Cambridge (UK), 26 July 2016 (18.00 CEST): Global Graphics SE (Euronext: GLOG) announces it has published its half year report and condensed consolidated interim financial statements for the six months ended 30 June 2016. The full document is available for download from the investors section of the Company’s website at: http://www.globalgraphics.com/investors/financial-reports
Financial highlights of the six months ended 30 June 2016
- Sales for the period were €8.48 million, compared with €8.39 million for the same period in 2015.
- The pre-tax result was a profit of €1.04 million for the period, compared with a profit of €2.08 million for the same period in 2015.
- The net result after tax was a profit of €1.16 million for the period, compared with a profit of €2.66 million for the same period in 2015.
- Basic earnings per share was €0.10 compared with a basic earnings per share of €0.26 for the same period in 2015.
- Cash and cash equivalents reduced by €0.94 million during the period to €3.29 million.
- The Company’s measure of adjusted operating profit showed a profit of €1.99 million for the period, compared to a profit of €2.98 million for the same period in 2015.
Operational highlights of the six months ended 30 June 2016
- Casio Computer Co., Ltd chose the Harlequin Embedded RIP to enhance their Japanese office colour printer SPEEDIA GE6000 by adding native PostScript® and PDF.
- A strategic business relationship was signed with Roland DG, a leading manufacturer of wide-format inkjet printers and cutters.
- Harlequin version 11 was released.
- Think Laboratory chose the Harlequin RIP to drive a new generation of aqueous inkjet printers that will print onto plastic film for applications such as short-run food packaging.
- The Company continued working jointly with Hybrid Software, notably by integrating Hybrid’s Cloudflow into a new offering called Fundamentals which is targeted at inkjet press manufacturers to help them overcome technical hurdles and reduce time to market when developing a new press.
- The Company was part of the drupa innovation park at the drupa trade show in Dusseldorf, Germany, where it unveiled its Fundamentals proposition to press manufacturers. The proposition resonated well, in particular our new multi-level screening technology. The objectives of acquiring new leads and creating awareness of Fundamentals was achieved.
- At the drupa trade show, RTI was based on the OKI stand and demonstrated Harlequin Direct Print driving the leading-edge OKI C941 and C942 digital production colour printers. A time-limited copy of Harlequin Direct Print is being shipped by OKI Europe with each C941 and C942 that is sold.
UK referendum to leave the European Union
On 23 June 2016, the population of the UK voted on a referendum to leave the EU (“Brexit”). While there will be no immediate change to the Group’s corporate structure and financial reporting requirements, the board will monitor events to determine how the Group will be affected over the long term. Other than the general macro-economic environment over which there is no control, it is the board’s view that it will be business as usual for the coming months. The potential volatility of exchange rates, particularly the weakness of sterling against the euro, may have a positive effect on the Group’s reported profitability, but a negative effect on the Group’s asset value when translated to euros.
The Group does derive revenue from EU member states. During the year ended 31 December 2015, 4.0% of the Group’s revenue was from EU member states, excluding the UK. For the 6 months ending 30 June 2016, EU member state revenue, excluding the UK, was 10.1% of the Group’s total revenue, with 4.4% of that generated by the Company’s subsidiary in Germany.
A longer term risk is that the UK will no longer recognise a Societas Europaea (“SE”) as a legal entity. To mitigate this risk the board will start the process to convert the Company from a UK registered SE to a UK registered public limited company (“PLC”) and for shareholders to vote on that change at the Annual General Meeting in 2017.
The board is committed to the Company’s listing on Euronext Brussels and has no plans to change the listing or the reporting currency.
About Global Graphics
Corporate Communications Director
Tel: +44 (0)1223 926489
Chief Financial Officer
Tel: +44 (0)1223 926472