News
TPF Group sells majority stake to venture capital firm
TPF Group has sold a majority stake in its business to venture capital firm Thames Valley Capital (TVC) for an undisclosed amount.
The deal, which was announced today, follows a period of review at the Northampton-based print manager whereby the management team had identified "a need to focus the business around its growth strategies and had sought additional external funding to support this".
Steve Brundle, chief executive of TPF Group, said: "This represents an exciting development for our business, as we can now build upon our fantastic success to date and realise the benefits from an excellent pipeline of new business opportunities across our print management and marketing services divisions."
Director of TVC, Bruce Gordon, added: "We are very excited about working with TPF and have been very impressed by the management team and their vision for the business moving forward. We are also impressed by the excellent customer base and the high regard that clients hold the company in."
Thames Valley Capital (TVC) advises the TV1 fund – a £7.5m fund targeting "early-stage, high-growth potential companies".
According to the firm's website, "TVC draws on the strong track record and experience of its founders to invest in and assist entrepreneurs to grow their businesses through to profitable exits".
Brundle: 'Exciting development'
Comments
Robin Prepacks - 12 January 2010
TVC incorporated on 27 May 2008, yet to file accounts.
Reflex Blue - 12 January 2010
What was the alternative?
Closure probably.
As for the price - any advances on £1?
Andy Hill - 12 January 2010
Does anyone know what is to happen to the manufacturing at Northampton?
If it has " sold a majority stake in the "print management and marketing services divisions."
Buddy 'ell - 12 January 2010
Nine Lives Brundell had a few small financial issues as I understand it.
One was a petition for wind up from Wyndham possibly for £85k which was actionable from 4th December
The next was £1.2m owed to HMRC which was subject to morretorium for the 16th December 'pending deal', probably helped by softened approach by HMRC following pre budget.
SB himself announced that although TPF manufacturing was busy the margin was negative (or words to that effect Nov 09). This may have been the result of margin reductions as clients were taken on to run at a loss, to offset profit levels against a large previous account.
A rumour also claimed an inclusion into contract with a PE that all manufacturing was to be maintained solely within TPF manufacturing should the PM element be sold to another PM.
I guess if you take a cynical view you could ask, what or where TVC came from, it would seem it has picked up the best slice of the pie and removed the manufacturing 'risk', which if the rumours were true would make the business appear profitable. The other piece is how much of the debt owed to suppliers and HMRC been lost within what would seem to be the manufacturing site and how long will it survive.
In my opinion this coul well be a pre pack without being one, the best piece of the business has been cherry picked to divorce itself from real life within the group.
One could be concerned as to the effects ongoing to the supporting clients, somehow they could be in line for price increases which would be logical and probably justified (if only to bring them back to the real world). Contractually this move could get TPF off the hook, yet wonder if its deserved. Its a surprise that the PM invloved wasn't DSR, however this could be read that SB has merely created a vehicle to buy it back.
Voice Of Reason - 12 January 2010
Brilliant!
Reflex Blue - 12 January 2010
Seperate the two business - profitable PM in one limited company, loss-making manufacturing in another.
Move contracts in an orderly fashion to the PM company and what you have done is effectively ring-fence them from the print bsuiness closing.
And who says DSR aren't involved?
tony haigh - 12 January 2010
Steves brother Martin required for a speedy exit i thinks.
Broke Printer - 12 January 2010
TVC - Timed Very Carefuly!
TPF - Tried Promised Failed!
Edna Bag - 12 January 2010
Buddy'ell, you can't surely think thats possible? That Uncle Steve would be involved in such a plan, he's salt of the earth and 'onest as the day is long. The only thing he has been guilty of is believing his own words and his clients along with him. Courage in his conviction.
Never understood why Sky left him, I doubt he had done nothing wrong. Still those nice TVC people believe him and thats good enough for me.
SB deserves everything he has coming to him and I'm sure many will agree.
Matthew Parker - 12 January 2010
It is vital for procurement teams to check on the financial standing of print management companies as much as printers! I have heard various other names that do not score well on credit ratings. Having said that, there are also plenty of well structured and financially viable PM companies around.
Matthew Parker
www.printandprocurement.com
The Voice of Reason - 12 January 2010
I am concerned that someone is impersonating me.
Mathew please look into it for me.
Mick Hart - 12 January 2010
On the face of it TPF has 'mortgaged' its assets with an investment fund. It could have been worse, they could have pre-packed, or simply closed down and run for it, with job losses for employees and monetary losses for suppliers either way. If the 'fund' is above board (and it appears to be, if a bit new) they will have checked out the sums before committing client investment, and at the end of the day, the risk is now theirs. If there were prior links between TPF and the 'fund' one might be a little concerned, but I can't see any at first glance.
steve walsh - 12 January 2010
For what's been on the cards for quite sometime this is not surprising news. Too many people here just want TPF to fail, however, surley moving forward with a sound investment funding securing over 300 jobs is great news!!
