Print.IT Reseller - issue 56

01732 759725 BULLETIN 6 The Mailing Room completes new acquisition Continuing its ambitious programme of growth, aimed at doubling the size of its business within five years, Bury-based The Mailing Room (TMR) has acquired another independent franking machine supplier – Franking Direct of Brentwood in Essex. The acquisition strengthens TMR’s market presence in the outer London area and provides ongoing revenue through the provision of mandatory inspection and maintenance of franking equipment, as required by the Royal Mail, and the sale of inks, labels and other consumables through its online and telephone support services. Unlike Franking Direct, which relied upon manufacturers to provide routine machine inspection and maintenance, TMR is a Royal Mail-licensed servicing organisation able to offer direct technical support for its users anywhere in the country, through its own team of factory-trained mobile engineers. As with the earlier company purchases, Franking Direct’s business will be seamlessly integrated into the Bury head office operation. Group Managing Director Ian Davidson said: “This acquisition brings excellent profit growth both in the short- and long-terms, due to the increased customer number and recurring revenue from maintenance income and consumables sales, whilst giving us further geographical reach in the South East.” www.themailingroom.com Physical meets digital Pinnacle Complete Office Solutions is holding its fifth annual Solutions Seminar at The Vale Resort, Hensol, Cardiff on November 16. This year’s event will focus on digital transformation. Partners including Xerox, Xerox Docushare Flex, iTS, CFH docmail, HP DaaS and IBC Group, will be showcasing the latest solutions and demonstrating a different way of working to attendees. www.pinnaclecos.co.uk School sponsorship Pinnacle in partnership with HP, has sponsored Ysgol Ty Coch, a leading special school in Pontypridd, committed to celebrating difference and diversity rather than defining pupils by their disability. A key component of the school’s innovative business strategy aimed at overcoming some of the challenges many schools and their wider communities face as a result of increasing financial pressures, involves companies sponsoring an individual class in exchange for a small annual donation. Headteacher David Jenkins, said: “For some time, the school has been trying to engage more effectively with commercial businesses. However, this proved to be quite difficult at the start…Enter Clive and the team at Pinnacle. The people at Pinnacle immediately understood our school, understood our pupils and understood our amazing staff. They immediately committed to entering into a sponsorship agreement and brought HP along for the journey also.” The company has also arranged a corporate golf day and Masquerade Ball, naming both the school and their annual charity 2 Wish Upon a Star, as beneficiaries. Money raised will go towards helping build a brand new sensory, immersive environment for pupils. Group Managing Director Clive Hamilton, said: “Pinnacle is proud to be part of such a deserving initiative and look forward to supporting both 2 Wish Upon a Star and Ysgol Ty Coch in our upcoming events later on in the year.” www.pinnaclecos.co.uk £20.5 million MBO for Mode Print Solutions The Hertfordshire-based print services company has secured £8.1 million in private equity funding to support a £20.5 million management buyout. The deal was executed and managed by Connection Capital, the specialist private client investment business. Debt facilities of £11m have been provided by Clydesdale Bank. Mode Print Solutions provides hardware, software and remote and onsite support for printing needs to SMEs across London and the South East. The company currently has a diversified client base of around 700 customers on long-term contracts, with a very high retention rate of over 92%, giving it highly reliable income and providing an attractive risk profile for Connection Capital clients. Connection Capital says its rapid recent and potential future growth were also very appealing from an investor standpoint. Established in 1995, Mode’s business model has been transformed since CEO Robert Clarke joined the business in 2013, with net earnings (EBITDA) increasing from £415,000 five years ago to £3.6 million last year. The existing management team will now be supported by an experienced Non-Executive Chairman, Richard Cottrell, a Connection Capital investor client. His career includes senior roles at major print services and wider technology businesses and he has led multiple private equity-backed MBOs. Miles Otway, Partner at Connection Capital said: “Mode ticks all the boxes we look for in a private equity investment prospect: it’s a fast growing, high margin, very well run business led by an impressive CEO, with real upside potential in a market with strong dynamics. It’s no wonder it was such a hit with our clients.” Clarke added: “This is a very exciting moment for us. With Connection Capital’s backing we have good grounds to achieve our ambitions for the next five and beyond.” www.modeprintsolutions.co.uk Miles Otway Clive Hamilton Ian Davidson