Print firm's liabilities reach £10m

Commercial printing specialist The Print Factory (TPF) is close to insolvency after it revealed restructuring and the lose of its Sky account led to the firm recording net current liabilities of more than £10 million.

The Northampton-based firm is trying to secure itself as a going concern with creditors after filing its 18-month overdue accounts at Companies House.

In the year ended June 30, 2008, TPF made a net loss of £188,000, after its pre-tax profit of £238,000 on a £65.7 million turnover. The year before, its £2.2 million pre-tax profit on a £68.9 million turnover led to a £1.2 million net profit.

TPF attributed this overwhelming drop in profitability to "substantial restructuring costs" incurred when Wace and NPM closed. Its net current liabilities stood at £1.8 million in June 2008.

Since then, the loss of its Sky account and addition restructuring sent net current liabilities soaring to an unaudited £10.2 million, including "significant arrears" rumoured to be more than £1 million owed to HM Revenue & Customs.

"There can be no certainty over the outcome of these matters, the successful realisation of all of which is required for the group to meet its liabilities as they fall due," said TPF in its financial statement notes.

Copyright © Press Association 2010