Global Graphics PLC: Publication of 2019 annual report and financial statements
11 Marzo 2020 - 8:00AM
Global Graphics PLC: Publication of 2019 annual report and
financial statements
PRESS RELEASE – REGULATED INFORMATION
GLOBAL GRAPHICS PUBLISHES 2019 ANNUAL REPORT AND
FINANCIAL STATEMENTS
Cambridge (UK), 11 March 2020 (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 2019.
The full document is available to download from
the investors section of the Company’s web site at:
http://www.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,
“As forecast, profitability was lower in 2019 due to investment in
additional personnel and new product development. Revenue
declined more than expected, primarily due to a slowdown in ceramic
tiles and industrial printing that adversely affected our Printhead
Solutions sales. For 2020, we look for continued growth in
our Software segment fuelled by tighter integration between Global
Graphics Software and Meteor Inkjet, as well as the late-2019
acquisition of Xitron, our largest reseller partner. We have
started to see some recovery in industrial printing for 2020,
although it is too early to estimate the impact of the coronavirus
outbreak on this segment and the overall business.”
Financial highlights
For the year
ending 31 December |
In thousands
of euros |
2019 |
2018 |
Change |
|
|
|
|
Revenue |
22,508 |
23,922 |
(1,414) |
Operating profit |
983 |
2,808 |
(1,825) |
Profit before tax |
721 |
2,873 |
(2,152) |
Tax expense |
(269) |
(504) |
235 |
Profit for the year attributable to equity holders |
452 |
2,369 |
(1,917) |
|
|
|
|
EBITDA |
4,377 |
5,720 |
(1,343) |
|
|
|
|
Adjusted operating profit |
2,666 |
4,759 |
(2,093) |
Adjusted net profit |
1,819 |
3,981 |
(2,162) |
|
|
|
|
Basic earnings per share |
0.04 |
0.20 |
(0.16) |
Adjusted earnings per share |
0.16 |
0.34 |
(0.18) |
|
|
|
|
Available cash |
4,995 |
5,650 |
(655) |
The consolidated pre-tax result was a profit of €0.72 million
compared with a profit of €2.87 million in 2018. The
reduction in profitability of €2.15 million is due to:
- a decrease in revenue of €1.41
million;
- a decrease in cost of sales of
€0.69 million;
- a decrease in other income of €0.02
million;
- an increase in selling, general and
administrative expenses of €0.77 million;
- an increase in research and
development expenses of €0.29 million;
- an increase in other operating
expenses of €0.02 million;
- an increase in net finance expenses
of €0.15 million; and
- an increase in foreign exchange
losses of €0.18 million.
Revenue for the Software segment totalled €11.61
million for the year (2018: €9.98 million). The segment
benefited from non-recurring revenue of €0.32 million from a new
customer and a contract amendment with an existing customer that
resulted in €2.00 million of revenue being recognised, which is
also not expected to be recurring. Additionally, €0.71
million associated with the acquisition of Xitron, LLC from 1
November 2019 contributed to the segment’s revenue.
Revenue for the Printhead Solutions segment was
€6.87 million for the year (2018: €9.20 million). Revenue
from existing customers was lower by €2.97 million and was offset
by revenue from new customers of €0.64 million. The top three
customers in the segment accounted for €2.66 million of the decline
in existing customers, of which €0.68 million was non-recurring in
2018. Two of these customers are in China and one is in the
United States.
Revenue for the Fonts segment was €4.03 million
for the year (2018: €4.75 million). Included in the year was
€0.78 million of non-recurring licence revenue (2018: €1.58
million).
Gross profit for the period has improved to 81.0% of revenue
(2018: 79.3%), primarily due to the higher proportion of software
revenue which generates a higher profit margin.
Included in selling, general and administrative
expenses is amortisation of €1.23 million (2018: €1.16 million)
related to intangible assets recognised as a result of acquisitions
and €0.15 million (2018: €0.31 million) related to share-based
payment expenses.
Included in research and development expenses is
the capitalisation and amortisation of internally generated
intangible assets. During the period there was a net expense
of €0.13 million (2018: €0.36 million) related to these
assets. The net expense was comprised of €1.44 million (2018:
€1.41 million) in amortisation charge offset by €1.31 million
(2018: €1.05 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 2019
can be found in the annual report and financial statements.
Annual General MeetingThe
Company expects to hold its annual general meeting on Thursday 30
April 2020. The official notice of the meeting will be issued
in accordance with applicable legal and regulatory requirements
closer to the time.
About Global Graphics
Through its operating subsidiaries, Global
Graphics PLC (Euronext Brussels: GLOG) is a leading developer of
platforms for digital inkjet printing and type design and
development. Customers for digital inkjet technology include press
manufacturers such as HP, Canon, Durst, Roland, Hymmen and Mark
Andy. Those for font design include numerous international
brands, from manufacturers such as Mercedes Benz and Siemens, to
digital media and epublishing companies. Global Graphics PLC
is headquartered in Cambridge UK. Its subsidiary companies
are printing software developers Global Graphics Software; the type
foundry, URW Type Foundry, and the industrial printhead driver
solutions specialists, Meteor Inkjet; and the pre-press software
specialists Xitron.
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 |