Security products underpin the future for printer Paragon

The Castleford-based printer, which is part of the pan-European Paragon Group, has stepped up its investment in research and development this year to stay ahead of its competitors.

It has re-designed the way credit and debit card PINs are sent through the post – replacing peel and scratch panels with stretch code panels – which it said is easier to use because it does not leave a messy residue behind once the panel is removed.

David Monks, sales and marketing director for Paragon UK, said: “We see our future in innovating new products and improving processes. We have got to keep taking it to another level because fraudsters are always trying to combat security features.”

The security products are produced at its Sunderland site and sold by teams at its Castleford headquarters. Paragon also has sites in Rotherham and Accrington and used to have one in Bradford.

The team is also working on new ways of using pressure seals, a technique it invented more than 20 years ago, which is widely used to seal payslips. The company wants to expand the technology into other areas, for example in the way people vote.

Mr Monks said: “As we know, print volumes are in decline. At some point we’ll find that the price of a product can only go so low. Our job is to look at how to innovate products we already have to make them more usable with added value to the customers who use them.”

Paragon has entered a new era. The firm, which employs 305 people, went through an aggressive acquisition strategy during the last decade, buying more than 12 companies.

However, after slipping to a £233,000 pre-tax loss in 2010, despite increasing turnover by 11 per cent to £45m, and losing its main director in April this year, the company now has a new board and a new strategy.

The company works with two different types of clients. About 42 per cent of business involves printing stationery and marketing materials for direct clients including Accor Group, Pendragon, and Government departments. The majority of its clients, however, are trade customers, such as large print management companies and outsourcing firms.

Following the departure of group sales and marketing director Iain Black, the company appointed three new directors: Mr Monks, managing director Jason Cicero, and senior purchasing manager Tony Green.

Under the new team, the two sides of the business – direct customers and trade customers – were brought together to manage larger integrated contracts.

Mr Monks said Paragon was back in profit again and, although he expected to see more printing firms going out of business in the next five years, he was optimistic about Paragon’s future.

The company wants to create centres of printing excellence across the UK. It has already moved some jobs from Castleford to Sunderland and closed down its Bradford site, moving those jobs to Castleford. Mr Monks insisted the company had made no redundancies during the reorganisation but said some roles had changed.

He added: “I think what will be exciting going forward is the consolidation that goes on in our industry. Strong and good service providers like Paragon will by nature be stronger in the outcome. For us the next 12 months is making sure we do what we do really well and that it’s recognised and customers get an excellent level of service. But it’s also opening up new doors that we can explore.”