April 2013 – Walstead Investments Limited, the leading UK magazine and commercial printing group backed by a £30.4 million Asset Based Lending (ABL) facility from RBS Invoice Finance (RBSIF), has announced significantly improved financial results for the twelve months ended 31 December 2012.

In a tough market, EBITDA rose 126.5 per cent to £11.1 million (2011: £4.9 million) on turnover of £124.8 million. The Group produced a maiden operating profit of £4.6 million (2011: loss £11.5 million) and a profit before tax of £3.7 million (2011: loss £20.9 million) after £3.8 million of exceptional charges (2011: £9.6 million).

These results follow the successful integration by Walstead of St Ives plc’s web printing division, which Walstead acquired in March 2011 with the help of funding from RBSIF. In November 2012 Walstead then entered into a new £30.4 million asset-based lending facility with RBSIF to provide the Group with working capital for the next three years. The debt owed to RBSIF at the end of 2012 was £26.4 million, down from £28.6 million at the end of 2011.

Mark Scanlon, chairman of Walstead, said:

“Walstead made excellent progress in 2012. Much of that is due to the relationship we have with RBSIF. We have always found them to be enthusiastic, realistic and flexible. We first worked with them when we bought St Ives Web just over two years ago. We were amazed by how fast they were able to move to put together the facility we needed at a time when the funding market was still extremely tight. The St Ives Web acquisition has been really good for us, and I genuinely doubt that we could have done it without RBS. The new facility is exactly what we need and allows us to focus on running the business. We are very grateful for the confidence they have placed in our Group.

Chris Hawes, Director of Corporate at RBS Invoice Finance, said:

“We are very pleased to see such good progress at Walstead. We recognise there are pressures affecting the printing industry however it is strong firms like Walstead that are playing a key role as the industry evolves. We see this as an opportunity to show our commitment to this sector and have got to know Mark and his colleagues in a number of different situations over the years and have built a strong relationship with them. The facility we now have in place with Walstead is part invoice discounting, part term loan, enabling us to tailor the finance to the needs of the business. In fact it is the flexibility of ABL that makes it so appealing to corporates and it is increasingly being recognised as a core lending product.”

Kevin Haupert, Head of Asset Based Lending and Syndications at RBS Invoice Finance, said:

“We are extremely happy with our relationship with Walstead. The new £30.4 million facility we put in place last November underlines the bank’s commitment to British industry and to the printing sector in particular. Since then Walstead has continued to meet its targets with us and has improved its market position. We look forward to seeing further progress in the current year”