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Printer’s Devil – it’s in the detail

What will Wallis do next?

Just catching up on some interesting snippets from the past week, among which is the fact that Stuart Wallis has joined HH Associates as chairman, taking an equity stake in the print manager at the same time.

Older readers may recall that Wallis, along with David Jones, was the brains behind the creation of Communisis at the beginning of the decade, when their investment vehicle John Mansfield Group snapped up Rexam's commercial printing interests, Waddington, and then in short order Centurion in a £417m spending spree.

The duo did very nicely out of the new group, sharing almost £5m through an unusual bonus pool arrangement. Wallis retired from his Communisis role in 2003 after the final payments were made under the "Mansfield 1999 Incentive Plan".

I wonder what he makes of the current state-of-play at his old business? And I also wonder if this deal-maker par excellence has a further deal or two in his sights?

Under Wallis et al Communisis paid a gasp-inducing £42m for Centurion. No wonder Robert MacMillan is delighted to have him on board. HH's new chief financial officer Andrew Lipinski is also ex-Communisis.

Definitely one to watch.

Comments

 

Joseph Carlow said:

The days of fancy multiples on EBITDA for print management companies have gone and will not return. In 2008 HH made an operating loss of £400k on a turnover of £92m. Its gross profit is insufficient to cover its operating expenses. Even if Macmillan has grown the top line I'll be surprised if he's materially enhanced the profit performance.

Blend this position with the story unfolding at Communisis and the huge deterioration of turnover and income at its print management division, and you can see why investor sentiment is poor on this part of the market.

Maybe investors will start to apply higher multiples to the manufacturers of print rather than the outsourcers. Now there's a thought.

JC

September 16, 2009 6:24 PM

About Jo Francis

Jo Francis has worked in print-related businesses for more than 25 years. Along the way she has been a typesetter, a screen printer, a technical and customer support pre-press specialist, a communications consultant, and an editor. She is a former editor-in-chief of PrintWeek magazine and is currently associate editor of Haymarket's print titles.