Global Graphics PLC: Global Graphics Publishes 2020 Annual Report
and Financial Statements
PRESS RELEASE – REGULATED INFORMATION
GLOBAL GRAPHICS PUBLISHES 2020 ANNUAL REPORT AND
FINANCIAL STATEMENTS
Cambridge (UK), 18 March 2021 (08.00
CET): Global Graphics PLC (Euronext: GLOG) announces that
it has published its annual report and financial statements for the
financial year ended 31 December 2020.
The full document is available to download from
the investors section of the Company’s web site at:
https://investor.globalgraphics.com/investors/financial-reports.
Should you wish to receive printed copies please
send an e-mail to investor-relations@globalgraphics.com or make
your request in writing, for the attention of the Company’s Chief
Financial Officer, to 2030 Cambourne Business Park, Cambourne,
Cambridge, CB23 6DW, UK.
Mike Rottenborn, Global Graphics CEO comments,
“On behalf of the Board of Directors and the management team, I’m
pleased to publicly announce our 2020 results. I began the
year as the new CEO shortly before the world was engulfed in the
global pandemic and this presented significant challenges, but
every Global Graphics employee pulled together to deliver
uninterrupted innovation on behalf of our customers and very strong
results for our shareholders.
“Four events deserve special mention.
First, the revenue in our Printhead Solutions segment increased by
43% over the same period in 2019 as Meteor’s industrial inkjet
customers continued building ever-larger printers. Second, we
were able to conclude the sale of our URW Type Foundry business to
Monotype in May, a good outcome for all parties. Third,
Global Graphics Software received a prestigious Queen’s Award for
Enterprise for our innovative products in inkjet screening and
quality. And finally, we concluded the year by announcing the
purchase of HYBRID Software, which will open up many new
opportunities for Global Graphics in the fast-growing labels and
packaging segments.
“Although the pandemic is far from over, we see
the recovery beginning for many of our OEM customers, and Global
Graphics is on a very strong footing to support them throughout
2021 and beyond.”
Global Graphics Chairman Guido Van der Schueren
adds, “The pandemic changed many things, but it did not slow the
pace of innovation by either Global Graphics or HYBRID Software,
and it’s exciting to see the integration taking place following the
acquisition of HYBRID Software. This is transformative for
Global Graphics, nearly doubling the headcount and revenue of the
group and putting it in a much stronger position to lead the
digital transformation in labels and packaging as well as other
industrial inkjet segments. This is a new and improved Global
Graphics now, and I and the rest of the Board are committed to
sharing this vision over the coming months with the investor
community for the benefit of all shareholders.”
Financial highlights
In May 2020, the Group sold its entire Fonts
segment following a strategic decision to focus on the industrial
printing market and focus on the Group’s core competencies of
printing software and device electronics. As a result, 2019
comparatives have been re-presented to differentiate financial
results between continuing and discontinued operations.
For the year
ended 31 December |
In thousands
of euros |
2020 |
2019 |
Continuing
operations |
|
|
Revenue |
22,494 |
18,478 |
Operating profit/(loss) |
1,387 |
(131) |
Profit/(loss) before tax |
1,693 |
(515) |
Tax |
58 |
144 |
Profit/(loss)
from continuing operations |
1,751 |
(371) |
Discontinued
operation |
|
|
Profit from discontinued operation, net of tax |
4,167 |
823 |
Profit for the year attributable to equity
holders |
5,918 |
452 |
|
|
|
EBITDA - continuing operations |
4,711 |
2,592 |
|
|
|
Adjusted operating profit – continuing operations |
2,355 |
1,090 |
Adjusted net profit – continuing operations |
2,522 |
671 |
|
|
|
Basic earnings/(loss) per share (euro) – continuing
operations |
0.15 |
(0.03) |
Adjusted earnings per share (euro) – continuing operations |
0.22 |
0.06 |
|
|
|
Available cash |
6,855 |
4,995 |
The consolidated pre-tax result for continuing operations was a
profit of €1.69 million compared with a loss of €0.52 million in
2019. The increase in profitability of €2.21 million is due
to:
-
an increase in revenue of €4.02 million;
-
an increase in cost of sales of €1.80 million;
-
an increase in selling, general and administrative expenses of
€0.88 million;
-
a decrease in research and development expenses of €0.22
million;
-
an increase in other operating expenses of €0.04 million;
-
an increase in net finance expenses of €0.02 million; and
-
an increase in foreign exchange gains of €0.71 million.
