St Ives points to struggling multimedia market

In its preliminary results, published today (16 October), the printing group said overall demand in its multimedia business fell by more than 10% in the 53 weeks to 3 August as sales of digital media grew at the expense of physical CDs and DVDs.

St Ives produces CD and DVD booklets and inlays, and a variety of specialist packaging, for music, movie and computer games publishers and producers.

Its customers include Sony Pictures, Universal Music, Universal Pictures and a range of large European disc duplicators.

St Ives said non-time sensitive printing had moved closer to disc production, mainly in Eastern Europe.

Chief executive Brian Edwards said it was no secret that sales of CD singles had "almost died", while sales of albums and the reissue of backlists was "subdued".

"As a market on its own, it's difficult to sustain," he added.

St Ives' turnover, before restructuring costs, provision releases and one-off items, rose 11% to £425m. Pre-tax profit increased by 14%, under the same conditions, to £27.6m.

The group occupies leading positions in the book, magazine and commercial printing markets.

At the end of the financial year, St Ives transferred its direct response and commercial printing business in Romford to its music and multimedia site in Crayford. The consolidation led to approximately 20 redundancies, and St Ives has retained the Romford site for warehousing.

St Ives has also ordered a new 12-unit perfecting sheetfed press for its multimedia business. This will be commissioned in the second half of the new financial year to replace older machines.

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