Following a number of years of losses, Roto Smeets Group B.V. (RSG) has moved back into the black. Based on the preliminary annual results for 2015, RSG made a profit of € 0.3 million compared with a loss of € 16.2 million in 2014. The annual report containing the definitive figures will be published within a few weeks.
Joost de Haas, CEO of RSG: “We have four years of substantial restructuring behind us, yet in the same period we have increased our productivity and strengthened our non-print activities. Thanks to all these efforts we’re now able to show a modest profit once more. However, we will have to continue to adapt to changes in the market and consistently improve our performance because the graphics market remains challenging and extremely competitive.”
RSG once again adapted its capacity in 2015 in response to the declining demand for graphics products. In addition to ceasing some of its activities in the sheetfed offset division and selling off others, it reduced capacity at Roto Smeets Weert and closed down De Wit Binders in the spring of 2015. A large part of these binding capacity has been transferred to Roto Smeets Deventer.
Since the market for high-volume publications and catalogues in the graphics industry is expected to decline further, the group has spent the past few months investigating whether the capacity at its rotogravure printing plant Roto Smeets Etten in Etten-Leur should be partially or completely reduced. The decision depended on whether it would be possible to accommodate the current order portfolio at the other RSG plants. The investigation revealed that reallocation would have a positive effect on the capacity utilisation levels at the other RSG facilities. Therefore, it is not justified to keep the Etten-Leur facility open so this site will close as the end of 2016.
Joost de Haas, CEO of RSG: “All these restructuring programmes have meant that we have had to bid farewell to many colleagues. The reason we are announcing the closure of Etten-Leur now is related to the Dutch Work and Security Act. As of 1 July 2016, the dispensation scheme for the graphics industry will no longer apply and this will affect the RSG social plan. Announcing this restructuring programme now enables RSG to still execute it in a socially responsible manner. The RSG social plan is aimed at helping employees to find new work and use the period in between constructively. The Dutch Work and Security Act states that transitional compensation must be paid out as a lump sum but that is no longer affordable for employers (especially those in declining sectors).”
Due to the further downsizing of the print division, the management span of control will be further reduced. Since three printing facilities will remain, it is logical to merge all three into a single division. This will enable the integration of the indirect roles at the printing plants as well as a number of holding roles, which will generate further cost savings.
As a result of this integration, approximately 37 further jobs will be lost in addition to those of the 90 Roto Smeets Etten employees. The intention is for this integrated print division to fall under the responsibility of Ronald van Rossum, the current divisional director of Publishing Services.
International growth for MPG
Within the Marketing Communications division, investment has been made in product development and international expansion. After setting up its own photo/video studio, MPG (formerly MediaPartners Groep) now ranks among the larger video producing companies in the Netherlands. In addition, MPG has opened an office in New York to serve Ahold USA as its first overseas customer by developing ‘Savory’ magazine / online (comparable with Albert Heijn’s ‘Allerhande’ publication in the Netherlands). The magazine is now distributed via Stop & Shop and Giant stores and almost immediately won direct the American Food Marketing Institute’s Gold Plate Award in the USA.
Results for 2015
RSG is still largely dependent on the print market. Due to the sustained decline in volumes, the reduction in capacity at the printing plants and the pressure on prices, RSG generated 12% less revenue and 10% less added value in 2015. However, by executing a thorough cost-management strategy, RSG has succeeded in significantly reducing the operating and labour costs.
|(x EUR million)||
|Operating profit (EBIT)||2.9||– 5.9||*|
|Net result||0.3||– 16.2||*|
|Cash flow from operational activities||8.3||8.6||97|
|Employees (FTE) at year-end||1,028||1,280||80|
For more information on the final results of 2015, we refer to the annual report that will be published within a few weeks.
Deventer, 14 April 2016
Roto Smeets Group B.V.
For more information:
Drs. J.A. de Haas MBA
Tel: +31 570 694908
About Roto Smeets Group
Roto Smeets Group B.V. is one of the leading printing companies in Western Europe.
The companies of Roto Smeets Group specialize in the realization of multimedia communication productions. The companies devote themselves to create value in the communication process of enterprises, institutions and organizations with their audiences. They do this by adding a wide range of services that add value in all stages of this process. For more information please visit www.rotosmeetsgroup.com.
Hunneperkade 4, 7418 BT Deventer, +31 570 69 49 00, email@example.com, www.rotosmeetsgroup.com