News

Simon Biltcliffe- Webmart - 07 October 2008

Couple of quotes to put in context of Wyndham's current predicament

"At a press conference , Prime Minister Geir Haarde stated that the banks had collectively agreed to "sell their foreign assets and decrease their activity abroad" to facilitate a rescue plan by the government"

and more anecdotally, from an accountant I know:

"I've been talking to a client this morning who has tried to pay a bill from an Icelandic bank account and cannot !!!! All Icelandic a/cs outside Iceland have been frozen \(ironic)."

no one knows what will happen now, but it's clearly not on the positive side of change.

:-\(

Simon Biltcliffe

MD

WEBMART

\( with bank accounts in the UK, Ireland, Sweden and Spain!)

Paul Samuels - 07 October 2008

The economic climate is hitting a lot of people very hard, this difficult situation that Wyndham currently find them selves in through no fault of their own, could greatly effect the people it employs and the industry as a whole.

I find it a great shame that Simon seemingly finds the plight of Wyndham a subject a subject of amusement. As a direct competitor of Wyndham we find no pleasure in the situation and hope that a successful resolution is found

We can only hope that people get behind the real companies in this industry who invest in both people and machinery.

IAN MCCORD - 07 October 2008

Paul Samuels I cannot see how you can take from Simon Biltcliffe's remarks that he finds it amusing.

It is true that Iceland is in deep trouble - I believe Simon when he says that that his client cannot pay his bill from an Icelandic bank. If that bill is due to Webmart I'm sure Mr B won't be laughing.

So, stick the facts - Iceland is in trouble because their banks are many times bigger than their economy and this time the Icelandic government cant bail them out. An Icelandic investor owns Wyndeham - that must be a cause for concern to all employees, investors and customers.

Simon Biltcliffe- Webmart - 07 October 2008

I find it neither amusing or anything other than bad news for the print industry, customers or the people who work there.

There are rumours of an management buy-out and that is the best way forward if they can get the support of suppliers.The investors are seemingly powerless to decide where it is going. It's getting to the end game now very quickly.

I shall not respond to the meaningless last sentence.

Simon Biltcliffe

MD

WEBMART

Grey Beard - 07 October 2008

I feel very sorry for everyone and Wyndham and anyone else in a similar predicament, it must be a very worrying time.

I have used Wyndham's Maldon facilities and can say that they have some excellent people and very good kit, I hope they can find the right sort of investment to secure their future. I am sure that Wyndham felt they were doing the best thing by accepting Icelandic investment and could not have foreseen this crisis.

I feel I must comment on Mr Samuels last sentence, check your history, for many years Wyndham used "print management companies" as part of it's sales force, nothing wrong with that but they were not as professional nor did they have Mr Bitcliffe's integrity.

I have been in this industry for a very long time and the real issue in this industry, come rain or shine is that there will always be one or two printers, in a particular sector driving down prices by selling below true cost for long periods of time. I know, it's called competition but competing against these companies, no matter how efficient you are, reduces everyone's margins and makes the return on capital very poor. So guess what, the investment goes somewhere else with a higher return or comes at a very high price and the spiral continues downwards.

Ben Debus - 07 October 2008

Wyndeham do not deserve this, whatever criticism there may be of the management or not, the fact is the Icelandic Banking crises is to blame, much as the UK economy has brought Bradford and Bingley et al to the brink.

As an employee both pre and post Wyndeham ownership for the last umpteen years, I have seen all the peaks and troughs within this ever fluxing industry, but I don't remember it ever being this bad.

I don't profess to be one of the money people, but in my role, I have observed continuously the way prices have been driven down and down, both by publishers and rival printers undercutting the base rate so much you can't compete. I know that in the past when re-tendering for an account, we have had to reduce prices 10-40% just to stand a chance of retaining the account, bearing in mind that's reducing the prices that may already be 3 years old, it's no wonder base costs are so low.

I think it inevitable that there will be further casulties, I just hope that given the mainly modern equipement, ability to produce quality products and the entusiastic staff, will persuade any future investors to help Wyndeham survive this crises and keep the competion healthy, otherwise, only a few mega printers will survive with the ultimate result. No competition = no choice = higher prices eventualy.

Please everyone, spare a thought for the very worried employees and their families of Wyndeham at this time by keeping any postings above board and contructive, it's not a platform for sniping.

Simon - Bank Accounts - Bradford and Bingley, HBOS and Alliance & Leicester !!!!! \(Still trying to keep a sense of humour)

Daniel Levi - 08 October 2008

[removed on request of author]

Mr Economics - 08 October 2008

Wyndehams Comments - Pre-Landsbanki Disaster.

Commenting on today's news Paul Utting, Chief Executive, Wyndeham Press Group said:

"The situation in global credit markets has had an effect on Glitnir as it has on banks around the world. However, Wyndeham's main bank Landsbanki is a strongly capitalised institution with considerable liquidity and a strong credit rating, and Baugur remains a business with an impressive portfolio of investments. For us it's very much business as usual and our focus remains meeting the ongoing requirements of our customers."

And then days later this happens! You know it's bad news when Landsbanki gets mentioned on the BBC as Major news

Speaking from the inside out I can tell you the mood in the Wyndeham camp is not a good one.

Working night shifts has now never looked so dark, and the mood in the camp is not one of songs around the camp fire.

Redundancies are a formality now, it's the knock on that's going to be most worrying, publishers, supply chains, ink manufacturers, paper merchants, it's going to be a big ripple in a small pond. I am also not sure what to make of Mr Ben Debus's 'contributions' here either? How can you analagise the situation by stating the lack of competition will lead to price increases etc. The UK print industry in this sector has for the last ten years been dominated by the big hitters, downsizing, consolidation and buy-outs are what have reduced choice for the publishing houses.

I'm just surprised that so far the publishing houses that feed the presses at Wyndehams haven't given out a statement. If Wyndehams has no funding behind it \(and it seems the Icelandic government will quite rightly be securing the future financially of it's people - not Wyndehams Employees) then how are they going to afford to move forward by paying suppliers - when the ink drys up and the presses stop it'll be a dark day for print.

And if anyones under any illusion you can check the financial times, the bbc website or the following link - if you're listening Mr Utting, it might be a good time to develop some understanding of who it is that's investing in the company you run and financially where they stand before releasing a statement that will in a matter of days leave you looking a little naive to say the least.

http://www.silobreaker.com/DocumentReader.aspx?Item=5_911083787

Jack Sheperd - 08 October 2008

I refer everybody to my earlier statement about Iceland and Landisbanki.

But being right does not make it better for everybody.

What Paul Uttings should do know is talk to St Ives it is probably the best fit.

Wyndeham's bankers were Landisbanki and all UK accounts have been frozen. So speed is of the essence.

Daniel Levi - 08 October 2008

Good point Mr Sheperd, but talking to St Ives may only be enough to salvage the print arm, who's going to mop up the pre-press section of the company, FMG?

Simon Biltcliffe- Webmart - 09 October 2008

we would be interested in talking with the non-metal side of the business. We have had some big contract wins - not that we shout about these in the trade press- and are growing the pre-press, CSR & account management side to keep ahead of the game. Please feel free anyone to get in touch Simon Biltcliffe MD WEBMART Ltd simon.biltcliffe@webmartUKcom