Positive Focus set for liquidation

Pre-press software distributor and integrator Positive Focus is set to be liquidated after becoming the latest supplier to the graphic arts industry to fall victim to the recession.

Managing director Ivor Dixon blamed the lack of available cash in the print sector over the past 12 months for the demise of the 32-year-old company.

He said: "Trading conditions are extremely tight, and even though most of our products show an excellent return on investment, will rapidly repay their cost, and therefore make their users more competitive, it appears that in many cases there is simply no funding for the initial investment required."

Dixon added that he expected the liquidity problems that have so badly afflicted the sector to continue through the early stages of the recovery, offering no respite in the short term for suppliers.

"We think this lack of free cash will continue to affect the market, so in the immediate short term we see no real prospect of an improvement in our fortunes," he said.

"It is therefore with great regret, after more than 30 years of working in this industry, that we have ceased trading with a view to liquidating the company immediately."

All six of the Middlesex-based company's staff have been made redundant, with liquidators set to be appointed following a meeting of creditors on 14 January.

However, despite having ceased trading, Dixon said that the company was attempting to ensure that "at least basic support" could continue on projects in progress.

"Liquidation is a pretty blunt and insensitive instrument," he added. "Once the insolvency practitioner takes control of the books, the directors cannot influence any payments, so, inevitably, there will be a handful of customers caught in the situation of having paid for something that we cannot now deliver, simply because we are not allowed to pay the supplier."

The company, which has been a significant player in workflow automation, said that nothing in its 32-year history compared to the past year's trading conditions.

"We started the original parent company 32 years ago, almost to the day, and we have seen many changes," said Dixon.

"Nothing quite compares with the present situation in terms of the depth of the cuts everyone is having to make, and the way it is affecting most market segments. I'm normally quite optimistic, but I don't think we shall be last to reach the end of the line."

Positive Focus is a UK and Ireland distributor for a raft of specialist software developers including ADAM, Apago, Callas, Kodak, DMP, Elpical, Fotoware, Global Graphics, HumanEyes, Iceni, LithoTechnics, Ultimate Technographics and XMPie.