Printers make two different impressions

IT WAS A tale of two companies in the printing and packaging industry yesterday, with Cradley Group edging earnings up, while Ferry Pickering saw its pre-tax profits plunge from pounds 2.3m to pounds 674,000 for the year to 31 August, writes John Murray.

Exceptional costs of pounds 783,000 damaged Ferry's figures; pounds 296,000 went on redundancy payments and restructuring costs, while bad debts cost almost pounds 500,000.

But operating profits, before these exceptional items, were also pounds 1m lower at pounds 1.8m.

Graham Nixon, chairman, said current trading showed signs of an upturn: 'September and the first half of October showed some encouraging trends.'

He said the company was poised for any recovery, having reduced overheads and completed a capital investment programme.

The consolidation of Ferry's Scottish operations on to one site caused severe disruption and had an adverse effect on profitability. But he said the action would improve future prospects.

Ferry made an extraordinary gain of pounds 159,000 from the disposal of its publishing arm.

The company has changed its year-end to December and so the annual report will come in March, and the annual meeting in April.

Cradley, the West Midlands printer, increased its pre-tax figures to pounds 1m from pounds 807,000 for the year to the end of June.

Donald Jordan, chairman, said borrowings had been reduced to pounds 500,000 from pounds 3.6m in June. The main subsidiary, Cradley Print, continued to contribute most of the turnover and profits and Quadracolour Reprographics was also trading profitably.

However, another subsidiary, De Maundus Print, was losing money and the company was looking at ways to stem the losses.

Cradley shares rose 4p to 26p, while Ferry Pickering put on 2p to 71p.