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Case Study: Morgana Systems: from distributor to innovator and market leader

Based in Milton Keynes, Morgana Systems is the UK’s leading manufacturer and supplier of digital finishing equipment such as paper folders, collators, creasers and binders. Their factory produces more than 4,000 finishing products each year, with over 85% of their products destined for rapidly growing export markets.

Celebrating its 40th birthday in 2018, Morgana Systems has maintained its position at the forefront of the industry through maintaining an awareness of market developments, responding quickly to trends and tailoring its products accordingly.


From distributor to innovator

In 1978, Morgana Systems was set up by Andrew Webster and Paul Garratt who identified an opportunity to distribute equipment for the UK post-press market. A few years later, with a growing understanding of the fast-changing market, the team saw the need to create a new product for a niche they noticed in the folding sector. Their first product, the ‘Morgana UFO’ folding machine, was released in 1983 and proved superior to anything in their sector, with a price far lower than similar folders from the bigger names. Ever since Morgana Systems has been innovating and creating new products to meet the needs of its customers.


Going digital

When the market changed and digital became prevalent, yet again Morgana Systems was required to adapt its product line to fit with this development. Creasing and folding were heavily affected, so Morgana released the AutoCreaser in 2000, which was the first automated means of creasing digital output prior to folding. It was here that Morgana pursued their first Patent against their ‘blade-and-matrix creasing method’ which was to be used in all subsequent creasing products.

Then, to address the issues which arose around folding, where Morgana noticed that traditional folders which used buckle plates and folding knives could mark the delicate digital substrates. The issue was solved by the invention of Morgana’s patented ‘flying knife’ technology which prevents sheets from stopping during the folding process.


A return for investing in innovation

Morgana’s regular innovation – through both advancement of existing products and the creation of new products – is what keeps them at the forefront of their industry. This is a common theme for all our clients and most businesses innovating in the UK – yet surprisingly, many businesses still aren’t taking advantage of government funding schemes like R&D tax credits and Patent Box.

We were able to help Morgana Systems recover some of its investment in R&D as well as taking advantage of the Patent Box scheme. Here a new and patented ‘synchronisation’ technology produced a revolutionary product, launched in 2002, which combined creasing and folding technology – the first of its kind. Combining Patent Box and R&D tax credits significantly enhances the total benefit available, where possible, when making tax relief claims.

Revenue generated from these claims helps us to maintain the profitability of the company – as well as keeping the owner happy, which is essential. This then allows us to continue to invest in R&D and develop new products.

Ray Hillhouse General Manager, Morgana Systems

Why work with an expert?

Ray’s experience is that everything is easier when working with MPA – because we understand exactly what qualifies for both R&D tax credit scheme as well as Patent Box, and can ensure the two schemes are applied correctly. Whilst each scheme individually can be quite complicated, which is often a barrier to smaller businesses making a claim, we pride ourselves on making things simple for our clients.

We are happy to pay MPA’s commission knowing that their expertise will result in us getting the correct amount of credit!

Ray Hillhouse General Manager, Morgana Systems

So, if your business is developing new products or services, get in touch today to talk to our team about ways you could be rewarded for your efforts.