Adare Announces Financial Restructure Multi-Million Investment
Monday, 18 May 2009
Despite current global economic challenges, Adare's business strategy is paying dividends as the company announces a fundamental restructuring of its financial facilities, makes a £multi-million investment in technology and confirms new client wins totalling more than £50million per annum - with a contract life value of over £120million.
The financial restructure takes Adare from an already strong trading position and strengthens the company's balance sheet significantly to support continued investment and growth.
Robert Whiteside, Chief Executive Officer of Adare, comments: "When we completed the SBO (secondary buy-out) of Adare in March 2006 our strategy was to develop world-class, end-to-end marketing and customer communications solutions that were aligned with the needs of our clients. To ensure our new proposition was market-leading we had to support it with the necessary investment in technology, kit, infrastructure and people - which we have done.
"Our strong relationship with HBOS since the SBO has been the basis for the development of the new improved financial arrangements. When we set off on this journey three years ago we knew we were going to need to change the shape and focus of the business, that the disposal of non-core assets was a key part of this [sale of Kall Kwik, Prontaprint, CJ Fallon and Darley Limited], and that consequently a restructuring of our facilities would be required.
"We have so far delivered to plan and the confidence shown by HBOS with the financial restructuring, aligned with our new business model, leaves us well positioned for continued long-term business growth and stability."
New Client Wins
Confidence in the business is high as, alongside the financial restructure, Adare has recently accumulated more than £50million per annum (£120million taking into account the contract life value) of new UK and pan-European contract wins. These include several long-term deals with Government bodies including Identity and Passport Service (IPS), hospitality and leisure companies such as Mitchell's and Butler's and Whitbread, some of the biggest names in the pharmaceutical industry, major retailers and various financial institutions including the recently announced contract win with Homeloan Management Limited (HML).
In addition, Adare's continued expansion into Europe has seen the establishment of an infrastructure which now boasts personnel in 16 locations across 11 countries, and which services around 12 major pan-European contracts for some of the worlds leading brands.
Whiteside comments: "These wins cement Adare's position as a serious contender within the marketing and customer communications arena not only in the UK but now also across Europe."
The company also continues to make strategic investments in order to align itself to client needs and deliver an all round, end-to-end, marketing and customer communications proposition.
At the front end, a programme of investment has resulted in the development of technology solutions, including Adare's own unique Starfish and MC² portals, which provide complete management of the marketing communications process for clients from creative, through data to delivery.
Both Starfish and MC2 are completely modular toolkits that combine elements such as work-flow, store profiling, campaign planning & management, online proofing of creative work, digital asset management, print sourcing (through P2, Adare's e-procurement system), fulfilment, distribution and real-time tracking for all marketing and POS collateral.
From a production perspective, a recently completed £2 million-plus capital investment programme includes the installation of three CMC intelligent enclosing machines, two Xerox Torino high speed highlight colour lasers and the latest in Emtex software at Adare's Strategic Communications Centre in Yorkshire. The new technology significantly improves capacity, speed, integrity and security of documents that are managed by Adare on behalf of its transactional communications clients.
Adare also opened an additional new 45,000sq.ft full service fulfilment operation last year which services the requirements of a large number of its retail, financial services and government clients.
Adare's recent business developments, including the financial restructure, are testament to the company's stability and robust model within the current challenging economic climate. Whiteside is confident and enthusiastic about the future of the business. He concludes: "We have steadfastly followed and executed our strategic business plan with success and are on the brink of achieving a number of additional key company goals. More new business wins and further investment is inevitable - watch this space."
Note to Editors:
- Adare provides data driven, multi-media Marketing and Customer Communications to leading European and global brands and operates in a range of industry sectors including financial services, public sector and retail.
- Current clients include HMRC, HBOS, Whitbread, Waitrose and IBM. Adare employs 800 people in 26 locations across the UK and Europe and has an annual turnover of around £125 million.
- 'Best Use of B2B Internet Technology' - European Retail Solutions Awards
- '2008 Print Management Award' - Quality in Print Awards
- 'Best Inclusive Design' - DBA 2008 Design Awards
- For more information, visit www.adare.com