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ithout doubt 2009 was a year of exceptional challenge for member companies, as the deepest and longest recession since the Second World War took its toll. Although the worst may now be over, it will take time and tears to repair the damage. The UK economy shrank by more than 6% during the recession, and is some 10% smaller than it would have been had growth continued on its previous trend. So my first year as your President has been an extremely tough one, as it has been for all of us. The rate of consolidation and structural change in our industry has reached a level unprecedented in living memory. Although continued losses resulting from mergers and closures have been partly offset through recruitment of new members, we have seen significant reductions in both our membership and commercial income as a consequence of some member companies going out of business and others cutting back on the purchase of commercial services. We saw a reduction in total income from 7.7 million to 6 million - a 23% reduction - with Membership, Commercial and Training income all down year on year, as discretionary spend and the recession impacted on BPIF finances. However in spite of this we managed to produce an operating profit of 44k (2009 463k) before final salary pension costs and exceptional costs. Net loss was 309k (2009 19k profit) after exceptional costs and final salary pension costs. Whilst we have had to make a further 20% reduction in headcount during the past year in response to income reduction, the BPIF continues to maintain the successful Front Line First strategic plan. These cutbacks have been made without adversely impacting on membership benefits or services provided. This has been achieved by meeting stringent targets for increasing operating profit and by reducing costs. Good financial management is bringing additional benefits too: our Pension Protection Fund Levy for 2010/11 has been reduced in light of our improved DUNS credit rating to 100 (the maximum possible). Our lower cost base means that we have strengthened our financial position
going forward - enabling us to hold subscriptions at 2008/09 levels for a second year. The actions we have taken during this period and the year before to reduce the BPIFs cost base and create a leaner, fitter operation have helped us fare better than most trade associations. In addition, we have invested in new business opportunities during the year such as dotgain.org and EcoPrint London, which will help to generate new income for the BPIF next year and provide important benefits to companies that take up these services. We have also maintained the high quality of our traditional offering in vital advisory services, such as HR and Health, Safety and Environmental management, that continue to be valued and much used by our members, especially during these turbulent times. Outlook We are not complacent about the future and there is still a great deal of uncertainty in the marketplace. But we can face the future with greater confidence. The BPIF has a strong team of highly skilled people in place to meet the challenges of the year ahead and to help members take full advantage of the opportunities that the recovery will present. I would like to thank all our members for their support during the year and their contribution to our work. I am especially grateful to those members who have served on our Council, Boards and Committees for the time and energy they have continued to give to our Federation, in spite of the pressures they have faced within their own businesses during this difficult period.
www.britishprint.com
The last of these will be a major focus for me and for my team in the coming year. Make no mistake this industry is changing, and changing fast. More and more print suppliers are taking advantage of the digital revolution to add to their portfolio of client services in areas such as managing mailing lists and customer data, handling stock and fulfilment, designing and managing customers websites, and running campaigns that integrate all media, new and old. The traditional print business model, pricedriven and product-focused, is no longer fit for purpose. Print must adapt if it is to survive. For this reason we developed dotgain.org this year, a new service to help printers move up the print value chain. Our challenge is to equip you to seek new business by developing added-value services for your clients. With customers now looking for cost-effective campaigns rather than just cut-price commodity print, printers can no longer rely solely on manufactured products and low prices to differentiate themselves. Printers have for decades been in the business of transmitting data, text and images by electronic means. Our industry began life at the dawn of the age of mass communication and has adapted to the age of personalised communication. As such, we see the growth of internet-based communications not as a threat to our industry but as an opportunity. Some printing companies have already made the transition from a product-led approach to a more client-focused business model. Through dotgain.org we will help many more of our members to join them.