For bloggers with too much time on their hand why not try www.ivegotnothingbettertodo.com
Edna Bag - 12 January 2010
Steve[quote user="steve walsh"]
For what's been on the cards for quite sometime this is not surprising news. Too many people here just want TPF to fail, however, surley moving forward with a sound investment funding securing over 300 jobs is great news!! For bloggers with too much time on their hand why not try www.ivegotnothingbettertodo.com
[/quote]Steve, how did they get into the mess in the first place and what stops it happening again? SB stated he was effectively being a silly fool and as a result was looking at redundancies, he has racked up significant bills probably with many including HMRC, the funding only works.
The deal only funds the PM and marketing side of the business, does it really save 300 jobs, lets see what happens with the manufacturing side.
to quote SB
''This represents an exciting development for our business, as we can now build upon our fantastic success to date and realise the benefits from an excellent pipeline of new business opportunities across our print management and marketing services divisions."
Can't see any mention of the manufacturing in this can you?
Perhaps you may want to explain how an operation that claims to save a client 30-40% on its current costs is good for the industry, I refer you again to SB comment from last year " All of our factories are exceptionally full, but the margins are very tight and it's difficult turning a profit''.
So whats going to change and who's going to lose? If SB's big plan is to carry on offering the old deals just who is it good for.
The Mighty Wind - 12 January 2010
This sounds like a case of kinky books rather than kinky boots [its a Northampton thing]. Still it saves jobs so thats all right then. Anyone know if you can prepack a country? Loved the comment on how the PM is doing well and customers are saving 30-40% but the manufacturing side cannot make a profit.
The Mighty Wind - 12 January 2010
[quote user="steve walsh"]Too many people here just want TPF to fail[/quote]
no I think this was caused by too many people wanting their bill paid steve
Edna Bag - 12 January 2010
Someones been 'avin' it large
Mick Hart - 13 January 2010
[quote user="steve walsh"]
For what's been on the cards for quite sometime this is not surprising news. Too many people here just want TPF to fail, however, surley moving forward with a sound investment funding securing over 300 jobs is great news!! [/quote]
Fine, if it does secure all 300 jobs including manufacturing, no probs, but if any move is made away from manufacturing, and toward brokerage in order to meet financial committment (and we don't know what that might be) then not so fine - taking capacity out of the market at the same time as driving down price? As I said, the 'fund' will have done their sums and be taking on the risk, I'm glad my pension isn't tied in with that particular investment - unless they know something we don't.
Philip Wright - 13 January 2010
Is this the same TPF that messed up the Vodafone printing contract a few years ago?
Geoff Williams - 13 January 2010
Have looked at TVC and looks like a small fund invester, however two things come to mind:-
1) TVC stated investment policy is to invest 50k - 250k in intial funding with upto £500k in total funding, which when you only have a £7.5m fund does seem prudent. How is that going to match with TPF current problems, a simple look at any online credit checking will show that TPF has £224,286 worth of CCJ's so any intial investment will only pay those off and they are only the debts that we know about in the public domain.
2) Mr Brundle withdrew the following dividends:- 2004 - £400k, 2005-£600k, 2006-£2m, 2007-£2,666m 2008/9 not filed yet. So he has the cash himself to sort these problems infact he probably has more cash than the TVC fund!.
Only facts here not fantasy.
Edna Bag - 13 January 2010
Makes for a nice debt don't and thats only the ones showing, not sure how this affects the HMRC pile. does it mean PM will settle its bill and leave the rest with manufacturing. Looks like SB has done one last smooze, the silver tongued devil, he must have taught Tony Blair all he knew.
'Not A Doctor' (NDCT) - 13 January 2010
[quote user="Geoff Williams"]Mr Brundle withdrew the following dividends:- 2004 - £400k, 2005-£600k, 2006-£2m, 2007-£2,666m 2008/9 not filed yet.[/quote]
Makes the bankers' bonuses look a bit modest, doesn't it? Unlike RBS, the taxpayer will not be bailing this one out. (Well, not directly)
[edited]
'Not A Doctor' (NDCT) - 13 January 2010
Is there still tax relief for investmient in venture capital funds?
The Voice of Reason - 13 January 2010
[quote user="The Mighty Wind"]
Anyone know if you can prepack a country?
[/quote]
I think Gordon Brown is looking into it as we speak.
Robin Prepacks - 13 January 2010
New Company set up July 2009 called Print Investment Limited.
Directors Mr & Mrs Brundle.
Broke Printer - 13 January 2010
P I L - didn`t Jonny Rotten front that up ?
tony haigh - 13 January 2010
youre showing your age skintprint!
Joseph Carlow - 13 January 2010
This all seems very strange ...
1. TVC, a newly-formed investment fund, and a very small one at that, decides to invest hundreds of thousands of pounds into a shrinking print company that appears to be in need of £millions. Let's see what filings hit Companies House and whether this new money is in the form of a loan. If it is then it will rank second to TPF's principal lender, Eurofactor.
