Finsbury Green wins multimillion-dollar deal with NSW government

Finsbury Green has cemented its place as a major print manager by winning a NSW government contract worth up to $15 million to add to its $15 million VicGov deal.

The Department of Education and Communities (DEC) contract has just started and grants DEC two one-year options. Like the Victorian deal, Finsbury Green's role will be restricted to print management services; it will be unable to manufacture for the state government.

Finsbury Green, which has production sites in South Australia and Port Melbourne, said this would ensure "total independence throughout the print procurement process".

The company's Victorian government contract caused consternation from some quarters, including previous incumbent Stream Solutions, due to a perception that Finsbury's separate roles as both printer and print manager created a conflict of interest.

The print group said its commitment not to include its manufacturing facilities in the contract "ensures total independence throughout the print procurement process and Finsbury Green encourages companies that wish to discuss supply opportunities to make contact as soon as possible".

National environmental and technical manager Rod Wade told ProPrint the three-year NSW contract had been put out to tender in March and had attracted bids from five other companies.

It is thought there are five other suppliers on the government panel: Blue Star, E-Bisprint, Foxprint Solutions, Salmat and Stream Solutions.

Wade said "the most significant reason" for Finsbury Green's win was its online procurement application, Sourceit, which would allow print buyers to engage directly with suppliers during the quoting process.

Managing director Peter Orel said DEC was the first NSW super agency to appoint a print manager, after moving to a whole-of-government procurement strategy last year.

"Our solution is a great example of the flexibility, independence and value that Finsbury Green can deliver to DEC, which is achieved by consolidating and streamlining their print-related processes, and at the same time allowing complete transparency to both client and supplier throughout the print procurement process," he said.

Meanwhile, Finsbury Green reported a 10% fall in revenue and a 99% drop in profit after tax in its most recent ASIC filing for the 12 months to 30 June 2011.

Revenue declined from $45 million in 2009-10 to $40 million in 2010-11, while losses rose from $26,000 to $51,000.

Orel told ProPrint the ASIC filing didn't cover the whole of Finsbury Green's business, although he declined to say what percentage of its revenue could be found in the results.

"Finsbury Green Pty Ltd is one entity within the Finsbury Green group and, as such, the reported financial results of this one company does not provide a reasonable perspective of the group’s overall financial performance," he said.

Orel wouldn't say why Finsbury Green's balance sheet had worsened, although the directors' report noted "trading conditions were difficult with downwards pressure on margins".

He also wouldn't confirm if the results included the Victorian government contract.

Orel said Finsbury Green's management of the contract was going very well and had generated savings for Victoria.