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Industry

Walstead puts its best foot forward

Walstead’s latest revenue records show a strong six-month period despite concerns for 2019 caused by “adverse market conditions”.

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Mark Scanlon, chairman of Walstead Group

When challenges such as increases in paper prices and the reduction of print budgets led the commercial print firm to describe 2018 as a “rocky year”, Walstead anticipated 2019 to remain challenging.

However, the group’s latest report shows “record revenues” for the six-month period ending June 30th, 2019.

The company achieved gross revenue of €328.1m (£293.3m) which is an increase of 35.1% from the same period last year in which it achieved €242.8m (£217m).

Despite challenges such as “substantial price increases for paper”, Walstead’s earnings before interest, tax, depreciation, amortisation and exceptional changes (EBITDA) remained the same at €20m (£17.8m).

The company comments: “Reports would have been significantly higher had we not been obliged to absorb a substantial increase in the cost of paper.” Walstead predicts to achieve EBITDA of €50m (£44.7m) for the whole year.

During the first half of this year we continued to experience the adverse market conditions which originated in 2018 following a series of substantial price increases for paper

The firm’s capital expenditure was noted as €6.1m (£5.45m) which included the installation of two web offset presses at Walstead Iberia.

Mark Scanlon, chairman of Walstead, comments: “During the first half of this year we continued to experience the adverse market conditions which originated in 2018 following a series of substantial price increases for paper.

Trading in the second half of 2019 will remain challenging but our profits will be significantly higher than in H1 due to the pre-emptive cost-saving initiatives we implemented earlier this year, as well as seasonally higher volumes and revenues.

“For some of our remaining competitors, insolvency is a real threat. I am confident that in contrast to this Walstead will continue to thrive because of our low-cost base, economies of scale, and sound financial footing.”

If you have any news, please email carys@linkpublishing.co.uk or join in with the conversation on Twitter and LinkedIn.


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