“Established some 50 years ago, CEM successfully targets the high-end of the fabric and wallpaper market and achieves good sales margins through its reputation for quality service, flexibility and on-time delivery”
CEM Press Ltd (‘CEM’) is a leading international manufacturer of fabric and wallpaper pattern books. Established some 50 years ago, the company successfully targets the high-end of the fabric and wallpaper market and achieves good sales margins through its reputation for quality service, flexibility and on-time delivery.
Typically, CEM’s pattern books retail for around £30 per book, with orders ranging from between 1,000 and 3,000 books. Textile and wallpaper companies supply the samples to CEM to create each pattern book. These companies then sell the pattern books onto their retail customers, who use them to promote their product range.
CEM’s business model incorporates a number of key features, which have been instrumental to its success:
- A highly capable and ambitious management team, who are supported by loyal and experienced staff;
- A state-of-the-art manufacturing facility, with modern plant and equipment.
- Significant in-house engineering experience;
- In-house printing and design facilities – an area which is outsourced by all of CEM’s competitors;
- A high quality, stable and blue chip customer base;
- A reputation for excellent service, responsiveness and flexibility, which allows CEM to command good margins.
CEM was acquired on the basis of past financial performance and its underlying profit before tax (PBT). Based on new improvements in operational performance and a cost reduction programme, CEM forecasts that its profit before tax (PBT) will increase by some 65% between 2012 and 2016.