Revenue for the Software segment included a full
year of sales by Xitron and totalled €12.67 million for the year
(2019: €11.61 million). The segment benefited from a contract
amendment with an existing customer that resulted in €2.30 million
of revenue being recognised, which is not expected to be
recurring. In 2019 a different customer exercised an option
in their contract which resulted in €2.0 million of revenue being
recognised in that year.
Revenue for the Printhead Solutions segment was
€9.82 million for the year (2019: €6.87 million). The top
three customers that declined significantly in 2019 recovered
during the year and accounted for €2.75 million of the €2.95
million increase in revenue, with the largest customer accounting
for €2.33 million of the increase.
Gross profit for the period declined to 76.7% of revenue (2019:
81.3%), primarily due to the higher proportion of driver
electronics revenue which generates a lower profit margin than
software sales.
Included in selling, general and administrative expenses is
amortisation of €1.48 million (2019: €0.77 million) related to
intangible assets recognised as a result of acquisitions for
continuing operations. The increase in the year is due to a
full year of amortisation of the intangible assets acquired with
the Xitron acquisition. Due to the reduction in share-based
awards over the previous years, the share-based payment expense
reduced significantly from €152,262 in 2019 to €2,595 in 2020.
Included in research and development expenses
(“R&D”) is the capitalisation and amortisation of internally
generated intangible assets. During the period there was a
net capitalisation of €0.72 million (2019: €0.13 million net
amortisation expense) related to these assets helping to reduce the
R&D expense for the year. The net capitalisation (2019:
expense) was comprised of €0.65 million (2019: €1.44 million) in
amortisation charge offset by €1.37 million (2019: €1.31 million)
in capitalisation of development expenses.
The exchange rate losses are primarily due to
the revaluation of currency balances held at the balance sheet date
and the change in exchange rates during the year.
The Group presents EBITDA (earnings before
interest, tax, depreciation and amortisation) and adjusted profit
when reporting its financial results to provide investors with an
additional tool to evaluate the Group’s results in a manner that
focuses on what the Group believes to be its underlying business
operations. The Group’s management believes that the
inclusion of adjusted financial results provides consistency and
comparability with past reports.
Additional commentary and analysis of the
Group's consolidated results for the year ending 31 December 2020
can be found in the annual report and financial statements.
Annual General MeetingThe
Company expects to hold its annual general meeting on Thursday 6
May 2021. The official notice of the meeting will be issued
in accordance with applicable legal and regulatory requirements
closer to the time.
About Global Graphics PLC
Through its operating subsidiaries, Global
Graphics PLC (Euronext Brussels: GLOG) is a leading developer of
integrated hardware and software solutions for graphics and
industrial inkjet printing. Customers include press manufacturers
such as HP, Canon, Durst, Roland, Hymmen and Mark Andy.
Global Graphics PLC is headquartered in Cambridge UK. Its
subsidiary companies are printing software developers Global
Graphics Software; the industrial printhead driver solutions
specialists, Meteor Inkjet; pre-press workflow developers Xitron
and enterprise software developer HYBRID Software.
Contacts
Jill
Taylor |
Graeme Huttley |
Corporate Communications
Director |
Chief Financial Officer |
Tel: +44 (0)1223 926489 |
Tel: +44 (0)1223 926472 |
Email: jill.taylor@globalgraphics.com |
Email: graeme.huttley@globalgraphics.com |