2. TVC's investment approach is geared towards early stage and high-growth businesses. TPF doesn't seem to fall into either of those categories. It's a turnround and restructuring situation for heaven's sake.
3. Given the huge dividends that SB has taken in recent years, you would have thought he would have ploughed some of this back into his group in order to support its cash flow issues and get HMRC and Wyndeham off his back. Also, he would be able to retain control of the group which he has now lost for the sake of a relatively small amount.
4. Normally, when a PE house takes a large stake in a business, it appoints a nominee director to the Board to monitor its investment. No new directors have been filed at TPF as of today's date, however, this may change.
5. TPF Group doesn't actually exist as a legal entity at Companies House. The ultimate holding company is The Print Factory \(London) 1991 Limited - thank goodness they don't trade with that name. This company owns the investments in the likes of Reelform, NPM, McCorquodale and DSR; the latter being a 51% shareholding only. Therefore, it seems all of the group's trading divisions fall under this holding company. That being the case, then SB cannot break up the group into discreet parts and pocket any of the proceeds. Any consideration paid for a group company would have to be paid to the holding company and the cash would have to be used to pay down debt. I cannot believe any dividends would have been paid in 2008/09 or this current year.
Overall, I tend to agree with NDCT's conspiracy theory analysis. All is not what it seems here.
JC
The Diffuser - 13 January 2010
i heard that Mr B used to be a copper!!
Buddy 'ell - 13 January 2010
JC where you bin hiding missed you.
Yesterdays annoucement struggles too match todays. Yesterday was focussed on the buy out of PM and Marketing division with little being said about the manufacturing side of the business, which SB admitted was in trouble in September, little to suggest this had improved its probably just got worse.
The PM side of the business was always likely to look better, its possible that PO's were used internally as much as externally for print and services being bought. Its unlikely the low level margins would have been shown as buying and selling costs remain separate. It guess its possible for margin to be moved between TPF man. and PM which would show a profit one side and loss the other.
Its odd how Gordon from TVC can say the manufacturing is not venture attractive and yet as a whole it is, surely the bulk of debt sits on the Manufacturing side.
What is there to stop TPF selling the PM division to form a new 'co', which becomes separate from rest of group, and the cash paid went to settle CCJ and HMRC, would cash paid in need to cover any more than that?.
Agree all is not what it seems, TVC's statement today clouds rather than clears the issue.
The Mighty Wind - 13 January 2010
JC's opening comment is the most apt.........why would a venture capitalist invest thousands in a company that needs millions? The focus of both is on the PM side.........there are very pressing debts and it is doubtful that the funding is enough for them and besides that is not really what venture capitalists do [repay debts]...........all very odd but time will tell
Joseph Carlow - 13 January 2010
Buddy 'ell,
I haven't been hidding, just sulking since PW censored most of my factual commentary on DSiCMM back in November. Anyway, I'm over that hissyfit and looking forward to the industry changes in 2010. Let's rock ...
JC
Chas Foulsham - 13 January 2010
[edited]
'Not A Doctor' (NDCT) - 13 January 2010
Great to see you back, JC.
btw - what did happen to the Swiss Family Yolande?
Joseph Carlow - 14 January 2010
NDCT,
It seems Swiss Post was too busy acquiring Microgen's billing and statement printing services division towards the end of last year. That deal obviously slipped under PW's radar.
And the Dagenham gang continue to consult, create, print and deliver, or so their web site says.
JC
'Not A Doctor' (NDCT) - 14 January 2010
Buddy hell JC, 'they' must be following you around. I see my first comment on this thread has now been clipped !
I was only speculating on where the dividends might have been invested - must all be in cash under the bed.
Buddy 'ell - 14 January 2010
Ok so if the editing is starting again, was it too close for comfort. Do I get a feeling this is the tip of an iceberg.
Chas Foulsham - 14 January 2010
Would love to know why they edited my single line.... perhaps me thinks they protesteth too much!
Edna Bag - 14 January 2010
Chaz depends wot u writ in the one line, think there are some sensitive souls connected to this company now.
'Not A Doctor' (NDCT) - 14 January 2010
Just putting 2+2 together, who was it on here a few weeks ago said they had £5 million to invest in printing companies?
No, couldn't be, surely not.....?
The Mighty Wind - 14 January 2010
[quote user="'Not A Doctor' (NDCT)"]
Just putting 2+2 together, who was it on here a few weeks ago said they had £5 million to invest in printing companies?
No, couldn't be, surely not.....?
[/quote]
well he was waiting for something?
Edna Bag - 14 January 2010
'e was easily impressed and also quite 'appy to shout about it. Don't think he would 'ave bin able to help himself by not bloggin' it
Hairy Ar*ed Printer - 15 January 2010
an empire built on sand is not a good thing to buy.
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