE66 1HB
Documentshop.com limited	North East	Barnsley	S70 2HG
Smart Card International Limited	North East	Beverley	HU17 0TB
Fountains Associates Limited	North East	Bishop Auckland	DL14 7EL
Bradford Store	North East	Bradford	BD1 3BA
John Siddall (Printers) Ltd	North East	Cleckheaton	BD19 3JL
RT Design	North East	Consett	DH8 6BP
Total Graphics	North East	Darlington	TS18 3TQ
Doncaster Store	North East	Doncaster	DN1 1HT
Tigher Limited	North East	Durham	DH1 1RF
Washington Direct Mail	North East	Gateshead	NE11 0SH
Loyalty Matters Ltd	North East	Harrogate	HG3 2XA
Winny Limited	North East	Hartlepool	TS25 5TG
Pink Custard Design Ltd	North East	Hull	HU1 1PS
Ryedale Printing Works Ltd	North East	Kirbymoorside	YO62 6YB
Leeds Store	North East	Leeds	LS1 3DL
The Factory Partnership Ltd	North East	Leeds	LS12 2DS
Ideas Start Here Ltd	North East	Leeds	LS8 2HU
Middlesbrough Store	North East	Middlesbrough	TS1 1LY
Mix Marketing Ltd	North East	Mirfield	WF14 8AH
Newcastle Store	North East	Newcastle	B5 4JL
Direct Business Products	North East	Newcastle	NE12 9UP
Via Creative Consultants Ltd	North East	Redcar	TS10 5SH
Bluprint	North East	Rotheram	S60 2LZ
Desk Top Publishing Ltd	North East	Scunthorpe	DN15 6LJ
Sheffield Store	North East	Sheffield	S1 4GF
Runway 24	North East	Sheffield - Hillsborough	S6 4GH
Eidos Design Limited	North East	Slaithwaite	HD7 5BQ
Marckell Business Solutions Ltd	North East	South Shields	NE33 1TL
Stuart Lockerbie T/A Maskerade.	North East	Sunderland	SR2 7PR
G3 Advertising	North East	Thirsk	Y07 1HL
Goweb Print Ltd	North East	Wakefield	WF2 9BL
Colour Box Design Company Ltd	North East	York	YO24 1AR
ER Design & Print Service Ltd	North West	Alsager	CW2 7AX
Ardwick - One21 Designs	North West	Ardwick	M12 6JH
Rhino Design	North West	Ashton-under-Lyne	OL6 6XJ
Gud Design Ltd	North West	Birkenhead - Ea	CH41 1EU
Granthams	North West	Blackpool	FY1 4PE
Print Hub Design	North West	Bolton	BL1 3QN
Digeridoo	North West	Bolton	BL7 9NY
Moorish Idol	North West	Bolton - South	BL3 5AB
Wild Thang	North West	Bootle	L20 8LQ
Fluidmedia.net Ltd	North West	Bury	BL9 0LL

Brightspark Design & Print	North West	Carlisle	CA2 7AJ
RAS Limited	North West	Chester	CH3 5AG
William Seabrook Associates Ltd	North West	Chorlton - Manchester	M21 8UP
Kingfisher Print	North West	Clayton-le-Moors	BB5 5JQ
Northstar Creative Design & Advertising LLP	North West	Colne	BB8 9BD
Mail Boxes Etc	North West	Didsbury	M20 6UG
ScissorsPaperStone	North West	Eccles	M30 8GH
First Impression Limited	North West	Glossop	SK13 8ER
Lancaster Store	North West	Lancaster	LA1 1XN
Liverpool Store	North West	Liverpool	NE1 4AE
Elite Invite Limited	North West	Liverpool	L22 4QD
RPG Print Ltd	North West	Liverpool West	L7 0ES
Plinkfizz Limited	North West	Longton	ST3 4HY
Infinity Creative	North West	Macclesfield	SK11 6HN
Copycat Print Ltd	North West	Maghull	L31 2HB
North Manchester Store	North West	Manchester	M4 5AG
Manchester Store	North West	Manchester	LE1 1LB
Alert 2 Media	North West	Manchester	M1 1DZ
Chilli Cactus Limited	North West	Manchester	SK9 1RA
The Agency Creative limited	North West	Manchester	M17 1DZ
Creation Publicity Ltd	North West	Manchester	M17 1DZ
Print Design Warehouse Ltd	North West	Marple	SK8 1DW
Red Fred Limited	North West	Nantwich	CW5 6PQ
SmartStudios	North West	North Manchester	M4 4DE
The Creative Hub (UK) Ltd	North West	Ormskirk - Live	L39 3AJ
Granthams	North West	Preston	PR1 2UQ
Daleprint	North West	Rochdale	OL16 2AW
Chris Thew Design & Print Limited	North West	Rossendale	BB4 8EQ
Hashem Media	North West	Sale	M33 6RH
The Graphics Department	North West	Salford	M3 6BF
Impressions Design & Print Ltd	North West	Sandbach - Ches	CW11 1DA
I Design	North West	Southport	PR9 0NS
Masterprint (NW) Ltd	North West	St Helens	WA10 1DH
Studio Three Ltd	North West	Stockport	SK2 6NG
Impact Digital	North West	Timperley	WA14 1PJ
The Hub	North West	Trafford Park	M17 1FG
AF Reprographic	North West	Tyldesley	M29 8DS
Warrington Store	North West	Warrington	WA1 1EN
Printel UK Ltd	North West	Widnes	WA8 9LG
Mooney Media Ltd	Northern Ireland	County Down	BT32 3QD
Go Fish Design & Print	Northern Ireland	Lisburn	BT28 1AG
Xpress Printing	Northern Ireland	Newtonabbey	BT36 4PU
Native Print	Noth East	Newcastle - Heaton	NE6 5HL
The Business Boutique UK Ltd	Scotland	Aberdeen	AB24 5BW
Steptoe Creative Limited	Scotland	Ayr - Scotland	EE1 1EE
J&J Cornfield T/A Printing.com	Scotland	Coatbridge	ML6 9AF