www.britishprint.com
Achievements 2009-10
April 2009 Board approves development of new customer centric programme: a membership-based service embracing the whole supply chain including printers who are evolving into marketing services providers, as well as corporates, brand owners, traditional creative and new media agencies, emerging digital service providers, industry suppliers, database managers, website developers, and educational associates BPIF becomes a company limited by guarantee, providing all member companies with the protection of limited liability BPIF exhibits at Northprint and at the Sign and Digital Show A joint conference between Haymarket and BPIF staff marks the start of a new co-operation between the two organisations, with a regular BPIF-ViP double-page spread now appearing in PrintWeek each month Subscriptions are frozen at 2008/09 levels PrintYorkshire, the partnership between the BPIF and Yorkshire Forward, achieves funding for a further three years to support the printing industry in the region Together with twelve other leading manufacturing trade bodies, the BPIF writes to the Chancellor with a stark warning about the future of the UKs manufacturing sector, arguing that longterm economic growth can only be sustained with a mixed and balanced economy in which manufacturing plays a greater role May 2009 Business & Enterprise Select Committee Report on the Insolvency Service responds positively to BPIF calls for tougher action on pre-packs. The BPIF was the only trade association in manufacturing to have submitted evidence to the Select Committees enquiry BPIF provides evidence to the CBI on instances where member companies have faced demands for upfront payments of three months or more when renewing energy contracts, in support of CBI action to lobby energy producers Kathy Woodward and Kay Smith join BPIF Training Ltd as Executive Chair and Business Development Director respectively, with a remit to grow the training business and ensure more companies are able to benefit from funded training programmes June 2009 BPIF achieves re-accreditation as an Investor in People, ten years after first gaining this standard BPIF Training and recruitment consultants Mercury Search and Selection launch a new online service to help inform employers and employees of the careers and apprenticeships available in print. www.skills4print.com is designed for employers and candidates, as well as parents and tutors, and the online portal allows employers to advertise apprentice vacancies for free July 2009 BPIF/PrintWeek Excellence Awards held at London Hilton
Leadership guru Jeff Grout runs free-to-attend workshop for CEOs of larger companies Industry stalwart Bob OShea receives BPIF Outstanding Contribution to the Printing Industry Award at Presidents Lunch All Party Parliamentary Print Group Reception held on the Terrace at the House of Commons. 18 parliamentarians attend, with an address given by Trade Minister Gareth Thomas MP Seven young people see their success recognised at the Print Futures Awards. The scholarship scheme is sponsored by the BPIF, Unite and the Printers Charitable Corporation. The winners each receive between 1,250 and 2,500 to help fund their training and education August 2009 Tony Hodgson, ex-technical director of digital cross-media specialists Lorien Unique, joins BPIF as Manager of the new customer centric programme Wyndeham Press Group Chief Executive Paul Utting and Sherwood Press Group Managing Director Jeremy Bacon join the BPIF Board as nonexecutive directors
www.britishprint.com
September 2009 BPIF Members magazine inprint marks its first anniversary by increasing pagination from 20 to 24 pp October 2009 Associate Members autumn briefing and social event held aboard the MV Golden Star on the River Thames British Book Design and Production Awards held at the London Lancaster, with both entries and ticket sales increasing again this year BPIF responds to Postcomm proposals to give Royal Mail flexibility to increase prices in 2010, arguing that first response to falling volumes should be to reduce costs and increase value BPIF-Unite Joint Partnership Committee issues joint statement encouraging flexible working time arrangements November 2009 Customer Centric Programme launched as dotgain.org at Londons MediaPro exhibition. Through its partnership with PODi, dotgain.org offers free access to PODis case study database of over 350 case studies, a free listing in the global online directory used by marketeers to identify service providers, free access to monthly webinars on the latest ideas and best practices, free downloadable reports from a searchable online knowledge base, and substantial discounts for attending the annual PODi UK application forum. dotgain.org members also have the opportunity to gain contacts in the new media network both clients and service providers, and enjoy substantial discounts for training on new media topics and for in-company consultancy support from specialists in implementing new media opportunities BPIF website re-launched with new design and additional functionality www.britishprint.com December 2009 Printers Carol Service organised by BPIF and held at St Brides Church in Londons Fleet Street
