Walstead Group: Preliminary 2025 financial results, update on ownership, and changes to senior management team

LONDON • 26 FEBRUARY 2026: Walstead, Europe’s largest commercial printing business, provides its preliminary unaudited financial results for the year ended 31 December 2025, and an update on various corporate matters.

FY25 preliminary financial results

Walstead delivered a strong improvement in profitability and cash generation in 2025, reflecting disciplined operational execution, effective cost management, and a continued focus on balance sheet strength. Adjusted EBITDA increased by 26.8% to €35.5 million (2024: €28.0 million).

Gross revenue declined by 10.4% to €484.7 million (2024: €540.7 million) with net revenue showing a similar decline of 10.1% to €318.0 million (2024: €353.6 million). The reduction in volumes primarily reflects the closure of Eurohueco in Barcelona, the Group’s only gravure printing site, in March 2025, and with a slowing in the structural declines in the retail advertising and publishing markets. Excluding the impact of Eurohueco, the gross and net revenue decline was 5.2%.

External net debt leverage at 31 December 2025 remained stable and healthy at 1.8x (2024: 1.8x). Alongside this, shareholder loan notes were restructured during the year, substantially reducing the amounts payable on these loan notes to €34.5 million (31 December 2024: €98.7 million). This resulted in overall net debt reducing by 34.6% to €97.9m, resulting in a significant strengthening of the Group’s balance sheet in the period. Liquidity was also strong, with year-end availability of €49.4 million.

An elevated level of exceptional costs of €29.6 million was incurred in the year, the majority of which related to the closure of Eurohueco which cost €16.3 million. However, taking account of the sale proceeds of the freehold property at Eurohueco, the net cost of the closure was €5.7 million. The other exceptional costs in the year included the temporary closure of Walstead UK’s facility in York to facilitate upgrades to its electrical and gas supplies, and the rightsizing of the Group’s facilities in Austria which involved the closure of the St. Pölten site.

Following the high level of investment that has been made across the Group in recent years, Walstead has a modernised and resilient asset base. This is reflected in the reduced level of capital expenditure in 2025 of €13.1 million (2024: €33.4 million). Approximately half of the 2025 expenditure related to the installation of a replacement web offset press following a fire at Walstead UK’s Bicester site, where the costs were covered by insurance proceeds, such that the underlying level of capital expenditure was €6.5 million. This lower underlying rate of investment is expected to be sustainable for the foreseeable future.

The Group employed 2,775 people at the end of the year (2024: 3,094).

Mark Scanlon, Executive Chairman of Walstead, commented: “Overall, we delivered a satisfactory result in 2025 against a challenging market backdrop. Our Central Europe and UK divisions performed particularly well and delivered increased EBITDA and strong profit margins, but the overall financial highlight is the significant reduction in our net debt and the strengthening of our balance sheet.

“The Group had a busy year including: managing the closure of two sites (one in each of Spain and Austria) as part of a rationalisation of less efficient capacity; integrating our Central Europe businesses into a single division (Walstead CE); and successfully implementing a comprehensive disaster recovery plan to minimise the impact on our UK customers and the business, when a fire severely damaged one of our presses at Bicester. I am pleased to report that the loss was fully covered by insurance, that the relevant insurance proceeds have been received, and that a replacement press was installed and fully operational by the end of the year. Also, in the UK, we secured a new three-year £20 million invoice discounting facility from Close Invoice Finance which has further strengthened our liquidity position.

“Since the year end, we have sold Rhapsody Group, which was our smallest, and only non-printing division – more details are below. Looking ahead to 2026, we expect lower revenue due to the sale of Rhapsody, but for the remaining print divisions we anticipate improved operating margins, a further significant reduction in external debt, lower leverage, and increased liquidity. Taken together, we believe Walstead is well positioned for continued progress in 2026 and beyond.”

Sale of Rhapsody

Walstead completed the sale of Rhapsody Group on 24 February 2026 to its management team led by Rhapsody’s CEO, Andy Berg. Rhapsody, whose principal operations are in London and Warsaw, provides digital creative and production services. The business generated a modest level of revenue in 2025 compared to the Group as a whole. The transaction simplifies the Group’s portfolio and supports an increased focus on its core printing operations and creates a strong partnership allowing Walstead to continue to offer a wide range of digital creative production services. Rhapsody’s Spanish operation based in Madrid did not form part of this transaction and will remain owned by Walstead Iberia.

Scanlon commented: “Rhapsody was our only non-printing business and our smallest division. As an independent company, Andy and his team will be well positioned to grow this service-orientated business. We look forward to continuing our close working relationship, as we share many customers across Europe.”

Ownership update

On 9 June 2025, Walstead announced that its majority shareholder, Rutland Partners, was undertaking a strategic review with a view to exploring a potential exit of its investment in the Group. AlixPartners was appointed to manage this review.

Following this review, and considering the Group’s significantly improved performance in 2025, Rutland has informed the Company of its intention to remain an investor in Walstead and that it will no longer be seeking to realise its investment in Walstead at this time. Consequently, the decision has been taken to discontinue the sale process for Walstead as a whole.

However, as part of the review process already undertaken, several parties have expressed an interest in acquiring certain non-core assets of the Group including certain freehold property. Walstead intends to continue to explore and assess these approaches where strategically appropriate. The Group’s core operations will not be affected, and these developments will not impact Walstead’s day-to-day operations or its commitment to its customers and suppliers.

Scanlon commented: “We have enjoyed an excellent relationship with Rutland since they invested in 2016, and I am delighted they will continue to support our strategy.”

Changes to the senior management team

The following changes reflect a planned and orderly succession process within the Group’s senior leadership team:

Ian Southerland, currently Group Finance Director, will assume the role of Group CFO on 1 April. Southerland takes over the position from Grant Murray, who joined Walstead in August 2024 on an interim basis with the task of re-organising the Group’s finance function, including the appointment of a permanent Group CFO. Murray will step down on 31 March but will remain on the board of the Group as an independent non-executive director.

Roy Kingston, Chief Operating Officer, will be leaving on 18 May. Kingston joined Walstead in 2009 and has been a key member of the senior management team during the period in which Walstead grew to become the largest commercial printer in Europe.

Following these management changes, the executive board of Walstead Group Limited will comprise Mark Scanlon, Executive Chairman; Ian Southerland, Group CFO; Grzegorz Czech, CEO Walstead CE; and Debbie Read, CEO Walstead UK and CEO Walstead Iberia.