Dundee Store	Scotland	Dundee	M3 4EN
Edinburgh Store	Scotland	Edinburgh	S1 4GF
Elevate You Limited	Scotland	Edinburgh	EH11 4EP
Digisnaps Ltd	Scotland	Edinburgh	EH2 2PJ
Glasgow Store	Scotland	Glasgow	NW3 5HS
SPD Print Solutions Ltd	Scotland	Glasgow	G40 4DU
Triple 333 Ltd	Scotland	Glasgow - City	G4 0QR
J&J Cornfield Partnership	Scotland	Hamilton	ML3 6DS
Republique Limited	Scotland	Linlithgow	BN3 3LL
Delta Design Ltd	Scotland	Livingstone	EH54 8PT
Glasgow Print	Scotland	North Glasgow	G20 9AY
Creative Concept UK Ltd	Scotland	Paisley	PA1 1TX
South Glasgow Store	Scotland	South Glasgow	G5 9RR
Tangerine Industries Ltd	Scotland	Stirling	FK8 1JW
Brighton Store	South	Brighton	BN1 4JB
Talon Graphics	South	Brighton	CR7 8DD
Tudor Printers Limited	South	Worthing	BN11 1UY
Ashford Store	South East	Ashford	TN24 8UU
Cambridge Store	South East	Cambridge	CB3 0AX
Think IMG Ltd	South East	Canterbury	CT1 2NR
Studio Direct (Printing) Ltd	South East	Chelmsford	CM2 6JP
Inprint	South East	Colchester	CO1 1PB
TRS Graphics Ltd	South East	Croydon	CR0 1QR
Jellybean Graphics	South East	Croydon	CR9 6YJ
Dorking Print Solutions Ltd	South East	Dorking	RH4 2ES
Home Counties Graphics Ltd	South East	Dunstable	LU6 1SX
Accomplice Limited	South East	Hailsham	BN27 1AU
JBS Print & Design	South East	Leatherhead	KT22 0AN
Luton Store	South East	Luton	LU1 2PL
Clearmist Designs Limited	South East	Maidenhead	SL6 1NB
Colourwave Printers	South East	Maidstone	ME16 0JZ
Norwich Store	South East	Norwich	NR1 1PL
Graphics One Limited	South East	Norwich	NR7 0EQ
Colourwave	South East	Ramsgate	CT11 8NT
Felix Ltd	South East	Rochester	ME2 4HZ
Colour Creatives Limited	South East	Sidcup - Kent	DA14 6ES
Grow Marketing Limited	South East	Whitstable	CT3 4JH
Print Creative.	South West	Bath	BA1 2JB
Digillicious	South West	Bexhill	TN40 1JB
Bournemouth Store	South West	Bournemouth	BH11 8PN
Bristol Store	South West	Bristol	EH3 9LY
Imageglossy Ltd	South West	Christchurch	BH23 1QD
Exeter Store	South West	Exeter	EX4 3AJ
Paw Print Design	South West	Gosport	PO15 7HH
Wessex Direct Ltd	South West	Minehead	TA24 5BJ
Full Colour Store	South West	Newton Abbott	SW6 6SE
Plymouth Store	South West	Plymouth	PL4 0AU

Neil Cheesewright T/A Chalk and Cheese Design	South West	Ruislip	HA4 6HH
Southampton Store	South West	Southampton	SO15 2AE
Wessex Direct Ltd	South West	Taunton	TA2 6BB
Wessex MAlthouse Direct Ltd	South West	Torquay	TQ1 3AW
Printing South West	South West	Totnes	TQ9 5DW
Whitman Design & Print Limited	South West	Truro	TR1 2HE
Anneset Productions	South West	Weston-Super-Mare	BS23 3DE
Cardiff Store	Wales	Cardiff	CF5 1JF
Australian Welsh	Wales	Cardiff	CF14 3JP
Colourbox	Wales	Swansea	SA1 5TY

 

END

 

 

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