January 2010 More than 60% of print businesses responding to our winter Printing Outlook survey experience an uplift in trading conditions, but the BPIF warns that this improvement is primarily seasonal and that testing times lie ahead February 2010 Fourth BPIF Finance and Investment Conference The New Normal: challenges and opportunities in prints new business climate held at the Ricoh Arena BPIF publishes ISO 12647-2 Certification Scheme Requirements, setting out what printers and print management companies need to do in order to secure certification BPIF marks the start of this years National Apprenticeship Week with CEO Michael Johnson swapping roles with a print apprentice for the day. Johnson spends the day on the shopfloor at Plymouths Pepper Communications while apprentice Christopher Head takes on the Chief Executives role in London, with a meeting at the House of Commons and a visit to member company 1st Byte March 2010 National Council approves Board recommendation that BPIF rejoin international print employers confederation Intergraf with effect from 1 July 2010 Skills Summit for the Printing Industry Transforming the print industry hosted by the Department of Business, Innovation and Skills at their Westminster Conference Centre, and addressed by Skills Minister Kevin Brennan MP and BPIF CEO Michael Johnson BPIF hits out at plans by merchants to increase the price of paper by 8% - 12% and demands an urgent meeting with the National Association of Paper Merchants BPIF secures funding from the London Development Agency for a new scheme to help London printers with fewer than 250 employees and a turnover below 50m gain access to credible green credentials. EcoPrint London is to be funded by the European Regional Development Fund and led by a Steering Group of London printers and stakeholders
www.britishprint.com
Testimonials
The industry is lucky to have such vocal and effective advocates in the British Printing Industries Federation (BPIF) and in Unite. They maintain an effective relationship with Parliament through the All Party Parliamentary Print Group and they were quick to challenge me recently when I commented on the amount of money the Government had spent on printing its Digital Britain report.
Dan Rogerson Member of Parliament for North Cornwall and a Liberal Democrat member of the All Party Parliamentary Print Group
A big thank you for your HR advice and co-operation up to now but especially this week. Your prompt action has allowed me to sort out tricky situations, it is much appreciated
Corinne Petit HR Manager CPI Books
The BPIF were particularly helpful after a serious accident on one of our printing presses, which resulted in an investigation by the Health and Safety Executive. The HSE issued an improvement notice, which asked for a full and proper risk assessment of the printing press. We asked the Head of H&S at the BPIF for urgent help in order to meet the requirements of the improvement notice. The BPIF was extremely supportive and the Head of H&S quickly arranged to come on site personally to help us work through a very professional Risk Assessment that fully satisfied the HSE investigating officer.
Fergus McManus Group Business Development Manager Howard Hunt City
We have used the legal services from the BPIF twice in the last twelve months. In both cases we have found the advice and assistance given to us to be first class. Although we hope we dont have to use the services again, we have confidence that we have excellent support should any problems arise again in the future
Mark Dawson Managing Director Thomas Dornan (Printers)
Im really impressed with the new look inprint, the design looks great and it is a lot easier to find news and features on issues that are important to me. I ensure all my staff read the magazine as there are so many useful articles in it.
Timon Colegrove Managing Director Hunts
We can see the benefits that 12647/2 offers our business and we are keen to move forward and be one of the first companies in the UK to obtain the independent UKAS certification. The BPIF is helping us with this and the sooner this is in place the better!
Tommy Crowe Director - Print Operations Bridson and Horrox
www.britishprint.com
Financial Review
The British Printing Industries Federation (Limited by Guarantee) From 1 April 2009 the British Printing Industries Federation (Limited by Guarantee) commenced trading and all membership income was invoiced through this new entity. The total income received was transferred to the British Printing Industries Federation (Unincorporated) as a management charge leaving a net zero profit in the British Printing Industries Federation (Limited by Guarantee). The purpose of this restructure ratified by National Council and voted on at an EGM in January 2009 is to give limited liability protection to members whilst preserving the tax losses carried forward of the unincorporated British Printing Industries Federation.
