Paul Philbrick: Managing Print Finance in 2025

Can you introduce us to yourself and how you came to be part of the Close Brothers print team?

I joined Close Brothers 25 years ago as an area sales manager from the Bank of Scotland. Since then, I have been financing printing presses for customers across the UK. Over that time, I have progressed through the organisation – always in sales roles – to become the managing director of the print team.

There are a lot of challenges currently facing businesses regarding costs. What impacts and difficulties have you seen in the industry?

We've seen significant cost increases over the last few years, ranging from energy to raw materials, which has really impacted customers’ bottom lines, and it’s taken time for them to adapt to the changes in cash flow and profitability.

Our door has always been open to help people transition through these changes as things return to normal and they find a level playing field again. We’ve seen many firms investing in new technology and equipment, with the aim of saving money in the medium to long term.

How would you suggest printers change course or remain positive despite mounting pressures?

As we all know, the internet changed the world of print, impacting our industry quite heavily, from magazine printing runs being reduced to general print runs coming down. However, there is still a demand for print, albeit more for short runs or fast turnarounds. This is good for our industry because it has meant that a lot of the work remains in our country and tends to have a higher ticket price and better margins.

The main thing is to talk to people like ourselves to understand the real-world impact that investment can make to your business. If you investigate the possibilities, there should be some level of upside for your business.

What changes and differences are you seeing regarding mergers, acquisitions, and purchases of print businesses?

Our industry is still consolidating in a bid to manage costs. As a result of that, the companies that remain are stronger and are able to invest in new equipment and new technologies as they become available.

We, along with our colleagues from Close Brothers Invoice Finance, have been involved in several transactions over the years to facilitate mergers, acquisitions, or management buyouts. These transactions can take a while, but it's always worth getting us involved at an early stage to see the lie of the land.

As the leadership of the print sector matures, many people will also start to look for avenues to exit their business and attract the most value for it.  We often get asked by customers if we know anybody that wants to sell or buy, and are happy to put people in touch with one another.

What advice would you give to those looking to purchase or sell a business in the current financial climate?

The main thing is to do your homework and due diligence. You should test and flex the model, and you shouldn't be afraid to get third parties involved who will help lift the drains and have a detailed look at the proposition. Additionally, make sure the acquisition is properly funded – that is where we can help.

What are some sustainable ways to raise capital?

As I mentioned, we work very closely with our invoice finance colleagues, and these deals tend to be transacted by way of some cash coming in – for example, by refinancing the assets in both businesses and looking at invoice finance lines. We also have use of the Growth Guarantee Scheme that could also help facilitate the more challenging transactions.

Whether it's looking at new equipment or talking about a potential buyout or buy in, the door's always open and having a conversation early on tends to lead to better outcomes as you explore the art of the possible.