Released on = April 16, 2007, 4:12 am

Press Release Author = Bharat Book Bureau

Industry = Marketing

Press Release Summary = Executive Summary

This Market Report examines the printing market in the UK. Printing is central to
the UK economy, its products feeding into every business sector. The market is also
a net contributor to the UK balance of payments.


Press Release Body = Printing Market Report 2007

Executive Summary

This Market Report examines the printing market in the UK. Printing is central to
the UK economy, its products feeding into every business sector. The market is also
a net contributor to the UK balance of payments. However, a remarkable fact about
the industry in 2006 was its failure to benefit from the strong growth in the
economy, a fact that has given many in the industry pause for thought. The printing
industry was once hailed as a bellwether of the UK economy, its performance
generally mirroring that of the overall economy. However, 2006 has shown that this
corollary no longer holds true and it remains to be seen whether the market\'s
performance in 2006 represents just a blip or portends a sea-change in the fortunes
of the printing sector.

Printed products include: publications, such as books, magazines and newspapers;
business items, such as continuous stationery and account books; hard-bound
stationery, such as exercise books, diaries, notebooks and calendars; promotional
products, such as brochures, catalogues, direct mail and corporate literature; and
packaging for manufacturers.

It is estimated that the market was worth around £12.51bn in 2006. As the year came
to a close, it was clear that the industry had weathered its worst year since the
recession of the early 1990s. The market shrank and competition was intense, with
price cutting the order of the day. Higher energy and paper prices cut into
printers\' profits even further and led to a large number of closures and
receiverships. Merger and acquisition activity was also very high.

The UK printing industry is highly fragmented, supporting thousands of small and
medium-sized firms. Official statistics reveal that, in 2006, there were around
11,825 VAT-based printing enterprises, of which 84.8% had turnovers of less than £1m
and more than half (58.6%) had turnovers of less than £250,000. Just 3.2% had
turnovers of £5m or more.

The market leaders remained broadly the same in 2006 as in 2005, the top ten
companies (by turnover) being: De La Rue PLC, Chesapeake UK Holdings Ltd, Williams
Lea Group Ltd, British Polythene Industries PLC, St Ives PLC, The Polestar Group
Ltd, Nampak Holdings (UK) PLC, The Astron Group Ltd, Communisis PLC and Amcor
Flexibles UK Ltd. However, their positions changed slightly, as a result of Williams
Lea, for example, leaping up the league table. Most people in the industry expect to
see some major changes in ownership during 2007, some of which might well be
surprising, as was the case in 2006. As one leading figure in the industry pointed
out in 2006, the current industry structure is unsustainable in the long term, a
view that is shared by others. Consolidation is inevitable in the face of worsening
trade conditions and the competition from online media and foreign printers. It is
forecasted that only modest year-on-year growth between 2007 and 2011.


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