Profit and Loss Account Turnover Administrative Expenses Surplus for the Financial Year Balance Sheet Debtors Creditors Net Current Assets Represented by General Fund 31 March 2010 2,923,206 2,923,206 NIL 31 March 2010 623,842 623,842 NIL NIL 31 March 2009 NIL NIL NIL 31 March 2009 NIL NIL NIL NIL
The Group Balance Sheet is showing a deficit of 708k but this includes an FRS17 deficit in the final salary scheme of 1,094k (2009 1,134k). We have an agreement with the Trustees of the scheme to repay the money at 120k per year over a period of 9 years. We were rated a maximum100 by Dun and Bradstreet for the pension protection risk based levy and this is a reflection on our significantly improved credit rating over the past few years. Forecast for the Current Year Whilst the recovery is still fragile the actions taken by the BPIF during the last year to reduce our cost base further will underpin our profit forecast this year. We do not see an improvement in top line income but are planning for a net profit improvement.
The British Printing Industries Federation (Unincorporated) Activities The British Printing Industries Federation (Unincorporated), (BPIF), is the principal trade association representing businesses in the printing and graphic communications industry in England, Wales and Northern Ireland. The principal purpose is to make representation to the Government on matters affecting the industry and its members. In addition to its representational functions, it also provides a wide range of business services through regional business centres. It is also the major training provider in the industry. Income and Expenditure As a result of the recession the BPIF income fell from 7,732k at 31 March 2009 to 5,968k as at 31 March 2010 a reduction of 23%. Whilst all parts of the business was affected the largest losses were in commercial income as a result of a reduction in discretionary spend. As a result of action taken in 2008/9 in line with our Strategic three year plan Front Line First, aimed at reducing our cost base whilst maintaining front line services, we were able to reduce the bottom line impact of the recession. The BPIF achieved a net profit of 44k (2009 463k) before exceptional costs and final salary pension scheme costs. The net deficit for the year was 309k (2009 profit 19k) after exceptional costs and final salary pension costs. Balance Sheet In 2008/9 we converted all our investments into cash and were not affected by the collapse of the stock market in September 2008. We have not required an overdraft during the financial year. www.britishprint.com
(1,498)
(1,498)
(2,198)
(2,198)
Gross Profit Pension scheme levy Other operating expenditure Donations Write off of irrecoverable debtor Redundancy costs Dotgain.org Ltd start up costs Dilapidations and relocation costs Legal and professional fees
(4,426)
(299)
(4,725)
(5,232)
(247)
(5,479)
Operating (deficit)/surplus Other income and expenditure Profit on sale of property Investment income Interest payable Total other income and expenditure (Deficit)/surplus arising from operations before defined benefit pension costs and taxation Defined benefit pension costs Net return on final salary pension scheme (Deficit)/surplus for the year before taxation Taxation (Deficit)/surplus for the year after taxation
44
(299)
(255)
302
(247)
55
7 (7) 44
(299)
7 (7) (255)
(247)
(95) (51)
(299)
(95) (350)
(117) 346
(247)
(117) 99
41 (10)
(299)
41 (309)
(80) 266
(247)
(80) 19
www.britishprint.com
Balance Sheet
at 31 March 2010
2010 000 Fixed assets Intangible assets Tangible assets 697 697 Current assets Investments - listed Debtors Cash at bank and in hand Total Assets Creditors: Amounts falling due within one year Net current liabilities Total assets less current liabilities Creditors: Amounts falling due after more than one year Pension liability Net (liabilities)/assets including pension liability 2009 000 784 784
1,376 623
1,614 668
7 (7) -
41 (17) 24
(80)
(19) -
(778) -
(484) -
(19)
779
(778) (778)
(484) (484)
Financing Repayments made Net cash outflow from financing Increase/(Decrease) in cash
10
www.britishprint.com
www.britishprint.com
11
Contact Details
British Printing Industries Federation Farringdon Point 29-35 Farringdon Road London EC1M 3JF T: 0845 250 7050 F: 020 7405 7784 South Eastern & Eastern Regions Farringdon Point 29-35 Farringdon Road London EC1M 3JF T: 020 7915 8400 F: 020 7915 8414 Midland & South Western Regions 2 Villiers Court Meriden Business Park Copse Drive Coventry CV5 9RN T: 01676 526 030 F: 01676 526 033 North Eastern and North Western Regions Second Floor Parkview House Woodvale Office Park Woodvale Road Brighouse West Yorkshire HD6 4AB T: 01924 203 330 F: 01924 290 092
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