Integrity Print - 1 year on
The 1st July marks the first anniversary of the successful management buy out.
The 1st July marks the first anniversary of the successful management buy out of Midsomer Norton based Integrity Print. There were a few raised eyebrows around the print industry when managing director Mark Cornford led the MBO; in the middle of a global financial crisis and with an impending recession, was this really the best time to buy a business forms manufacturer whose core products were in decline?
A year on finds Cornford and his team in remarkably good spirits. Turnover is up from £54m to £60m per annum and Integrity has added labels to their product range with the acquisition of the assets of Topflite Labels in February 2009.
“We are in the middle of an economic storm” says Cornford, “but we have a clear business philosophy that guides us and that is to be the best at what we do. It is still our goal to be the dominant player in the forms market but we are also well underway on the journey to a more diversified product offering.”
This business philosophy is clearly paying dividends as Integrity have delivered on their promise to unlock the market now that they are outside of Communisis and can concentrate on selling to the full range of trade partners. Contract wins with both new and existing clients have more than offset the decline in sales of traditional business forms. Particular effort has been made to widen the geographic reach of its sales and Integrity now exports over £4m of products to Ireland and mainland Europe. The company has also recently secured a cheque printing contract that now sees it supply a number of banks in Sierra Leone, The Gambia and Liberia, so gaining a foothold into the burgeoning African market.
However there is no sign of complacency despite the successes. “Trading is still very tough and our margins are under constant pressure.” explains Cornford, “The recession is having an impact so our cash management is absolutely critical. However if we need to invest in equipment or recruit additional staff, then we will do if it adds to the strength of our business proposition.”
Proof that Integrity doesn’t just hope to ride out the storm was evidenced by the acquisition of Topflite Label’s assets in February. Although a new market for Integrity, it was seen as a good fit and an opportunity to sell new products to existing customers. Cornford comments, “Topflite made great products but lacked a clear sales focus – they still make great products but we are now marketing them aggressively to our extensive customer base.” And with some success, the Farrington based business is on target to increase sales from £2m to £4m p.a. with two big contract wins from the retail and distribution sectors already secured.
The Security Print division at Integrity is also considering further investment in an enclosing line to meet client demand for a secure mailing facility. The move again demonstrates Cornford’s commitment to invest if he believes there is a gap in the market.
Integrity has been fortunate in that Investec, the bank backing the MBO have been very supportive of the business. Cornford attributes this to the fact that he has been able to deliver on the targets they have set and demonstrated sound financial management. This financial stability has served Integrity well, as backed up by its track record of service excellence, the company is being seen as a safe pair of hands in an increasingly turbulent period where continuity of supply is business critical.
This sense of stability has also permeated down to the employees who recognise what a good move the MBO has been for all of them. Morale is high, with all areas of the company seeing the impact of recent business wins. However he still demands that everyone in his team is committed 100% to the business and are all rowing in the same direction, with no room for passengers. “We have to keep driving out waste and increasing productivity” he stresses, “however good we believe we are there is always room for improvement.”
Integrity is looking to sell their way through the recession. Its traditional strength has always been the scale and quality of its manufacturing capability but recent recruitment has strengthened the company’s client facing focus and created the platform for growth in a competitive market.
When asked to summarise his first year of going solo, Cornford reflects, “It’s been tremendous fun; we have faced huge challenges but I have a fantastic team that keeps delivering and I feel proud to be part of this business.”