Penfold Buscombe wins multi-million dollar print contracts

The printer, which is spending the first year in its new consolidated production site at Botany, NSW, announced it has started to deliver on its prediction of securing substantial new printing contracts with large corporations.

It is also making sure to distance itself from the troubled WC Penfold stationer and office supply company that is in the middle of a management buy-in. The two companies have no direct involvement with one another. (See WC Penfold – Archive Search.)

Alistair Hill, Managing Director of Penfold Buscombe said, “ In harsh industry conditions with depressed margins and reduced sales for printers, Penfold Buscombe has recently secured several multi million dollar contracts with terms of up to three years.

“Penfold Buscombe is on track to announce a profitable trading result for FY03, and we look forward to the next half as tentative positive signs of recovery for the printing industry potentially emerge.”

Ian Elliot, Chairman of Penfold Buscombe, said “Our decision to consolidate the three Sydney printing sites [RT Kelly, Mockridge Bulmer and Concord Communications] into one mega site, delivering the benefits of scale with personalized service, is proving to be a compelling offer for clients. We’re cautiously optimistic of the future opportunities.”

Commenting on the recent announcement of WC Penfold Limited, which owns 27.1% of Penfold Buscombe, Elliot said, “WC Penfold has been an important strategic shareholder in our Company. I also value the input of their Chairman – Will Penfold – on our board. The announcement of their intent ion to restructure and recapitalize which, when given shareholder approval, should see their single 27.1% block of shares in our company distributed to the individual shareholders of WC Penfold. The distribution should have no obvious significant impact on our business.

"Because of the shareholding and name similarities, some people get confused about the two companies. The performance of WC Penfold Office Products has no bearing on the business of Penfold Buscombe. We see the intended distribution as positive for the company, removing uncertainty regarding the Penfold Buscombe share register and could also increase the shareholder base.”

Penfold Buscombe is the product of one of the most ambitious consolidations of printing companies in the industry. In recent years it has merged (at least) six printing companies in Victoria and NSW to evolve into a single publicly listed entity with manufacturing plants in Victoria, New South Wales and Queensland. Some of the companies merged have a history in the printing industry dating back to 1830.

It is now the largest dedicated sheet-fed print communications company in Australia with a national operation focused on commercial printing, direct mail and print management.