Real Digital International cuts pre-tax loss as sales continue to grow

Digital print and production company Real Digital International has reported a turnover of 11.1m for the year ended 31 December 2009, as it cut its pre-tax loss from 2.2m to 473,904.

The Croydon-based company's turnover was up 27.5% from £8.7m a year earlier, while operating profit stood at £40,147, up from a loss of £1.4m in 2008.

Managing director David Laybourne said the pre-tax loss figure showed "a huge turnaround" from the previous year's pre-tax loss.

He said: "2009 was the last year of the start-up phase for the business, which required substantial investment in R&D, premises and equipment. The bulk of this loss relates to depreciation and non-cash items, and our cashflow is positive."

He added that the company had posted a net profit in eight out of the past nine months, including the first quarter of 2010. 

"We're delighted with our achievements to date and are on track to fulfil our objectives of profit throughout 2010 and of producing some great work for our clients."

Real Digital International has recorded sales growth in every quarter since it was founded in 2005, with further growth expected during 2010.

According to the directors' report, contract wins set to go live in mid-2010 will add 20% to the company's turnover.

The company said first-quarter sales in 2010 were up 28% on 2009 and that projected sales for the rest of the year stood at £14m.

Headcount at the business has increased by 11% from 95 to 106 in 2009, with plans for similar expansion over the course of the next year.

Chairman Peter Rivett said: "Our strong performance has been delivered from a significant uplift in the use of our specialist digital print technology."

The company has become increasingly active in the financial, transpromo and point of sale sectors, which Rivett said provided "highly flexible and dynamic programmes that can revolutionise the time to market, cost models and more staid production formats of conventional production".

He added: "2010 will see us expand our regional presence to provide an even higher level of service to our clients.

"Having opened our first regional office in Leeds last year, there are plans to expand further with another strategically located office scheduled to open in May."