Printing.com plc
10 January 2007
FOR RELEASE 7.00AM 10 JANUARY 2007
Printing.com plc
Revision of tax charge
Current sales in line with Board's expectations
Printing.com plc (the 'Company') has been notified by Baker Tilly, its auditors
and tax advisers, that an error has been made in computing the Group's taxation
charge for the two years ended 31 March 2005 and 2006. As a result, the Group's
tax charge in the audited accounts for those two financial years has been
understated by an aggregate of approximately £210,000. This amount will be
included as a once only adjustment to the tax charge for the year ending 31
March 2007 and will therefore reduce basic earnings for that year by
approximately 0.47p per share. Trading throughout the Company's franchised
network remains in line with the Board's expectations and, of course, has not
been affected by this error.
The error arose from an invalid claim for rollover relief on profits from the
franchising of previously Company owned Stores. As a result the relevant tax
charge was understated by approximately £90,000 for the year ended 31 March 2005
and approximately £120,000 for the year ended 31 March 2006. This has served to
show a tax charge in previous years lower than the headline rate of 30%. The
increased tax charge would have resulted in a reduction in the reported basic
earnings per share for 2005 and 2006 of 7.6% and 6.6%, to 2.53p and 3.85p
respectively. The financial statements for the year ending 31 March 2007 will
accordingly show an increased tax charge as a one off adjustment. The interim
statement of results for the 28 weeks ended 16 October 2006 incorporate the
correct tax charge for that period and the stated earnings per share is not
affected by this error.
Encouragingly, post the release of the Company's interim statement, sales
volumes in the 4 week periods ending 10 December and 7 January continue to be in
line with the Company's internal forecast. The Directors remain optimistic that
additional international licences will shortly be granted.
For further information:
Printing.com plc
Alan Roberts (Finance Director) 07977 277 521
Tony Rafferty (Chief Executive) 07966 517 336
Cubitt Consulting
Brian Coleman-Smith / Allison Reid 020 7367 5100
Printing.com
Printing.com offers a broad product range including leaflets, booklets,
postcards, promotional cards, invitations, letterheads and business cards to
consumers and small and medium sized companies. Unlike its competitors,
Printing.com's Stores and Franchises do not depend on any printing equipment on
location. The Company's printing and ancillary equipment is based at the
centralised Production Hub with the head office in Manchester. All work is
produced in full four colour rather than two colour. The printing sector has
traditionally been served by smaller printing companies or other On Demand
Printers and is estimated to be worth some £1 billion.
Printing.com has three routes to market: Franchise Stores, Bolt-on Franchises
and Company owned Stores.
This information is provided by RNS
The company news service from the London Stock Exchange