Adare Printing is hoping to achieve turnover of £200 million by the year 2000, mainly by winning out-sourcing contracts and increasing its facilities-management business, its annual general meeting was told yesterday.
The company reported a turnover of £163.5 million for the financial year to April 1998 and the annual general meeting was told that previous levels of growth from existing businesses suggest that an annual sales level of £200 million is achievable. Chief executive, Mr Nelson Loane told The Irish Times that the company expects to be able to "put together three to four out-sourcing deals each year".
In July the company signed its first major out-sourcing agreement with Abbey National for a consideration of £600,000.
"We are currently looking at several similar deals and we hope to bring them to fruition as soon as possible," said Mr Loane.
The out-sourcing deals involve large companies handing over their printing operations to Adare. In the case of facilities management, Adare provides companies with its full range of services, from labelling to direct mail.
In terms of acquisitions, Mr Loane said the company "could contemplate" acquiring another printing operation for between £50 and £100 million.
He expects the company's £10 million debt to be "run down" by some time next year. Much of the "bedding down" needed after recent acquisitions has now been completed.
He said the acquisitions will be printing firms with an established brand name. "We bought Kalamazoo Security Print for £12.3 million sterling for that reason, because the brand name means you do not have to drop your prices to the lowest levels," he said.
He said an example of a branded printing firm is Prontaprint, which enjoys 95 percent brand recognition. Mr Loane is upbeat about the economic prospects in Britain, which now accounts for 95 percent of the company's business.
"A lot of people are talking about a recession, but we actually think things look quite stable," he said.
Chairman Mr Denis Bergin said Adare's operating units serve British-based customers so the strength of sterling has not greatly affected the company.
