Pureprint has received £5.3 million of funding from the Business Growth Fund, taking the finance company’s investment in the printing sector to more than £20 million, more than half of that announced in the last month.
Pureprint Group will use the capital to fund expansion with plans for acquisitions already well advanced. Deals are likely to be concluded in the early part of 2015 says chief executive Mark Handford. The company has been eyeing the potential of the wide format market, as an extra tool for its fast expanding digital business.
“The last year was the best we have ever had by a mile,” he says. “We are so excited about the future – it’s time for some growth.” Large format is a gap for a company that has expanded its packaging business, adding two further Cad designers in recent months and which has grown digital printing from nothing into a £10 million business in four years. Last year it installed its second Indigo 10000 and is currently installing three HP Indigo 7800s as replacement machines.
“Large format would go with the digital business that we already have,” says Handford.
The company began attracting the interest of outside investors, mostly from overseas says Handford, earlier last year. It had the impact of focusing the board and into how to manage a business which had expanding from a £16 million a year company into one turning over £40 million in five years. A sale of the business was out of the question. “We have a long way to go and a lot to achieve,” he continues. “A sale was not on our radar. However, the receipt of offers gets you focused and thinking.”
Everyone that he approached said “You need to talk to BGF”, culminating in the announcement of a £5.3 million investment.
BGF takes a minority equity stake in the fast expanding company and will provide a non-executive board member, Jon Simon, senior investment manager from BGF and Andy Nash as non-executive chairman.
Handford has welcomed these appointments as providing board level expertise as the group expands and in the range of contacts that they bring. Nash for example has had an extensive career in FMCG marketing, is chairman of Brand Addition and ICA Digital.
He adds: “The BGF proposition was attractive for a number of reasons; control of the business has not altered, the support and connections they offer are incredibly valuable above and beyond the equity investment and we retain the sense of traditional heritage inherent in Pureprint.
“Now we can’t wait to get going. There are some great opportunities around the industry and good times if you get it right.”
As an example the company has struck a rich seam with personalised children’s books in the run up to Christmas. It meant building an automated workflow within three months. And the rewards have been “massive”. “There will be more good news in the next week or two,” says Handford.
Mark Hanford receives the Queen’s Award for Enterprise from the Lord Lieutenant of Sussex. The company’s leading environmental stance has been recognised by achieving the award for sustainable development on three occasions.
