Paragon, owner of UK and Ireland multichannel business products operator OfficeTeam Group (OTG), has published its results for the 12 months ended 30 June 2022.
The annual report shows that OTG’s sales for the year were €147 million (£130 million), up from €99 million in FY2021. The main driver of that increase was the acquisition of Office Depot UK & Ireland’s contract unit and other assets, which closed in two separate transactions in June and September 2021.
The acquired business added revenue of €30 million and EBITDA of €108,000 during the 2022 financial year. On an annualised basis, that represented estimated sales of €47.4 million and EBITDA of €171,000 – an EBITDA margin of 0.36%. The annual numbers were the same as those that Paragon reported in its FY2021 accounts.
In the 2022 financial year, Paragon booked a gain on acquisition related to Office Depot of €6 million. This was in addition to a gain of €7.6 million reported in the 2021 accounts.
Paragon didn’t break out the EBITDA result for OTG. However, the combined result for OTG, Paragon Graphic Services and its Growth Businesses was an underlying EBITDA loss of €4.4 million. This was an improvement on the loss of €8 million reported 12 months earlier.
In his statement in the most recent accounts, Paragon Chairman Paddy Crean highlighted the significant investments made in OTG’s delivery platforms, which will allow it to enhance its online and e-commerce services with customers.
In his commentary, OTG CEO Andrew Jones confirmed the £2 million investment in the SmartPad platform and the ambition to be able to offer customers more than one million products in 2023 – before tripling the offer in 2024. This, he added, should help OTG grow revenue organically to £170 million.
Later this year, the plan is to combine the Office Depot and OfficeTeam contract businesses into a single brand. This, said Jones, would provide a stronger positioning in this segment.