Printer manufacturer Linx Printing Technologies Plc’s pressured year end results have caused it to release its preliminary results to shareholders early. Although turnover was up 14% at UKP11.9m, margins depressed by marketing and launch costs for the company’s 6000 printer saw net profits fall 7% to UKP989m with profits before tax plunging 12.9% to UKP1.4m. The largest problem seemed to be demographic. International revenues flourished, with North America growing 38.4% and the rest of the world growing 168.2%, but continental Europe fell 4.5% and UK sales slipped by 15.4%. Other troubles for Linx include a 38.4% increase in stocks, and net operating expenses climbing 16.4%. Linx is taking action to get its UK sales and marketing strategy back on track following the departure of John Shed as sales director two months ago. Shed was described as ‘resting’ by a source close to the company yesterday, who said that Linx had needed someone with a little more public company experience that’s a gentle way to put it. In May, Linx brought in John Cetti, ex-general manager of its largest European competitor Videojet, to fill the gap. Cetti will overhaul strategy, which could imply a reshuffle of Linx’s 11-strong distributor base in Europe, (it sells direct to UK customers). Positive points for Linx include an increased research and development spend, up to 8.9% of revenue, and a strong cash position of UKP2.1m – up from UKP1.6m last year. The dividend is 1.73 pence, giving a total of 2.1 pence since its flotation.
